District Reorganization

Procedures: An Overview

Presented to Combined Meeting of Potsdam

CSD & Canton CSD Boards of Education

June 11, 2013

Dr. Bruce Fraser

Overview:

Tonight’s Meeting

• 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?

Background:

New York State

• Original Master Plan Adopted in 1947

• Revised Master Plan completed in 1958

• 1958 version of Master Plan does not call for

further consolidation for Potsdam or Canton.

Guide to the Re-organization

of School Districts in NY State

“The evolution continues as

educational, demographic, and

economic changes in an area lead

to consideration of reorganization

options.”

Why Reorganize?

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?

• 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: Canton & Potsdam

• 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

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

Why Reorganization is difficult

to achieve

• 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

Forms of Reorganization:

Centralization

• 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.

Centralization: Effects on

Property and Debt

• 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: Effect on

Employees

• 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

• 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

• 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.

Initiating the Reorganization

• 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.

Feasibility Study: What Must be Included

• 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 Funding

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

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 Examples

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

Responsibility:

Keep public well informed

• 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

Steps following

Feasibility Study

• 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

Potential Reorganization Process

Time Line: Year 1

School Year 2013-14

• June Boards meet to discuss potential consolidation

• July Boards move forward with Feasibility Study

Publish Request for Proposals to do Study

Prepare grant application to help fund Study

• August Submit grant application to Dept of State (DOS)

Boards commission study

• December DOS announces grant awards

• Jan-June Feasibility Study conducted

Potential Reorganization Process

Timeline: Year 2

School Year 2014-15

• 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

Basic Information: Square Mileage

Canton 127.1 Square Miles

Potsdam 94.1 Square Miles

Consolidated 221.2 Square Miles

(Would become the twenty-fourth largest district in NY State)

Other North Country Districts (Square Mileage)

Saranac Lake 639.6 Sq. Miles

Edwards-Knox 252.2 Sq. Miles

Colton-Pierrepont 239.9 Sq. Miles

Gouverneur 221.7 Sq. Miles

Malone 357.5 Sq. Miles

Basic Information:

Incentive Aid Total

Total Incentive Aid (15 Years):

$35,275,562

Basic Information:

Building Incentive Aid

Building Incentive Aid (10 Years):

Additional 30%*

* Not to exceed 95% for Average Need Districts, or

98% for High Need Districts.

Data Tools:

Reorganizer

NY State Center for Rural Schools

http://nyruralschools.org/index.php

NY State Center for Rural

Schools

Reorganizer

Questions?

Next Steps

• 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.

Potsdam: Recent State

Aid History

Canton: Recent State

Aid History