H. 782 � Voluntary Merger of School Districts
As Introduced by the House Committee on Education
This is not the Senate bill or the proposal of the Commissioner that mandates consolidation. This is the version voted out 11-0 by the House Education Committee. The key here is that the bill, as written, has the intent of removing barriers to merger for those districts and their votes who have determined that it is in their best interest to merge. It has no effect on districts that do not choose this option. The bill recognizes that communities differ and gives local boards and voters the chance to determine what is best for them. The only requirement is that districts have a discussion with their neighbors to determine if it is something that they want to explore. Those districts that find it is in their best interests present the entire plan to their voters for approval. Those districts that do not find it in their best interests will continue to operate as they already do.
Voluntary Merger (Secs. 1-11; pages 1-20):
H.782 encourages two or more contiguous school districts to merge to form a unified union school district (“UUSD”) by providing financial and other incentives. In order to receive the incentives, a new UUSD must have a combined average daily membership of 1,250 or result from the merger of five districts or both, although districts may request a waiver from these requirements. In addition, a UUSD must maintain one or more schools offering elementary and secondary education. The interpretation of “maintain” is flexible under the bill, however. For example, a UUSD would be considered to “maintain” a secondary school even if it designated an independent school located outside of the UUSD as its public school for these purposes. The UUSD must have a single elected board that hires no more than one superintendent. It must also provide the opportunity for public participation through local boards, the structure and authority of which is determined by the merging districts. The UUSD is independent of any existing supervisory unions and becomes its own supervisory district.
The bill requires all school district boards to discuss and vote, by December 1, 2010, whether to explore the formation a UUSD with neighboring districts. The districts that choose to proceed create a subcommittee to analyze all aspects of merger, on which subcommittee each district has an equally weighted vote regardless of its size. The Department of Education provides technical assistance to the subcommittee, including a template containing links to essential data (financial, demographic, etc.). If the subcommittee determines that merger is advisable, then it prepares a detailed merger proposal to present to the electorate of each participating district. In addition to the provisions already required by statute for the formation of all union school districts (e.g., identification of the districts that are “necessary” for merger and those that are “advisable; ownership of buildings; assumption of existing debt; etc.), the plan of merger must propose structures and processes for local participation. The plan must also address whether and how the UUSD will include elementary and secondary school choice and other enrollment options within the UUSD, including whether and in what manner independent and designated schools will be included. A UUSD is formed when the electorate of each “necessary” district votes to approve the plan of merger.
Five incentives are available to UUSDs that form pursuant to the criteria of H.782:
1. Multi-Year Budgets: For no more than four consecutive fiscal years, ending by FY18 a merger plan may include a two year budget and authority to present a second two-year budget. The plan may also provide authority for the board to propose multi-year budgets after 2018.
2. Tax Rates: For no more than four consecutive fiscal years, ending by FY18 decreases or small increases in a UUSD’s education spending result in a graduated reduction one amount used to calculate the district’s homestead property tax rate. During this period, the equalized homestead property tax rate for each municipality in the UUSD would not be permitted to decrease or increase by more than 5% annually.
3. Capital Debt: From FY18 forward, if a district merging into a UUSD has approved capital construction debt for which state aid remains due, the state will pay the interest on the state portion of the debt.
4. Sale of Buildings: Although a UUSD may not close a school within the first four years of merger prior to FY18 unless the town in which the school is located consents to the closure, if sale of a school building is part of the merger plan to which the host town has consented, then the requirement to refund a portion of state construction aid is waived � both iff the building becomes the property of the UUSD and is sold before the earlier of its 5th year or FY18 or if the building remains the property of the merging district and is sold as part of the plan for merger.
5. Consolidation Support Grants: . Because small school grants are based on numbers within a district, a UUSD would be ineligible for small school grants even if one or more of the merging districts received them prior to merger. The fifth incentive would continue payment of these amounts to the UUSD during the first four years of merger prior to FY18, in the form of a consolidation grant, in an amount equal to the small school grants the merging district(s) received two years prior to merger.
Analysis and Reports (Sec. 19; pages 32-33): The UVM Jeffords Center will work with the Department of Education and merging school districts to collect and analyze data regarding financial and operational efficiencies and student learning opportunities and outcomes in the UUSDs. In addition to interim reports, the Jeffords Center and the Department will also submit a final report in January 2018 containing recommendations what actions, if any, should be taken to encourage or require merger by non-participating districts.
(Note: Secs. 12-18 and 20-23 do not relate directly to the merger incentive program)
For the complete text of H.782
as introduced by the House Committee on Education:
http://www.leg.state.vt.us/database/status/summary.cfm?Bill=H.0782&Session=2010Select “Bill Text: As Introduced”
