An Act to Encourage Voluntary Efficiency in Maine's School Systems and Related Costs Savings LR 2782(02)
Maine Legislature, Session 121, LD 1921
Committee Amendment CA_A_H888 (House)
Amends: 20-A MRSA §1

COMMITTEE AMENDMENT ,~ to H.P. 1422, L.D. 1921, Bill, "An 
Act To Encourage Voluntary Efficiency in Maine's School Systems 
and Related Costs Savings" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. 1. 20-A MRSA §1, sub-§26, as corrected by RR 1993, c. 1, 
§44, is amended to read: 
26. 
School 
administrative unit. 
"School 
administrative 
unit" means the state-approved unit of school administration and 
includes a municipal school unit, school administrative district, 
community school district, regional school district or any other 
municipal 
or 
quasi-municipal 
corporation 
responsible 
for 
operating or constructing public schools, except that it does not 
include an applied technology region. 
Sec. 2. 20-A MRSA c.123 is enacted to read: 
CHAPTER 123 
EFFICIENT DELIVERY OF EDUCATIONAL SERVICES 
SUBCHAPTER I 
REGIONAL SCHOOL DISTRICTS. REGIONAL 
COOPERATIVES AND CONSULTING SCHOOL UNITS 
§3701. 
Legislative findings and policy 
Page I-LR2782(2) 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT I~I to H.P. 1422, L.D. 1921 
The Legislature finds 
and declares as the policy of the 
State that encouragement of regional delivery of educational 
services and school administration, through voluntary formation 
of 
regional 
school 
districts 
and 
regional 
cooperatives 
and 
provision of assistance by consulting school units to school 
administrative units seeking to reduce their education costs, is 
in 
the 
public 
interest 
as 
a 
means 
to 
further 
increase 
efficiencies 
and 
improve 
equity 
in 
delivering 
educational 
services and to alleviate increasing costs without compromising 
the quality of public education from kindergarten to grade 12. 
§3702. 
Definitions 
As 
used in this chapter, 
unless 
the 
context otherwise 
indicates, the following terms have the following meanings. 
1. 
Consulting school unit. 
"Consulting school unit" means 
a school administrative unit in existence on the effective date 
of this chapter certified by the commissioner pursuant to section 
2. 
Exceptional circWDstances. 
"Exceptional circumstances" 
means an unforeseen condition or conditions regarding which a 
regional 
school district, 
regional 
cooperative 
or 
consulting 
school unit lacks discretion, authority or other means of control. 
3. 
Fund for the Efficient Delivery of Education Services or 
.fimd. 
"Fund for the Efficient Delivery of Education Services" or 
"fund" means the fund established by section 3721. 
4. 
Regional coqperatiye. 
"Regional cooperative" means an 
entity formed pursuant to an agreement under section 3703 and 
approved for certification under section 3705. 
5. 
Regional school district. 
"Regional school district" 
means 
a 
school 
administrative 
unit 
formed 
pursuant 
to 
an 
agreement under 
section 3703 
by 
combining 
or more 
school 
administrative units in existence on the effective date of this 
section and certified pursuant to section 3704. 
§3703. 
Authorization for regional delive~ of public education 
services 
A school administrative unit may enter into an agreement 
with another school administrative unit or units to form or 
intend to form a regional school district or regional cooperative 
and otherwise cooperate and participate in the development and 
formation of a regional school district or regional cooperative 
under this chapter or to provide assistance to another school 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,tt .. to H.P. 1422, L.D. 1921 
administrative unit or units seeking to identify and implement 
means to increase efficiency and lower costs of delivering public 
education services 
for 
kindergarten to 
grade 
12. 
A 
school 
administrative unit may also enter into an agreement with a 
municipality or county to form or intend to 
form a 
regional 
cooperative. 
An agreement pursuant to this section must provide 
that each school administrative unit combined to form a regional 
school district retains all its debt obligations that existed on 
the effective date of the agreement. 
§3704. 
Certification of regional school districts 
1. 
Certification 
criteria. 
In 
order 
for 
a 
school 
administrative unit to qualify for certification by the state 
board as a regional school district. the school administrative 
unit must: 
A. 
Be a single school administrative unit that, pursuant to 
an agreement under section 3703, combines 2 or more school 
administrative units that existed on the effective date of 
this section: 
B. 
Have 
a 
single 
governing 
board 
with 
one 
or 
more 
representatives of each school administrative unit combining 
to form the regional school district and no more than 11 
members in total. provided that the state board may in its 
discretion authorize a governing board with more than 11 
members for good cause shown: 
C. 
Have an aggregate resident student population of 1.000 
or more in 2004 as recorded by the department. except that 
the aggregate resident student population may be less than 
1,000 if the proposed regional school district is located in 
a geographically isolated area as defined by th~ state board: 
D. 
Include at least one high school with a resident student 
population of 
or 
more 
in 2004 
as 
recorded by the 
department, 
unless 
the 
school 
administrative 
unit 
demonstrates 
to 
the 
state 
board 
that 
an 
adequate 
and 
efficient educational program will be provided utilizing a 
smaller high school: 
E. 
Implement a school-level budgeting and accounting system: 
F. 
Have 
a 
5-year plan approved by the commissioner for 
increasing efficiencies 
and 
academic 
performance 
in the 
proposed regional school district; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .. A .. to H.P. 1422, L.D. 1921 
G. 
