The BCG team reviewed potential efficiency opportunities within the state’s $1.65
billion education budget, and identified opportunities with an annual value of $86-158
million once fully and successfully implemented. This potential includes $55-110 million
in operating savings and $31-48 million in capital savings. The operating savings is split
between savings that would be realized at the state level and savings that would be
captured by individual districts and schools. (For each opportunity listed below, the
corresponding estimated potential annual savings is provided in parentheses.)
BCG leveraged past experience, interviews, and prior data and reports to develop an
initial set of hypotheses on potential efficiency opportunities.
Let’s be clear, I do not favor eliminating the 3 million dollar subside for non public school students in transportation. I also do not favor mandatory centralized purchasing because it will not save us money. There is a reason small purchases are made through other vendors. My experience has shown me those are phantom savings. I don’t think the DSEA would tolerate messing with their retirement and I support them on that. Unfortunately, we are not ready to centralize administration. Take those off the table.
That leaves 10’s of millions which can be saved through energy, eliminating fixed bus route compensation, construction reform and more. We could save 50 million plus this year without pain. That could be used for the 30 million we need and the rest for reform efforts. Let’s get going. Leave out the most controversial items and you still have a bonanza.