December 03, 2008
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New Jersey school districts seek to share services


In an effort to stretch their financial resources, some New Jersey school districts are seeking out neighboring districts to share services. Kenilworth School District's (KSD) business administrator Vincent Gonnella and other district officials have conducted "brainstorming" sessions with officials from neighboring districts. Among the areas they identified for sharing are textbook and computer purchases, professional development, and use of facilities for speech, physical, and occupational therapy. Mr. Gonnella points out that joint purchase of textbooks and computers would allow the districts to get more favorable pricing. However, in order to take advantage of some savings the districts would have to agree to a common textbook and a common school calendar. State officials are encouraging smaller districts to share services to control costs and benefit from economies of scale. Other services that have lent themselves to sharing are transportation and purchase of insurance and energy. KSD is part of the coordinated county transportation services and also participates in the self-insurance provided by the New Jersey School Boards Association Insurance Group. Governor Jon Corzine has announced that shared services among school districts and municipalities would become a key element in controlling government spending. Both the New Jersey School Boards Association (NJSBA) and the New Jersey Department of Education (NJDOE) have developed strategic plans to enable districts to explore financial efficiency and shared services. A 2002 NJDOE study concluded that economies of scale resulting from shared services by a larger number of districts would be beneficial.
      Other New Jersey school districts are saving money by sharing a superintendent. Robert Bazzel, superintendent of Salem County's Alloway and Upper Pittsgrove townships, faces a demanding schedule. "One of the biggest challenges is having two boards, with a total of 18 board members to answer to," he says. "Also, we had teacher negotiations in both districts this year, so that was fun, too. It's a lot of nights out ... This is a way for us right now that saves money for taxpayers and there's only one person who is running around like crazy." At least 20 school districts statewide share a superintendent. Districts feeling the squeeze of rising costs and balking taxpayers have found this can maintain New Jersey's sacred home rule while saving on administrative costs. For most, the decision came when one district's superintendent either retired or left. However, not all districts that have tried such arrangements have stayed the course. According to NJSBA spokesman Mike Yaple, at least four walked away from the practice, dissatisfied at the loss of full-time leadership. Two other boards considered but rejected the idea out of concern for "losing the small town personal touch and customized programs." But in many cases, opening the dialogue to a shared superintendent has resulted in other shared service agreements.

LocalSource.com
By Jerome Hule
[Link to full story]

Daily Record
By Laura Bruno
[Link to full story]

[Editor's Note: According to Mr. Yaple, NJSBA's long range plan calls for creation of an ad hoc task force to review laws regarding shared services, gather data, and make best-practices recommendations, as well as for a shared services handbook, board training on the issue, and an online clearinghouse with examples of shared services. The NSBA newsletter below features an article by former NSBA attorney Ed Darden on inter-district collaboration as an alternative to closings and consolidations.]
[Leadership Insider on closings and consolidations]
 
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