An Act To Amend the Laws Regarding School Funding
Maine Legislature, Session 123, LD 1932
Senate Amendment SA_A_S414 (Senate)
Amends: Title 20-A, Section 15681, 20-A MRSA §1452, 20-A MRSA §1461-A, 20-A MRSA §1472, 20-A MRSA §1472-A, 20-A MRSA §1472-B, 20-A MRSA §1478, 20-A MRSA §1482-A, 20-A MRSA §1506, 20-A MRSA §1512, 20-A MRSA §1701-C, 20-A MRSA §2303, 20-A MRSA §2307, 20-A MRSA §1, 20-A MRSA §1461

SENATE AMENDMENT" A 
"to S.P. 741, L.D. 1932, Bill, "An Act To Amend the 
Laws Regarding School Funding" 
Amend the bill in the emergency preamble in the 2nd paragraph in the first line (page 
1, line 3 in L.D.) by striking out the following: "financial" 
Amend the bill in the emergency preamble in the 3rd paragraph in the last 2 lines 
(page 1, lines 8 and 9 in L.D.) by striking out the following: "as early as January 15, 
2008 or subsequently on June 10, 2008" and inserting the following: 'on or before June 
10,2008' 
Amend the bill in the emergency preamble in the 4th paragraph in the first line (page 
1, line 10 in L.D.) by striking out the following: "financial" 
Amend the bill by striking out all of section 1 and inserting the following: 
'PART A 
Sec. A-I. 20-A MRS A §1305-C, as enacted by PL 2007, c. 240, Pt. XXXX, § 11, 
is amended to read: 
§1305-C. Mandatory budget validation and cost center summary budget form 
Notwithstanding any other law, school administrative district budgets developed after 
January 1, 2008 must conform to the format and referendum procedures for regional 
school units as set forth in sections 1305 A and 1305 B 1485 and 1486. A school 
administrative district is deemed to be a regional school unit solely for the purpose of 
developing a budget pursuant to sections 1485 and 1486. 
Sec. A-2. 20-A MRSA §1452, as enacted by PL 2007, c. 240, Pt. XXXX, §13, is 
amended to read: 
§1452. Application of general law; core functions of a regional school unit 
Notwithstanding any provision of law to the contrary, schools operated by the 
regional school units established in accordance with this chapter are the official schools 
of the participating municipalities. The provisions of general law relating to public 
education apply to these schools. State funds for public schools must be paid directly to 
SENATE AMENDMENT 
~~. 
~ .. ~ 
I 1 
SENATE AMENDMENT "A "to S.P. 741, L.D.1932 
the treasurer of a regional school unit. The core functions for which a regional school unit 
is responsible include without limitation: 
1. Employment of superintendent. Employment and discharge of a superintendent 
pursuant to section 1001, subsection 3 and chapter 101, subchapter 2; 
2. 
Performance of business functions. 
Administration of accounting, payroll, 
financial management, purchasing insurance and auditing; 
3. Special education administration. Administration of special education duties of 
school administrative units under chapter 303; 
4. Transportation. Administration oftransportation; 
5. 
Core curriculum. Adoption of a core curriculum, standardized testing and 
assessments aligned with the system of learning results established in section 6209; 
6. Budget. Adoption of the regional school unit budget; 
7. Reporting. Reporting required by state or federal law or regulation; 
8. Employment. Functioning as the employer of all employees working within the 
regional school unit for collective bargaining purposes and for all other purposes, 
including but not limited to those contained in section 1464, in Title 26, chapter 9-A and 
in all state and federal laws regulating the rights and duties of employers and employees; 
9. School calendar. Establishment of a common school calendar, subject to local 
variations permitted by the regional school unit board; and 
10. Adoption of policies. Adoption of policies for all schools in the regional school 
unit pursuant to section 1001, subsection I-A, except that the local school committee may 
adopt policies not in conflict with the regional school unit policies. 
Sec. A-3. 20-A MRSA §1461-A is enacted to read: 
§1461-A. Transitional powers and duties ofinitial regional school unit board 
As used in this section, unless the context indicates otherwise, "regional school unit 
board" means the initial regional school unit board elected pursuant to section 1472-A. 
