Saving Money By Having Independent Contractors

Apparently a public school district in Michigan has created a novel way to save the district thousands of dollars by simply have school administrators categorized as independent contractors. Hiring independent contractors allows school districts not to pay insurance or retirement perks.

Mr. Dowdy says that hiring independent contractors is becoming more popular with school districts around the state. However, he notes that teachers' unions are opposed to the idea for teachers.

It is certainly understandable why many teachers would be opposed to becoming an independent contractor because of the insurance premiums. For example, I get $475 per month taken out of my paycheck before taxes that helps defer the total cost of my family insurance while the school district pays approximately $612 per month on my behalf. I get paid about $2300 month. If I had to pay for my total insurance premium by paying out an extra $612, I would need to look for a second income to supplement. Something else to consider: I am assuming that I would get the same rate that the school district gets for the insurance which may not be the case because I would be an independent contractor. I may not have the "collective bargaining power" as a large organization to get the cheaper corporate rate. I honestly can see many public entities doing this to save money on behalf of the public purse.