An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, General Fund and Other Funds, and Changing Certain Provisions of the Law Necessary to the Proper Operations of State Government for the Fiscal Years Ending June 30, 2008 and June 30, 2009
Maine Legislature, Session 123, LD 0499
Committee Amendment CA_A-SA_M_S218 (Senate)
Amends: 20-A MRSA §1904, 20-A MRSA §15696

SENATE AMENDMENT ".r1" to COMMITTEE AMENDMENT "A" to H.P. 383, 
L.D. 499, Bill, "An Act Making Unified Appropriations and Allocations for the 
Expenditures of State Government, General Fund and Other Funds, and Changing Certain 
Provisions of the Law Necessary to the Proper Operations of State Government for the 
Fiscal Years Ending June 30, 2008 and June 30, 2009" 
Amend the amendment in Part XXXX by striking out all of section 11 (page 750, line 
and page 751, lines 1 to 4 in amendment) 
Amend the amendment in Part XXXX in section 13 in § 1461 in subsection 3 in 
paragraph A in subparagraph (12) in the last line (page 753, line 30 in amendment) by 
inserting after the following: "achieved" the following: 'and an estimate of any cost 
increases that may be caused by the formation of a regional school unit' 
Amend the amendment in Part XXXX in section 13 in § 1461 in subsection 3 by 
striking out all of paragraph B (page 753, lines 34 to 37 and page 754, lines 1 to 23 in 
amendment) and inserting the following: 
'B. The proposed regional school unit must serve not fewer than 2,500 students, 
unless the population density within the regional school unit is less than 100 persons 
per square mile as reported by the most recent federal Decennial Census or federal 
estimated census. If the population density within the regional school unit is less than 
persons per square mile, the regional school unit must serve not fewer than 1.200 
students, except for offshore islands and schools operated by tribal school 
committees. 
Exceptions to the 1,200 student limit must be provided for 
geographically isolated school administrative units. including offshore islands not 
connected by road or bridge to the mainland, and geographic regions of the State 
where the population density is less than 30 inhabitants per square mile according to 
the most recent federal Decennial Census or federal estimated census. and for schools 
operated by tribal school committees. If. after performing due diligence to develop a 
regional plan that meets the 2.500 resident student goal. a school administrative unit 
with a popUlation density of more than 100 persons per square mile is surrounded by 
adjacent municipalities or school administrative units that have developed plans to 
form regional school units with other municipalities or school administrative units, 
the commissioner shall approve the municipality or school administrative unit as a 
SENATE AMENDMENT 
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SENATE AMENDMENT i4'1 "to COMMITTEE AMENDMENT "A" to H.P. 383, L.D. 499 
regional school unit, if the municipality or school administrative unit has more than 
1,200 resident students.' 
Amend the amendment in Part XXXX in section 13 by striking out all of §1478 (page 
769, lines 31 to 33 in amendment) and inserting the following: 
'§1478. School union as regional school unit 
Notwithstanding any other provision of law, a school union qualifies as a regional 
school unit pursuant to this chapter if the school union meets the applicable minimum 
resident student requirement of this chapter.' 
Amend the amendment in Part XXXX in section 13 in § 1485 in subsection 1 by 
striking out all of paragraph A (page 772, lines 32 to 37 and page 773, lines 1 to 6 in 
amendment) and inserting the following: 
'A. Expenditures: 
(1) Prekindergarten to grade 12 instruction, excluding special education; 
(2) Instructional support. excluding special education; 
(3) Special education; 
(4) System and school administration; 
(5) Facilities maintenance; 
(6) Transportation and buses; 
(7) Debt service; and 
(8) Other commitments.' 
Amend the amendment in Part XXXX in section 13 in § 1485 in subsection 1 by 
striking out all of paragraph F (page 773, lines 21 to 23 in amendment) and inserting the 
following: 
'F. For fiscal year 2008-09, data documenting any state and local savings and 
documenting any cost increases resulting from the reorganization to regional school 
units and the resulting mill rate reduction or increase for each municipality.' 
