An Act To Encourage Voluntary Efficiency in Maine's School Systems and Related Costs Savings Reference to the Joint Select Committee on Regionalization and Community Cooperation suggested and ordered printed. !r/~ /J7.1ibc~
Maine Legislature, Session 121, LD 1921
Committee: Regionalization and Community Cooperation
Sponsors: McLAUGHLIN, DAMON, BOWEN, CUMMINGS, MILLS, DOUGLASS, MITCHELL
Amends: 20-A MRSA §1

Legislative Document 
No. 1921 
H.P.1422 
House of Representatives, March 10,2004 
An Act To Encourage Voluntary Efficiency in Maine's School 
Systems and Related Costs Savings 
Reference to the Joint Select Committee on Regionalization and Community Cooperation 
suggested and ordered printed. 
!r/~ 
/J7.1ibc~ 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative McLAUGHLIN of Cape Elizabeth. (GOVERNOR'S BILL) 
Cosponsored by Senator DAMON of Hancock and 
Representatives: BOWEN of Rockport, CUMMINGS of Portland, MILLS of Cornville, 
Senators: DOUGLASS of Androscoggin, MITCHELL of Penobscot. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
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 1 
REGI(lfAL SCHOOL DISTRICTS. REGIONAL 
COOPERATIVES AND EFFICIENT SCHOOL UNITS 
§3701. 
Legis1atiye findings and policy 
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 
prov~s~on of assistance 
by: efficient 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. 
Efficient school unit. 
"Efficient school unit" means 
a 
school administrative unit in existence on the effective date of 
this chapter certified by the commissioner pursuant to section 
.ll.Q..Q....... 
2. 
Fund for the Efficient Delivery of Education Services. 
"Fund for the Efficient Delivery of Education Services" means the 
fund established by section 3721. 
Page l-LR2782(1) 
3. 
Regional cooperative. 
"Regional cooperative" means an 
entity formed pursuant to an agreement under section 3703 by 5 or 
more 
school 
administrative units with 
an 
aggregate 
resident 
student population of 2,500 or more in 2004, as recorded by the 
department, and approved for certification under section 3705. 
4. 
Regional school district. 
"Regional school district" 
means 
a school administrative unit with an aggregate resident 
student population of It 000 or more in 2004, as recorded by the 
department, formed pursuant to an agreement under section 3703 by 
combining 2 or more contiguous 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 
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. 
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 gualify 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 
or 
more 
contiguous 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: 
D. 
Include at least one high school with a resident student 
population of 
or 
more 
in 
2004 
as 
recorded by 
the 
department: 
E. 
Implement 
a 
school-level 
budgeting 
and 
accounting 
system: and 
F. 
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. 
Preliminary 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 request 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 
regional 
school 
district 
to 
a 
proposed 
regional school district if: 
A. 
The school administrative units to be combined to form 
the 
regional 
school 
district 
jointly 
request 
final 
certification under this subsection; and 
B. 
The state board determines that the proposed regional 
school district meets the c~iteria 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; 
fund 
ineligibility 
and 
reimbursement. 
The state board shall determine. based on its 
review of information submitted under subsection I. paragraph F. 
the total annual administrative expenditures of the 
regional 
school district. 
If the state board determines that the total 
annual 
administrative 
expenditures 
of 
the 
regional 
school 
district were greater than or equal to 90% of the total costs. as 
calculated 
and 
adjusted 
in 
accordance 
with 
subsection 
1, 
paragraph F. then the regional school district, upon notice of 
the state board's determination: 
A. 
Is 
ineligible 
for 
funding 
from 
the 
Fund 
for 
the 
Efficient Delivery of Education Services in the following 
fiscal year; and 
B. 
Must. in the following fiscal year. reimburse the Fund 
for the Efficient Delivery of Education Services an amount 
equal 
to 
the 
difference 
between 
the 
regional 
school 
district's 
total 
administrative 
expenditures 
in 
the 
pertinent fiscal 
year 
and 
90% 
of 
the 
total costs. 
as 
calculated and adjusted in accordance with subsection I. 
paragraph F. 