Be formed by an agreement pursuant to section 3703 that 
requires annual documentation to the department, on a form 
developed by the department, of cost savings determined by; 
(1) 
Calculating the total costs incurred by the school 
administrative units that combined to form the regional 
school district, 
including 
and distinguishing total 
annual administrative expenditures, in the fiscal year 
prior to that in which the regional school district 
initiated operations: 
(2) 
Adjusting the amount calculated under subparagraph 
(1) by appropriate trends in the Consumer Price Index 
or a comparable index: and 
(3) 
Comparing the regional school district's total 
costs 
to 
the 
adjusted 
cost 
calculated 
under 
subparagraph (2). 
2. 
Preliminaxy certification. 
The state board may grant 
preliminary certification of a proposed regional school district 
if the school administrative units to be combined to form the 
district: 
A. 
Jointly reguest preliminary certification under this 
subsection: and 
B. 
Have entered into an agreement to form a regional school 
district pursuant to section 3703. 
Preliminary certification granted under this subsection is void 
if the 
proposed regional school district is not operational 
within 3 years of the date of that preliminary certification, as 
determined by the state board. 
3. 
Final certification. 
The state board shall issue final 
certification 
as 
a 
~egional school 
district 
to 
a 
proposed 
regional school district if: 
A. 
The school administrative units to be combined to form 
the 
regional 
school 
district 
jointly 
reguest 
final 
certification under this subsection: 
B. 
The school administrative units to be combined to form 
the regional schoQI district have each approved an agreement 
that 
addresses 
continuity 
of 
employment 
and 
employment 
benefits 
and rights of all bargaining units within the 
proposed regional school district: and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A-.. to H.P. 1422, L.D . 1921 
C. 
The state board determines that the proposed regional 
school district meets the criteria of subsection 1. 
At the time it issues final certification, the state board shall 
set the first day of the fiscal year following that in which 
final certification is granted as the date for initiation of 
operations by the regional school district. 
4. 
Performance review 
criteria. 
The state board shall 
annually 
review 
information 
submitted 
under 
subsection 
L 
paragraphs F and G in order to determine whether: 
A. 
The 
regional 
school district has 
made 
satisfactory 
annual 
progress 
in 
implementing 
its 
5-year 
plan 
for 
increasing efficiencies and academic performance provided 
for under subsection 1, paragraph F: and 
B. 
The total annual administrative expenditures of the 
regional school district were g"eater than or eQual to 90'" 
of the total co§ts. a§ calculated and adju§ted in accordance 
with §ubsection 1, paragraph G. 
5. 
Fund 
ineligibility 
and 
reimbursement. 
Except 
as 
otherwise provided by subsection 6, if the state board determines 
that the regional 
school di§trict ha§ 
not 
made 
satisfactory 
annual progres§ in implementing it§ 5-year plan for increasing 
efficiencies provided for under subsection 1. paragraph F or that 
the total annual administrative expenditure§ of the regional 
§chool dhtrict were greater than 
90'" of the total co§t§. as 
calculated 
and 
adjusted 
in 
accordance 
with 
§ubsection 
1, 
paragraph G, then the regional school district upon notice of the 
state board's determination: 
A. 
I§ ineligible fpr funding from the fund in the following 
fi§cal year: and 
a. 
Mu§t, in the following fi§cal year, reimburse the fund: 
(1) 
An 
amount egual to the difference between the 
regional 
school 
di§trict's 
total 
administrative 
expenditures in the pertinent fiscal year and 90'10 of 
the 
total 
co§t§, 
M 
calculated 
and 
adjuHed 
in 
accordance with sub§ection 1, paragraph G: and 
(2) An amount egual to 50'10 of the total amount of funds 
received in the pertinent fiscal year under section 
3707, subsection 1, paragraphs A and a or section 3707, 
subsection 2, paragraphs A and a, as applicable. 
Annually and no later than September 1st. the state board shall 
make and notify the regional school district of its determination 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ·A .. to H.P. 1422, L.D. 1921 
under this subsection. 
If a regional school district does not 
provide the information required by subsection 1. paragraph G, 
the regional school district is ineligible for assistance for 
funding from the fund in the following fiscal year. 
6. Exceptional circumstances. 
If the state board determines 
that 
exceptional 
circumstances 
prevented 
a 
regional 
school 
district 
from 
meeting 
the 
performance 
review 
criteria 
in 
subsection 4, then the regional school district remains eligible 
for assistance from the fund in the following fiscal year and is 
not obligated to repay funds as provided in subsection 5. 
• 
Det)artmental assistance. 
The department shall, in a 
manner considered appropriate by the commissioner, assist the 
state 
board 
in 
the 
performance 
of 
the 
state 
board's 
responsibilities under subsection 4. 
§3705. 
Approval of regional cooperatives 
1. 
Certification criteria. 
In order for 
an entity to 
gualify 
for 
approval 
by 
the 
commissioner 
as 
a 
regional 
cooperative, the entity must be formed from 3 or more scho.ol 
administrative 
units 
with 
an 
aggregate 
resident 
student 
population 
of 
1,500 
or 
more 
in 
2004, 
as 
recorded 
by 
the 
department, or from 3 or more school administrative units with an 
aggregate resident student population of 1. 500 or more in 2004, 
as recorded by the department, and one or more municipalities or 
counties, except that the aggregate resident student population 
may be less than 1,500 if the proposed regional cooperative is 
located in a geographically isolated area as defined by the state 
board, by an agreement pursuant to section 3703 that: 
A. 