From the time of election of the regional school unit board to July 1 st of the regional 
school unit's first operational year, the regional school unit board shall establish interim 
rules of procedures and shall elect officers who shall serve until officers are elected at a 
meeting following the operational date of the regional school unit. The regional school 
unit board's powers and duties during this period are governed by this section. 
1. Selection of superintendent. The regional school unit board shall select a 
superintendent for the regional school unit in accordance with section 1051 to carry out 
the duties specified in section 1055. During the interim period, the salary, office and other 
expenses of the superintendent, as well as the costs of the regional school unit board, 
including insurance, must be allocated to the school administrative units by the cost-
sharing formula established in accordance with section 1481-A and included in the 
reorganization plan for the regional school unit. 
2. Budget preparation and approval. The regional school unit board shall prepare 
the annual budget for the first operational year of the regional school unit in time for its 
SENATE AMENDMENT 
,*' \ ... 
~~. 
SENATE AMENDMENT "A .. to S.P. 741, L.D. 1932 
presentation to and consideration by the regional school unit board in accordance with 
subchapter 4. Specific duties may be assigned to existing personnel with the approval of 
the employing school administrative unit. The regional school unit board shall complete 
the budget development process and recommend a budget for consideration by the 
legislative body responsible for final budget approval and the residents of the regional 
school unit. The budget format, approval procedures and assessments for the regional 
school unit's first operational year budget must be in accordance with this chapter. 
3. Authorization. The regional school unit board is authorized to take all other 
actions provided under state law to prepare the regional school unit to become operational 
on July 1 st for the first operational year, including the authority to open and maintain 
accounts, to incur expenses to be allocated among the regional school unit's member 
school administrative units in accordance with the reorganization plan for the regional 
school unit and to file applications for school construction projects and revolving 
renovation fund loans and other available funding. 
4. Fiscal agent. The regional school unit board is authorized to expend start-up 
funds for the regional school unit. 
A school administrative unit within the regional 
school unit may serve as a fiscal agent and may expend any start-up funds on behalf of 
the new regional school unit prior to the regional school unit's operational date without 
calling for a special meeting of the local legislative body. 
Sec. A-4. 20-A MRSA §1472, sub-§2, ,C, as enacted by PL 2007, c. 240, Pt. 
XXXX, § 13, is amended to read: 
C. A plan may not permit the voting power of any director to exceed by more than 
~ 
5% the percentage of voting power the director would have if all 1,000 votes 
were apportioned equally among the directors. 
Sec. A-5. 20-A MRSA §1472-A is enacted to read: 
§1472-A. Election of initial regional school unit board 
1. 
Election; interim secretary; duties. 
Within 30 days of the issuance of a 
certificate of organization for the regional school unit by the state board pursuant to 
section 1461, subsection 7, the members of the school boards of the school administrative 
units within the regional school unit shall conduct a joint meeting for the purposes of 
electing an interim secretary of the regional school unit and determining a date for the 
election of the initial regional school unit board. The interim secretary shall notify the 
municipal officers of the member municipalities of the regional school unit of the date of 
the election. The election must be conducted in accordance with section 1473, subsection 
2, except that the election duties of the secretary and the regional school unit board must 
be performed by the interim secretary. The duties of the interim secretary include: 
A. Notifying the municipal officers of the date of the election; 
B. 
Furnishing nomination papers at least 10 days before the deadline for filing 
nomination papers; 
C. 
Receiving completed nomination papers in accordance with section 1473, 
subsection 2; 
SENATE AMENDMENT 
\\.~~. 
SENATE AMENDMENT .. A .. to S.P. 741, L.D. 1932 
D. 
Preparing and distributing election ballots tn accordance with section 1473, 
subsection 2; 
E. 
Receiving the town clerk's certification of the results of the voting in each 
member municipality; 
F. 
Tabulating the town clerk's certification of the results of the voting in each 
member municipality; 
G. Accepting any recount petitions that may have been filed pursuant to section 
1473, subsection 2, paragraph C; and 
H. 
Totaling the votes cast for each candidate and notifying the clerk in each 
municipality, the candidates and the commissioner of the final results of the voting 
and the names and addresses of the persons elected as directors. 
