Transcript School Administrative Reorganization Public Law 2007

School Administrative
Reorganization
Public Law 2007, Chapter 240, Part XXXX
Susan A. Gendron
Commissioner of Education
June 25, 2007
Overview: What is the new Reorganization Law?
Policy objectives
Parameters
AFA projections
 Policy Objectives
(20-A MRSA 1451)
● To ensure that schools be organized as units
to provide:
equitable educational opportunities
rigorous academic programs
uniformity in delivering programs
a greater uniformity in tax rates for education
more efficient and effective use of limited
resources
preservation of school choice
maximum opportunity to deliver services in an
efficient manner
 Policy Objectives
• All school units, of whatever form and
whatever size – SADs, CSDs and municipal
school units, small and large – must:
• Work with other units to reorganize into larger,
more efficient units; or
• Where expansion of the unit would be
impractical or inconsistent with state policy,
reorganize their own administrative structures
to reduce costs
 Parameters and Exceptions (XXXX 36(6))
New Regional School Units:
•
•
•
•
2,500 students
1,200 students
Island and tribal schools
No more than 80
Exceptions:
• “Doughnut hole”
• High performing and highly efficient districts
• No “automatic” exceptions
ALL
• Must submit a plan
Education Funding Law Implementation
2.2
State / Local Share of Education Costs
FY2009 – FY2010 - FY2011 With Current Growth Patterns
2.0
100%EPS
$1,786,037,540
1.8
100%EPS
$1,895,210,824
$1,856,104,069
$1,827,623,778
95%EPS
1.6
$1,578,447,540
$1,697,174,567
90%EPS
Local Share $
84%EPS
1.4
$849,665,393
7.44 Mills
1.2
K-12 EDUCATION COSTS TOTAL (BILLIONS)
100%EPS
$1,829,788,109
(+3.82%)
(+3.58%)
$2,113,004,956
100%EPS (+3.45%) $2,035,191,982
$1,964,876,999
$742,331,574
8.26 Mills
$783,076,345
7.60 Mills
$1,080,682,349
1.0
$1,119,355,590
$1,162,152,726
$977,958,385
$1,020,857,238
$914,098,222
$836,115,966
51.60%
.8
.6
46.5%
$737,013,147
State Share
(of 100% EPS)
53.86%
53.51%
2005-06
State Share $
100% of EPS Model Costs – Current Trends
FY08FY09 Enacted Budget
FY09-10-11 W Current EPS Trends
J.E. Rier
6-24-07
Department of Education
2004-05
55.0%
55.0%
State Share
(of 95% EPS)
State Share
(of 90% EPS)
.4
.2
50.0%
State Share
(of 100% EPS)
State Share
(of 100% EPS)
Phase-in Requirements of EPS / LD-1
2006-07
2007-08
2008-09
2009-10
2010-11
Getting Started
Who initiates?
Municipality
or
SAU
Form Reorganization Planning Committee
20-A MRSA 1461(2), and XXXX-36(3)
Representation from:
 School administrative units
 Member municipalities in the proposed RSU
 General public, including business, in the
proposed RSU
What needs to be
accomplished?
Identify partners
Prepare notice of
intent – August 31
Facilitator
Decided on partners:
–
–
–
–
Coordinating meeting
Facilitate meetings
Assist with Data analysis
Organizing public
hearing(s)
– Preparation of Notice of
Intent, Reorganization
Plan, and/or Alternative
Plan
– Identifying areas for
collaborative agreements
Not decided:
– Identifing/Collecting data
– Assist identification of
partners
– Facilitate meetings
– Organize public hearing(s)
– Preparation of Intent,
Reorganization Plan,
and/or Alternative Plan
– Identifying areas for
collaborative agreements
Determining Partners
 Proximity (physical,
size)