Establishes a regional plan to generate cost savings in 
the delivery of public education services for kindergarten 
to grade 12 that contains: 
(1) 
A mission statement and related cost-saving goals 
and objectives; 
(2) 
A governance and organization plan; 
(3) 
Cost-savings targets, with reference to the cost 
areas listed in paragraph B; 
(4) 
A plan (or reinvestment in school instructional 
programs of 50% or more of the savings realized through 
implementation of the regional plan; and 
(5) 
A reguirement that each school administrative unit 
that is a member of the regional cooperative annually 
report 
to 
the 
citizenry 
within 
the 
school 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,A .. to H.P. 1422, L.D. 1921 
administrative unit on the ongoing school improvement 
process and the school administrative unit's updated 
comprehensive 
educational plan. 
Each 
superintendent 
shall certify progress on the plan to the commissioner 
on an annual basis: and 
B. 
Includes a plan for examining and. 
when appropriate. 
implementing 
the 
regional 
plan 
under 
paragraph 
A 
that 
includes 
measures 
to 
manage 
costs 
of 
public 
education 
services. including. but not limited to: 
(1) 
Supplies and eguipment: 
(2) 
Transportation; 
(3) 
Fuel and utilities: 
(4) 
Special education: 
(5) 
Professional development; 
(6) 
Facilities and maintenance; 
(7) 
Business operations: 
(8) 
Administration: 
(9) 
Personnel and negotiations: and 
(10) 
Food services: and 
C. 
Reguires annual documentation to the department. on a 
form developed by the department. of cost savings determined 
llt 
(1) 
Calculating the total costs in the fiscal year 
prior 
to 
that 
in 
which 
the 
regional 
cooperative 
initiated 
operations 
incurred 
by 
the 
school 
administrative units that combined to form the regional 
cooperative: 
(2) 
Adjusting the amount calculated under subparagraph 
(1) by appropriate trends in the Consumer Price Index 
or a comparable index; and 
(3) 
Comparing the regional cooperative's costs to the 
adjusted costs calculated under subparagraph (2). 
2. 
Preliminary 
~roval; eligibility for 
funding. 
The 
commissioner 
may 
grant 
preliminary 
approval 
of 
a 
proposed 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .~ to H.P. 1422, L.D. 1921 
regional 
cooperative 
if 
all 
participating 
entities 
under 
subsection 1: 
A. 
Jointly 
reguest 
preliminary 
approval 
under 
this 
subsection: and 
B. 
Have entered into an agreement pursuant to section 3703 
to form a regional cooperative. 
Preliminary approval granted under this subsection is void if the 
proposed regional cooperative is not operational within 3 years 
of 
the 
date 
of preliminary approval, 
as 
determined 
by 
the 
commissioner. 
3. 
Final approval. 
The 
commissioner shall grant final 
approval of a regional cooperative if: 
A. 
The participating entities reguest final approval under 
this subsection: and 
B. 
The commissioner determines that the proposed regional 
cooperative meets the criteria of subsection 1. 
At 
the 
time 
the 
commissioner 
issues 
final 
approval, 
the 
commissioner shall notify the state board, which shall set the 
first day of the fiscal year following that in which final 
approval is granted as the date for initiation of operations by 
the regional cooperative. 
4. 
Performance 
review: 
fund 
ineligibility 
and 
reimbursement. 
The commissioner shall annually determine, based 
on review of information submitted under subsection 1, whether a 
regional cooperative to which the commissioner has granted final 
approval under subsection 3 has made satisfactory annual progress 
implementing its regional plan developed pursuant to subsection 
1, paragraph A. 
Except as otherwise provided in subsection 5, if 
the commissioner determines that a regional cooperative has not 
made satisfactory progress implementing its regional plan, then 
the regional cooperative, upon notification from the commissioner: 
A. 
Is ineligible for funding from the fund in the following 
fiscal year: and 
B. 
Must, in the following fiscal year, reimburse the fund 
an amount egual to the total amount of funds the regional 
cooperative 
received 
under 
section 
3707, 
subsection 
3, 
paragraphs Band C. 
Annually and no later than September 1st, the commissioner shall 
make and notify the regional cooperative of the determination 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,~ to H.P. 1422, L.D. 1921 
under 
this 
subsection. 
If 
a 
regional 
cooperative 
does 
not 
provide the information required by subsection L 
paragraph C, 
the regional cooperative is ineligible for assistance for funding 
under section 3707, subsection 3 in the following fiscal year. 
5. 
Exceptional 
circumstances. 
If 
the 
commissioner 
determines that exceptional circumstances prevented a 
regional 
cooperative 
from 
meeting 
the 
performance 
review criteria in 
subsection 4, then the regional cooperative remains eligible for 
assistance from the fund in the following fiscal year and is not 
obligated to repay funds as provided in subsection 4. 
§3706. 
Certification of consulting school units; performance 
review 
1. 
Certification 
criteria. 
