‘Critical mass:’ School board tables vote on privatized custodial services

PALMER — An animated crowd packed the Mat-Su school board meeting room Wednesday evening, believing the body would vote on awarding a contract to privatize district custodial services. However, minutes into the 6 p.m. start, board members unanimously tabled the motion until their May 3 meeting.

Facing an $11 million shortfall for the upcoming school year budget, the board agreed to seek bids to hand over custodial services to a private enterprise earlier this year. At Wednesday's meeting, it was expected to approve a three-year contract award to NANA Management Services, LLC. Before the meeting's agenda was even approved, trustee Ray Michaelson moved to table action, with a second from Ole Larson.

Board President Donna Dearman stated there would be no public comment or questions directed to the board on the topic which, when public comment came up on the agenda, brought ire from some in the audience. Some told the board that they were stunned by the move, questioned it and asked that trustees explain why the motion to table was made. Others felt the modified bid process could open the district up to a possible lawsuit, which might prove more costly in the long run than any derived savings from privatization.

As the meeting progressed, it became more clear why the board took the action that it did. Newly appointed superintendent Monica Goyette said she did appreciate the fact that board members agreed to take additional time before acting on awarding the bid even though it may be inconvenient for the public. She told the audience that the borough assembly didn't increase its contribution to the district as requested and the state legislature still has to adopt a balanced budget. One area of cuts under consideration is school funding.

"We still have a lot of unknowns in the budget," Goyette stated in her board report. She said every one percent cut in state base student allocation (BSA) is $2 million less for the district. "We have asked for a six percent increase from the assembly...in that there was a zero percent increase...we still have a lot of unknowns."

Assistant Superintendent Luke Fulp followed that with a PowerPoint presentation painting a possibly even bleaker picture for the district. He said based on the most current information, which remains in flux, the $11.2 million projected shortfall which the board balanced through approximately $9.5 million in cuts along with anticipated increased borough support, would be the best outcome.

Going through the dollars and cents from both the borough and state, Fulp reviewed what full-funding and discussed reductions would mean to the district. Included were anticipated scenario combinations using full, partial and no local funding increases and full and a 5 percent state reduction in BSA levels. The results worked out to the current balanced budget to an additional $12.5 million shortfall.

Fulp noted with the current budget, the district eliminated 88.5 full time employee (FTE) positions. Depending on borough and state contributions, the district could see an additional 1.5 to 101.5 additional FTE layoffs. Fulp explained he used a classroom teacher's salary and benefits average of $94,415 as one FTW. The financial shortfall would range from an additional $1.7-$12.5 million, depending on how the puzzle is solved.

"We're not presenting this as scare tactics by any means," Fulp said following his presentation, "these are real scenarios."

Larson asked whether the borough indicated why there was no additional district funding. Goyette said it comes down to revenue. She said both the borough and state lack it, adding the district plans to actively pursue a local sales tax to fund education. Any possibility of that tax must be approved by the borough assembly first before being brought to the public for final approval.

"Everybody has spent their reserves," said Goyette. She went on to say the district is at a tipping point. "We are already the leanest district in the state...we really are at a critical mass...so we have to ask ourselves as a community what jobs are we going to cut?...what is our business? Our business is kids."

Most of the board commented on the current financial woes facing the district, Dearman's closing comment included. She prefaced it stating parents, district staff and administrators are like a family.

"As a family we have one goal...to help the students. Right now we have to work together as a family. We know though as a family, it's inevitable that cuts are going to happen... cuts equals people, and that's the sad reality of it all. We have to speak up. We have to make sure we are heard. We have to speak up to the legislature. We have to speak up to our assembly members. We have to be a loud voice as a family because our students are depending on us," Dearman said. "Please make sure we are heard...the students are counting on us."

The board was scheduled to hold its May 3 meeting at Sutton Elementary School. However, given the importance of possible adopting the custodial services contract, the group agreed to attempt holding its regular May 17 meeting in Sutton.