2. Initial meeting. In accordance with section 1473, subsection I, the clerk of each 
municipality within the regional school unit shall forward the names and addresses of the 
directors elected to represent that municipality to the state board with other data regarding 
their election as the state board may require. On receipt of the names and addresses of all 
of the directors, the state board shall set a time, place and date for the first meeting of the 
directors and give notice to the directors in writing, sent by registered or certified mail, 
return receipt requested, to the addresses provided by the municipalities. 
Sec. A-6. 20-A MRSA §1472-B is enacted to read: 
§1472-B. Staggered initial terms 
Notwithstanding section 1471, subsection 2, the initial directors elected to a regional 
school unit board shall meet and draw lots for their term lengths as specified in this 
section. 
1. Municipalities with annual elections. In municipalities with annual elections, 
1/3 of the directors serve one-year terms, 113 of the directors serve 2-year terms and 1/3 
of the directors serve 3-year terms. If the number of directors is not evenly divisible by 3, 
the first remaining director serves a 3-year term and the 2nd remaining director serves a 
2-year term. 
2. Municipalities with biennial elections. In municipalities with biennial elections, 
half of the directors serve 4-year terms and half of the directors serve 2-year terms. If the 
number of directors is not divisible by 2, the remaining director serves a 4-year term. 
The directors shall serve their terms as determined under this section and any 
additional period until the next regular election of the municipalities. Thereafter, the 
directors' terms of office are as established in section 1471. 
Sec. A-7. 20-A MRSA §1478, as enacted by PL 2007, c. 240, Pt. XXXX, § 13, is 
repealed and the following enacted in its place: 
§1478. Local school committees 
1. Formation. A reorganization plan under section 1461 or a regional school unit 
board may authorize the formation of a local school committee for a member 
municipality established in accordance with chapter 111, subchapter 1. 
SENATE AMENDMENT 
\\. ~. 'to 
SENATE AMENDMENT "A "to S.P. 741, L.D. 1932 
2. 
Delegation of functions. 
A reorganization plan that has been approved in 
accordance with subchapter 2 or a regional school unit board may delegate a local school 
committee to perform any duties, functions and services other than those reserved to the 
regional school unit under subchapter 1. The core functions provided by a regional 
school unit pursuant to section 1452 may be supplemented at the expense of any member 
municipality. 
3. 
Budget responsibility. 
A reorganization plan that has been approved in 
accordance with subchapter 2 or a regional school unit board may authorize a local school 
committee to present to the board a proposed budget for the local school in a form that is 
consistent with section 1485. The proposed local school budget must be submitted in 
time to be included in the budget for the regional school unit. Proposed expenditures that 
are not included in the regional school unit budget may be separately appropriated by the 
municipality to be expended by the regional school unit in accordance with the 
appropriation. Supplemental municipal appropriations for education are not subject to 
section 1486. 
4. Title to property. School property overseen by a local school committee may be 
owned either by the municipality or by the regional school unit as long as there is a clear 
allocation of responsibilities for management of all of the school property in the regional 
school unit.' 
Amend the bill in section 3 in § 1481-A in subsection 3 in paragraph A in 
subparagraph (2) by striking out all of the first 3 lines (page 2, lines 15 to 17 in L.D.) and 
inserting the following: 
'(2) Under an alternate method of cost sharing, municipalities in a unit shall 
share costs based on:' 
Amend the bill in section 3 in § 1481-A in subsection 3 by inserting after paragraph A 
the following: 
'8. 
A process of amending the cost-sharing formula must be included in the 
reorgan ization plan.' 
Amend the bill in section 3 in § 1481-A in the last indented paragraph in the 2nd and 
3rd lines (page 2, lines 32 and 33 in L.D.) by striking out the following: "a school serving 
children from kindergarten to no higher than grade 8." and inserting the following: 'any 
school within the regional school unit.' 
Amend the bill by inserting after section 3 the following: 
'Sec. 4. 20-A MRSA §1482-A is enacted to read: 
§1482-A. Budget meeting 
A regional school unit board shall hold a regional school unit budget meeting at a 
time it determines. 