In 
order 
for 
a 
school 
administrative 
unit 
to 
qualify 
for 
certification 
by 
the 
commissioner 
as 
a 
consulting 
school 
unit, 
the 
school 
administrative unit must; 
A. 
Be a single school administrative unit in existence on 
the effective date of this chapter; 
B. 
Provide public education services for; 
(1) 
Kindergarten to grade 12; or 
(2) 
Kindergarten to grade 8 and have a written program 
articulation agreement with all pertinent high schools 
that addresses learning results and comprehensive local 
assessment systems in accordance with rules developed 
by 
the 
commissioner 
pursuant 
to 
section 
2703, 
subsection 1, paragraph E; 
C. 
Develop a 5-year plan for provision of assistance to one 
or more other school administrative units that are seeking 
to identify and implement means to increase efficiency and 
lower costs of delivering public education services for 
kindergarten to grade 12; 
D. 
Form an agreement with one or more school administrative 
units pursuant to section 3703 and in accordance with the 
plan developed pursuant to paragraph C to provide assistance 
to 
the 
unit 
or 
units 
regarding 
means 
to 
improve 
cost-efficiency 
and 
lower 
costs 
of 
providing 
public 
education services for kindergarten to grade 12; 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ~ 
to H.P. 1422, L.D. 1921 
E. 
Require, as part of the agreement under paragraph D, an 
annual report, on a form developed by the department, from 
the consulting school unit to the commissioner documenting; 
(1) 
Sustained 
or 
improved 
cost 
savings 
by 
the 
consulting school unit, determined by; 
(a) 
Calculating the total costs in the fiscal 
year prior to that in which the consulting school 
unit was certified under subsection 2; 
(b) 
Adjusting 
the 
amount 
calculated 
under 
subparagraph 
(a) 
by 
appropriate 
trends 
in the 
Consumer Price Index or a comparable index; and 
(c) Comparing the consulting school unit I s total 
costs 
to 
the 
adjusted 
costs 
calculated 
under 
subparagraph (b): 
(2) 
Assistance provided under the agreement; 
(3) 
Any 
recommendations 
made 
under 
the 
agreement 
regarding increased efficiency and cost savings; and 
(4) 
Sustained 
or 
improved 
high-level 
student 
performance, 
as 
determined 
by 
the state 
assessment 
program established under section 6202 or other means, 
in accordance with rules adopted by the commissioner 
pursuant to section 3709: 
F. 
Demonstrate satisfaction of cost-efficiency criteria, in 
accordance with rules made by the commissioner pursuant to 
section 3709; and 
G. 
Demonstrate high-level student performance as determined 
by the state assessment program established under section 
6202 or other means, in accordance with rules adopted by the 
commissioner pursuant to section 3709. 
2. 
Certification. 
The commissioner shall certify a school 
administrative unit as a consulting school unit if; 
A. 
The school administrative unit requests certification 
under this subsection; and 
B. 
The 
commissioner 
determines 
that 
the 
school 
administrative unit meets the criteria of subsection 1. 
3. 
Performance 
review; 
fund 
ineligibility 
and 
reimbursement. 
The commissioner shall determine, based on review 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,,/t, to H.P. 1422, L.D. 1921 
of information submitted under subsection 1, paragraph E, whether 
the consulting school unit school unit is continuing to meet the 
certification 
criteria 
under 
subsection 
and 
whether 
the 
consulting school unit provided assistance in accordance with 
subsection L 
paragraph C. 
If the commissioner determines that 
the consulting school unit did not continue to meet the criteria 
under subsection 1, did not provide assistance in accordance with 
subsection L 
paragraph C or did not make satisfactory progress 
in implementing its 5-year assistance plan established under 
subsection 1, paragraph C, then the consulting school unit, upon 
notice of the commissioner's determination: 
A. 
Is ineligible for funding from the fund in the following 
fiscal year: and 
B. 
Shall, in the following fiscal year, reimburse the fund 
an amount equal to 25'lo of the amount it received from the 
fund during the prior fiscal year. 
Annually and no later than September 1st, the commissioner shall 
notify the consulting school unit of the determination under this 
subsection. 
Except as provided in subsection 4, if a consulting 
school unit does not demonstrate satisfaction of cost-efficiency 
criteria in accordance with rules made pursuant to section 3709, 
the consulting school unit is ineligible for 
assistance for 
funding from the fund in the following fiscal year. 
4. 
Exceptional 
circumstances. 
If 
the 
commissioner 
determines that exceptional circumstances prevented a consulting 
school unit 
from meeting the performance 
review criteria in 
subsection 3, then the consulting school unit remains eligible 
for assistance from the fund in the following fiscal year and is 
not obligated to repay funds as provided in subsection 3. 
§3707. 
Financial incentives 
1. 
Regional school districts with student populations of 
1.000 to 2.500 or located in geographically isolated areas. 
Except as otherwise provided by section 3704, subsection 5, 
a 
regional school district that has an aggregate resident student 
population of 1,000 to 2,500, as recorded by the department, on 
the date set under section 3704, subsection 3 for its initiation 
of operations or is located in a geographically isolated area as 
determined by the state board under section 3704, subsection L 
paragraph 
C 
and that has 
received final certification under 
section 3704, subsection 3 is entitled to receive: 
A. 
