How do LSSI make a profit?

"In its proposal to run the Stockton-San Joaquin Public Library (a decision that is still pending), LSSI said "professional level hires would typically start around $40,000 increasing to $55,000 or higher depending on education, experience, and level of responsibility."
That is not comparable to current salaries, however.
Under San Joaquin's current system, a Librarian I earns $45,338 to $58,204 a year, while a Librarian II earns $55,362 to $71,082 annually. LSSI's proposal in San Joaquin would also reduce the number of MLS-bearing employees from 19 to 17"

taken from http://www.libraryjournal.com/lj/home/887353-264/lssi_wins_new_contract_in.html.csp

"I've looked at the details of the proposal, and I'm scratching my head as to how LSSI is going to pull this off," Colleen Foster, former director of the SSJCPL, commented to LJ.
"The company claims that service will improve, and yet it also plans to reduce salaries and benefits and eliminate two professionally certified librarians," she said. "It's like LSSI doesn't understand that good librarians are the heart of a successful library system."
"While LSSI asserted that it "pays competitive wages," in a response to questions posed by the county government, there are significant differences, particularly for professional librarians:
Page salaries in the system would stay constant, new clerical hires would make "approximately $10 per hour to more than $15 per hour" and "professional level hires would typically start around $40,000 increasing to $55,000 or higher depending on education, experience and level of responsibility," according to Pezzanite.
In the current system pay scale, shelvers make minimum wage, Library Aides earn $14.44 to $20.47 an hour ($30,000 to $43,000 a year) and Circulation Assistants earn $14.82 to $20.96 an hour ($31,000 to $44,000 a year). While the LSSI proposal includes no positions for Library Assistants, SSJCPL pays a Library Assistant I $35,670 to $45,793 a year, and a Library Assistant II $41,316 to $53,038 a year. A Librarian I earns $45,338 to $58,204 a year, while a Librarian II earns $55,362 to $71,082 a year."
"While every community situation is unique, over the years we have seen that our benefits program is generally comparable to a city's or county's benefit plan. One exception may be the pension program. LSSI offers a 401 (k) plan and matches a portion of our employees' contributions."

taken from http://www.libraryjournal.com/lj/home/887000-264/lssi_controversy_still_brewing_in.html.csp