1. Warrant. The budget meeting must be called by a warrant. The warrant must: 
SENATE AMENDMENT 
SENATE AMENDMENT" A " 
to S.P. 741, L.D. 1932 
A. Be signed by a majority of the regional school unit board; 
B. Specify the time and place of the meeting; 
C. Include the proposed school budget and other articles the regional school unit 
board chooses to place before the voters, excluding authorization to borrow money 
for school construction pumoses; 
D. SpecifY the state and local shares of the state-local allocation and local leeway 
and additional expenditures without state participation; and 
E. Be directed to a resident of the regional school unit by name ordering the resident 
to notifY all voters within the regional school unit to assemble at the time and place 
appointed. 
2. Notice. An attested copy of the warrant must be posted by the person to whom it 
is directed in some conspicuous public place in each of the municipalities within the 
regional school unit at least 7 days before the meeting. The person who gives notice of 
the meeting shall make a return of the posting on the warrant stating the manner of notice 
in each municipality and the time when it was given. 
3. Requested articles. If requested by a written petition of at least 10% of the 
number of voters voting for the gubernatorial candidates in the last gubernatorial election 
in each municipality within the regional school unit, the regional school unit board shall 
place specific articles, not in conflict with existing state statutes, in the warrants for 
consideration at the next annual regional school unit budget meeting. To be included in 
the warrant, a petition must be received by the regional school unit board at least 15 days 
before the date set for the budget meeting. When placed on the warrant, the articles must 
be considered before action relating to the appropriation of money for the operation of 
schools may be taken. 
Sec. 5. 20-A MRS A §1482-B is enacted to read: 
§1482-B. Annual budget meeting procedures 
The following procedures must be used at a regional school unit annual budget 
meeting. 
1. Election of moderator. The secretary of the regional school unit board or the 
chair of the regional school unit board when the secretary is absent shall open the annual 
budget meeting and call for the election of a moderator, receive and count votes for the 
moderator and swear in the moderator. 
2. Appointing ballot clerks. The moderator shall appoint from the certified voting 
list the ballot clerks necessary for the efficient operation of the annual budget meeting. 
The moderator shall swear in the clerks. 
3. Budget consideration. The superintendent of the regional school unit shall 
thoroughly explain the budget. The voters must have an opportunity to be heard. The 
voters may change only items dealing with: 
A. The expenses necessary to operate the regional school unit; 
B. Appropriations for the reserve fund; and 
SENATE AMENDMENT 
, 
\;.,. ~ 
SENATE AMENDMENT .. A .. to S.P. 741, L.D. 1932 
C. Appropriations for the contingency fund and school construction purposes. 
4. Approval. A majority vote of those voters present and voting is necessary for the 
approval of the annual budget. 
S. Voting lists. Registration of voters for the annual budget meeting must be held in 
each member municipality in accordance with Title 21-A, section 122. 
A. 
Prior to the annual budget meeting, the municipal clerks of the member 
municipalities shall supply to the regional school unit board certified corrected copies 
of the registered voters of their municipalities. 
B. The certified corrected copies under paragraph A must be used in determining the 
voters who are eligible to vote at the annual budget meeting. 
6. Written ballot. An article must be voted on by written ballot if at least 10% of 
those present and voting vote to use a written ballot. The department, in consultation 
with municipal and school officials and with organizations representing those officials, 
shall develop and distribute guidelines to assist regional school unit annual budget 
meeting moderators in explaining and implementing this subsection. 
Sec. 6. 20-A MRSA §1506, sub-§l, ~A, as enacted by PL 2007, c. 240, Pt. 
XXXX, § 13, is amended to read: 
A. "Existing debt" means any bond, note, loan agreement, lease-purchase agreement 
or other debt instrument issued prior to July 1, 2008 1 st of the first operational year of 
the new unit for the purposes of funding public schools, or for refinancing such debt, 
that remains outstanding at the time of a reorganization pursuant to this chapter. 
"Existing debt" does not include routine payables or commercial contract obligations. 
