DETAILS OF THE NEW STATE OF MAINE SCHOOL CONSOLIDATION LAW RPC FORUM 11-14-07

1. DETAILS OF THE NEW STATE OF MAINE SCHOOL CONSOLIDATION LAWRPC FORUM 11-14-07

2. WILL SCHOOL UNION 98 BECOME REGIONAL SCHOOL UNIT #8???

3. MAJOR REQUIREMENTS OF THE NEW SCHOOL CONSOLIDATION LAW: • ALL SCHOOLS MUST REORGANIZE AND BECOME REGIONAL SCHOOL UNITS (RSUs) BY JULY 1, 2009 • THE INTENT OF THE LAW IS TO REORGANIZE THE 290 PRESENT SCHOOL UNITS IN MAINE TO A TARGET NUMBER OF 80 REGIONAL SCHOOL UNITS (RSUs) ACROSS THE STATE OF MAINE • LAST MINUTE AMMENDMENTS TO THE PROPOSED LAW BEFORE FINAL APPROVAL WERE INTENDED TO ALLOW FOR GREATER LOCAL CONTROL OF THE FORMATION AND OPERATION OF NEW REGIONAL SCHOOL UNITS • CHANGES WILL NOT BE IN EFFECT UNTIL AFTER THE 2008-2009 SCHOOL YEAR

4. SIZE AND OTHER REQUIREMENTS: • RSU’S MUST BE A MINIMUM SIZE OF 2500 STUDENTS WITH SOME EXCEPTIONS BUT IN NO CASE MAY THEY BE FORMED OF LESS THAN 1200 STUDENTS (our letter of intent was approved with less than 2500 students) • ALL RSU’S MUST INCLUDE PROVISIONS FOR HIGH SCHOOL EDUCATION FOR ALL STUDENTS

5. WHAT ABOUT THE ISLANDS?: • THE OFFSHORE ISLANDS NOT CONNECTED BY A BRIDGE TO THE MAINLAND (ISLESFORD, CRANBERRY, FRENCHBORO AND SWANS) ARE SPECIFICALLY EXEMPT FROM THE CONSOLIDATION PROCESS BY LAW • THEY WILL NEED TO EITHER FILE AN ALTERNATIVE PLAN TO DEAL WITH THEIR REORGANIZATION AS RSU’S OR THEY MAY CONSIDER ORGANIZING WITH THE TOWNS ON MOUNT DESERT ISLAND WHEN THAT RSU IS FORMED • THEIR PLANS MUST INCLUDE A METHOD TO ACCESS SUPERINTENDENT OFFICE SERVICES

6. REQUIRED TIMELINES: • ALL SCHOOL UNITS FILED LETTERS OF INTENT TO REORGANIZE WITH POTENTIAL PARTNERS ON AUGUST 31, 2007 • A REORGANIZATION PLAN DEVELOPED BY THE RPC MUST BE SUBMITTED TO THE DOE BY DECEMBER 1, 2007 BY ALL SCHOOL ADMINISTRATIVE UNITS (SAU’S) • IF A PLAN IS APPROVED BY THE DOE, THEN THE PLAN WILL GO TO THE VOTERS OF EACH POTENTIAL MEMBER TOWN FOR A REFERENDUM ON THE PROPOSED NEW RSU NEXT JUNE 10TH OR NEXT NOVEMBER 4TH (by majority vote in each town) • IF THE PLAN IS APPROVED BY THE VOTERS, THEN THE NEW RSU WILL BE CERTIFIED BY THE COMMISSIONER AND COMMENCE OPERATION ON JULY 1, 2009 AFTER HIRING A NEW SUPERINTENDENT FOR THE RSU THAT SPRING AND DEVELOPING A NEW RSU BUDGET FOR THE UPCOMING SCHOOL YEAR • SCHOOL UNITS THAT DO NOT CONSOLIDATE BY JULY 1, 2009 WILL BE DEEMED TO BE “NON-CONFORMING” AND WILL BE SUBJECT TO PENALTIES AS SPELLED OUT IN THE NEW LAW

7. REQUIREMENTS OF AN RSU PLAN: (1) The units of school administration to be included in the proposed reorganized regional school unit; (2) The size, composition and apportionment of the governing body; (3) The method of voting of the governing body; (4) The composition, powers and duties of any local school committees to be created; (5) The disposition of real and personal school property; (6) The disposition of existing school indebtedness and lease-purchase obligations (7) The assignment of school personnel contracts, school collective bargaining agreements and other school contractual obligations; (8) The disposition of existing school funds and existing financial obligations, including undesignated fund balances, trust funds, reserve funds and other funds appropriated for school purposes; (9) A transition plan that addresses the development of a budget for the first school year of the reorganized unit and interim personnel policies; (10) Documentation of the public meeting or public meetings held to prepare or review the reorganization plan; (11) An explanation of how units that approve the reorganization plan will proceed if one or more of the proposed members of the regional school unit fail to approve the plan; (12) An estimate of the cost savings to be achieved by the formation of a regional school unit and how these savings will be achieved

