An Act To Amend the Laws Regarding School Funding
Maine Legislature, Session 123, LD 1932
Committee Amendment CA_A-HA_A_H675 (House)
Amends: Title 20-A, Section 15681, 20-A MRSA §1, 20-A MRSA §1461

HOUSE AMENDMENT"~" to COMMITTEE AMENDMENT "A" to S.P. 741, 
L.D. 1932, Bill, "An Act To Amend the Laws Regarding School Funding" 
Amend the amendment by inserting after the first paragraph after the title the 
following: 
'Amend the bill by inserting after the enacting clause the following: 
'PART A 
Amend the amendment in section 14 in the first line (page 10, line 26 in amendment) 
by striking out the following: "Act" and inserting the following: 'Part' 
Amend the amendment by inserting after section 14 the following: 
'PART B 
Sec. B-1. 20-A MRSA § 1, sub-§26, as amended by PL 2007, c. 240, Pt. XXXX, 
§5, is further 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 unit or any other 
municipal or quasi-municipal corporation responsible for operating or constructing public 
schools, except that it does not include a career and technical education region. 
Beginning July I, 2009, "school administrative unit" means the state-approved unit of 
school administration and includes only a municipal school unit and a regional school 
unit formed pursuant to chapter 103-A or a union school association formed under 
chapter 103-B. 
Sec. B-2. 20-A MRSA §1, sub-§41-A is enacted to read: 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "If" to COMMITTEE AMENDMENT "A" to S.P. 741, L.D. 1932 
41-A. Union school association. "Union school association" means a state-approved 
unit of school administration established for the purpose of providing joint administrative 
services, including a joint superintendent, pursuant to chapter 103-B. 
Sec. B-3. 20-A MRSA §1461, sub-§3, ~, as enacted by PL 2007, c. 240, Pt. 
XXXX, § 13, is amended to read: 
B. In order for the plan to be approved by the commissioner, the governing bodies of 
school administrative units shall work within the following parameters. 
(I) +he Unless the proposed regional school unit is a union school association 
established under chapter 103-B, the proposed regional school unit must serve 
not fewer than 2,500 students, except where circumstances relating to the 
following factors justify an exception: 
(a) Geography, including physical proximity and the size of the current 
school administrative unit; 
(b) Demographics, including student enrollment trends and the composition 
and nature of communities in the regional school unit; 
(c) Economics, including existing collaborations to be preserved or enhanced 
and opportunities to deliver commodities and services to be maximized; 
(d) Transportation; 
(e) Population density; or 
(f) Other unique circumstances including the need to preserve existing or 
developing relationships, meet the needs of students, maximize educational 
opportunities for students and ensure equitable access to rigorous programs 
for all students. 
When circumstances justify an exception to the size requirement of 2,500 
students, the unit must serve as close to 2,500 students as possible and in no 
case, except for coastal islands and schools operated by tribal school committees, 
may it serve fewer than 1,200 students. 
A union school association may not serve fewer than 1,000 students. 
(2) The plan must provide comprehensive programming for all students from 
kindergarten to grade 12 and must include at least one publicly supported 
secondary school. 
(3) The plan must be consistent with the policies set forth in section 1451. 
(4) The plan may not displace teachers or students or close any schools existing 
and operating during the school year immediately preceding reorganization, 
except as permitted under section 1512. 
Sec. B-4. 20-A MRSA §1461, sub-§4, as enacted by PL 2007, c. 240, Pt. 
XXXX, § 13, is amended to read: 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "/!" to COMMITTEE AMENDMENT "A" to S.P. 741, L.D. 1932 
4. 
Review and approval of plans. 
If the commissioner finds that a plan for 
reorganization meets the requirements of this chapter, the commissioner shall notify the 
municipalities and school administrative units, and they shall proceed with referendum. 
If the commissioner finds that a proposed union school association meets the 
requirements of chapter 103-B, the commissioner shall notify the governing bodies of the 
school administrative units included in the proposed reorganization plan, and each 
governing body shall proceed with a vote to approve the reorganization plan prepared by 
the reorganization planning committee. 
Each governing body of the school 
administrative units included in the proposed reorganization plan shall report the results 
of the vote to the department following the governing body vote. If a reorganization plan 
is approved by the governing bodies of all of the affected school administrative units, or 
by the governing bodies of all of the school administrative units considered sufficient 
under the proposed union school association's reorganization plan, the commissioner shall 
file notice of approval of the union school association with the state board. 