Sec. 7. 20-A MRSA §1506, sub-§4, as enacted by PL 2007, c. 240, Pt. XXXX, 
§ 13, is amended to read: 
4. Debt of original education units. After July 1,2008, 1st of the first operational 
year of the new unit for each original education unit with existing debt that has 
reorganized into a new unit, if the new unit has not agreed to assume liability to pay that 
existing debt, the regional school unit board shall serve as agent for purposes of that 
existing debt and has full authority to: 
A. Sue and be sued in the name of the original education unit with respect to the 
existing debt; 
B. Determine the debt service due each fiscal year on any existing debt; 
C. 
As applicable, allocate to each member of the original education unit the 
member's share of the annual debt service for the existing debt of the original 
education unit in addition to each member's share of costs of the new unit; 
D. Collect the allocation for debt service on the existing debt from the original 
education unit or, as applicable, from each member of the original education unit in 
addition to each member's share of costs of the new unit; 
E. Pay the debt service on the existing debt of the original education unit when due; 
and 
SENATE AMENDMENT 
, 
\;\. (J\ 
SENATE AMENDMENT" A" to S.P. 741, L.D. 1932 
F. Take all other actions necessary and proper with respect to the existing debt. 
Allocations between members of the original education unit to pay the debt service for 
the existing debt must be made on the basis of the cost-sharing formula of the original 
education unit in effect on July 1,2007, as applied to the year of allocation. In the case of 
state-subsidized debt service, the provisions of subsection 3 apply. Amounts to pay the 
debt service on the existing debt of the original education units must be included in the 
budget that the regional school unit board of a new unit submits for approval. If the 
original education unit is divided between different new units that have not agreed to 
assume liability to pay the existing debt, the commissioner shall require that the 
reorganization plan of one of those new units provide for that new unit to serve as agent 
for purposes of the existing debt of the original education unit. That new unit, as agent, 
has the authority provided by this subsection, except that the new unit shall notify the 
other new units containing members of the original education unit of the amounts they 
must assess and collect from their members who were members of the original education 
unit, and those other new units shall perform the functions in subsection 4, paragraphs C 
and 0 with respect to their members, and shall pay the appropriate amounts over to the 
new unit serving as agent. 
Sec. 8. 20-A MRSA §1512, sub-§6, as enacted by PL 2007, c. 240, Pt. XXXX, 
§ 13, is amended to read: 
6. Multiple municipalities. If a school proposed for closure is an eleR'lentary ~ 
school that serves students from more than one municipality, the article set forth in 
subsection 1 must be submitted to the voters in each of the municipalities that sent all 
eleR'lentary students from that municipality to the school. If the article is approved by a 
majority of the voters in each of the municipalities, the school is not closed and the 
municipalities share in the costs under this section in the same proportion as they share 
the current operating costs of the school.' 
Amend the bill by striking out all of section 4 and inserting the following: 
'Sec. 4. 20-A MRSA §1701-C, as enacted by PL 2007, c. 240, Pt. XXXX, §16, is 
amended to read: 
§1701-C. Mandatory budget validation and cost center summary budget form 
Notwithstanding any other law, community school district budgets developed after 
January 1, 2008 must conform to the format and referendum procedures for regional 
school units as set forth in sections 17(:)1 A and 17(:)1 B 1485 and 1486. A community 
school district is deemed to be a regional school unit solely for the purpose of developing 
a budget pursuant to sections 1485 and 1486. 
Sec. 5. 20-A MRSA §2303, as amended by PL 1987, c. 737, Pt. C, §§52 and 106 
and PL 1989, c. 6; c. 9, §2; and c. 104, Pt. C, §§8 and 10, is further amended to read: 
§2303. Additional school committee members 
Notwithstanding section 2302, a municipality may vote at its annual meeting to have 
.§. up to 7 members on the school committee. 
SENATE AMENDMENT 
,.\ 
.. :'0' 
~~ f~l' 
SENATE AMENDMENT "A "to S.P. 741, L.D. 1932 
1. Vote. The municipality may vote to have a 5 member board expand its school 
committee at: 
A. 
Its annual meeting; or 
B. 
At-a A special town meeting held at least 30 days before the annual meeting, if a 
municipality has accepted Title 30-A, section 2528, relative to secret ballot. 