Annually and no later than September 1st, the state board shall 
make and notify the regional school district of its determination 
under this subsection. 
If a regional school district does not 
provide the information required by subsection 1, paragraph F, 
the regional school district is ineligible for assistance for 
funding from the Fund for the Efficient Delivery of Education 
Services in the following fiscal year. 
5. 
Departmental 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. 
Aeproval of regional cooperatives 
1. 
CertificatioD criteria. 
In order for 
an entity to 
qualify 
for 
approval 
by 
the 
commissioner 
as 
a 
regional 
cooperative, the entity must be formed from 
or more school 
administrative 
units 
with 
an 
aggregate 
resident 
student 
population 
of 
2,500 
or 
more 
in 
2004, 
as 
recorded 
by 
the 
department, 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; and 
(4) 
A plan for reinvestment in school instructional 
programs of savings realized through implementation of 
the regional plan; 
B. 
Includes a plan for 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 equipment; 
( 2) 
Transportation; 
( 3) 
Fuel and utilities; 
(4) 
Special education; 
(5 ) 
Professional development; 
( 6) 
Facilities and maintenance; 
(7) 
Business operations; 
(8 ) 
Administration; and 
U,n 
Persgnnel gng negQtiatigns; gng 
C. 
Requires gnnugl ggcumentgtion tg the gepgrtment. on a 
fgrm gevelgpeg by the department, of cgst savings determined 
~ 
(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 approval: 
eligibility for 
funding. 
The 
commissioner 
may 
grant 
preliminary 
approval 
of 
a 
proposed 
regional 
cooperative 
if 
or 
more 
participating 
school 
administrative units: 
A. 
Jointly 
request 
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 school administrative units request 
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 
has 
achieved 
cost 
savings 
and 
reinvested these 
savings in school instructional programs in 
accordance 
with 
its 
regional 
plan 
developed 
pursuant 
to 
subsection I. paragraph A. 
If the commissioner determines that a 
regional cooperative has been in operation for more than 3 years 
and has not achieved cost savings and reinvested those savings in 
school instructional programs in accordance with its regional 
plan. then the regional cooperative. upon notification from the 
commissioner: 
A. 
Is ineligible for funding from the Fund for Efficient 
Delivery of Education Services in the following fiscal year; 
and 
B. 
Must. in the following fiscal year. reimburse the Fund 
for the Efficient Delivery of Education Services an amount 
equal to the total amount of funds the regional cooperative 
received under section 3706. subsection 3. paragraphs Band 
~ 
Annually and no later than September 1st. the commissioner shall 
make and notify the regional cooperative of the determination 
under 
this 
subsection. 
If 
a 
regional 
cooperative 
does 
not 
provide the information required by subsection 1, paragraph C. 
the regional cooperative is ineligible for assistance for funding 
under section 3706. subsection 3 in the following fiscal year. 
§3706. 
Certification of efficient school units; performance 
review 
1. 
Certification 
criteria. 
In 
order 
for 
a 
school 
administrative 
unit 
to 
qualify 
for 
certification 
by 
the 
commissioner 
as 
an 
efficient 
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 kindergarten to 
grade 12; 
C. 
Develop a 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; 
E. 
Require, as part of the agreement under paragraph D, for 
an annual report, on a 
form developed by the department, 
from 
the 
efficient 
school 
unit 
to 
the 
commissioner 
documenting: 
(1) 
Sustained 
or 
improved 
cost 
savings 
by 
the 
efficient school unit, determined by: 
(al 
Calculating the total costs in the fiscal 
year prior to that in which the efficient 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 
(cl 
Comparing the efficient school unit'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 an efficient 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. 
PerfonDance 
review; 
fund 
ineligibility 
and 
reimbursement. 
The commissioner shall determine. based on review 
of information submitted under subsection 1, paragraph E, whether 
the efficient school unit is continuing to meet the certification 
criteria under subsection 1 and whether the efficient school unit 
provided assistance in accordance with subsection L 
paragraph 
C. 