8. ADJUSTMENTS TO STATE SUBSIDY: • AS PART OF THIS NEW CONSOLIDATION LAW, AND IN ORDER TO SAVE THE STATE GOVERNMENT APPROXIMATELY 36 MILLION DOLLARS, THE FOLLOWING REDUCTIONS WILL BE MADE IN STATE SUBSIDY AMOUNTS BEGINNING IN 2008-2009: • A 5% REDUCTION IN SPECIAL EDUCATION • A 5% REDUCTION IN OPERATIONS AND MAINTENANCE • A 5% REDUCTION IN TRANSPORTATION • A 50% REDUCTION IN THE CENTRAL OFFICE COSTS

9. RSU GOVERNANCE AND VOTING POWER: • NEW RSU’s WILL BE GOVERNED BY AN ELECTED DISTRICT BOARD OF DIRECTORS • THE BOARD MUST INCLUDE AT LEAST ONE REPRESENTATIVE FROM EACH MUNICIPALITY • VOTING POWER MUST FOLLOW THE ONE PERSON-ONE VOTE PRINCIPLE BY EQUAL DISTRIBUTION OF 1000 VOTES BY POPULATION SIZE OF EACH TOWN • THE RPC IN THEIR PLAN IS ALLOWED TO FORM LOCAL SCHOOL COMMITTEES AND ASSIGN THEM POWERS AND DUTIES AS THEY SO CHOOSE

10. THE BUDGETING PROCESS: • AN RSU BUDGET (OR BUDGETS) MUST BE APPROVED AT A DISTRICT BUDGET MEETING (OR MEETINGS) • THE RSU BUDGET(S) MUST BE APPROVED BY A REFERENDUM VOTE (OR A SERIES OF REFERENDUMS) BEGINNING NEXT SCHOOL YEAR, REGARDLESS OF WHETHER A SCHOOL UNIT AGREES TO CONSOLIDATE OR NOT • BUDGETING FOR THE K-8 PROGRAM MAY BE DEVELOPED, APPROVED AND ASSESSED IN THE TOWNS WHERE EACH OF THE K-8 SCHOOLS OPERATE • THE HIGH SCHOOL PORTION OF THE RSU BUDGET WILL STILL FOLLOW THE REQUIREMENTS FOR APPROVAL AS DETAILED IN THE PRIVATE AND SPECIAL ACT THAT CREATED THE HIGH SCHOOL IN 1966 WITH THE ADDITION OF A REFERENDUM VOTE IN ALL OF THE COMMUNITES THAT FORM THE CSD TO BE HELD WITHIN 10 DAYS OF THE CSD ANNUAL MEETING • THE PORTION OF THE RSU BUDGET THAT IS SHARED BY ALL OF THE COMMUNITIES (THE CENTRAL OFFICE BUDGET FOR SYSTEM ADMINISTRATION, FORMERLY THE UNION 98 OFFICE BUDGET) MUST BE APPROVED AT A DISTRICT WIDE BUDGET MEETING WITH A REFERENDUM TO FOLLOW FOR FINAL APPROVAL

11. BUDGET TRANSPARENCY: • THE RSU BUDGET (OR BUDGETS) MUST BE PRESENTED AND VOTED ON ARTICLE BY ARTICLE IN AN EPS COST CENTERED FORMAT: • REGULAR INSTRUCTION • SPECIAL EDUCATION • CAREER AND TECHNICAL EDUCATION • OTHER INSTRUCTION (SUMMER SCHOOL AND EXTRA-CURRICULAR • STUDENT AND STAFF SUPPORT • SYSTEM ADMINISTRATION • SCHOOL ADMINISTRATION • TRANSPORTATION AND BUSSES • FACILITIES MAINTENANCE • DEBT SERVICE AND OTHER COMMITMENTS • ALL OTHER EXPENDITURES, INCUDING SCHOOL LUNCH NOTE: THE RSU BOARD MAY AUTHORIZE NO MORE THAN A 5% TRANSFER BETWEEN THESE COST CENTERS DURING THE SCHOOL YEAR WITHOUT VOTER APPROVAL

12. COST SHARING BETWEEN TOWNS: • THE K-8 PORTION OF OF THE RSU BUDGET MAY BE RAISED AND ASSESSED AT THE LOCAL LEVEL IN EACH TOWN • THE SHARED DISTRICT OFFICE SECTION OF THE RSU BUDGET MUST BE SHARED BY THE PROPORTIONAL ENROLLMENT PERCENTAGE OF EACH TOWN MAKING UP THE NEW RSU (VERY CLOSE TO THE WAY THE UNION BUDGET COSTS ARE NOW ASSESSED TO EACH TOWN) • THE HIGH SCHOOL PORTION OF THE RSU BUDGET MAY BE SHARED BETWEEN ALL TOWNS THAT MAKE UP THE PRESENT CSD USING THE FORMULA THAT THE PRIVATE AND SPECIAL ACT REQUIRES UNLESS THIS FORMULA IS MODIFED AT A LATER DATE • ALL TOWNS MUST RAISE A MINIMUM OF 2 MILS OF VALUATION TO SUPPORT THE EDUCATION OF THE CHILDREN IN THE TOWNS THAT FORM THE NEW RSU (THIS MAY BE A PROBLEM FOR THE CRANBERRY ISLES) THERE IS A PROPOSAL BEFORE THE MAINE LEGISLATURE TO CHANGE THIS REQUIREMENT DURING THE UPCOMING JANUARY SESSION

