The consolidation of public agencies has become one of those accepted good things that everyone needs to back. But what if the assumption — consolidation saves money — is wrong?
The Chicago Tribune (hat tip to reader Tom Goodwin for the link) has a story about how Illinois is seeing school districts consolidate, but not saving money. An expert quoted in the story noted that when two districts become one, a new teacher contract is needed and the practice usually is to adopt the higher of the two pay scales. Politicians also may underestimate what new transportation or administrative costs may arise.
The Chicago Tribune (hat tip to reader Tom Goodwin for the link) has a story about how Illinois is seeing school districts consolidate, but not saving money. An expert quoted in the story noted that when two districts become one, a new teacher contract is needed and the practice usually is to adopt the higher of the two pay scales. Politicians also may underestimate what new transportation or administrative costs may arise.
I suspect the lesson here isn’t to abandon the general idea of consolidating entities, or services, but to remember that even good ideas require vigilant execution. If the goal is to save money, it’s not enough to say two must become one. It requires political leaders and voters to be clear about the outcomes of these mergers, too.
Last month, Susan Vela of the LSJ staff did a package titled “Can regionalism work?” A graphic in it compared area police forces on salary scales, staffing and health benefits.
Let’s say Lansing and Lansing Township merged or formed a single police force. The LTPD pay scale is $38,330 to $52,841. The LPD scale is $39,773 to $81,297. The LPD health packages averaged about $2,000 more than the LTPD ones. And while LTPD officers have to make small premium payments ($12 per pay period), the LPD’s practice has not been to have any employee premium.
Depending on which framework you chose, you could have very different spending scenarios.