Sec. B-S. 20-A MRSA c. l03-B is enacted to read: 
CHAPTER l03-B 
UNION SCHOOL ASSOCIATIONS 
§1521. Formation 
1. Commissioner's authority. The commissioner shall adjust the organization of 
school administrative units and school unions within the State in accordance with this 
chapter to form union school associations that meet the policies set forth in section 1451. 
2. Size. A union school association must serve not fewer than 1,000 students. 
3. Reorganization of existing school administrative units and school unions. On 
submission of a reorganization plan that has been approved by the governing bodies of 
the involved school administrative units and school unions, the commissioner may 
combine 2 or more school administrative units and school unions, or their parts, into a 
union school association. 
4. Collective bargaining. Collective bargaining agreements existing on the date of 
formation remain in effect. 
The governing boards of the participating school 
administrative units and school unions continue to be the bargaining agents. 
5. Transfer of school property. Property belonging to any participating school 
administrative unit or school union is not transferred to the union school association upon 
its formation. 
§1522. Union school association governance 
1. 
Union school association joint committee; appointment; duties. 
A union 
school association is governed by a union school association joint committee. The union 
school association joint committee is composed of a representative from each of the 
school boards and school committees of the participating school administrative units as 
set forth in chapter 107. The union school association joint committee has the duties 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "/I,, to COMMITTEE AMENDMENT "A" to S.P. 741, L.D. 1932 
described in chapter 107 and, following the formation of the union school association, 
shall establish policies regarding: 
A. The assignment of the powers and duties of the union school association joint 
committee and the powers and duties of the school boards or school committees of 
the school administrative units consistent with the requirements as set forth in this 
chapter; 
B. 
Union school association joint committee terms of office, compensation, 
chairmanship, record keeping, vacancies and any other policies that are included in 
the reorganization plan approved by the commissioner and by the school boards and 
school committees of the participating school administrative units; and 
C. The adoption or amendment of policies or duties considered necessary or useful 
by the union school association joint committee to govern the union school 
association. 
2. Voting. The method of voting for a union school association joint committee 
must be the weighted vote method under section 1902, subsection 2. 
3. Meetings. A union school association joint committee shall meet no fewer than 4 
times a year. 
4. 
Superintendent. 
A union school association joint committee shall hire a 
superintendent and additional staff as necessary in accordance with the provisions of 
chapter 107. The union school association must be administered by a superintendent of 
schools, who may be employed by the union school association joint committee 
consistent with section 1051. 
The union school association joint committee shall 
designate the duties of the superintendent and any administrative staff certified under 
section 13011, subsection 5, who may act as designated agents of the superintendent, in 
accordance with the provisions of this Title. 
§1523. System administration 
1. Transition plan; implementation. Following the formation of a union school 
association joint committee and the hiring of the superintendent, the union school 
association shall implement the transition plan included in the reorganization plan 
approved by the commissioner for the centralization of the services to be provided by the 
system administration of the union school association. 
2. Long-term sustainability. A union school association joint committee may adopt 
or amend policies that promote the long-term sustainability of system administration and 
program delivery of the union school association in accordance with the goals under 
section 1451, including but not limited to the following aspects of system administration: 
A. The acceptance of gifts, federal funds and other donations by the union school 
association; 
B. The ownership or leasing of real and personal school property; and 
C. 
The assignment of school personnel contracts, school collective bargaining 
agreements and other school contractual obligations. 
HOUSE AMENDMENT 
HOUSE AMENDMENT" It, to COMMITTEE AMENDMENT "A" to S.P. 741, L.D. 1932 
§1524. Budget procedures 
1. Budget approval; participating units. Each participating school administrative 
unit and school union in a union school association may approve its individual portion of 
the union school association school budget. 
2. Approval; joint committee. The union school association joint committee may 
approve the union school association budget by majority vote. 
3. Distribution of funds. The commissioner shall ensure that state funds for the 
union school association are paid or credited to the appropriate municipalities within the 
participating school administrative units or school unions. 
§1525. Rules 
The commissioner may adopt routine technical rules in accordance with Title 5, 
chapter 375, subchapter 2-A to implement this chapter. 
Sec. B-6. Alternative plan for the formation of union school associations; 
legislative intent and policy. Notwithstanding Public Law 2007, chapter 240, Part 
XXXX, this Part establishes the process for increasing the efficiency and effectiveness of 
school administrative units and school unions by providing a process for reorganizing 
them into union school associations that meet the policies set forth in the Maine Revised 
Statutes, Title 20-A, section 1451. This Part furthers the intent of the Legislature to 
achieve 
sustainable, 
long-term 
administrative 
efficiencies 
by 
assisting 
school 
administrative units and school unions to develop an alternative plan for providing 
administrative services in more efficient structures that meet the requirements of Title 20-
A, chapter 103-B. 
