B. Each member municipality shall must be represented at the meeting or meetings by 2 representatives chosen at large by its municipal officers, and one member of the district board of directors chosen by the municipality's directors.

B-1.__Prior to the first meeting of municipal representatives pursuant to paragraph A, the district shall engage the services of a facilitator selected from the list maintained by the commissioner under subsection 4, paragraph C, subparagraph 1.__The facilitator shall:

(1)__At the first meeting, review and present data and information pertaining to sharing of costs within the district.__Pertinent information may include, but is not limited to, the following:

(a)__A description of the district's cost-sharing method, the elements involved in the calculation of each municipality's costs and a graphic depiction of the current and historic distribution of costs in the district; and

(b)__If withdrawal of one or more district members is under consideration, the financial and educational impact of the withdrawal;

(2)__Solicit and prepare a balanced summary of the concerns of municipal officials, educators and the public about the current method of cost sharing; and

(3)__Develop a plan of action for consideration by the municipal representatives that responds to the information collected and the concerns raised.__The plan of action must include a list of expectations for the conduct of the parties, options for proceeding and an assessment of the likely success of those options.

C. A change in the method of sharing costs may only be approved by a majority vote of the municipal representatives present and voting.

C-1.__If a majority of the representatives from each municipality meeting pursuant to paragraph A are unable to

agree on a recommendation on what the cost-sharing method for the district should be, within 15 days following the last meeting a knowledgeable 3rd party must be selected in accordance with rules adopted pursuant to subsection 4, paragraph C.__The district is responsible for compensating the 3rd party.__The 3rd party shall:

(1)__Prepare a written summary of__the process to date, including an assessment of the fairness, accuracy and responsiveness of the recommendations of the facilitator engaged pursuant to paragraph B-1;

(2)__Prepare an impartial recommendation regarding changing the method of cost sharing; and

(3)__Present the summary and recommendations to the municipal representatives for their consideration.

C-2.__At an advertised public hearing, the municipal representatives shall solicit public input on the 3rd party's recommendation for cost sharing required under paragraph C-1 and any alternative method or methods proposed by municipal representatives.

D. If a change in the cost-sharing method is approved by this meeting a majority of the municipal representatives meeting pursuant to paragraph A, the change shall must be submitted to the voters at a district meeting. It shall become becomes effective when approved by a majority vote of the district in a district referendum called and held for this purpose in accordance with sections 1351 to 1354, except that, if the proposed change is an alternative cost- sharing plan under subsection 1, paragraph B, subparagraph 4, the change must be approved by a majority of voters voting in a referendum in each municipality in the district instead of in a district referendum.

E. Assessments made by the school board thereafter shall must be made in accordance with the new method of sharing costs.

F. The secretary of the district shall notify the state board that the district has voted to change its method of sharing costs. The state board shall issue an amended certificate of organization showing this new method of sharing costs.

Sec. 3. 20-A MRSA §1301, sub-§4 is enacted to read:

4.__Departmental assistance.__The department shall provide the following services relating to changing district cost-sharing methods:

A.__The provision of information and data relating to cost sharing, including, but not limited to, a description of a district's method of cost sharing, the total assessment, the per pupil cost and mils raised for education for district members and the calculation of member costs.__The information must be district-specific, comprehensive, easily understood by the general public, presented in graphic and spreadsheet format and available over the Internet.__Written copies of the information described and additional information requested must be provided by the department upon receipt of a written request from a district school board or the legislative body of any municipality member of a district;

B.__The provision of professional evaluation and assistance to districts and member municipalities considering changes in cost-sharing methods; and

C.__The establishment and maintenance of lists of qualified, available individuals to assist districts considering changes in cost-sharing methods as follows:

(1)__Facilitators as required in subsection 3, paragraph B-1; and

(2)__Knowledgeable 3rd parties as required in subsection 3, paragraph C-1.

In establishing the lists, the department shall seek input from the Maine Municipal Association and Maine School Management Association or successor organizations.__The department may adopt rules to define the qualifications, responsibilities and selection of individuals on the lists.__ Rules adopted pursuant to this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

Sec. 4. 20-A MRSA §1704, sub-§1, as amended by PL 1993, c. 696, §2, is further amended to read:

1. Formula. A community school district shall share its costs among the member municipalities on the basis of:

A. The number of resident pupils in each municipality;

B. The fiscal capacity of each member municipality as defined in section 15603, subsection 11-A;

C. In accordance with any Any combination of paragraphs A and B; or

D. In accordance with any Any other formula authorized by the Legislature.; or

E.__Any other factor or combination of factors that may, but need not, include paragraphs A and B.

Notwithstanding paragraphs A to D and for fiscal year 1992-93 only, the state valuation and resident pupil information used to calculate the shared cost for each municipality must be the same as the information used for fiscal year 1991-92.

Notwithstanding paragraphs A to D, Title 30-A, chapter 208-A or any other provision of law, the state valuation used to calculate the shared cost for each municipality in a community school district with a municipal incentive development zone must include the increase in equalized just value of all industrial and commercial property located in the zone over the assessed value.

