Clarifications on Reorganization Implementation

Hello Everyone,
Below is the latest information from the DOE pretaining to regionalization. I hope that your summer is going well.

INFORMATIONAL LETTER NO: 5
FROM: Susan A. Gendron, Commissioner
DATE: July 31, 2007
RE: Clarifications on Reorganization Implementation

I would like to take this opportunity to provide clarifying information on a number of crucial questions and issues that have been raised repeatedly at the Regional Informational Meetings that were conducted around the state and by superintendents, school board members and others. * Budget validation referendum. All school administrative units (SAUs) are subject to the new budget preparation and approval process, including the requirement for a budget validation referendum, for the 2008-09 school year (all budgets prepared after January 1, 2008). This corrects earlier information suggesting a phased-in requirement for different types of SAUs. The requirement in the new law is found in four different places and makes this process a requirement for all forms of SAUs. (Public Law 2007, Chapter 240, Part XXXX-11 (now at 20-A MRSA §1305-C), XXXX-13 (now at 20-A MRSA §§1482-1486), XXXX-16 (now at 20-A MRSA §1701-C), and XXXX-21 (now at 20-A MRSA §2307)* Requirements for each RSU to have a high school. Each RSU's plan must provide comprehensive programming for all K-12 students, and must include a public or publicly-supported private high school(s). There is not a requirement that the high school be physically located in the RSU or municipal school unit so long as there is a contractual relationship (or contractual relationships) ensuring that all students - including those in special education and alternative education - are provided comprehensive programming. Please note that RSUs that choose to provide K-12 programming for all students in their RSU without having a public high school within the RSU are likely to face challenges in meeting this requirement. Solid contractual relationships must be shown to meet this requirement and it may not be easy to find high schools - public or private - willing to commit to taking all students.* Who must go through the process? ALL school administrative units, whatever the current structure and whatever size - SADs, CSDs and municipal school units (city/town/plantation), 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. A school union is not an SAU - each of the municipal units that make up a school union is an SAU and each must work to reorganize, each must file a Notice of Intent, and each must file a Reorganization or Alternative Plan.* Additional guidelines for submitting financial data requests. The requests for financial data are intended to assist potential RSU partners that are having discussions about possible partnership. Superintendents should submit the requests on behalf of SAUs and/or Reorganization Planning Committees. The requests should be for potential configurations that include SAUs that are having at least preliminary discussions, as these will be given priority here in the Department. * Financial penalties for units not conforming by July 1, 2009o For minimum subsidy receivers - the law states that minimum subsidy receivers would receive 50 percent of what they would have "otherwise received" for FY10 and beyond. The Department is unable to calculate the exact amount of "otherwise received" until we prepare FY09 funding in December 2008. For these units, what they would have "otherwise received" would generally refer to the 5% minimum subsidy OR 84% of special education allocation, whichever is greater. The minimum subsidy is, of course, subject to legislative adjustment, though none is currently anticipated.o For regular subsidy receivers -* 50% reduction in system administration allocation. The EPS amount for system administration for the 2008-09 school year will be $204 per pupil, and for 2009-10 is projected to be approximately $210. The penalties would begin in 2009-10 and would be half that amount, or approximately $105.* Beginning in 2009-10, the state will be required to calculate the EPS subsidy based on 53.86% of full EPS for non-conforming units, rather than the 55% for conforming units. (In addition, the balance resulting from reduced subsidy to non-conforming units will be redistributed to conforming units.) For illustration purposes, remaining at 53.86% in FY08 would increase the local obligation by approximately 0.25 mills on top of the statewide local expectation of 7.44 mills for those units that do reorganize. That is, penalized units would be subject to a required local share of roughly 7.70 mills instead. We cannot calculate the 2009-10 impact until Maine Revenue Services calculates the state valuation and the Department calculates a funding level for that year and it is approved by the Legislature.o All units that vote against reorganization - both regular and minimum subsidy receivers - will receive less favorable consideration for approval and funding for school construction.o All units that vote against reorganization - both regular and minimum subsidy receivers - lose eligibility for "transition adjustments."* What exhibits due diligence? Due diligence: the expectations of any responsible person; good faith effort; applying the right attitude; taking the necessary steps to fairly and considerately explore all optionso Due diligence may be evidenced by documenting exploration of reasonable options, financial and other analyses, public involvement, and other activities aimed at reorganizing according to the law. The SAU and/or Reorganization Planning Committee should maintain documentation of: public meetings and planning committee meetings; minutes and meetings within the SAU; correspondence with other SAUs and meetings with other SAUs. It is expected that each SAU will utilize data in the process and access facilitation services as determined appropriate by the SAU. This list is not intended to be comprehensive, but rather illustrative.* Resources on the website! Please do not forget the DOE website - there are considerable resources available to superintendents, board members, municipal officials, community members, and others including:o The Reorganization Law and a summary of it;o PowerPoint presentation explaining the process if you missed it at the regional informational meetings, or want to see it again, and the more detailed PowerPoint presentation from the Superintendents' Conference in Bar Harbor;o A Planning and Resources page for superintendents, school board members, municipal officials, and community members with guidelines for forming planning committees, information about facilitators and what they can do for communities, and explanation of what goes into a Notice of Intent, and a Reorganization or Alternative Plan;o A Q&A section that we are updating weekly to answer key questions we are hearing; ando A place to sign up for updates we are sending out as we add items to the website or clarify key questions that people have.Go to www.maine.gov/education/ and click on the School Administrative Reorganization logo. Ray Poulin and Norm Higgins will continue to be available to superintendents during the process to help answer your questions and assist in your planning. They can be reached directly at 624-9843 (Ray) and 624-6783 (Norm).