2. Election of additional members. The municipality may, at its annual meeting, 
elect by ballot; additional school committee members to serve with the ~ members 
whose terms have not expired. 
Sec. 6. 20-A MRSA §2307, as enacted by PL 2007, c. 240, Pt. XXXX, §21, is 
amended to read: 
§2307. School budgets 
Notwithstanding any other law, municipal school budgets developed after January 1, 
2008 must follow the same school budget requirements as regional school units pursuant 
to chapter 103-A, except as described in subsections 1 and 2. A municipal school unit is 
deemed to be a regional school unit solely for the purpose of developing a budget 
pursuant to chapter 103-A. 
1. Budget meeting. In charter municipalities the budget meeting required by section 
1485, subsection 3 must be a meeting of the municipal councilor other municipal 
legislative body established by the charter with authority to approve the budget. 
2. Municipal charter. In charter municipalities where the municipal charter confers 
upon a municipal councilor other municipal legislative body the authority to determine 
the total amount of the school budget and confers upon the school committee or school 
board the authority to direct the expenditure of those funds for school purposes, the 
municipal councilor other municipal legislative body shall determine the total amount of 
the school budget to be submitted to a budget validation referendum and the school 
committee or school board shall determine the allocation of the approved school budget 
among the cost centers ofthe cost center summary budget format.' 
Amend the bill by inserting after section 10 the following: 
'Sec. 11. 20-A MRS A §15688, sub-§3-A, ~C, as amended by PL 2007, c. 240, 
Pt. XXXX, §30, is further amended to read: 
C. For a school administrative district, community school district or regional school 
unit composed of more than one municipality, the unit's contribution to the total cost 
of education is the lesser of: 
( 1) The total cost as described in subsection 1; and 
(2) The sum of the totals calculated for each member municipality pursuant to 
paragraph B, subparagraph (2), plus the total calculated pursuaRt to paragraph B 
ifapplieable.' 
Amend the bill by inserting after section 11 the following: 
SENATE AMENDMENT 
" '~. 
\\. ~ , 
SENATE AMENDMENT" 4 " 
to S.P. 741, L.D. 1932 
'Sec. 12. PL 2007, c. 240, Pt. XXXX, §36, sub-§6, ~A-l is enacted to read: 
A-I. Notwithstanding the requirements of paragraph A, the Commissioner of 
Education may authorize a unit to serve 1,200 or fewer students but not less than 
1,000 students in an isolated rural community if the proposed regional school unit 
meets at least one of the following criteria: 
(I) The proposed regional school unit comprises 3 or more school administrative 
units in existence prior to July 1, 2008; 
(2) The member municipalities of the proposed regional school unit are 
surrounded by approved regional school units and there are no other school 
administrative units available to join the proposed regional school unit; or 
(3) The member municipalities of the proposed regional school unit include 2 or 
more isolated small schools that are eligible for an isolated small school 
adjustment pursuant to the Maine Revised Statutes, Title 20-A, section 15683, 
subsection 1, paragraph F. 
In cases where the Commissioner of Education denies the creation of a regional 
school unit that serves 1,200 or fewer students but not less than 1,000 students, the 
school administrative units may appeal to the State Board of Education. 
Sec. 13. Retroactivity. Those sections of this Part that amend the Maine Revised 
Statutes, Title 20-A, sections 1305-C, 1701-C and 2307 apply retroactively to January I, 
2008. 
PARTB 
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 1, 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: 
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 MRS A §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. 
SENATE AMENDMENT 
~, 
SENATE AMENDMENT" 4 .. to S.P. 741, L.D. 1932 
(l) +fie 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 must serve not 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: 
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 
SENATE AMENDMENT 
, '-, 
f\ 
\'".> 
SENATE AMENDMENT·A .. to S.P. 741, L.D. 1932 
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-5. 20-A MRSA c. 103-B is enacted to read: 
CHAPTER 103-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 
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 
SENATE AMENDMENT 
;' 
, ~ 
~'\ 
'< 
\.'.., 
SENATE AMENDMENT "A" to S.P. 741, L.D. 1932 
> 
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. 
§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. 
SENATE AMENDMENT 
," 
\:\ 'i,· 
, 
.... 