 Existing relationships
 Tuition/partnership
for high school
students
 Commitment to
common expectations
 Data analysis
FINANCIAL TEMPLATE
For Fiscal Year 2007-08
ED281 & Notes
TOTAL
Line 48
64,373,235
$64,373,235
19,431,185
11,291,057
12,333,872
19,545,520
1,771,601
2. Debt Service Allocation for individual units
Line 48
3,815,902
1,472,700
403,981
328,646
1,610,575
0
3. Total Comb. Alloc. Less Debt Serv. Alloc.
Line 1 less
60,557,333
$60,557,333
17,958,485
10,887,076
12,005,226
17,934,945
1,771,601
7,187.0
2,146.0
1,168.0
1,394.5
2,259.5
100.00%
100.00%
29.86%
16.25%
19.40%
60,557,333
$60,557,333
3,815,902
18,082,098
1,472,700
9,841,515
403,981
11,749,993
328,646
64,373,235
$64,373,235
19,554,798
10,245,496
12,078,639
1. Total Combined Allocations for individual units
Falmouth
Freeport
Yarmouth
SAD #51
Cumberland N. Yarmouth
SAD #62
Pownal
(Includes operating Alloc at 95%)
Line 2
4. Students
5. SAD Student Percentages
plus 9-12 or
6. Percentage Students - Redistribute %
SADs / CSDs
Line 21 K-8
1,575.0
69.71%
684.5
30.29%
219.0
100.00%
219.0
100.00%
21.91%
9.52%
19,038,444
1,610,575
13,270,878
1,122,662
5,767,566
487,912
1,845,284
0
1,845,284
0
20,649,018
14,393,540
6,255,478
1,845,284
1,845,284
Section D for
7. New Regional EPS Allocation
8. PLUS Debt Service (Assigned)
3.05%
Line 7 plus
9. New Regional EPS Total Allocation
10. State Valuations
11. Times Mill Expectation
Line 8
1,766,750,000 1,337,850,000 1,379,950,000 1,337,900,000 968,500,000 369,400,000 157,900,000 157,900,000
13,144,620
9,953,604
10,266,828
9,953,976
7,205,640
2,748,336
1,174,776
1,174,776
Section D
7.44
Lessor of Line
12. Local Contribution Share:
Local Share Percentage
13. State Contribution Share:
9,953,604
22.37%
10,266,828
23.07%
9,953,976
22.37%
100.00%
1,000,000
29.54%
295,426
22.37%
223,708
23.07%
230,747
22.37%
223,716
2.64%
26,403
500
0
13,440,046
0
10,177,312
0
10,497,575
0
10,177,692
500
1,201,679
45,000
1,000
10,000
0
20,000
0
30,000
0
10,000
0
5,000
1,000
plus 19
34,952,729
13,430,046
10,157,312
10,467,575
10,167,692
1,197,679
Line 50
19,963,995 Prior to miscellaneous adjustments lines 51 through 59
-84,565
Line 9 less
Line 12
14. Local Share Percentage (from above)
15. Additional Local Share (Distribute):
16. Assessment for Choice Students (Assigned)
17. Sub-total Local Shares:
44,493,804
$44,493,804
13,144,620
29.54%
9 or Line 11
100.00%
19,879,431
Line 12 plus
7,205,640
2,748,336
1,174,776
2.64%
Line 15 and 16
18. LESS Balance Forward (Assign):
19. PLUS Nutrition (Assign):
Line 17 less 18
20. ESTIMATED TOTAL LOCAL:
Note:
Current Combined State Shares
Difference in State Share
1,174,776
Notice of Intent – August 31






RSU
Alternative Plan –
subsection 6
Offshore island
Tribal school
> 2500 or 1200 as
defined in
subsection 6
High
performing/efficient
Examples from the state
• Bath and Union #47
• Table Discussion: (10 mins)
– What has worked in your area?