13. TRANSFER OF TEACHERS AND EMPLOYEES: • ALL TEACHERS AND SCHOOL EMPLOYEES MUST BE TRANSFERRED AND EMPLOYED BY THE NEW REGIONAL SCHOOL UNIT WITH NEITHER A DECREASE OR AN INCREASE IN THE RIGHTS AND BENEFITS OF THE TRANSFERRED EMPLOYEES OR EMPLOYER • ALL COLLECTIVE BARGAINING CONTRACTS WILL BE HONORED UNTIL THEIR EXPIRATION AND THEN A NEW COLLECTIVE BARGAINING AGREEMENT WILL BE NEGOTIATED WITH THE NEW RSU WHICH SHALL BE CONSIDERED A SINGLE EMPLOYER • AS EARLY AS POSSIBLE AFTER REORGANIZATION OF AN RSU, ALL PREVIOUS BARGAINING UNITS MUST BE STRUCUTRED ON A REGIONAL SCHOOL UNIT BASIS (“COMMON CONTRACT”) • SUPERINTENDENT CONTRACTS WILL BE TRANSFERRED OVER TO THE NEW RSU AND THE BOARD OF DIRECTORS SHALL DETERMINE THE FORMER SUPERINTENDENT’S DUTIES WITH THE NEW REGIONAL SCHOOL UNIT

14. SCHOOL OWNERSHIP, ASSETS AND DEBT: • LOCAL ONLY DEBT WILL REMAIN THE RESPONSIBILITY OF THE TOWN THAT ESTABLISHED THIS OBLIGATION UNLESS THE NEW RSU PLAN INCLUDES SHARING THE DEBT BETWEEN ALL THE TOWNS OF THE NEW RSU • THE OWNERSHIP OF SCHOOL BUILDINGS MAY REMAIN LOCAL IF THIS IS SPELLED OUT IN THE RPC PROPOSED PLAN

15. CLOSING OF SCHOOLS: • A PLAN MAY NOT CLOSE ANY SCHOOLS OR DISPLACE ANY TEACHERS DURING THE FIRST YEAR OF THE RSU • A 2/3 VOTE OF THE BOARD OF DIRECTORS OF THE NEW RSU WILL BE NEEDED TO CLOSE AN INDIVIDUAL SCHOOL AFTER THE FIRST YEAR OF THE RSU • AN INDIVIDUAL TOWN MAY VOTE TO KEEP THE SCHOOL IN QUESTION OPEN, BUT WILL BE SOLEY RESPONSIBLE FOR THE ADDED COSTS THAT WOULD HAVE BEEN SAVED IF THE SCHOOL WERE TO HAVE BEEN CLOSED

16. SCHOOL CHOICE?: • STUDENTS LIVING IN COMMUNITES THAT HAD A CHOICE OF HIGH SCHOOLS BEFORE THE NEW RSU WAS FORMED MAY STILL EXERCISE THIS SCHOOL CHOICE OPTION

17. PENALTIES FOR NON-CONFORMING SCHOOL UNITS: • ELIGIBILITY FOR ONLY 50% OF THE MINIMUM STATE SUBSIDY (SPECIAL EDUCATION REIMBURSEMENT) • SUBSIDY AMOUNTS FOR SYSTEM ADMINISTRATION WILL BE FURTHER CUT IN HALF • NO LONGER ELIGIBLE FOR ANY TRANSITION ADJUSTMENTS • LESS FAVORABLE CONSIDERATION FOR APPROVAL AND FINANCIAL ASSISTANCE FOR STATE FUNDED SCHOOL CONSTRUCTION PROJECTS

18. IN SUMMARY…HOW WILL OUR SCHOOLS BE STRUCTURED UNDER THIS NEW LAW? • THE FUTURE STRUCTURE OF OUR SCHOOLS WILL ULTIMATELY DEPEND ON THE ACTIONS OF OUR REORGANIZATION COMMITTEE IN FORMING A PROPOSED PLAN FOR THE RSU AND WITH THE APPROVAL OF OUR VOTERS AT THE FORMATION REFERENDUM • EVEN THOUGH WE WILL BE AN RSU, THE LAW ALLOWS ENOUGH FLEXIBILITY TO ALLOW FOR LOCAL GOVERNANCE OF OUR SCHOOLS AS WELL AS LOCAL DEVELOPMENT AND APPROVAL OF THE LOCAL PORTION OF THE RSU DISTRICT BUDGET • THE HIGH SCHOOL CSD FUNDING FORMULA WILL BE ALLOWED TO FUNCTION MUCH AS IT HAS FOR OVER 40 YEARS DUE TO ITS CREATION BY PRIVATE AND SPECIAL ACT OF THE LEGISLATURE