Catoosa County School Board hears Kelly Education pitch to outsource custodial, nutrition staff as budget pressures rise

Catoosa County School Board members heard an informational presentation March (date not specified) from representatives of Kelly Education on using a contracted staffing model for classified positions, and reviewed a financial report showing rising state health-insurance costs and current fund balances.

The presentation, given by Lisonbee Cozart and Bobby Shore of Kelly Education, described a staffing model in which Kelly would employ custodians, child nutrition workers and other classified staff while the district retains school- and district-level supervision. Cozart told the board, "Your mission is our mission," and said Kelly manages recruitment, payroll and absence tracking while offering weekly pay, optional health coverage and retirement plans for employees.

Superintendent Nicks framed the discussion by saying the state legislature is crafting an FY2026 budget that the district expects will require Catoosa County Public Schools to pay about $22,620 per year for each employee who takes health insurance — a change presenters and staff said has substantially increased projected district costs and prompted the exploration of contracting alternatives. District staff and Kelly representatives estimated that moving a little over 100 classified positions (custodial and child nutrition roles were discussed as the first pilot groups) to a Kelly-managed employment model could yield roughly $2 million in annual savings tied primarily to the state health-benefit cost shift. Kelly representatives and district officials said paraeducator roles could be added later but are more complex because of individualized education program (IEP) requirements.

Board members and staff pressed Kelly representatives on staffing quality, guarantees and continuity. A board member asked whether the district could expect the same custodial standards; presenters emphasized that site-level managers and supervisors would remain district employees and that Kelly's model is intended to keep existing managers in place while changing the administrative employer. Kelly said the firm bills only for positions it fills and does not provide financial penalties if fill rates fall short; it pointed to surrounding districts reporting roughly a 90% fill rate. Director Daniel and others also raised retention and injury-cost concerns; board and staff noted the district's workers' compensation costs have exceeded $600,000 this year and argued that shifting administrative employment could reduce such liabilities.

District staff described a proposed phased approach: begin with a pilot covering custodial services and child nutrition, with the option to add paraeducators later. Kelly described an "evergreen" contract with a 30-day exit provision and said bill rates would be inclusive of benefits elected by employees. Staff emphasized that no final contract had been signed and that the presentation was informational only; Superintendent Nicks and staff said they would return with a recommendation if they pursue a pilot.

In other business, a member of the public, Lisa Willard, urged greater transparency and accessibility for board meetings, asking that the district consider moving its regular meeting night to the first Thursday of each month to avoid conflicts with other county meetings and to add a video feed so viewers can see speakers and board members. Willard said the current online setup — audio plus a static agenda image — makes it difficult to follow who is speaking and prevents family members from viewing student recognitions when they cannot attend.

Finance staff presented the January 2025 financial summary. The general fund revenue through January was reported as $83,141,004.30 with expenditures through January of $65,048,009.69 and a reported general fund balance of $20,000,005.38. The finance presentation included capital projects and debt-service balances and noted a recent switch to a sweep banking account that increased interest receipts (from roughly $22,000 in January last year to about $45,000 this January). Staff projected a June fund balance in the ballpark of $7.6 million based on current assumptions. The presentation and Kelly information were marked for board review; no action was taken on contracting at the meeting.

Votes at a glance: the board approved the consent agenda and later adjourned by unanimous voice vote; the transcript does not specify individual consent-agenda items or the names of the motion-maker and seconder. The Kelly Education presentation was informational only and required no board vote.

The district indicated it will continue discussing a potential pilot with Kelly and return with a formal recommendation and contract terms if staff decide to proceed.