If the commissioner determines that the efficient school unit 
did not continue to meet the criteria under subsection 1 or did 
not provide assistance in accordance with subsection I. paragraph 
C, 
then 
the 
efficient 
school 
unit. 
upon 
notice 
of 
the 
commissioner's determination; 
A. 
Is 
ineligible 
for 
funding 
from 
the 
Fund 
for 
the 
Efficient Delivery of Education Services in the following 
fiscal year; and 
B. 
ShalL in the following fiscal year. reimburse the Fund 
for the Efficient Delivery of Education Services an amount 
equal to 1/2 of the amount it received from the Fund for the 
Efficient Delivery of Education Services during the prior 
fiscal year. 
Annually and no later than September 1st. the commissioner shall 
notify the efficient school unit of the determination under this 
subsection. 
If an efficient school unit does not demonstrate 
satisfaction of cost-efficiency criteria in accordance with rules 
made pursuant to section 3709. 
the efficient school unit is 
ineligible for assistance for 
funding 
from the Fund for 
the 
Efficient Delivery of Education Services in the following fiscal 
~ 
§3707. 
Financial incentives 
1. 
Regional school districts with student populations of 
1.000 to 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 
1.000 
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 7.5% 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 
equivalent to 
25% 
of 
any non-state-supported 
major capital construction debt approved by the commissioner 
and 
incurred 
prior 
to 
July 
It 
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°'0 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 1, 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°'0 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 coopgratives. 
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: 
A. 
Has 
legal authority as 
a 
fiscal entity functionally 
equivalent to that of a school administrative unit; 
B. 
Is entitled to receive reimbursement from the State for 
consecutive years of an amount equal to a percentage of 
the total cost of salary and benefits of one full-time 
equivalent regional staff member 
in accordance with the 
following schedule: 
(1) 
In the first year, 100'1-0; 
(2) 
In the 2nd year, 80°", ; 
( 3) 
In the 3rd year, 60°",; 
(4) 
In the 4th year, 40%; and 
U~} 
In the 5th year, 20%; 
C. 
Is 
entitled 
to 
receive 
for 
consecutive 
years 
reimbursement of 25% of the amount paid by the participating 
school administrative units for locally approved graduate 
courses for teachers: 
D. 
Is eligible to receive 
regionwide services software, 
purchased by the State: 
E. 
Is eligible to receive state assistance for providing 
regional services training programs: and 
4. 
Efficient school units with student populations less 
than 1,000. 
Except as otherwise provided by subsection 7 
or 
section 3706, subsection 3, an efficient school unit that has an 
aggregate 
resident 
student 
population 
of 
1,000 
or 
less, 
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 5% of the state share of the operating 
allocations for the efficient school unit for the fiscal 
year in which it was certified under section 3706: and 
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 1, 2004 by the efficient school unit. 
5. Efficient school units with student populations of 1,000 
to 2,500. 
Except 
as 
otherwise provided by 
subsection 
or 
section 3706, subsection 3, an efficient 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: 
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 efficient school unit for the fiscal 
year in which it was certified under section 3706; and 
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 1, 2004 by the efficient school unit. 
6. 
Efficient school units with student populations greater 
than 2,500. 
Except as otherwise provided by subsection 7 or 
section 3706, subsection 3, an efficient 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 efficient school unit for the fiscal 
year in which it was certified under section 3706; and 
B. 
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 1, 2004 by the efficient 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 efficient 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 for the Efficient Delivery of Education Services 
and the aggregate 5-year amount of financial assistance for 
which regional school districts, regional cooperatives and 
efficient 
school 
units 
are 
eligible 
pursuant 
to 
this 
section and shall determine the percentage of the total 
funding for which efficient school units are eligible. 
The 
department shall provide its calculations and determination 
under this paragraph to the state board; 
Page l2-LR2782(1) 
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 efficient school 
unit whether, based on the department's calculations and 
determination pursuant to paragraph A, 
the Fund for the 
Efficient Delivery of Education Services has adequate funds 
to 
provide 
the 
aggregate 
5-year 
amount 
of 
financial 
assistance for which the regional school district, regional 
cooperative or efficient school unit would otherwise be 
eligible under this sectionL 
C. 
