MSBSD looking into outsourcing custodial and food services

PALMER — Facing an expected deficit of nearly $10 million for fiscal years 2018 and 2019, along with an anticipated $11.2 million deficit in fiscal year 2020, the Matanuska-Susitna Borough School District's (MSBSD) Board of Education is considering outsourcing custodial and/or food services starting next school year.

At the board's Feb. 1, meeting, trustees approved the administration's suggestion of moving forward on request for proposals (RFP's) on both services on a 4-3 vote. According to district administration, outsourcing custodial services could result in an annual savings between $1.1-$3.7 million. The district's custodial workforce is comprised of 121 full-time equivalent positions.

Administration officials said contracting out food services would save approximately $700,000 and affect its 74 full-time employees. Based on fiscal year 2016 figures, the district subsidized its food service budget in the amount of $671,000. Stone said outsourcing the service would result in an approximate $116,000 surplus.

During a mid-January board meeting presentation, MSDSB Superintendent Gene Stone reviewed a comparison of Mat-Su and Sitka districts to base possible savings. Sitka was chosen based on similarity of area cost differentials as determined by the state's Department of Education and Early Development. Stone also refererred to an MSBSD 2006 outsourced custodial contract--adjusted for inflation, which could have been renewed in 2010.

Facing a $5.8 million budget deficit in 2006, the school board voted 4-3 to outsource custodial services awarding a three-year contract to NANA Management Services (NMS). Implemented July 1, 2006, the contract was estimated to save the district $1.6 million annually. The district requested RFP's the previous December and laid off all employed custodians.

The decision was highly controversial with concerns centered mainly around the impact the move had on those facing job elimination. Stone said even in light of strong opposition, the board's decision was attributable because of district's fiscal situation and the projected deficit amount.

"Given the fiscal environment, it is incumbent upon administration to evaluate all measures to assist with the District's structural deficit. Based on the financial analysis prepared, there is enough evidence to suggest that outsourcing custodial services and food services could result in a significant savings to the district," Mat-Su Assistant Superintendent Luke Fulp stated. He said at a late January session nailing down an exact number at this point is not possible. "The only way to do that is to issue an RFP to see what the market would generate. At this point this is just our best estimate."

Reviewing a number of possible cost savings alternatives at a Jan. 18 regular board meeting, Fulp showed the anticipated effect of everything from increasing class sizes and reducing staff, to reduction in program costs and looking at school closures; in addition to the two outsourcing options. The district has outsourced student busing needs for some time.

At the board's Feb. 1 meeting, Stone said he, Fulp and other administrators met with custodial and food services group late last month and presented the rationale for examining outsourcing options.

The administration noted that at this point, the district is just putting out feelers. A request for proposal is nothing more than that, they said. However, Fulp and Stone both reviewed a proposed timeline should the process move forward. That timeline includes a March 15 date for opening custodial RFP's and March 20 as a an intent to award contract date. Food service RFP's are scheduled March 22 opening with an intent to award date set for March 27.

If the process continues moving forward, April 19 is the scheduled date for action on the custodial contract while a decision on the food services contract would take place on May 3. Contracts would be executed June 1 and go into effect July 1.

At the recent board session, Classified Employees Association (CEA) President Karen Salisbury said many members were shocked that they are the target for budget savings. She does not believe outsourcing would provide the same level of service. Salisbury said the possibly affected employees make connections with students and she has a deep respect for education support professionals. The union president noted the board has honored these employees in the past and that they help prepare students for success. Salisbury said contracted labor is not what is best for the community. Other comments referred to a failed attempt in 2006 at outsourcing, while others said the board should consider "taking a bite from all" rather than focusing on one or two groups. Jackie Jaskuloski , a central kitchen employee noted current district kitchen staffers are trained and certified in food safety. She expressed concerns about standards if the program is outsourced. Others noted the employees that will be affected are part of the school community. Student Advisory Board representative Andrea Wagner said students spent half of a recent meeting talking concerns of losing the custodial and food service staff. Wagner said students understand the budget and what will get cut, but added the affected staff are part of the school family.

Contact reporter Chris Ford at 352-2270 or

chris.ford@frontiersman.com