For 5 consecutive years, an increase in general purpose 
aid equivalent to 7. 5'lo of the state share of the operating 
allocations 
for 
the 
school 
administrative 
units 
that 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ·A" to H.P. 1422, L.D. 1921 
combined to form the regional school district for the fiscal 
year 
in 
which 
the 
regional 
school 
district 
initiated 
operations: 
B. 
For 5 consecutive years, reimbursement from the State in 
an 
amount equivalent to 
25% 
of 
any non-state-supported 
major capital construction debt approved by the commissioner 
and 
incurred 
prior 
to 
July 
L 
2004 
by 
the 
school 
administrative units that combined to 
form 
the 
regional 
school district: and 
C. 
For 2 consecutive years, an amount equivalent to 50% of 
the elementary school level essential programs and services 
per-pupil guarantee established under section 15671 for the 
regional school district for resident pupils enrolled in 
all-day kindergarten. 
2. 
Regional 
school districts with 
student 
populations 
greater than 2,500. 
Except as otherwise provided by section 
3704, subsections 4 and 6, a regional school district that has an 
aggregate 
resident 
student population of 
2,500 
or 
more, 
as 
recorded by the department. on the date set under section 3704, 
subsection 
for its initiation of operations 
and that has 
received final certification under section 3704. subsection 3 is 
entitled to receive: 
A. 
For 5 consecutive years. an increase in general purpose 
aid equivalent to 10% of the state share of the operating 
allocations 
for 
the 
school 
administrative 
units 
that 
combined to form the regional school district for the fiscal 
year 
in 
which 
the 
regional 
school 
district 
initiated 
operations; 
B. 
For 5 consecutive years. reimbursement from the State in 
an amount equal to 
50% of any non-state-supported major 
capital construction debt approved by the commissioner and 
incurred prior to July I. 2004 by the school administrative 
units that combined to form the regional school district: and 
C. 
For 2 consecutive years. an amount equal to 50% of the 
elementary 
school 
level essential 
programs 
and 
services 
per pupil guarantee established under section 15671 for the 
regional school district for resident pupils enrolled in 
all-day kindergarten. 
3. 
Regional cooperatives. 
Except as otherwise provided by 
section 3705. subsection 4. a regional cooperative for which the 
commissioner 
has 
issued 
final 
approval 
under 
section 
3705, 
subsection 3: 
Page l2-LR2782(2} 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT .A-" to H.P. 1422, L.D. 1921 
A. 
Has legal authority as 
a 
fiscal entity functionally 
eguivalent to that of a school administrative unit; 
B. 
Is entitled to receive reimbursement from the State for 
consecutive years of an amount egual to a percentage of 
the total cost of salary and benefits of 
one 
1/4-time 
eguivalent regional staff member for a regional cooperative 
with an aggregate resident student population of less than 
L 500 or of one 112-time eguivalent regional staff member 
for 
a 
regional 
cooperative 
with 
an 
aggregate 
resident 
student population of L 500 or more in accordance with the 
following schedule: 
(1) 
In the first year. 100'\; 
( 2) 
In the 2nd year. 80'\; 
(3) 
In the 3rd year. 60%; 
(4) 
In the 4th year. 40%; and 
UD 
In the :2th yegr, 2Q%; 
C. 
Is eligible to receive assistance in the purchase of 
regionwide services software; 
D. 
Is eligible to receive stgte gssistgnce for providing 
regiongl services trgining programs; gnd 
E. 
If locgted in g geogrgphicglly isolgted areg as defined 
by the stgte bOgrd, may be eligible to receive incentives 
under paragraphs B, C and D if gpproved by the commissioner. 
4. 
Consulting school units with student populations of less 
than 1.000. 
Except as otherwise provided by subsection 7 or 
section 37Q6, subsection 3, g consulting school unit thgt has an 
aggreggte 
resident 
student populgtion of 
1,QQQ 
or 
less, 
as 
recorded by the department. 
on the dgte of its certification 
under section 37Q6 is entitled to receive the gregter of: 
A. 
For 5 consecutive yegrS, gn incregse in genergl purpose 
aid eguivglent to :2'\ of the stgte shgre of the operating 
gllocgtions for the consulting school unit for the fiscal 
yegr in which it WgS certified under section 3706; and 
B. 
For 5 consecutive years, reimbursement from the State in 
an amount eguivalent to 25% of any non-state-supported major 
cgpitgl construction debt gpproved by the commissioner and 
incurred prior to July I, 2004 by the consulting school unit. 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,~, to H.P. 1422, L.D. 1921 
5. 
Consulting school units with student populations of 
1.000 to 2.500. 
Except as otherwise provided by subsection 7 or 
section 3706. subsection 3. a consulting school unit that has an 
aggregate resident student population between 1.000 and 2.500. as 
recorded by the department. 
on the date of its certification 
under section 3706 is entitled to receive the greater of: 
A. 
For 5 consecutive years. an increase in general purpose 
aid equivalent to 7.5' of the state share of the operating 
allocations for the consulting school unit for the fiscal 
year in which it was certified under section 3706; and 
a. 
For 5 consecutive years. reimbursement from the State in 
an amount equivalent to 25' ~f any non-state-supported major 
capital construction debt approved by the commissioner and 
incurred prior to July I. 2004 by the consulting school unit. 
6. 
Consulting school units with student populations greater 
than 2,500. 
