Schools Seek Savings From Subs

Each workday, 150-200 substitute teachers enter Traverse City Area Public Schools (TCAPS) classrooms. Their recruitment, selection, attendance and payment are now handled by an outside company. TCAPS hopes to save $150,000 this year alone by outsourcing this function.

Portland, Mich.-based Professional Contract Management, Inc. (PCMI) was selected among three bidders to provide the district non-retiree guest teachers, hourly substitutes, and coaches who do not hold other permanent positions within TCAPS.

“At a time when financial resources are scarce and schools face significant budget reductions, many Boards of Education have considered privatization of support services as a way to save money,” explains TCAPS Human Resources Director Cindy Berck. “This is the first time TCAPS has utilized the services of a third party to employ and pay substitutes.”

Employing subs through a third party saves cash primarily because companies are not required to pay into the Michigan Public School Employee Retirement System, which adds nearly 25 percent to the cost of a sub. TCAPS expects even after accounting for PCMI’s fee of 16 to 20 percent of wages it will achieve significant savings (Hourly rates paid to subs will remain the same as those paid prior to privatization).

TCAPS Guest Teacher Specialist Carol Nitz, who has led TCAPS’ “sub center” for eight years, now serves as liaison between TCAPS and PCMI. She says the new system is already freeing other administrators to focus on educational matters.

“Since it has only been a short time…it is too early to successfully assess the outcome, but two months into the new service, we have accomplished a lot,” Nitz says.

TCAPS hopes PCMI will soon reach a pool of 150-200 available teacher substitutes. Total annual teacher absences range from 10,000 to 14,000.

TCAPS sets the bar high for its subs, insisting that all PCMI guest teachers have at least a bachelor’s degree. Some private sub companies employ teachers with only 90 credit hours toward a degree.

To help manage the TCAPS contract, PCMI utilzes Willsub, an online absence tracking and substitute placement program. A guest teacher can find and select an opening online themselves or can be called by either the automated PCMI system or by Nitz’s office.

PCMI software also manages payroll processing and provides detailed information tracking and reporting.