OUTSOURCING IN K-12 EDUCATION

The report argues that outsourcing critical school functions to private equity-backed firms prioritizes short-term profit over student wellbeing and worker stability, leading to lower service quality, increased staff turnover, and risks to student data privacy.

• Outsourcing critical school roles to private equity-owned companies often results in a loss of public control, reduced service quality, and a decline in accountability and transparency.
• The use of private staffing agencies for teachers can create a dependency that undermines district self-sufficiency and may negatively impact student performance. In Memphis-Shelby County Schools, students in sections staffed by Proximity Learning performed significantly lower in English, Algebra I, Geometry, and Biology than their peers, despite receiving higher grades.
• Private equity's focus on short-term returns in the behavioral health sector has led to significant failures. An investigation into High Road Schools in Connecticut, owned by Special Education Services Inc (SESI), revealed widespread IDEA Act violations, including a lack of adequate assessments and deficiencies in certified special education staff.
• Outsourcing transportation to rideshare companies like EverDriven may decrease safety and accountability compared to regulated school busing. In Denver Public Schools, private services now account for one third of the transportation budget.
• Outsourcing food services does not consistently save school districts money and can lead to supply failures. In Vermont, Brattleboro Union High School experienced food shortages after contracting with Fresh Picks Cafe, forcing staff to use personal funds to buy snacks for students.
• The privatization of student data management poses severe security risks. A breach at PowerSchool, owned by Vista Equity, is described as the largest breach of American children's personal information to date, affecting 62 million children across 38 states, with up to 25% potentially losing Social Security numbers.
• There is a conflict of interest where public pension funds for school employees invest in the same private equity firms that profit from outsourcing those employees' jobs.

APA

Private Equity Stakeholder Project (2025). OUTSOURCING IN K-12 EDUCATION. https://pestakeholder.org/wp-content/uploads/2025/06/PESP_Report_PE_Outsourcing_2025.pdf

Chicago

Private Equity Stakeholder Project. OUTSOURCING IN K-12 EDUCATION. 2025. https://pestakeholder.org/wp-content/uploads/2025/06/PESP_Report_PE_Outsourcing_2025.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=OUTSOURCING IN K-12 EDUCATION |date=June 2025 |url=https://pestakeholder.org/wp-content/uploads/2025/06/PESP_Report_PE_Outsourcing_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2025outsourcing, author = {{Private Equity Stakeholder Project}}, title = {{OUTSOURCING IN K-12 EDUCATION}}, institution = {Private Equity Stakeholder Project}, year = {2025}, month = jun, url = {https://pestakeholder.org/wp-content/uploads/2025/06/PESP_Report_PE_Outsourcing_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }