BA: Outsourcing Custodians Would Cut Benefit Costs

Any savings the Madison school district could see from outsourcing custodial services would come from items in the budget for pension and health benefits for current employees, district business adminsitrator Gary Lane said during a budget presentation this week.

Money budgeted for salaries would go to an outsourcing company to have about 15 additional custodians working in the schools, which some officials say is needed after staff was reduced amid budget cuts, he said.

Lane provided those answers in response to a question from an atendee during a presentation on the district's 2012-2013 budget after Wednesday's Board of Education meeting.

The adopted budget includes salaries and benefits for the existing 20 custodial staff members.

Lane said any savings could help fund other things, though the amount of any savings that can be used in the first year is limited. Specific dollar amounts weren't given.

"That's the question that's in front of the board," he said. Board members said discussion on the outsourcing issue should be held during the board's Tuesday, May 8, meeting, when it will be considered more in depth.

The Board of Education is considering scenarios where the district could go from 20 to 35 custodians, including keeping six in-house staff members as Board of Education employees, Lane said.

In response to a question about pension payments, Lane said three of the 20 custodians have more than 25 years in the pension system and are over 55 years old, meaning they can retire with full benefits. Another three employees are close to that point, with each about a year away from being able to retire with full benefits, he said.

He said has a program to reach out to any employees who would lose their jobs to see about hiring them.

The company says the employees may earn less money, but would still be gainfully employed and would still have health benefits, Lane said.