Sec. 5. 20-A MRSA §1704, sub-§2, as enacted by PL 1981, c. 693, §§5 and 8, is amended to read:

2. Amendment of formula. The procedure for amending the cost-sharing formula shall be is as follows.

A. 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 comprising the community school district, the district school committee shall give at least 15 days' notice to each member municipality of a meeting or meetings to determine the necessity of reconsidering the method of sharing costs.

B. Each member municipality shall must be represented by 2 representatives chosen by its municipal officers and one member of the district school committee chosen by the committee members from that municipality at the meeting or meetings to determine the necessity of reconsidering the method of sharing costs. A change in the method of sharing costs shall first must be approved by a vote of a majority of those present and voting.

B-1.__Prior to the first meeting of member municipalities pursuant to paragraph A, the district shall engage the services of a facilitator selected from the list maintained

by the commissioner under subsection 3, paragraph C.__The facilitator shall:

(1)__At the first meeting, review and present data and information pertaining to sharing of costs within the district.__Pertinent information may include, but is not limited to, the following:

(a)__A description of the district's cost-sharing method, the elements involved in the calculation of each municipality's costs and a graphic depiction of the current and historic distribution of costs in the district; and

(b)__If withdrawal of one or more district members is under consideration, the financial and educational impact of the withdrawal;

(2)__Solicit and prepare a balanced summary of the concerns of municipal officials, educators and the public about the current method of cost sharing; and

(3)__Develop a plan of action for consideration by the municipal representatives that responds to the information collected and the concerns raised.__The plan of action must include a list of expectations for the conduct of the parties, options for proceeding and an assessment of the likely success of those options.

B-2.__If a majority of the representatives from each municipality meeting pursuant to paragraph A are unable to agree on a recommendation on what the cost-sharing method for the district should be, within 15 days following the last meeting a knowledgeable 3rd party must be selected__in accordance with rules adopted pursuant to subsection 3, paragraph C.__The district is responsible for compensating the 3rd party.__The 3rd party shall:

(1)__Prepare a written summary of the process to date, including an assessment of the fairness, accuracy and responsiveness of the recommendations of the facilitator engaged pursuant to paragraph B-1;

(2)__Prepare an impartial recommendation regarding changing the method of cost sharing; and

(3)__Present the summary and recommendations to the municipal representatives for their consideration.

B-3.__At an advertised public hearing, the municipal representatives shall solicit public input on the 3rd party's recommendation for cost sharing required under paragraph B-2 and any alternative method or methods proposed by municipal representatives.

C. Municipal approval shall must be in the same manner as the original formula was adopted when the community school district was formed, except that, if the proposed change is an alternative cost-sharing plan under subsection 1, paragraph E, the change must be approved by a majority of voters voting in a referendum in each municipality. The total vote cast in each of the member municipalities shall must be at least 20% of the number of votes cast in each of the member municipalities in the last gubernatorial election.

D. A change in the cost-sharing formula shall be is effective at the start of the next fiscal year which starts at least 90 days after the voters have approved it.

Sec. 6. 20-A MRSA §1704, sub-§3 is enacted to read:

3.__Departmental assistance.__The department shall provide the following services relating to changing district cost-sharing methods:

A.__The provision of information and data relating to cost sharing, including, but not limited to, a description of a district's method of cost sharing, the total assessment, the per pupil cost and mils raised for education for district members and the calculation of member costs.__The information must be district-specific, comprehensive, easily understood by the general public, presented in graphic and spreadsheet format and available over the Internet.__Written copies of the information described and additional information requested must be provided by the department upon receipt of a written request from a district school board or the legislative body of any municipality member of a district;

B.__The provision of professional evaluation and assistance to districts and member municipalities considering changes in cost-sharing methods; and

C.__The establishment and maintenance of lists of qualified, available individuals to assist districts considering changes in cost-sharing methods as follows:

(1)__Facilitators as required in subsection 2, paragraph B-1; and

(2)__Knowledgeable 3rd parties as required in subsection 2, paragraph B-2.

In establishing the lists, the department shall seek input from the Maine Municipal Association and Maine School Management Association or successor organizations.__The department may adopt rules to define the qualifications, responsibilities and selection of individuals on the lists.__ Rules adopted pursuant to this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

SUMMARY

This bill implements recommendations of a study of methods of changing cost-sharing formulas in school administrative districts and community school districts conducted by the State Board of Education. The bill does the following:

1. It provides an option for municipal members of a school district to design a cost-sharing formula that fits local needs without requiring legislative approval;

2. It requires the locally developed cost-sharing option to be approved by majority referendum vote in each municipality in the district, rather than by majority vote at a districtwide meeting;

3. It provides the assistance of outside professional facilitation services if local officials are unable to agree on cost-sharing changes; and

4. It requires the Department of Education to provide comprehensive, unbiased cost-sharing information and other assistance to districts and municipalities considering cost- sharing changes.