Analysis shows that AL School districts are paying up to 500% more for goods and service

Posted by:
Adam Pearson
May 30, 2020

Alabama districts pay up to 5x more for the same goods and services

Over the past several years weā€™ve looked at $2 billion in Alabama spending. The results are conclusive. Alabama school districts are paying different prices for the exact same goods and services. A review of the top 75 most purchased products by 30 Alabama school districts showed that districts pay up to 500% more than neighboring districts for the same goods and services. Even more alarming is the fact that schools within the same district are paying varied prices as well. The analysis also showed that Alabama districts are purchasing 87% of the same products and services independently. Stated more simply, Alabama is not leveraging its purchasing power and could add millions back into their budget.

The ramifications on budget are severe. The average district could cut the above costs by 30% by normalizing prices and collectively negotiating.