Except as otherwise proved by paragraph D, 
a regional 
school district, regional cooperative or efficient school 
unit is eligible to receive only that amount of assistance 
that is available after 
prov~s~on of funds to previously 
certified regional school districts; and 
D. In no event may the amount disbursed from 
the Fund for 
the Efficient Delivery of Education Services to efficient 
school units in a fiscal year exceed 1/3 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 for the 
Efficient 
Delivery 
of 
Education 
Services 
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 efficient 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. 
Rules developed pursuant to this section are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A. 
SUBCHAPTER 2 
Page l3-LR2782(l) 
FUND FOR THE EFFICIENT DELIVERY OF EDUCATIQH SERVICES 
§3721. 
Establishment 
There is established as a dedicated special revenue account 
the 
Fund 
for 
the Efficient Delivery of 
Education Services, 
referred to in this subchapter as "the fund." 
§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 4 and any funds 
received 
as 
contributions 
from 
private 
and 
public 
sources. 
Eligible investment earnings credited to the assets of the fund 
become 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, to be accounted wi thin the department. must be 
held 
separate 
and 
apart 
from 
all 
other 
money, 
funds 
and 
accounts. 
The department shall administer the fund. 
§3724. 
Transfers to fund 
The 
Treasurer 
of 
State 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 1/2 of 1% 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 local schools: 
3. 
Fiscal year 2006-07. 
In fiscal year 2006-07, an amount 
equivalent to 
2q,0 of the total amount appropriated for general 
purpose aid for local schools; 
4. 
Fiscal year 2007-08. 
In fiscal year 2007-08, an amount 
equivalent to 2
0/0 of the total amount appropriated for general 
purpose aid for local schools: 
Page l4-LR2782(1) 
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 Treasurer of State 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 Treasurer of State prior to 
disbursement. 
2. 
Regional cooperatives. 
The Treasurer of State 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 
Treasurer 
of 
State 
prior 
to 
disbursement. 
3. 
Efficient school units. 
The Treasurer of State shall 
make disbursements on the first day of each fiscal year from the 
fund to eligible efficient school units, in amounts provided for 
and for the period specified by section 3707, subsections 4, 
and 6. 
Those amounts must be determined by the commissioner in 
an annual statement provided to the Treasurer of State prior to 
disbursement. 
4. 
Technical assistance. 
The Treasurer of State 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 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 
Treasurer 
of 
State 
prior 
to 
disbursement. 
§3726. 
Uses of fund 
1. 
Public education services. 
Except as otherwise provided 
by subsection 2, the fund may be used only by a regional school 
Page l5-LR2782{1} 
district. or regional cooperative or efficient school unit for 
delivery of public education services for kindergarten to grade 
2. 
Technical 
assistance. 
The 
fund 
may 
be 
used 
for 
technical 
assistance 
in the 
formation 
of 
a 
regional 
school 
district or regional cooperative in accordance with section 3708. 
§3727. 
Annual reporting 
The commissioner shall annually, on or before December 15th, 
report to the Governor, 
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 
savings 
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 
the 
addition or withdrawal of a school administrative unit 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 
and must 
be 
consistent with the 
intents, 
purposes and provisions of this Act. 
Sec. 4. 
Funding. 
No 
later 
than 
December 
1, 
2004, 
the 
Department 
of 
Education, 
1n 
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. 
Page l6-LR2782(1) 
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. 
SUMMARY 
The 
purpose 
of 
this bill is 
to 
increase efficiencies, 
improve equity in delivering educational services and alleviate 
increasing costs 
without 
compromising 
the quality of 
public 
education from kindergarten to grade 12. 
This bill encourages 
regional 
delivery 
of 
educational 
services 
and 
school 
administration through voluntary formation of 
regional 
school 
districts and regional cooperatives and provision of assistance 
by efficient school units to school administrative units seeking 
to reduce their education costs. 
The State provides monetary 
incentives for school units choosing to participate in these 
efforts. 
Page l7-LR2782(1)