The Oregon Court of Appeals has ruled that the Central Point School District violated the law by not conducting a thorough cost analysis before contracting out its student bus services in 2011. The appellate court overturned Jackson County Circuit Court Judge Ron Grensky’s 2012 decision to dismiss the lawsuit filed by former district bus driver Stephanie Hicks and sent the case back to the lower court for further review and a judgment consistent with its opinion that the district was at fault. Oregon Revised Statute 279B requires that public agencies — in this case, the school district — perform a detailed cost-benefit analysis before outsourcing government services of more than $250,000. This analysis must demonstrate that outsourcing services would be cheaper than providing them in-house….
Laid-off school bus driver wins Oregon court ruling over outsourcing
Source: The Oregonian, April 27, 2015
Four years after losing her job to outsourcing, bus driver Stephanie Hicks will get a second chance to challenge the Central Point School District’s decision to lay off its own employees and hire a private contractor.The Oregon Court of Appeals ruled April 22 that the Medford-area school district violated state law by using an inadequate and improper process for evaluating potential cost savings. The ruling overturns a decision by the Jackson County Circuit Court and orders the lower court to reconsider the case “consistent with this opinion.”Generally, school districts and other state agencies can outsource government services by demonstrating that the change will save taxpayer money. However, a 2009 state law prohibits the change “if the sole reason” for the reduced cost is the potential contractor’s lower wages and benefits. ….