1. Information to be presented to school officials and reorganization planning 
committees. Not later than February 15, 2008, the Commissioner of Education, or the 
commissioner's designee, shall present information to school officials and reorganization 
planning committees about the requirements of this Part regarding the option of 
developing an alternative plan for reorganizing existing school administrative units or 
school unions into union school associations. The policies set forth in Title 20-A, section 
1451 for the reorganization of school administrative units must be included in the 
information presented to school officials and reorganization planning committees. 
2. Notice of intent to develop an alternative plan. By April 1, 2008, each school 
administrative unit or school union may file with the Commissioner of Education a notice 
of intent to engage in planning and negotiations with other school administrative units or 
school unions for the purpose of developing an alternative plan to form a union school 
association under this Part and Title 20-A, chapter 103-B. The notice of intent to develop 
an alternative plan to fonn a union school association may be submitted only by a school 
administrative unit or school union where circumstances justifY formation of a union 
school association and where expansion of the school administrative unit or school union 
would be inconsistent with the policies set forth in Title 20-A, section 1451. 
3. Reorganization planning committee. School administrative units and school 
unions that intend to engage in planning and negotiation to create an alternative plan to 
form a union school association shall form a reorganization planning committee. 
HOUSE AMENDMENT 
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HOUSE AMENDMENT "/I,, to COMMITTEE AMENDMENT "A" to S.P. 741, L.D. 1932 
A. For each proposed union school association, the Commissioner of Education shall 
provide guidelines for the formation of a reorganization planning committee, 
including representation from the school administrative units and school unions in 
existence on the effective date of this Part, member municipalities and members of 
the general public who are residents of the proposed union school association. The 
guidelines must include roles and responsibilities of the committee, timelines for 
submission of the plan, the format for reporting the reorganization plan and 
evaluation criteria for approval of the plan. 
B. Reorganization planning committees shall hold one or more public meetings to 
gather input from community members and to determine the sentiment of the public. 
4. Submission of alternative plan. By July 1,2008, each school administrative unit 
and school union shall submit to the Commissioner of Education its proposed 
reorganization plan for consolidation into a union school association that meets the 
requirements of subsections 5 and 6. Each school administrative unit and school union 
shall exercise due diligence and act in good faith in developing an alternative plan that 
meets the requirements of this Part and furthers the intent of the Legislature to achieve 
sustainable, long-term administrative efficiencies. 
A school administrative unit and 
school union that submits an alternative plan to the commissioner in accordance with this 
Part may not be subject to the financial penalties set forth in Title 20-A, section 15696. 
5. Content of alternative plan. An alternative plan for reorganization as a union 
school association must include: 
A. The units of school administration to be included in the proposed union school 
association; 
B. The size, composition and apportionment of the union school association joint 
committee, including terms of office, compensation, chairmanship, record keeping 
and method of filling a vacancy; 
C. The method of voting of the union school association joint committee consistent 
with the weighted vote method as set forth in Title 20-A, section 1902, subsection 2; 
D. The assignment of the powers and duties of the union school association joint 
committee and the powers and duties of the school boards and school committees of 
the school administrative units consistent with the requirements as set forth in Title 
20-A, chapter 103-B; 
E. A transition plan that addresses the development of a budget for the first school 
year of the union school association and a 3-year timeline for the centralization of the 
services to be provided by the system administration of the union school association, 
including: 
(I) Central office financial and human resources services, including but not 
limited to accounting, business management, payroll and benefits, human 
resources, teacher certification and substitute teacher services; 
(2) Noninstructional support services, including but not limited to transportation 
and vehicle maintenance, facilities management, food services, information 
technology and communications services, fuel and energy services and bulk 
purchasing of supplies; 
HOUSE AMENDMENT 
HOUSE AMENDMENT "If" to COMMITTEE AMENDMENT "A" to S.P. 741, L.D. 1932 
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(3) Instructional support services, including but not limited to curricu lum 
development, testing and assessment, data collection and reporting, professional 
development, instructional materials and resources and library and media 
services; and 
(4) Instructional services, including but not limited to adult education, career and 
technical education, gifted and talented education, alternative education, 
transitional programming, special education including therapy services, guidance 
counseling and itinerant teacher services. 
