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Subcontracting or "contracting out" is the practice of a business or government body (local, state, or federal) contracting with companies or individuals to provide services. Individuals who perform the contracted work are not employees of the originating business or government body.
Most public school districts have several employee bargaining units representing teachers, clerical support, bus drivers, custodians and food service staff. As employees of the school district, these individuals are entitled to district health insurance and retirement benefits.
Current law rarely allows teaching services to be contracted out. There are, however, several districts that contract out for cafeteria, transportation and other school support services. Individuals providing the above services are not employees of the public school district and are not entitled to school district benefits.
Some legislators believe a school district should be allowed to contract with a company or an individual for school services, including teaching. So far, legislative efforts to expand school subcontracting have not been successful.
Assembly Bill 63, sponsored by Representative Marc Duff and Senator Joanne Huelsman, would have authorized a school district, as an alternative to employing teachers, to contract with any person for the performance of teaching or other educational services. Although contracted individuals would have to be licensed by the state superintendent, they would not be considered employees of the school district. The positions specifically named in the legislation are: full and part-time teachers, coordinators of special education, school social workers, school psychologists and paraprofessionals. The bill died in the Assembly Education Committee.
Governor Thompson's 1995-97 biennial budget included a provision that would have permitted school districts to contract out educational services. Senate Republicans amended the provision to allow expanded subcontracting only in Milwaukee Public Schools.
The Wisconsin Education Association Council and the Wisconsin Federation of Teachers oppose subcontracting public school services.
Contact Jack Coe in the Government Relations Division at 1-800-362-8034 or 608-276-7711 with any reactions, comments or questions.
Posted November 25, 1996