SEARCHING FOR EFFICIENCIES THROUGH THE CONSOLIDATION OF NON-INSTRUCTIONAL SERVICES IN MICHIGAN K-12 PUBLIC SCHOOLS

Abstract

One important source of creating school efficiencies has been the consolidation of non-instructional support services with another educational entity. In Michigan, as state financial resources have dwindled, so has fiscal support of schools. This has forced districts to examine alternative ways to educate students and provide services. In K-12 districts, the search for financial efficiencies often begins with examining the costs of district-level support services, including administration, business office, and custodial services. Staffing creates the largest expense for educational institutions, yet there has been limited investigation into the size and cost of staffing for the non-instructional services subject to possible service consolidation. Using data available from Michigan databases, the study analyzed relationships between staffing levels and common district characteristics of enrollment, foundation allowance, per pupil expenditures by function, per pupil wages by function, and per pupil benefits by function. The study used a combination of descriptive statistics, correlational analysis, cross-sectional regression analysis, and fixed effects regression analysis to determine which model variables had influence on staffing, along with whether staffing levels could be estimated. This study also examined the impact consolidation of support services had on these same variables and the models’ estimation ability. The study found that several of the model variables had influence on staffing in both consolidated service and non-consolidated service arrangements. The models’ estimation abilities appeared successful in non-consolidated service arrangements, but the results were less dependable when only examining districts with consolidated service arrangements.