The transition plan submitted by July I, 2008 must include, at a minimum, the 
development of the budget for the first school year of the union school association. 
II 
By September 1, 2008, the 3-year timeline for the centralization of services to be 
provided by the system administration of the union school association must be 
submitted. The timeline does not need to describe how each of the services in 
subparagraphs (1) to (4) will be provided, but must describe how the union school 
association will centralize one or more of the services listed in each of these 
subparagraphs during the 3-year period; 
F. Documentation of the public meeting or public meetings held to prepare or review 
the reorganization plan; 
G. An explanation of how school administrative units or school unions that approve 
the reorganization plan will proceed if one or more of the proposed members of the 
union school association fail to approve the plan; 
H. An estimate of the cost savings to be achieved through formation of a union 
school association and how costs will be reduced; and 
I. Such other matters as the governing bodies of the school administrative units and 
school unions in existence on the effective date of this Part may determine to be 
necessary. 
6. Parameters. In developing an alternative plan for the reorganization of school 
administrative units and school unions in existence on the effective date of this Part into a 
union school association, the governing bodies of the school administrative units and 
school unions shall work within the following parameters: 
A. The proposed union school association must serve not fewer than 1,000 students; 
B. The alternative plan must provide comprehensive programming for all students 
from kindergarten to grade 12 and must include at least one publicly supported 
secondary school; 
C. The alternative plan must be consistent with the policies set forth in Title 20-A, 
section 1451; 
D. The alternative plan may not displace teachers or students or close any schools -
existing and operating during the school year immediately preceding reorganization, 
except as permitted under Title 20-A, section 1512; and 
E. The plan must address how the school administrative units and school unions will 
reorganize administrative functions, duties and non instructional personnel so that the 
projected expenditures of the reorganized school unit in fiscal year 2009-10 for 
system 
administration, 
transportation, 
special 
education 
and 
facilities 
and 
HOUSE AMENDMENT 
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HOUSE AMENDMENT ,,/I" to COMMITTEE AMENDMENT "A" to S.P. 741, L.D. 1932 
maintenance will not have an adverse impact on the instructional program of the 
proposed union school association. 
7. Review plans. If the Commissioner of Education finds that an alternative plan for 
reorganization meets the requirements of this Part, the commissioner shall notify the 
school administrative units and school unions and they shall proceed with ratification 
votes by the governing boards of the affected school administrative units and school 
unions. 
A. If the commissioner finds that an alternative plan for reorganization is not 
consistent with subsection 6 and the purposes and goals of this Part or that it has not 
adequately addressed the matters set forth in subsection 6, the commissioner shall 
return the alternative plan to the governing bodies of those school administrative 
units and school unions by July 15, 2008 with specific suggestions for modification 
of the alternative plan and written findings providing the specific reasons why the 
alternative plan did not meet with the requirements in this Part. 
B. Upon the return of an alternative plan for reorganization by the commissioner, the 
governing bodies of the school administrative units and school unions shall revise the 
proposed alternative plan for reorganization to address the commissioner's findings 
and submit a revised alternative plan for reorganization not more than 30 days after 
the commissioner returns the plan for revision. 
C. The commissioner shall make a determination whether the revised alternative plan 
for reorganization meets the requirements of this Part not more than 14 days after it is 
refiled by the school administrative units and school unions. 
D. The commissioner may not find that an alternative plan for reorganization does 
not meet the requirements of this Part solely on the ground that a finding that it meets 
the requirements would cause the number of regional school units in the State to 
exceed 80. 
Sec. B-7. Adjustment for union school association start-up costs. 
The 
Commissioner of Education shall establish an adjustment for fiscal year 2008-09 to 
support the start-up costs associated with the reorganization of school administrative units 
and school unions to union school associations in accordance with the Maine Revised 
Statutes, Title 20-A, chapter 103-B and this Part. 
Sec. B-8. Department of Education review of state education mandates. 
Notwithstanding Public Law 2007, chapter 240, Part XXXX, section 45, subsection 5, the 
deadline for the Department of Education report on the review conducted of state 
education mandates is July 1, 2008. 
Sec. B-9. Reports; additional necessary implementing legislation. No later 
than January 31, 2009, the Commissioner of Education shall submit to the Joint Standing 
Committee on Education and Cultural Affairs a report that contains recommendations and 
any proposed legislation necessary to fully implement this Part including legislation to 
convert school administrative units and school unions to the union school association 
form of governance on July 1,2009. Following receipt and review of the report, the Joint 
Standing Committee on Education and Cultural Affairs may submit legislation to the First 
Regular Session of the I 24th Legislature.' 