Except as otherwise provided by subsection 7 or 
section 3706. subsection 3. a consulting school unit that has an 
aggregate 
resident 
student population of 
2.500 
or 
more. 
as 
recorded by the department. 
on the date of its certification 
under section 3706 is entitled to receive: 
A. 
For 5 consecutive years. an increase in general purpose 
aid equivalent to 10' of the state share of the operating 
allocations for the consulting school unit for the fiscal 
year in which it was certified under section 3706; and 
a. 
For 5 consecutive years. reimbursement from the State in 
an amount equivalent to 50' of any non state supported major 
capital construction debt approved by the commissioner and 
incurred prior to July I. 2004 by the consulting school unit. 
7. 
Funding priority. 
Regional school districts that have 
received 
final 
certification 
under 
section 
3704. 
regional 
cooperatives that have 
received final approval 
under 
section 
3705, subsection 3 and consulting school units that have received 
certification under section 3706 are eligible for 
funding in 
priority order according to their respective dates of final 
certification. approval or certification as follows: 
A. 
At the beginning of each fiscal year, the department 
shall calculate the difference between the amount of funding 
in the fund and the aggregate 5-year amount of financial 
assistance for which regional school districts. 
regional 
cooperatives 
and 
consulting 
school 
units 
are 
eligible 
pursuant to this 
section and shall determine the percentage 
of the total funding for which consulting school units are 
eligible. 
The department shall provide its calculations and 
determination under this paragraph to the state board; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .. A 
.. to H.P. 1422, L.D. 1921 
B. 
In 
issuing 
final 
certification 
under 
section 
3704, 
subsection 3. final approval under section 3705. subsection 
and certification under section 3706. the state board or 
commissioner. 
as 
appropriate. 
shall notify the 
regional 
school district. regional cooperative or consulting school 
unit whether. 
based on the department's calculations and 
determination pursuant to paragraph A. the fund has adequate 
funds to provide the aggregate 5-year amount of financial 
assistance for which the regional school district. regional 
cooperative or cQnsulting school unit would otherwise be 
eligible under this section; 
C. 
Except as otherwise provided by paragraph D. 
a regional 
school district, regional cooperative or consulting school 
unit is eligible to receive only that amount of assistance 
that is available after provision of funds to previously 
certified regional school districts; and 
D. In no event may the amount disbursed from the fund to 
consulting school units in a fiscal year exceed 113 of the 
total amount disbursed from the fund in that fiscal year. 
In no event may the 
amount disbursed from the 
fund to 
regional cooperatives in a fiscal year exceed 113 of the 
total amount disbursed from the fund in that fiscal year. 
§3708. 
Technical assistance 
School 
administrative 
units 
that 
have 
entered 
into 
an 
agreement 
to 
form 
a 
regional 
school 
district 
or 
regional 
cooperative pursuant to section 3703 
and that have 
received 
preliminary certification under section 3704. 
subsection 2 or 
preliminary approval under section 3705. subsection 2 may jointly 
apply to the department for assistance from the fund to support 
their 
development 
of 
efficiency 
and 
cost-saving 
programs. 
governance or administrative structures or other changes needed 
to meet the criteria for final certification under section 3704, 
subsection 3 or final approval under section 3705. subsection 3. 
§3709. 
Rulemaiing 
The commissioner shall develop rules concerning application 
for and provision of technical assistance pursuant to section 
3708 and certification of consulting school units pursuant to 
section 
3706 
and may 
develop any additional rules that the 
commissioner considers necessary to implement this chapter in 
accordance with the legislative policy stated in section 3701. 
Page l5-LR2782(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "k- to H.P. 1422, L.D. 1921 
Rules developed pursuant to this section are routine technical 
~les as defined in Title 5, chapter 375, subchapter 2-A. 
SUBCHAPTER 2 
FUND FOR THE EFFICIENT DELIVERY OF EDUCATION SERVICES 
§372l. 
Establishment 
There is established the Fund for the Efficient Delivery of 
Education Services, a dedicated special revenue account. 
§3722. 
Fund source: nonlapsing 
The fund consists of revenues transferred from the General 
Purpose Aid for Local Schools account. any funds reimbursed to 
the fund pursuant to section 3704, sUbsection 5 and any funds 
received 
as 
contributions 
from 
private 
and 
public 
sources. 
Eligible investment earnings credited to the assets of the fund 
~come part of the assets of the fund. 
Any balance remaining in 
the fund at the end of any fiscal year does not lapse and must be 
carried forward for the next fiscal year. 
§3723. 
Administration 
The fund, 
tQ be accQunted within the department, must be 
held 
separate 
and 
apart 
from 
all 
Qther 
money. 
funds 
and 
accounts. 
The department shall Administer the fund. 
§3724. 
Transfers to fund 
The 
State 
Controller 
shall 
transfer 
from 
the 
amount 
appropriated for general purpose aid for local schools to the 
fund the following amounts on the first day of each of the 
following state fiscal years: 
1. 
Fiscal year 2004-05. 
In fiscal year 2004-05, an amount 
equivalent to 112 of 1'lt. of the total amount appropriated for 
general purpose aid for local schools; 
2. 
Fiscal year 2005-06. 
In fiscal year 2005-06, an amount 
equivalent to one percent of the total amount appropriated for 
general purpose aid for lQcal schQQls; 
3. 