Amend the amendment in Part XXXX in section 13 by striking out all of §§ 1486 and 
1487 (page 774, lines 1 to 42 and page 775, lines 1 to 41 in amendment) and inserting the 
following: 
'§1486. Budget adoption procedures 
Except as otherwise provided in section 15671-A with respect to proposed school 
budgets that exceed the maximum state and local spending targets, school budget 
adoption procedures must be controlled by municipal charter, municipal ordinance and 
SENA TE AMENDMENT 
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SENATE AMENDMENT "1'1 " to COMMITTEE AMENDMENT" A" to H.P, 383, L.D. 499 
municipal election laws for municipal school units; by sections 1304 to 1309 for school 
administrative districts; by sections 1701 to 1701-B for community school districts; and 
by section 1903 for system administration budgets for school unions. 
§1487. Failure to pass budget 
If a budget for the operation of a regional school unit is not approved prior to July 
st. the latest budget as submitted by the regional school unit board is automatically 
considered the budget for operational expenses for the ensuing year until a final budget is 
approved, except that, when the regional school unit board delays the regional school unit 
budget meeting in accordance with section 15693, subsection 2, paragraph C, the 
operating budget must be approved within 30 days of the date the commissioner notifies 
the regional school unit board of the amount allocated to the regional school unit under 
section 15689-8. or the latest budget submitted by the regional school unit board 
becomes the operating budget for the next school year.' 
Amend the amendment in Part XXXX in section 13 in §1501 by inserting after 
subsection 1 the following: 
'2. Required district referendum. The regional school unit board shall initiate a 
district referendum when 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 the 
municipalities within the district. At that referendum, the school board shall place before 
the voters the specific article that has been requested by the petitioners.' 
Amend the amendment in Part XXXX by striking out all of section 16 (page 788, 
lines 36 to 40 in amendment) 
Amend the amendment in Part XXXX by inserting after section 18 the following: 
'Sec. XXXX-19. 20-A MRSA §1904, as enacted by PL 2005, c. 130, §3, is 
amended to read: 
§1904. Fiscal authority 
The superintendent of a school union may be designated as the treasurer of the school 
union and, notwithstanding section 1902, subsection 3, paragraph F, the union committee 
of a school union may perform the functions of fiscal agent for the school administrative 
units in the school union if a majority of the voters in each municipality agree to these 
designations through a referendum or at a town meeting. The article that is placed before 
the voters in each municipality must state the specific functions to be performed by the 
fiscal agent, must state that the agreement under which the union committee may perform 
the functions of fiscal agent may not exceed a period of 3- 10 years and must also include 
a schedule for regular payment of the warrants approved in each municipality to the union 
committee. The school union must provide the municipalities with accounting records 
after an audit has been completed and delivered to the superintendent. An agreement 
under which the union committee performs the functions of fiscal agent may be renewed 
for a period not to exceed 3- 10 years. Each renewal may be approved only in accordance 
with the procedures described in this section.' 
SENATE AMENDMENT 
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SENATE AMENDMENT 1'1 "to COMMITTEE AMENDMENT "A" to H.P.383, L.D. 499 
Amend the amendment in Part XXXX by striking out all of section 21 (page 789, 
lines 9 to l3 in amendment) 
Amend the amendment in Part XXXX by striking out all of section 32 (page 793, 
lines 22 to 38 and page 794, lines 1 and 2) and inserting the following: 
'Sec. XXXX-32. 20-A MRSA §15696 is enacted to read: 
§15696. Penalties for nonconforming school administrative units 
1. Authorized adjustments. Notwithstanding any other provision of this Title, the 
adjustments described in this subsection to the calculation of subsidy under chapter 606-B 
are required beginning July 1, 2009 for a school administrative unit that is not a 
conforming school administrative unit. The nonconforming school administrative unit's 
state subsidy must be reduced by an amount equal to 50% of the legislatively approved 
elementary school level. middle school level and high school level per pupil essential 
programs and services rate for system administration applied to the number of resident 
pupils at each school level in that school administrative unit. as of July 1, 2009 until such 
time as the school administrative unit is compliant with the applicable minimum number 
of resident pupils requirement. provided that this penalty does not apply to any school 
administrative unit that has been designated as an approved exception to the minimum 
resident pupil requirement. nor to any municipal school administrative unit whose voters 
have approved a reorganization plan under section 1461 but that has not been issued a 
certificate of organization because one or more other municipalities have failed to 
approve the reorganization plan. If a reorganization planning committee fails to submit 
proposed reorganization plans as required by this section, or if reorganization plans are 
disapproved by the commissioner, or if one or more of the municipalities fail to approve a 
reorganization plan approved by the commissioner, the commissioner shall submit a 
report to the ioint standing committee of the Legislature having jurisdiction over 
education matters that the reorganization planning committee or the nonapproving 
municipalities have not met the school reorganization goals of this chapter. A school 
administrative unit or group of school administrative units of a proposed size or 
organizational structure previously disapproved by the commissioner are authorized to 
submit legislation for the purpose of being established as a school administrative unit 
eligible for certification pursuant to this chapter. 
