Updates to the Reorganization Law

Susan A. Gendron, Commissioner Maine Department of Education

May 2008

Per Public Law, 2000, chapter 668, as enacted by L.D. 2323, passed by the Legislature April 18, 2008

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NOT passed by the Legislature:

Waiver for units with fewer than 1,000 students

Charter communities exemption from budget validation referendum requirement

Exemption from referendum requirement if budget is less than 5% over EPS

Withdrawal from a CSD or SAD

Exemption for low population density

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Key Changes to the Reorganization Law

Removal of financial barriers

Isolated, rural communities

Alternative organizational structure

Transitional powers & duties of initial RSU board

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Removal of Financial Barriers

Minimum special education subsidy

Units that receive the minimum special education subsidy will retain their eligibility when they join a regional school unit

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Removal of Financial Barriers

Allow local cost-sharing agreements

Cost-sharing agreements may be based on: Number of resident pupils in each town; Property fiscal capacity of each member

municipality; Any combination of these and/or other factors.

Reorganization plans must include a process for amending the cost-sharing formula

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Removal of Financial Barriers

Raising 2 mills for education

Requirement removed

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Isolated, Rural Communities Allow isolated, rural units to serve 1,200 or

fewer students but not less than 1,000, if:

Comprised of 3 or more school administrative units; OR

Member municipalities of proposed RSU are surrounded by approved RSUs and there are no other SAUs to join; OR

Member municipalities of proposed RSU include 2 or more isolated small schools (defined in law)

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Alternative Organizational Structure (AOS)

An AOS is treated as one unit for the purposes of:

Calculating Essential Programs and Services (EPS)

State subsidy Required state and federal reporting

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Alternative Organizational Structure (AOS) Consolidation of:

system administration special education administration transportation administration administration of business functions

Core curriculum Consistent school policies, school calendar,

and a plan for consistent collective bargaining agreements

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Alternative Organizational Structure (AOS)

Plan may include a collaborative agreement Plan must include an interlocal agreement Plan must include procedures for K-12

budget approval The budget validation referendum for all

members of the AOS must be conducted on the same day

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Other Substantive Changes to the Law

Core functions of RSU board Local school committees Budget process Penalties School property Deadlines

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RSU Board Core FunctionsThese responsibilities cannot be delegated Employment of superintendent Performance of business functions Special education administration Transportation Core curriculum Budget Reporting Employment School Calendar Adoption of policies

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Local School Committees

May be authorized by reorganization plan or RSU board

May delegate duties, functions not reserved for RSU board

May propose (local voters must approve) raising additional funds for local school(s) over and above RSU approved budget Law now allows for high schools, too

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Budget Process

All RSUs and all other SAUs must: Prepare school budgets showing the 11 cost

centers Hold a regional school unit budget meeting Hold a budget validation referendum

Retroactivity – SADs and CSDs will be approved for either using 6 or 11 cost centers for 2008-09 budgets

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Penalties for Non-conforming Units

Beginning in 2009-10, the local mill expectation is increased by 2% Other penalties remain unchanged

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School Property

Clarification of original law

Municipalities may retain ownership of school property The reorganization plan must include the clear

allocation of responsibilities for management, maintenance, etc.

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Changes to Deadlines

SAUs have until January 30, 2009 to hold a referendum on their reorganization plan Was November 4, 2008

Commissioner must report on the status of implementation and make recommendations on proposed legislation to the Education Committee by December 15, 2008 Was January 31, 2009