Spending More, Serving Less: The High Cost of Private Equity in Special Education

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West Contra Costa Unified School District (WCCUSD), in the San Francisco Bay Area, has more than doubled its spending on outside vendors and contractors over the last five years, most recently spending $14 million on just three private equity-owned special education contractors in 2024-2025 alone. These extravagant expenditures have led to a district budget that does not prioritize permanent in-house staffing, and results in a lack of support and instability for WCCUSD students. 

This research brief looks at WCCUSD’s actual expenditures with regards to support and services for the school district’s nearly 4000 students with disabilities, who are guaranteed a free and appropriate public education under federal law. 

Key points

• Since the 2019-2020 school year, WCCUSD spending on outside contractors and vendors more than doubled – from $59 million in the 2019-2020 school year to $117 million in 2024-2025. This is a spike from an already-high 16% of overall district spending to an astounding 23%.
• In the 2024-2025 school year, WCCUSD spent more than $14 million for three private equity-owned contractors to provide services for students with disabilities: The Stepping Stones Group (owned by Leonard Green & Partners), ProCare and Sunbelt Staffing (both owned by Vistria Group). 
• If the work these three private equity-owned contractors provided in 2024-2025 had been done by school district employees, the district would have saved nearly six million dollars. With those funds, the district could have afforded over 200 permanent Special Education employees, who would have provided students with more classroom hours and the stability, personalized attention, and experience that is afforded by in-house educators. 
• Last year, Stepping Stones agreed to a $4.25 million settlement of a class action lawsuit from current and former employees who alleged widespread wage and hour violations.
• Soliant Healthcare, the parent company of WCCUSD contractors ProCare and Sunbelt Staffing, has links to the Trump administration, which has worked to dismantle the Federal Department of Education – the Department charged with enforcement of Civil Rights laws like the Individuals with Disabilities Act (IDEA) – and defund services for students with disabilities. 

Read the full report here >>

For more research on PE in education, refer to the following resources:

• Making the grade? Private equity, privatization and the future of American education
• Private Equity in Public Schools: Outsourcing in K-12 Education

This report is a product of Private Equity Stakeholder Action. Private Equity Stakeholder Action is dedicated to advocating for policies that protect communities from the harmful impact of private equity. Through our support for progressive policy and grassroots campaigns, we aim to promote equitable solutions in housing, healthcare, and beyond.