Notwithstanding any other provision of law. penalties may not be imposed on a school 
administrative unit that is designated as an efficient. high-performing district. A school 
administrative unit must be designated an efficient. high-performing district if: 
A. At least 50010 of its schools are identified as higher performing in the Maine 
Education Policy Research Institute report. "The Identification of Higher and Lower 
Performing Maine Schools" (May 2007); and 
B. Its reported 2005-06 per pupil expenditures for system administration represent 
less than 4% of its total per pupil expenditures.' 
Amend the amendment in Part XXXX in section 35 by striking out all of subsections 
and 2 (page 794, lines l3 to 42 and page 795, lines 1 to 9 in amendment) and inserting 
the following: 
SENATE AMENDMENT 
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SENATE AMENDMENT "1'1 " to COMMITTEE AMENDMENT "A" to H.P~ 383, L.D. 499 
'1. Meetings to be convened in each career and technical education region. Not 
later than July 15,2007, the Commissioner of Education, or the commissioner's designee, 
shall convene one or more meetings in each of the career and technical education regions 
in the State to present information about the requirements of this Part regarding 
consolidation and collaboration among school administrative units. 
A. The Commissioner of Education shall provide notice of the meeting or meetings 
to municipal officials and school officials from the municipalities and school 
administrative units within the region, as well as to the general public. 
B. In addition to other information presented at the meeting, the Commissioner of 
Education shall provide one or more maps showing the suggested alignment of 
municipalities and other school administrative units designed to increase efficiency 
and improve educational quality and to meet the requirements of subsection 6. 
C. 
Maps presented by the Commissioner of Education and alignment options 
considered by school administrative unit representatives must be guided by: 
(1) The intent and goals set forth in Title 20-A, section 1451; and 
(2) The intent that school units existing on the effective date of this Act be 
reorganized into regional units serving not fewer than 2,500 resident students 
unless the population density within the regional school unit is less than 100 
persons per square mile as reported by the most recent federal Decennial Census 
or federal estimated census. If the population density within the regional school 
unit is less than 100 persons per square mile, the regional school unit must serve 
not fewer than 1,200 students. Exceptions to the 1,200 student limit must be 
provided for geographically isolated school administrative units, including 
coastal islands not connected by road or bridge to the mainland, and geographic 
regions of the State where the population density is less than 30 inhabitants per 
square mile according to the most recent federal Decennial Census or federal 
estimated census, and for schools operated by tribal school committees. 
2. Notice of intent. By August 31, 2007, each school administrative unit shall file 
with the Commissioner of Education: 
A. A notice of intent to engage in planning and negotiations with other school 
administrative units for the purpose of developing a reorganization plan to fonn a 
regional school unit under this Part and Title 20-A, chapter 103-A; or 
B. A notice of intent to submit an alternative plan that meets the requirements of 
subsection 6, paragraph F. An alternative plan may be submitted only by a unit that 
is: 
(1) An offshore island; 
(2) A school operated by a tribal school committee pursuant to the Maine 
Revised Statutes, Title 30, section 6214; 
(3) A school administrative unit that serves more than 2,500 students, or 1,200 
students where population density justifies an exception to the requirement of 
2,500 students under subsection 6; or 
SENATE AMENDMENT 
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SENATE AMENDMENT '~ " to COMMITTEE AMENDMENT" A" to H.P. 383, L.D. 499 
(4) An efficient, high-performing district as described in the Maine Revised 
Statutes, Title 20-A, section 15696, subsection 1. 
The Commissioner of Education shall respond to each notice of intent by September 15, 
2007, indicating whether the intended action complies with the requirements of this Part. 
