District Reorganization Procedures: An Overview

Transcription

1 District Reorganization Procedures: An Overview Presented to Combined Meeting of Potsdam CSD & Canton CSD Boards of Education June 11, 2013 Dr. Bruce Fraser

2 What you need to know about Centralization? What are the procedures followed if the districts choose to pursue Centralization? Where can we find data? What does the data indicate? Overview: Tonight s Meeting

3 Original Master Plan Adopted in 1947 Revised Master Plan completed in version of Master Plan does not call for further consolidation for Potsdam or Canton. Background: New York State

4 The evolution continues as educational, demographic, and economic changes in an area lead to consideration of reorganization options. Guide to the Re-organization of School Districts in NY State

5 Provide a wider range of educational programs and opportunities for students > Advanced Placement programs > Multiple foreign languages > Art, Music, Theater > Specialized programs for special needs students > Programs for at-risk students > Enrichment programs > Student support services > Interscholastic athletics Why Reorganize?

6 Substantially increase participating districts collective financial capacity Improve cost efficiency through economies of scale in all functional areas from administration to instruction, transportation, food service operations, custodial services, and business operations Upgrade facilities and equipment to support program requirements Why Reorganize?

7 Sustain Quality Programs > Potsdam and Canton schools rated #1 and #3 respectively among 33 North Country Schools by Business First for overall academic achievement > Canton and Potsdam High Schools ranked among best in nation by U.S. News and World Report, earning Gold and Silver medals respectively NYSCOSS Survey-November 2012: Nine percent of superintendents anticipate financial insolvency in two years and forty-one percent within four years. Why Reorganize: Canton & Potsdam

8 Why Reorganize: Canton & Potsdam

9 Given the current political and fiscal environment, reorganization may be the only viable option available to preclude financial and educational insolvency. Why Reorganize: Canton & Potsdam

10 A fear of losing local identity Perception that the communities are incompatible and that one may benefit more than the other Fear of increase in costs and property taxes More time required for transportation Job security for school district employees Natural tendency to resist change Why Reorganization is difficult to achieve

11 Centralization involves creating a new school district from two existing school districts. This is the most common form of reorganization. The newly formed school district encompasses the entire area of the school districts to be merged. Forms of Reorganization: Centralization

12 The newly formed district assumes all property rights and assets of the districts it replaces. The new district also assumes all indebtedness of the former districts evidenced by bonds and notes. Any other indebtedness must be paid off by the former districts. Centralization: Effects on Property and Debt

13 Certificated personnel in the former school districts become employees of the newly formed district. If teaching positions are abolished, the persons with the least seniority within the tenure areas of the abolished positions are placed on a preferred eligibility list for a period of seven year following dismissal. Centralization: Effect on Employees

14 Non-teaching personnel appointed pursuant to Civil Service Law will have different employment rights depending on their civil service class. The appropriate local civil service agency should be consulted for assistance to ensure appropriate treatment of those employees. Centralization: Effect on Employees

15 Lacking tenure status, superintendents of the former districts do not have any statutory right to that position in a new district. Appointment of a new superintendent would be made by the board of education of the new district. Any existing superintendent contract is considered a property right and is a binding contractual obligation on the new district. Centralization: Effect on Employees

16 Affected boards of education meet jointly to gather information to determine if there are sufficient benefits to warrant a formal study. The District Superintendent acts as an informed neutral party who provides information, support, and assistance. If there is potential benefit, the boards undertake a comprehensive feasibility study with guidance from SED. Initiating the Reorganization

17 Current and projected enrollments Current and projected professional staffing plans Current and projected housing plans Plan for education programs and curricula Plan for transportation Fiscal implications of the reorganization: state aid, expenditures, and local tax effort Feasibility Study: What Must be Included

18 Project Funding Local Government Efficiency Grants may be used for planning or project implementation, or both. The maximum funding for implementation planning is $12,500 for each local government involved in the project, not to exceed $100,000. The total maximum cumulative funding for an implementation project is $200,000 for each local government involved in the project, not to exceed $1,000,000. All grants are reimbursement grants. Feasibility Study Funding

19 Project Match Applicants are required to provide matching funds for all projects. For a re-organization planning grant, matching funds equal to at least 50% of the total project cost shall be required. Upon implementation of a re-organization plan, the original matching funds required will be refunded up to 90% of the eligible costs. For a re-organization implementation project, matching funds equal to at least 10% of the total project cost shall be required. Feasibility Study Funding

20 Total Study Cost Reorganization Planning Project Examples Local Share State Share Refund upon Implementation Net Cost to Districts if implemented $20,000 $10,000 $10,000 $8,000 $2,000 $27,777 $13,888 $13,888 $11,112 $2,776 $50,000 $36,112 $13,888 $11,112 $25,000 $100,000 $86,112 $13,888 $11,112 $75,000 Feasibility Study Funding Examples

21 Education Law provides for a referendum in the communities affected by reorganization Public needs to be informed throughout the process of the study and implementation Joint plan and calendar should be developed for community information process Goal is to reach every eligible voter so that informed decisions can be made at the time of the vote Responsibility: Keep public well informed

22 Boards act to Approve/Reject Study If endorsed, study is forwarded to SED for review If approved by SED, local hearings scheduled Advisory referendum held (straw poll) Final referendum held > Approval to move forward with reorganization > Board of Education size and term length determined Steps following Feasibility Study

23 School Year June July August Boards meet to discuss potential consolidation Boards move forward with Feasibility Study Publish Request for Proposals to do Study Prepare grant application to help fund Study Submit grant application to Dept of State (DOS) Boards commission study December DOS announces grant awards Jan-June Feasibility Study conducted Potential Reorganization Process Time Line: Year 1

24 School Year July SED reviews Study August Study presented to Boards September Public information and discussion (ongoing) October Boards decide to proceed December Advisory referendum ( straw poll ) January Final referendum March Election of new Board members May Budget vote July 1 New District operational with new BOE Potential Reorganization Process Timeline: Year 2

25 Canton Square Miles Potsdam 94.1 Square Miles Consolidated Square Miles (Would become the twenty-fourth largest district in NY State) Other North Country Districts (Square Mileage) Saranac Lake Sq. Miles Edwards-Knox Colton-Pierrepont Gouverneur Malone Sq. Miles Sq. Miles Sq. Miles Sq. Miles Basic Information: Square Mileage

26 Total Incentive Aid (15 Years): $35,275,562 Basic Information: Incentive Aid Total

27 Building Incentive Aid (10 Years): Additional 30%* * Not to exceed 95% for Average Need Districts, or 98% for High Need Districts. Basic Information: Building Incentive Aid

28 NY State Center for Rural Schools Data Tools: Reorganizer

29 NY State Center for Rural Schools

30 Reorganizer

31 Questions?

32 Both Boards deliberate how to proceed If the feasibility study is undertaken both communities openly engage in the process All must understand that a study of this type requires that Boards/Community examine the short term, intermediate term, and long term implications on both school districts and both communities. Next Steps

33 Potsdam: Recent State Aid History

34 Canton: Recent State Aid History