South Bend Schools to save up to $5M annually by ending facilities contract
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The South Bend Community School Corp. is bringing its facilities management operations back in-house, following a decision to end its contract with Tennessee-based SSC Services for Education.
SSC filed a Worker Adjustment and Retraining Notification with the state disclosing a planned layoff of 203 workers, including electricians, groundskeepers, laborers, HVAC technicians and secretaries, effective June 30.
In an effort to cut costs and improve efficiency, the school district will onboard about 200 maintenance and custodial workers as full-time employees when SSC’s contract ends.
“Instead of continuing to outsource those facility management services, we have chosen to in-source,” Andrew Goetz, communications director for the district, said. “Majority of those folks have indicated interest in becoming a South Bend Schools employee and fulfilling some of the same roles they had as an SSC contracted employee.”
The in-house transition is being led by Clay High School Principal Joseph Somers. A permanent director of facilities management has not yet been appointed by the school board. Goetz said the district held several town hall meetings to walk the contracted employees through the onboarding process, roles and expectations.
“Our primary goal throughout this transition has been to provide continuity of employment for the individuals who previously served our schools under SSC,” Goetz said. “We have prioritized giving these individuals the first opportunity to join our in-house facilities management team.”
The contract with SSC ends June 30, and South Bend Schools will officially begin operating its internal facilities management team on July 1. The move is expected to generate significant cost savings and was recommended to the school board by Chief Financial Officer Ahnaf Tahmid.
“By bringing these services in-house, we anticipate saving between $3 million and $5 million annually,” Goetz said. “Our goal is to redirect these savings to support our teachers and students by investing more in classrooms and the people who make learning possible.”
Goetz explains the decision to insource facility management services
As part of their collective bargaining agreement valid through June 2027, the in-house maintenance team would receive a slight salary increase with rates ranging from $19.30 to $27.58 depending on the workers’ classification.
This financial move aligns with broader concerns among Indiana public schools regarding the potential fiscal impact of Senate Bill 1, a measure passed by the Indiana General Assembly in 2025.
Indiana’s newly enacted property tax reform is poised to significantly affect school district budgets across the state, including those in Elkhart, St. Joseph and Marshall counties. The legislation introduces property tax caps and increased exemptions, leading to substantial projected revenue losses for local school corporations.
In St. Joseph County, South Bend Schools anticipates a loss of approximately $27.4 million over the next three years, with an estimated $15.2 million shortfall in 2028 alone. Penn-Harris-Madison School Corp. is projected to lose around $6.9 million through 2028 and School City of Mishawaka could face up to $3.9 million in losses over the same period.
In Elkhart County, Elkhart Community Schools is expected to lose approximately $5.9 million by 2028 and Goshen Community Schools could see a reduction of about $14 million. Reductions in Class III property taxes will also adversely affect school districts in Marshall County.
“We’re aware about the potential impacts of SB 1 on our budget moving forward over the next three years. Our CFO is taking a hard look at the entirety of our contracts looking for efficiencies and opportunities for savings,” Goetz said. “To make sure that the funds we receive from taxpayers are staying in the classroom because at the end of the day, we’re about educating our community first and foremost, and that’s where a lion’s share of our funds need to go.”
Muncie Community Schools (MCS) has also made a similar decision to end its maintenance contract with SSC Services. The contractors filed a WARN notice affecting 58 workers.
“Nobody is getting laid off! We are simply bringing custodial services back in house after about nine years of outsourcing,” MCS Chief Communications Officer Andy Klotz said in a statement to Inside INdiana Business. “We estimate this will save the district around $500,000/year. Everyone will become MCS employees with full benefits available to them.”
Going forward, South Bend Schools plans to evaluate other vendor contracts as part of its effort to preserve classroom funding amid expected budget pressures.
“This wasn’t a hastily made decision,” Goetz said. “This was thoroughly considered by the South Bend Community Schools Board of Trustees, our superintendent and other administrative leadership. This decision is going to be a cost savings for us in the long run.”