Fiscal year 2006-07. 
In fiscal year 2006-07, an amount 
equivalent to 2% of the total amount appropriated for general 
purpose aid for local schools; 
Page l6-LR2782(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,,4· to H.P. 1422, L.D. 1921 
4. 
Fiscal year 2007-08. 
In fiscal year 2007-08, an amount 
equivalent to 
2% of the total amount appropriated for general 
purpose aid for local schools: 
5. 
Fiscal year 2008-09. 
In fiscal year 2008-09, an amount 
equivalent to 
2% of the total amount appropriated for general 
purpose aid for local schools: and 
6. 
Fiscal year 2009-10. 
In fiscal year 2009-10, an amount 
equivalent to 
2% of the total amount appropriated for general 
purpose aid for local schools. 
§3725. 
Disbursement 
1. 
Regional school districts. 
The department shall make 
disbursements on the first day of each fiscal year from the fund 
to eligible regional school districts in amounts provided for and 
for the period specified by section 3707, subsections 1 and 2. 
Those amounts must be determined by the state board in an annual 
statement provided to the State Controller prior to disbursement. 
2. 
Regional 
cooperatives. 
The 
department 
shall 
make 
disbursements on the first day of each fiscal year from the fund 
to eligible regional cooperatives in amounts provided for and for 
the 
period specified by 
section 
3707, 
subsection 
3. 
Those 
amounts must be determined by the commissioner in an annual 
statement provided to the State Controller prior to disbursement. 
3. 
Consulting school units. 
The 
department shall make 
disbursements on the first day of each fiscal year from the fund 
to eligible consulting school units in amounts provided for and 
for the period specified by section 3707, subsections 4, 5 and 
6. 
Those amounts must be determined by the commissioner in an 
annual 
statement 
provided 
to 
the 
State 
Controller prior 
to 
disbursement. 
4. 
Technical assistance. 
The 
department shall annually 
make disbursements from the fund to school administrative units 
that have entered into agreements to form 
a 
regional school 
district or regional cooperative under section 3703 for which the 
state board has issued preliminary certification under section 
3704, subsection 2 or preliminary approval under section 3705, 
subsection 2, in amounts provided for in and in accordance with 
rules 
developed 
under 
section 
3709. 
Those 
amounts 
must 
be 
determined by the commissioner in an annual statement provided to 
the State Controller prior to disbursement. 
§3726. 
Uses of fund 
COMMITTEE AMENDMENT 
.~ 
~ 
COMMITTEE AMENDMENT .~. to H.P. 1422, L.D. 1921 
1. 
Public education services. 
Except as otherwise provided 
by subsection 2, the fund may be used only by a regional school 
district, 
regional cooperative or consulting school unit for 
delivery of public education seryices for kindergarten to grade 
1.h 
2. 
Technical assistance. 
The fund may be used to contract 
with the department or another public or priyate entity for 
technical 
assistance in the 
formation of 
a 
regional 
school 
district or regional cooperatiye in accordance with section 3708. 
§3727. 
Annual reporting 
The commissioner shall annually, on or before December 15th, 
report to the Goyernor, 
the joint standing committee of the 
Legislature having jurisdiction over appropriations matters and 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction 
over 
education 
matters 
on 
the 
cost 
sayings 
documented by regional school districts in reports filed pursuant 
to section 3704. subsection 1 and by regional cooperatives in 
reports filed pursuant to section 3705. subsection 1. 
Sec. 3. Reporting. 
No 
later than 
December 
1, 
2004, 
the 
Department 
of 
Education, 
in consultation with the 
Executive 
Department, State Planning Office, shall develop for presentation 
to and consideration by the First Regular Session of the 122nd 
Legislature 
any 
additional 
proposed legislation necessary to 
further 
clarify 
and 
govern 
the 
procedures 
for 
formation, 
governance, financing and administration and reorganization of a 
regional school district or regional cooperative under the Maine 
Revised Statutes, Title 20-A, 
chapter 123, including, but not 
limited 
to, 
legislation 
regarding 
the 
procedures 
governing 
formation and selection of boards of directors, asset transfer, 
budget development and approval, district referenda and a school 
administrative unit' s addition to or withdrawal from a regional 
school district or regional cooperative. 
Legislation developed 
pursuant to this section must be substantially similar to that 
regarding 
school 
administrative 
districts 
under 
Title 
20-A, 
chapter 103 and must be consistent with the intents, purposes and 
provisions of this Act. 
By January 15, 2007, the Commissioner of 
Education shall report to the Legislature and the Governor on the 
efficacy of the financial incentives provided under this Act and 
shall recommend any changes in law governing these incentives 
that 
may 
be 
needed 
to 
facilitate 
and 
encourage 
voluntary 
identification and implementation of efficiencies in delivering 
educational services. 
Any such recommendations made under this 
section may not propose to diminish the incentives for which a 
regional 
school district, 
regional 
cooperative 
or 
consulting 
school unit has been determined eligible pursuant to this Act. 
COMMITTEE AMENDMENT 
;,ffI. 
~ 
COMMITTEE AMENDMENT ,A .. to H.P. 1422, L.D. 1921 
Sec. 4. 
Funding. 