HOUSE AMENDMENT 
HOUSE AMENDMENT ,if' to COMMITTEE AMENDMENT "A" to S.P. 741, L.D. 1932 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment retains the changes made by Committee Amendment "A" and also 
accomplishes the following in Part B. 
1. It provides existing school administrative units and school unions with the option 
of forming a union school association that serves a minimum of 1,000 students instead of 
a regional school unit that is organized pursuant to the school reorganization provisions 
of Public Law 2007, chapter 240, Part XXXX. 
2. 
It provides that the Commissioner of Education may approve union school 
associations. 
The union school association is based on the school union model of 
governance, except that the central administrative office of the union school association 
must also meet the savings targets for administrative costs through collaboration with the 
school administrative units that comprise the union school association. 
3. It provides that, by April 1,2008, school administrative units and school unions 
may file with the Commissioner of Education a notice of intent to engage in planning and 
negotiation to develop an alternative plan to form a union school association. It also 
provides that each school administrative unit and school union shall submit to the 
Commissioner of Education, by July I, 2008, the alternative reorganization plan to form a 
union school association. 
4. It provides that an alternative plan to form a union school association must include, 
among other things: the participating school units; the composition and powers of the 
union school association joint committee; the weighted voting method for the joint 
committee; the development of the budget for the first school year; a 3-year transition 
plan for the centralization of joint administrative services; and an estimate of the cost 
savings to be achieved. 
5. It provides that, upon approval by the Commissioner of Education, an alternative 
plan for the formation of a union school association must be ratified by the governing 
boards of the participating school administrative units and school unions. 
6. It changes the reporting deadline, notwithstanding Public Law 2007, chapter 240, 
Part XXXX, section 45, for the Department of Education review of unfunded state 
mandates pertaining to school systems from December 15, 2008 to July 1,2008. 
SPONSORED BV:==*~ E' f:rA"'~ 
(Representative EDGECOMB) 
. 
TOWN: Caribou 
FISCAL NOTE REQUIRED 
(See Attached) 
HOUSE AMENDMENT 
Approved: 02/08/08 Mac.. 
LD 1932 
LR 3324(20) 
An Act To Amend the Laws Regarding School Funding 
Fiscal Note for House Amendment ,,1/ " to Committee Amendment "A" 
Sponsor: Rep. Edgecomb of Caribou 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium cost increase - General Fund 
Fiscal Detail and Notes 
Providing school administrative units with the option of forming a union school association that serves a minimum of 
1,000 students versus the paramenters established in Public Law 2007, chapter 240, Part XXX X may increase the tot 
cost of K-12 public education in future biennia due to less savings being achieved. The amount can not be determineu 
at this time and will depend on the number of union school associations established, the number of students served by 
the associations, and the ability of union school associations to implement efficiencies that will reduce its per-pupil 
expenditures in order to be more in line with the state average. Information provided by the Department of Education 
indicates that, for fiscal year 2005-06, the average per-pupil expenditures for school unions that served pre-
kindergarten to grade 8 students was $1,009 higher than the state average and $1,385 higher for school unions that 
served pre-kindergarten to grade 12 students. 
One example is in the special education area. Title 20-A, § 15681-A, sub-§2(D) requires that school administrative 
units receive sufficient funds for special education to ensure that the SAU's meet the federal maintenance of effort 
requirement for receiving federal Individuals with Disabilities Act funds. The maintenance of effort requirement 
states that the total amount of state and local funds budgeted by the local education agency for expenditures in a 
current fiscal year for the education of children with disabilities must be at least equal to the total amount of state and 
local school funds actually expended for the education of children with disabilities in the most recent preceding fiscal 
year. A smaller composition of school administrative units (1,000 students vs. 1,200 students) may result in less 
savings being achieved, thus requiring a higher level of state and local funding in order to fulfill the maintenance of 
effort requ irement. 
A second example is in the transportation area. Title 20-A, § 15681-A, sub-§3 requires that school administrative units 
receive no less than 90% of the most recent year's reported net transportation expenditures. A smaller composition of 
school administrative units (1,000 students vs. 1,200 students) may result in less savings being achieved, resulting in a 
higher level of funding to meet the statutory requirement. 
LR3324(20) - Fiscal Note - Page 1 of I