By Terry Oparka
C & G Staff Writer

TROY — Despite pleas from school district support staff, teachers, parents and others, the Troy Schools Board of Education took the first step to privatize support services at a packed April 21 meeting.

The board voted unanimously to accept the bid from First Student to provide transportation services. The company is based in Scotland, with operations in Cincinnati. Their three-year base bid was $3.26 million annually.

Harry Sahourieh, president of the Troy Educational Support Personnel Association, said that he and district officials had been in lengthy negotiations over the two weeks prior, and up to 2 p.m. April 21.

He said the union offered to take 10 percent pay cuts and operate on a two-tier wage and benefits system. “We want to know what they’re looking for,” he said. “They haven’t given us a number.” He added that the union would continue to negotiate with district officials to save food service, grounds and janitorial positions. There are seventy-seven positions  in the transportation services department.

Troy School District Communications Director Tim McAvoy said that the union had been involved in the bid process and was aware of the privatization savings — $2.5 million over three years, not including the insurance costs and the $7.6 million value of the fleet of 90 buses. 

McAvoy noted that the current fleet of buses will not be sold and that any successive contract for transportation services will be capped at a 3 percent increase. 

A number of parents expressed concern for their children’s safety if a private group provides transportation services. “I want to know a member of the community is driving my baby to school,” said Troy resident Kara Kneale, a graduate of Troy High School.

McAvoy said that First Student has indicated that they would retain the existing transportation staff at the same wage and would offer the employees health insurance, including major medical insurance. In addition, the district will offer those employees who opt not to accept employment with First Student assistance through the Michigan Works program, McAvoy said.

Board President Carol Pochodylo said that safety would never be compromised for savings.

“This is painful,” she said. “I assure you the board has spent hours considering every possible option.”

McAvoy said that First Student maintains all district standards of screening employees and maintaining the transportation fleet, and has additional maintenance resources.

Board member Gary Hauff read from a statement and said the action came after a double-digit drop in property values resulting in reduction of tens of millions of dollars in tax revenue. He explained that the rainy day fund — currently $18.89 million — is a safeguard against unforeseen emergency expenditures and is needed to maintain the district’s bond rating. 

Longtime Board member Ida Edmunds, also reading from a statement, said that the decision to privatize transportation services was not a reactionary move, but was given “grave consideration.”

“We’ve contemplated, postponed and dreaded this move for at least five years,” she said. Since 2002, the district has used $17.781 million in fund equity. The district plans to use $7.899 million from reserve funds to balance this year’s budget.

In a letter sent to parents earlier this year, Superintendent Barbara Fowler said that the district has addressed a $42.8 million shortfall from the state since the 2002-2003 school year and the state does not allow the district to have millages for operating expenses. “We are locked into the amount they give us.”

Members of the audience booed the board and stood in groups overcome with emotion after the decision.

Sahourieh said he was surprised that Assistant Superintendent for Business Services Mike Adamcyck didn’t include the impact on the concessions the union offered in a revised five-year budget forecast presented to the board that included reductions, but no privatization.

The report, based on 80 early retirements of teachers, no foundation allowance increase from the state, 4 percent hikes in health insurance costs, no salary increases, and a $3.7 million budget reduction in the 2009-2010 budget year, projected a $10.9 million deficit in the current school year, a $339,772 deficit in the 2009-2010 school year, a $5.6 million deficit in 2010-2011, and $6.98 million deficit in 2011-2012.

“Board members had their speech in their hands,” he said. “The decision was made. It was a done deal a long time ago.”

“We will continue to negotiate with the union for the other support services,” McAvoy said. “We don’t have control over the foundation allowance, only expenditures,” he said. “This was a very difficult decision. The district looked at every avenue available to reduce costs and use shrinking resources to maintain instructional levels.”

You can reach Staff Writer Terry Oparka at toparka@candgnews.com or at (586) 498-1054.