SENATE AMENDMENT" A .. to S.P. 741, L.D. 1932 
§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 I, 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 form 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. 
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. 
SENATE AMENDMENT 
SENATE AMENDMENT" A 
"to S.P. 741, L.D. 1932 
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 
II 
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 time line 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; 
(3) Instructional support services, including but not limited to curriculum 
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. 
SENATE AMENDMENT 
\'.. I", ~~ •. 
SENATE AMENDMENT "A .. to S.P. 741, L.D. 1932 
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 time line 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 
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 
SENATE AMENDMENT 
· '. 
, , 
\'.. 
II 
SENATE AMENDMENT': A " 
to S.P. 741, L.D. 1932 
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 103-8 and this Part. 
Sec. B-S. 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 I, 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 I, 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 l24th Legislature.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
Part A of the amendment accomplishes the following. 
I. It clarifies the authorization provided to regional planning committees to negotiate 
a cost-sharing agreement for those costs of a proposed regional school unit that are in 
addition to the local contribution required pursuant to the Maine Revised Statutes, Title 
20-A, section 15690. 
SENATE AMENDMENT 
(~' • •.• ..J' 
\., 
SENATE AMENDMENT "A "to S.P. 741, L.D. 1932 
2. It repeals a cross-reference to the unit of law that is repealed in the bill regarding 
the requirement that each municipality that is a member of a new regional school unit 
contribute a minimum of 2 mills of the municipality's property fiscal capacity to the total 
cost of education of the new regional school unit. 
3. It includes language inadvertently left out of the bill regarding the requirement 
that the reorganization plan include a process for amending the cost-sharing formula. 
4. 
It clarifies the roles of the municipal officers and the school committee for 
municipal school units whose municipal charters give authority to approve the school 
budget to the municipal officers and establishes the requirements for calling a budget 
meeting and the procedures for the budget meeting. 
5. It clarifies the relationship between a regional school unit board and a local school 
that seeks to raise additional funds for an elementary school or a secondary school that is 
owned or managed by the member municipality. 
The amendment also removes 2 
references to "elementary" schools in the school closure provisions to clarifY that 
secondary schools are also subject to these requirements. 
6. It permits the Commissioner of Education to authorize so-called "doughnut hole" 
school units that have 1,200 or fewer students and no other available reorganization 
partners to form a regional school unit that serves at least 1,000 students if these isolated, 
rural school units meet certain criteria. 
7. It clarifies the assumption of existing debt that is transferred from an original 
education unit to a new regional school unit that is formed after July 1, 2008. 
8. It provides regional school unit boards with the legal authority to receive and 
spend state and local funds, including funds for the election of regional school unit board 
members and to hire a superintendent prior to the operational date of the new regional 
school unit on July 1,2009. 
Part B of the amendment accomplishes the following. 
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 1, 2008, the alternative reorganization plan to form a 
union school association. 
SENATE AMENDMENT 
II 
SENATE AMENDMENT" A" to S.P. 741, L.D. 1932 
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. 
~t.-fu~ 
SPONSORED BY: 
(Senator RA YE) 
COUNTY: Washington 
FISCAL :\OTE REQURED 
(See attached) 
_ 
... ---- .... _ 
.. _ 
.. -
SENATE AMENDMENT 
Fiscal Detail and Notes 
Revised: 02/06/08 ;tva.:!-
LD 1932 
LR 3324(04) 
An Act To Amend the Laws Regarding School Funding 
Fiscal Note for Senate Amendment "A " 
Sponsor: Sen. Raye of Washington 
Fiscal Note Required: Yes 
Fiscal Note 
Potential future biennium cost increase - General Fund 
Although this legislation will not impact the total state and local cost of funding K-12 public education in fiscal year 
2008-09, it may affect the distribution of subsidy to local school administrative units (SAD's) with some units 
receiving more subsidy and some units receiving less subsidy. The impact to individual school administrative units 
can not be determined at this time. 
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 XXXX may increase the total 
cost of K-12 public education in future biennia due to less savings being achieved. The amount can not be determined 
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 SAD'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 requirement. 
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(04) - Fiscal Note - Page I of I