School district contracts for business manager services in lieu of full-time staffer

The Wrangell School Board voted unanimously Feb. 20 to approve a contract for business manager services with a private company based in La Center, Washington.

K12 Business Services will fill the role after district business manager Tammy Stromberg submitted her resignation in January and left the job at the end of February.

Kristy Andrew, the owner of K12, served as business manager for the Cordova School District before relocating to Washington state to be closer to family. Because she still wanted to serve schools in Alaska, Andrew said, she started remote contract work.

K12 obtained its Washington state business license in June 2022. Before her time in Cordova, which started in 2016, Andrew worked several years as business manager for an Oregon school district, according to her LinkedIn online profile.

"One of the reasons I chose to start my own firm is the ability to continue to work with and support Alaska school districts," Andrew said.

K12 Business Services currently contracts with four Alaska school districts, which includes Wrangell. The other three are consulting and mentoring contracts, Andrew said. Her company additionally has five small businesses they contract with, two of which are in Alaska.

Even though she's able to provide her services remotely, Andrews said she misses being able to work in-person with other district employees. She said it requires diligence to develop and maintain supportive relationships with district staff when working from afar. "I have met several staff members already, and I'm looking forward to connecting more with each of them."

Andrew's company will be paid $7,500 per month, $90,000 annually, under the yearlong contract and $120 per hour for as-needed work not covered under the job description for the monthly fee.

The district doesn't anticipate the total cost to exceed Stromberg's salary of $104,124 per year and the expense of her health insurance and retirement benefits. Andrew's husband Jose Avila Jaguey provides extra support and works with K12's private bookkeeping clients.

Schools Superintendent Bill Burr said cost savings are not really a factor at this point since there are still several unknowns such as travel expenses and other items not covered by the monthly rate, including the $120-an-hour fee.

"On the surface, that will most likely be a salary savings but in exchange for a contractor relationship rather than an employee," Burr said. "We (will) have a better grasp by September after the auditors come on total cost and/or savings. Right now, we believe there will be some cost savings."

Andrew noted that when she created the cost estimate for Wrangell School District, she took into account the description of the position and what it would take to fulfill the duties. "I honestly do not expect that I will be performing much (if any) billable-hour work, simply because the scope of the position is so broad," she said. "However, these would be situations Superintendent Burr and I will communicate about in advance."

The district began the search for someone to fill the manager role as soon as Stromberg submitted her resignation, regardless of whether or not they were located in Alaska, Burr said. "Many of the contractors that have worked in Alaska and now are consultants and/or contractors are out of the state," he said.

Andrew acknowledged the challenges of working remotely.

"Over the last several years, I have met and worked with a few people from Wrangell, so I have been looking forward to visiting for quite some time," she said. "As a small-town girl myself, I have a great appreciation for the sense of community and independence that comes with living in a remote Alaska town."