Amend the amendment in Part XXXX in section 35 in subsection 5 in paragraph Lin 
the last line (page 796, line 12 in amendment) by inserting after the following: "reduced" 
the following: 'and an estimate of any cost increases that may be caused by the formation 
of a regional school unit' 
Amend the amendment in Part XXXX in section 35 by striking out all of subsection 6 
(page 796, lines 15 to 41 and page 797, lines 1 to 15 in amendment) and inserting the 
following: 
'6. Parameters. In developing a reorganization plan for school administrative units 
in existence on the effective date of this Part, the governing bodies of school 
administrative units shall work within the following parameters. 
The proposed regional school unit must serve not fewer than 2,500 students, unless the 
population density within the regional school unit is less than 100 persons per square mile 
as reported by the most recent federal Decennial Census or federal estimated census. If 
the popUlation density within the regional school unit is less than 100 persons per square 
mile, the regional school unit must serve not fewer than 1,200 students, except for 
offshore islands and schools operated by tribal school committees. Exceptions to the 
1,200 student limit must be provided by geographically isolated school administrative 
units, including offshore islands not connected by road or bridge to the mainland, and 
geographic regions of the State where the popUlation density is less than 30 inhabitants 
per square mile according to the most recent federal Decennial Census or federal 
estimated census and for schools operated by tribal school committees. 
The plan must reorganize administrative functions, duties and noninstructional personnel 
in order that the following be accomplished. 
Each school administrative unit shall develop a plan to reduce costs by reorganizing 
administrative and noninstructional functions through collaboration, shared service 
arrangements, administrative reorganizations and other cost containment measures in 
order to achieve the legislative goal of reducing projected state and local expenditures in 
fiscal year 2008-09 for transportation, facilities and maintenance and other 
non instructional functions by 5% from projected expenditures for those purposes in fiscal 
year 2007-08 as adjusted for inflation. The plan must be considered by the governing 
body during the budget preparation process and must be made available to the public with 
the budget document.' 
Amend the amendment in Part XXXX in section 35 by striking out all of subsection 8 
(page 797, lines 32 to 42 and page 798, lines 1 to 19 in amendment) and inserting the 
following: 
SENA TE AMENDMENT 
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SENATE AMENDMENT '/'1 "to COMMITTEE AMENDMENT "A" to H.P~ 383, L.D. 499 
'8. 
Referendum on reorganization plan. 
The municipal officers of each 
municipality in a proposed reorganized school administrative unit shall place a warrant 
article substantially as follows on the ballot of a municipal referendum in accordance 
with the referendum procedures applicable to the school administrative unit of which the 
municipality is a member. A referendum may be held on or before January 15,2008, but 
if not, a referendum must be held by November 8, 2008. 
"Article: 
Do you favor approving the school administrative reorganization plan 
prepared by the (insert name) Reorganization Planning Committee to reorganize 
(insert names of affected school administrative units) into a regional school unit, with 
an effective date of 
? 
YesINo" 
The following statement must accompany the article: 
"Explanation: 
A "YES" vote means that you approve of the (municipality or school administrative 
unit) joining the proposed regional school unit. 
A "NO" vote means that you do not approve of the (municipality or school 
administrative unit) joining a regional school unit." 
The Department of Education shall pay the cost of a referendum conducted on or before 
January 15,2008.' 
Amend the amendment in Part XXXX in section 42 by striking out all of subsection 5 
(page 802, lines 21 to 46 and page 803, lines 1 and 2 in amendment) and inserting in its 
place the following: 
's. Transfer of teachers and employees. Except as limited by paragraph A, for 
regional school units approved prior to January 16, 2008, all teachers and school 
employees who are employed by a participating school administrative unit or a school 
union on June 30, 2008 must be transferred to and employed by the regional school unit 
as of July 1,2008. Except as limited by paragraph A, for regional school units approved 
after January 15,2008 and before November 5,2008, all teachers and school employees 
who are employed by participating school administrative units or a school union on June 
30,2009 must be transferred and employed by the regional school unit as of July 1,2009. 
Except as limited by paragraph B, the regional school unit shall assume all of the legal 
obligations and duties that the participating school administrative units or school unions 
owed to their employees, including but not limited to those obligations and duties arising 
under federal law, state law, collective bargaining agreements and individual employment 
contracts. It is the intent of this Part to neither decrease nor increase the rights and 
benefits of transferred employees or the employer. The regional school unit shall also 
maintain and honor any agreements, contracts or policies regarding the rights and benefits 
of retirees and former employees created by a participating school administrative unit that 
is dissolved as a result of its inclusion within a regional school unit. 