No 
later 
than 
December 
1, 
2004, 
the 
Department 
of 
Education, 
in consultation with 
the 
Executive 
Department, 
State Planning Office 
and 
other pertinent state 
agencies, shall review state grant and aid programs for which 
school administrative units are eligible and shall develop for 
presentation to and consideration by the First Regular Session of 
the 
122nd 
Legislature 
any 
additional 
legislation 
needed 
to 
establish funding preferences to encourage formation of regional 
school districts and regional cooperatives in the manner provided 
by the Maine Revised Statutes, Title 20-A, chapter 123. 
Sec. 5. Rules. 
The Commissioner of Education shall develop 
rules pursuant to the Maine Revised Statutes, Title 20-A, section 
3709 by October 15, 2004. 
The State Board of Education shall 
develop rules to permit and facilitate applications for major 
school construction projects made jointly by 2 or more school 
administrative units to address regional needs. 
Rules adopted 
under this section are routine technical rules. 
Sec. 
6. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
EDUCATION, DEPARTMENT OF 
Fund for the Efficient Delivery of Education Services 
Initiative: 
Allocates funds to be transferred from the General 
Purpose 
Aid 
for 
Local 
Schools 
account 
to 
provide 
financial 
incentives and technical assistance to regional school districts, 
regional cooperatives and consulting school units. 
Other Special Revenue Funds 
All Other 
Other Special Revenue Funds Total 
SUMMARY 
2003-04 
$0 
$0 
2004-05 
$3,627,053 
$3,627,053' 
This 
amendment 
replaces 
the 
bill. 
It 
amends 
the 
certification 
criteria 
and 
performance 
review 
criteria 
for 
regional school districts, regional cooperatives and consulting 
school units. 
It also amends the financial incentives available 
to 
regional 
school 
districts, 
regional 
cooperatives 
and 
consulting 
school 
units. 
It 
directs 
the 
Commissioner 
of 
Education to report to the Legislature on the efficacy of the 
financial incentives available under the law and to recommend 
statutory changes that may be needed to encourage efficiericies in 
delivering education services. 
Finally, it directs the State 
Board of Education to develop rules to permit applications for 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT .;Cf .. to H.P. 1422, L.D. 1921 
major school construction projects made jointly by 
or more 
school 
administrative 
units. 
This 
amendment 
also 
adds 
an 
appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Appropriations/Allocations 
Other Special Revenue Funds 
Transfers 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Approved: 04/06/04 ;t;?ac:.. 
Office of Fiscal and Program Review 
LD 1921 
An Act to Encourage Voluntary Efficiency in Maine's School Systems 
and Related Costs Savings 
LR 2782(02) 
Fiscal Note for Bill as Amended by Committee Amendment" " 
Committee: Regionalization and Community Cooperation 
Fiscal Note Required: Yes 
Fiscal Note 
2003-04 
2004-05 
$0 
$3,627,053 
$0 
$3,627,053 
Projections 
2005-06 
$7,532,280 
$7,532,280 
Projections 
2006-07 
$15,945,964 
$15,945,964 
This bill establishes the Fund for the Efficient Delivery of Education Services as a dedicated, non-lapsing account to 
provide financial incentives and technical assistance to regional school districts, regional cooperatives, and consulting 
school units. The Fund receives funding from an annual transfer from the General Purpose Aid for Local Schools 
General Fund program within the Department of Education. The amount of the transfer is based on a percentage of 
the General Fund appropriation for that fiscal year. For fiscal year 2004-05, this legislation requires that one-half of 
one percent of the funds appropriated to the General Purpose Aid for Local Schools program be transferred to the 
Fund. Through the 2nd Regular Session of the 121st Legislature, $725,410,576 has been appropriated for the General 
Purpose Aid for Local Schools program for fiscal year 2004-05. Based on this appropriation, $3,627,053 would be 
transferred from the GPA program to the Fund for the Efficient Delivery of Education Services in fiscal year 2004-05. 
The Governor's current supplemental budget request, LD 1919, proposes to increase funding to the General Purpose 
Aid for Local Schools program in fiscal year 2004-05. If approved by the Legislature, additional funds would be 
transferred to the Fund. 
Public Law 2003, c. 504 authorizes the transition to the Essential Programs and Services model as the basis for 
LR2782(2) - Fiscal Note - Page 1 of2 
determining the total cost ofK-12 public education beginning in fiscal year 2005-06. The Department of Education 
estimates the General Fund appropriation to the General Purpose Aid for Local Schools program required to fund K-
education based on the EPS model to be $753,227,985 in fiscal year 2005-06 and $797,298,197 in fiscal year 2006-
07. Based on these estimates, and the percentage of GP A appropriations to be transferred to the Fund for the Efficier + 
Delivery of Education Services specified in the bill, approximately $7,532,280 will be transferred to the Fund in fis\ 
year 2005-06 and $15,945,964 will be transferred to the Fund in fiscal year 2006-07. 
Transferring funds from the General Purpose Aid for Local Schools program to the Fund for the Efficient Delivery of 
Education Services will result in less money being available to local school units who do not participate in the 
voluntary formation of regional school districts, regional cooperatives and consulting school units. The impact to the 
affected local school units can not be determined at this time. 
Additional costs to the Department of Education associated with implementing this legislation can be absorbed 
utilizing existing budgeted resources. 
LR2782(2) - Fiscal Note - Page 2 of 2