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Districts consider shared service to save money


By Jerome Hule, Staff Writer
Published:
Wednesday, July 12, 2006 7:31 PM CDT
KENILWORTH, NJ - The Kenilworth school district has initiated talks with three other towns on a shared-services arrangement for cost-effective and economical use of their resources.

School Business Administrator Vincent Gonnella informed the school board Monday that district officials have conducted a “brainstorming” session on shared services with Garwood, Mountainside and Winfield.

He said areas in which the four districts could share services include the purchase of textbooks and computers, professional development and the use of facilities in speech, physical and occupational therapy. For instance, he said, the districts could get more favorable pricing when they jointly purchase computers and textbooks.

Joint purchase of textbooks would require the four districts to agree to use common textbooks, he said, adding that the districts would also  have to agree on a common school calendar. Right now all the calendars of all the school districts are the same, Gonnella said.


In another area, he said Kenilworth could also make available to the other school districts openings in its classes for for speech, occupational and  physical therapy.

The state government has encouraged small school districts to share services as a way of controlling costs and benefitting from economies of a similar scale. Gonnella said the three other districts fall under the category of small school districts, which are defined as  districts with less than 100 students per class level. Kenilworth, however, falls at the higher end of the class-size limit, he noted.

New Jersey’s school districts have been involved in shared services in different areas, including transportation, purchase of insurance and energy, and other services. The Kenilworth School District is part of the coordinated county transportation services. It also participates in the self-insurance provided by the New Jersey School Boards Association Insurance Group. Sharing services among public bodies has gained popularity as the state grapples with efforts to control rising property taxes. A day after his inauguration, Gov. Jon Corzine announced that shared services among school districts and municipalities would become a key element in controlling government spending. Many school district have seen cuts in their state aid in the current budget.

The state legislature is reportedly  developing an incentive program to encourage the consolidation of services among public bodies.

The Board of Directors of the New Jersey School Boards Association has  developed a strategic plan to enable school districts explore financial efficiency and shared services. The state department of education has also developed a strategic plan on shared services. A study by the department in 2002 concluded that economies of scale resulting from shared services by a larger number of districts would be beneficial. The department has usually used the county and regional education authorities to facilitate shared services among school districts.

Jerome Hule can be reached at 908-686-7700, ext. 126, or unionleader@thelocalsource.com



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