A. For regional school units approved prior to January 16, 2008, teachers or other 
employees whose employment terminates by application of law or contract or by 
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SENATE AMENDMENT "1'1 " to COMMITTEE AMENDMENT "A" to H.P •. 383. L.D. 499 
action of a participating school administrative unit before July 1, 2008 may not be 
transferred. For regional school units approved after January 15, 2008 and before 
November 5, 2008, teachers or other employees whose employment terminates by 
application of law or contract or by action of a participating school administrative 
unit before July 1, 2009 may not be transferred. 
B. Teachers and other employees who are transferred to the regional school unit 
prior to the completion of the applicable probationary period for their position have 
the length of their probationary period calculated from the date of their most recent 
date of employment by the participating school administrative unit.' 
Amend the amendment by relettering or renumbering any nonconsecutive Part letter 
or section number to read consecutively. 
SUMMARY 
This amendment allows local referendums on consolidation plans as soon as January 
15, 2008, but no later than November 8, 2008. 
It eliminates the mandate that aU school units use the budget validation referendum 
process and allows school administrative units to continue to use the budget approval 
processes that they are currently using. 
It reduces the number of cost centers in the regional school unit budget format from 
to 8. 
It preserve the option under existing law that allows voters to petition to add warrant 
articles to a referendum ballot. 
It permits existing or new school unions to qualify as regional school units if they 
meet the minimum student requirements and authorizes agreements allowing the school 
union committee to act as fiscal agent for member school administrative units for a period 
of up to 10 years. 
It establishes size limits for regional school units based on popUlation density and 
provides that the size limitations do no apply to offshore island schools, tribal schools and 
geographically remote areas. 
It provides an objective standard for allowing exceptions to the 2,500 and 1,200 
student minimums, basing such exceptions solely on population density. 
It provides that the penalty for failing to conform with the consolidation provisions is 
a reduction in state subsidy in an amount equal to 50% of the essential programs and 
services allocation rates for school administration applied to the number of students at 
each school level in that school administrative unit. 
It allows administrative units that can demonstrate both high performance and 
efficient operation to avoid mandatory consolidation and penalties for failure to 
participate in mandatory consolidation. 
It includes language that was omitted from the Maine Revised Statutes, Title 20-A, 
section 1487. 
SENATE AMENDMENT 
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SENATE AMENDMENT 'f\1 " to COMMITTEE AMENDMENT "A" to H.P .. 383, L.D. 499 
It continues to allow local school units to spend local funds, with voter approval, 
above the state-determined rate for system administration. 
It requires all regional school units to report any estimated and actual cost increases, 
as well as cost savings, resulting from consolidation. 
It requires that each school administrative unit develop a plan to achieve a 5% 
reduction in transportation, special education and facilities and maintenance expenditures 
and eliminates the mandated 5% reduction in these areas. The plan must be considered 
by the governing body during the budget preparation and must be made available to the 
public with the budget document. 
It clarifies that school union employees have the same transfer rights as school 
administrative unit employees. 
FISCAL NOTE REQUIRED 
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SPONSOREDBY: __ ~~~ 
___ "-=~~~. __ ~~M~~_-_-_~--
(Senator RA YE) 
COUNTY: Washington 
SENATE AMENDMENT 
Approved: 06/05107 ;ivae 
LD499 
LR2452(54) 
An Act Making Unified Appropriations and Allocations for the Expenditures of State Government, 
General Fund and Other Funds, and Changing Certain Provisions of the Law Necessary to the Proper 
Operations of State Government for the Fiscal Years Ending June 30, 2008 and June 30, 2009 
Fiscal Note for Senate Amendment" jilt" to Committee Amendment" A" 
Sponsor: Sen. Raye of Washington 
Fiscal Note Required: Yes 
Fiscal Note 
No net fiscal impact 
Fiscal Detail and Notes 
This amendment does not affect General Fund appropriations during the 2008-2009 biennium and a balanced budget is 
maintained. 
LR2452(54) - Fiscal Note - Page 1 of 1