Southfield

Economic impact of outsourcing

The economic impact of a decision by the Southfield school district to fire hundreds of employees and hire out-of-state contractors to do their work instead could total $31 million.

Using widely accepted economic principles, MEA economist Ruth Beier analyzed the impact of the district's decision to privatize the jobs of custodians, maintenance and transportation workers. For every $1 not earned by a former Southfield worker, the economic impact could be $2.20 or more, Beier found.

The reality in Southfield is tough for many former district employees.

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