Reorganization Planning Committee

1. Reorganization Planning Committee Informational Meeting September 18, 2008

2. Agenda • Presentation of Plan approved by SAD 5 and SAD 50 Boards • Governance • Assets and Liabilities • Contracts and Collective Bargaining • Finance • Impact on St. George • Questions/Discussion

3. Planning and Voting Process • SAD 5 and SAD 50 School Boards each notifies Department of Education of intent to merge • RPC (Reorganization Planning Committee) formed • RPC develops consolidation plan • SAD 5 and SAD 50 Boards vote to approve plan • Submitted to State for Approval/Revisions • Presented to voters for approval

4. Composition of RPC • Three representatives from each town, a total of 18 committee members • SAD 5: Rockland, South Thomaston, Owl’s Head • SAD 50: Cushing, St. George and Thomaston

5. Committee’s Goals • Create a comprehensive reorganization plan for the proposed new Regional School Unit (RSU) to include: • Governance: Size, composition and apportionment of governing body (school board), • Property: Disposition of real and personal property and school funds, • Debt: Disposition of existing school debt and lease-purchase obligations, • Employees: Assignment of school personnel contracts, collective bargaining agreements, contractual obligations • Transition: Plan for development of first budget and interim personnel policies • Cost Savings: Estimate of Cost savings to be achieved.

6. Sub-Committees • Assets and Liabilities • Contracts and Collective Bargaining • Governance • Finance

7. Governance Sub Committee • 4 Members – 2 each SAD 5 and SAD 50 • Primary Responsibility: Recommend Structure of School Board for new RSU (Regional School Unit) • Must Meet One Man/One Vote Criteria • Recommendations: • 13 member board • Staggered 3 year terms

8. School Board Composition and Voting • Composition and voting Municipality # of members # of members Rockland 5 38.46% Owls Head 1 7.69% South Thomaston 1 7.69% Thomaston 3 23.08% Cushing 1 7.69% St. George 2 15.38%

9. Assets and Liabilities • Transferred to New Regional School Unit • Real Property and Fixtures • All real property interests (land, buildings, realty improvements, easements, option rights, first refusal rights, purchase rights and all fixtures • Personal Property • All tangible school personal property (movable equipment, furnishings, textbooks and other curriculum materials, supplies and inventories • Debt Obligations • New RSU assumes all local debt. SAD 5 has approximately $900,000 more local-only approved debt than SAD 50.

10. Contracts and Collective Bargaining • School Personnel Contracts • Contract Employees. Contracts assumed by new RSU. • Non-contract Employees. Can be terminated in accordance with applicable law • School Collective Bargaining Agreements • Assumed by the new RSU

11. School Collective Bargaining Agreements • John: can we, meaning you/town office staff scan and input exhibit 7.b onto this file. • Also I do not have exhibit 7.a. Do you.

12. Finance • Existing Financial Obligations – accounts payable and other financial obligations. • Responsibility of SAU (SAD 5 or SAD 50 as appropriate) • Remaining Balances. • Contributed to RSU and credited against future levies. • Reserve Funds. • Transferred to RSU to be used only to benefit the members of the SAU that transferred the reserve to the RSU • Scholarship Funds. • Balances transfer to RSU. Awards limited to original pool of potential recipients. • Trust Funds. • Transferred to RSU.

13. Finance • Cost Sharing Formula • Formula for allocating expenses above and outside of EPS (Essential Programs and Services) • Current Formulas. • SAD 5 = Based 100% on State Valuations. • SAD 50 = Based 50% State Valuations, 50% students. • Current Computation of allocation based on State Valuation. • >EPS X Allocation percentage (100% SAD 5/ 50% SAD 50) X Municipal valuation/Sum of SAU valuations • Current Computation of allocations based upon student enrollment. • >EPS X Student allocation percentage (0% SAD5/50% SAD 50) X municipality student enrollment/total SAU students.

14. Finance • Proposed Cost-Sharing Formula • 75% based on State Valuations • 25% based on student population • Phase in over 6 years • No change first two years • Yearly increase of 6.25% for four years on state valuation component • Yearly decrease of 6.25% for four years on student population component

15. Finance • Amending the Cost-Sharing Formula. • Triggering events. • Written Petition of at least 10% of number of voters in prior gubernatorial election. • Majority of the Board of Directors of the RSU • Board of Directors appoints CSC (Cost Sharing Committee). • Each municipality has 2 members, 1 appointed resident, 1 a resident member of the School Board chosen by the School Board. • CSC voting is in proportion to municipal representation on the School Board. • If majority recommends change, passage requires 2/3 majority of the RSU Board of Directors.

16. Impact on St. George • Board Representation • reduced from 33 1/3% to 15% • Loss of Local Voice. • Plan Precludes the establishment of and role for local school board • RPC rejected Alternative Organizational Structure • Financial. • Change in the funding formula • Pace of Relative Valuation Growth • Mechanism for Changing Funding Formula • low valuation/high student population towns control • No Local School Option

17. Next Steps • Referendum • November Ballot SAD 5 and SAD 50 vote as units • Yes Vote • Plan becomes operational 7/1/2009 • No Vote • Restart the Process

18. New Process, New Possibilities • Refine Current Plan • Create Role Power and Duties for Local School Committees • Consider Alternative Organization Structure