• Committee structure
• Helpful data
– Suggestions
– Concerns
• Report Out (10 mins)
DOE next step
Review all Notices of
Intent
Compare to
Parameters
Notify SAU type of
plan to be submitted
December 1, 2007
Reorganization Plan
 Units to be included
 Size, and composition of district board
 Method of voting
 Subdistrict – whole municipality or approximately equal size
 Weighted – apportionment of 1,000 votes based on
population
 At-large – elected from the entire rsu
 Composition and duties of any local school
committees to be created
Reorganization Plan
Disposition of:
Real and personal school property
Existing school indebtedness and lease
obligations
Fund balances, trust, reserve funds
Assignment of employment contracts
Reorganization Plan
Transition Plan
Budget for year one
Interim personnel policies
Documentation of Public meeting
How to proceed if not all saus approve rsu
Estimated cost savings
Other matters as necessary
Alternative Plan
• May only be submitted by a unit that
meets criteria in XXXX-36 Sec 2 B 1-4
• Must address XXXX-36 Sec 6 paragraph F
– How the SAU will reorganize administrative
functions, duties and non-instructional
personnel to meet FY 2009 EPS projections
and not have an adverse impact on the
instructional program
Submission of Plans
• December 1, 2007
• All School administrative units
• Reorganization or Alternative Plan
Example Plan
Bath and Union #47
William Shuttleworth
Review of Plans
Completed by December 15, 2007
Criteria for approval
20-A MSRA 1461,3. 1-4
• 1. 2,500 unless exception justified
– a. Geography- physical proximity
– b. Demographics – enrollment trends
– c. Economics
– d. Transportation
– e. Population density
– f. Other unique circumstances – preserve
existing relationships, meet needs of
students,
Criteria for approval
20-A MSRA 1461,3. 1-4
Exception to 2,500:
 Coastal islands
Tribal schools
No Fewer than 1,200
Criteria for approval
20-A MSRA 1461,3. 1-4
Exception to 2,500:
 Coastal islands
Tribal schools
No Fewer than 1,200
Criteria for approval
20-A MSRA 1461,3. 1-4
• 2. Comprehensive programming for K-12
• 3. Consistent with policies in sec. 1451
– School choice
• 4. Must not displace teachers or students
or close schools existing during the school
year preceding reorganization, excepted
as permitted under section 1512
Review of Reorganization Plans
• Reorganization Planning Committee submits plan to
Commissioner for review by December 1, 2007
• Commissioner to approve by December 15, 2007 OR
• Return with specific suggestions and written findings by
December 15, 2007 (revisions due 30 days from return
of plan to SAU); Commissioner’s determination due 14
days after revised plan is filed by SAU
• Commissioner may not disapprove a plan SOLELY
because it would cause the number of Regional School
Units to exceed 80
Table Discussion
1. Review and discuss guidance document
(10 mins)
2. Brainstorm what additional information
would be helpful? (10 mins)
3. Report out from tables (10 mins)
Hold Referendum on Plan
• By January 15, 2008 – Municipal referendum
on plans approved by December 15, 2007
Cost covered by the Department of Education
• On June 10, 2008 – Municipal referendum on
plans received or revised after December 15,
2007
• By November 4, 2008 – Last opportunity for
SAUs to hold a referendum and pass plan prior
to penalties being incurred
Referendum questions
• Can determine the effective date 08 or 09
• Explanation statement must accompany
the article XXXX-36 Subsection 8
– Approve, more favorable school construction
– Eligible for additional reorganization funds
– No vote, less favorable school construction
– Reduction in state funding, ongoing penalties
Penalties
The following adjustments to the calculation of subsidy are
required beginning July 1, 2009 for a school
administrative unit that is not a conforming school
administrative unit:
• The SAU is eligible for only 50% of the minimum state
allocation
• The SAU’s total cost of education is reduced by
adjusting the cost component for system administration
by half
• The SAU is not eligible for a transition adjustment or any
comparable year-over-year transition amount
• The SAU receives less favorable consideration for
approval and funding for school construction AND
• General Purpose Aid remains at 53.86%
Certificate of Organization
Commissioner approves plan
State Board issues certificate
Form the Regional School Unit
–Elect RSU Board Members
–Hire Superintendent
–Transfer of authority
–Vote Annually on RSU Budget
Schools and School Choice
Every RSU must have a publicly-supported
high school, either:
• A public school, or
• A publicly-supported high school
• More than one is OK
Schools and School Choice
Students who have school choice now will
continue to have school choice.
Whether or not there is a contract
Even if they join a RSU with its own high
school
Secondary school programs options
• Expiration of contract
– Option continues to be available to students
who reside in the previous educational unit
– Rsu may negotiate the contract
• Absence of contract
– Option maintained
• Additional expense
– Another rsu
– Private school approved for tuition
Local Schools
• Reorganization won’t close schools or
displace teachers and students
(20-A MRSA, Section 1461, paragraph 3 (B)(4))
• The law makes it harder to close
schools
Finances 20A MSRA 1481
RSU may raise funds for maintaining
schools, erecting buildings and providing
equipment
Additional costs shared by same
percentages for each municipality
established under 15688
Private and special cost-sharing
agreements remain in effect
Budget Preparation
Content K-12 budget
 Operating costs
 Bonds falling due
 Interest on bonds or other obligations
 Rentals and other charges in a contract
 Temporary loans
 Summary of anticipated revenues
 Statement – estimated dollar amount of state
retirement payments “This budget does not include the estimated
amount of $..... In employer share of teacher retirement costs that is paid by the
State.”
