Revenue is always a problem for school districts. There is just isn’t enough revenue to meet expenses. Most school districts rely on property taxes and state assistance. What they are finding is that property taxes are capped and state assistance is decreasing in many cases. Districts simply cannot meet current expenses. This post will discuss a creative way to increase revenue in school districts The ability to increase revenue in your school district by partnering with private entities is critical. The ability to depend entirely on traditional revenue resources is no longer a viable strategy. Remember it is only through “outside the box” thinking that will solve our future revenue and expense problems.
I want to share with you a recent success that was achieved by working together with school district’s before and after school providers. These community groups provide before and after school care for parents. The school district selects these providers and they provide the services directly to the parents. These groups also had access to our facilities at no cost. Maintaining facilities are expensive and some of the larger expenses include custodial maintenance and utility costs. I began to calculate the profit margin for these outside community groups. Their profit margin was quite impressive even when you factor in their operating expenses.
This led to some spirited discussions with the leaders of these community groups as they traditionally want to guard their existing profitable contracts. In the end we came to a reasonable solution and everybody agreed. These community groups continued to use our facilities, but now are another revenue source in the amount of $130,000 a year. This revenue helps with the maintenance costs of our buildings. In addition, they committed not to increase fees to the parents.
In conclusion, the parents continued to receive great services, the community groups remained profitable, and the district will continue to receive significant revenue. This is a true win-win relationship for all involved.
The question of how to increase revenue in schools will be one that will be continually asked in the foreseeable future. We will discuss fund raising on a much greater scale which can also increase revenue significantly.