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The Six Habits of Fiscally Responsible Public School Districts

Eric Osberg
12.18.2002

Kirk A. Johnson, Ph.D., and Elizabeth H. Moser
Mackinac Center for Public Policy
December 2002

This report by the Michigan-based Mackinac Center for Public Policy identifies six ways school districts-some of which spend over half their budget outside the classroom - can save money without laying off teachers. The recommendations are sound if mostly obvious: minimize administrative costs; out-source non-instructional services; cut back on overly generous health plans; structure capital costs effectively; and reform collective bargaining. The authors also make a not-too-subtle bid for increased school choice as a means of spurring competition and efficiency. Although they provide only anecdotal evidence of cost savings based on Michigan's experience with "schools-of-choice," their argument is convincing. It will be a challenge, however, to convince administrators around the country that a partial solution to their budget woes may be to lobby for greater choice in their districts - not that the other recommendations will prove easy to implement, either. This report can be found at http://www.mackinac.org/4891.

Tags: Michigan

Eric Osberg is the Director of Finance and Operations at the in Bethesda, Maryland, a Catholic, independent college preparatory school for girls, serving students from Pre-K–12.

From 2002 to 2010, Osberg served as the Vice President and Treasurer of the Thomas B. Fordham Institute and was also a Research Fellow at the Hoover Institution. He was primarily responsible for financial and managerial issues at…

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