Budget Format after January 31, 2008 Cost
Center Summary format 20A MRSA 1485






Expenditures:
Regular instruction
Special Education
CTE
Other instruction
Student and staff
support
 System administration
 School administration
 Transportation/buses
 Facilities
maintenance
 Debt service & other
commitments
 All other, including
school lunch
Budget Format after January 31, 2008 Cost
Center Summary format 20A MRSA 1485
 Revenue sources
 Summary of total RSU expenditures
 Other optional data showing % changes
proposed in state, local and RSU budget
 Data similar to expenditures for high
performing
 FY 09 data documenting state and local
savings from the reorganization and mill
rate reduction
Calculating EPS for FY 09
Achieving the $36.5 million reduction
How does this impact each unit
FY 09 does include approximately $43
million in new revenue
Budget Approval
• Regional budget meeting
• Transfer between cost center lines:
– An amount not exceeding 5%
• Budget validation referendum
– Public hearing not required
– Article questions
• Does not exceed EPS – Do you favor approving
(RSU) budget for the upcoming school year that
was adopted at the RSU budget meeting? Yes
No
Budget Approval
• Budget validation
– Exceeds maximum target question “Do you favor
approving the (RSU) budget for the upcoming school
year that was adopted at the latest RSU budget
meeting and that includes locally raised fund that
exceed the required local contribution as described in
the EPS Act?
• A YES vote allows additional funds to be raised for K-12
public education
• A NO vote means additional funds cannot be raised for K-12
public education
Failure to approve budget
• Board reviews and hold budget meeting
• Budget submitted for validation
referendum
• Not approved by July 1- latest submitted is
automatically considered the budget until
one is passed
• RSU board may call emergency budget
meeting when the need arises
Regional School unit
assessments
Understanding the calculations
Minimum mill rate contribution – 2
RSU Budget Summary
 RSU budget must be K-12
 Uniform budget format
 After 3 years the community can ask the citizens
if they wish to continue the budget validation
process
 A municipality may raise and spend additional
funds for a K-8 school to supplement the RSU
budget
Debt Liability 20 A MSRA 1506
• Definitions
– Existing debt – issued prior to July 1, 2008,
does not include routine payables or
commercial contract obligations
– Original unit – previous SAU or a municipality
that incurred debt for educational unit
– New unit – means an RSU
Debt Liability 20 A MSRA 1506
 Liability remains with original unit after RSU
formed
 Original unit may not be finally dissolved until debt is
paid in full
 May be merged into RSU
 New unit agree to pay the existing debt
 New unit may issue bonds or other debt to
refinance or retire the existing debt, act as agent
 Bonds to complete school construction and
renovation
Transfer of teachers and employees
• Application of law for those on probation or
contract – not required to be transferred
• Probationary period
• Collective bargaining
– Continued recognition of agents
– 3 yrs to merge to a regional contract
– One unit of teachers
– Existing patterns of organization for others
– Interim agreements
Superintendent contracts
• Transferred to the regional school unit
• RSU determines duties
What are the Responsibilities of the Dept. of Education?
 Guidelines for Reorganization Planning Committees
 Review of Reorganization Plans
 Prepare report for Legislature by January 31, 2008 detailing
compliance with this statute and any legislation needed to
fully implement this law
 Conduct a review of unfunded state mandates and submit
report no later than December 15, 2008
 Conduct review of the results of the validation referenda
 Adopt major substantive rules to establish criteria to identify
efficient, high-performing school districts by December 1,
2007
Notify SADs of Requirement to be RSU as of
July 1, 2009
• School administrative districts that have not formed a
Regional School Unit by November 4, 2008
• SADs may be changed to a RSU upon notice to the
State Board of Education, without dissolving the
school administrative district
• Commissioner shall notify affected SADs by
December 1, 2008
What Resources are Available to Local
Communities (and how do we access them)?
Facilitators – July 2, 2007
Data
Funding for Reorganization
Funding for Early Start Up
Commissioner’s Office
 624-6620
 [email protected]
More information available online:
• Full text of the Reorganization Law
• Schedule of regional informational meetings
• Questions & Answers
• Sign up for e-News Updates
www.maine.gov/education