Act No. 153
(H.66)
Education; merger; graduation activities for special education students
This act creates an incentive program to encourage voluntary merger by school districts; requires supervisory unions to perform certain common duties, including providing special education services on behalf of member districts; requires that any student with an IEP or 504 Plan be permitted to participate in graduation ceremonies with his or her peers; and makes other changes to education law as follows.
Voluntary Merger
Financial and other incentives are available to encourage school districts to merge voluntarily to form a union school district (called "the regional education district" or "RED" for purposes of the incentive program) under the current processes in Title 16. Districts must merge by July 1, 2017, to receive incentives. Merging districts may be from different supervisory unions.
In order to receive the incentives, the RED must have a combined average daily membership of 1,250 or must result from the merger of four districts or both. Districts may request a waiver from either of these requirements. Contiguity is not required.
In general, a RED must maintain one or more schools offering elementary and secondary education for its resident students in order to receive the incentives (a unified union school district). Two exceptions exist:
Exception #1 For districts that do not operate secondary schools, if the RED will maintain one or more schools offering K-6 for resident pupils, then the districts may merge and receive the incentives available under this program if they will either (A) designate an independent or public high school or (B) pay tuition for all students in grades 7-12.
Exception #2 For districts that do not operate any schools, if the RED will continue to pay tuition for all resident pupils, then the districts may merge and receive the incentives available under this program.
If a RED created under Exception #1 or #2 later wants to limit options, then each town votes on the proposal per 16 V.S.A. § 706n(a).
All plans of merger must include a cost-benefit analysis concerning cost efficiencies and improved educational outcomes. This analysis is presented to the state board of education for approval with the plan of merger per 16 V.S.A. § 706.
The RED must have a single elected board and must provide the opportunity for public participation in budget and policy development.
The plan for merger must address enrollment options among schools operated by the RED. A grandfather clause provides that if the voters of a district that pays tuition for one or more grades choose to join other districts to create a RED that will operate a school for any of those grades, then the RED will continue to pay tuition for any student enrolled in a school for which the RED would not ordinarily pay tuition.
A RED may not close a school within the first four years of merger unless the town in which the school is located consents to the closure.
The state board of education will either declare that the RED is its own supervisory district or assign it to a supervisory union ("SU"). If any districts from an existing supervisory union remain after merger of other districts in the SU, then the state board will assign them to a SU.
All SU boards are required to discuss by December 1, 2010, and vote by October 1, 2012, whether to explore the formation of a RED.
Pursuant to existing law regarding union school formation (Title 16, chapter 11), districts that choose to consider merger in more depth will create a subcommittee to analyze all aspects. If the subcommittee determines that merger is advisable, then it will prepare a detailed merger proposal to present to the voters of each participating district. A RED is created only if the voters of each district that has been determined to be "necessary" to the merger plan approve the plan of merger. Votes are not commingled for this vote.
The department of education will provide a template for merger under Title 16, chapter 11, with links to essential data (financial, demographic, etc.) and other information.
Incentives Available to Merged Districts
Tax Rates. Equalized homestead property tax rates will be reduced by $0.08 in year one; $0.06 in year two; $0.04 in year three; and $0.02 in year four. During this period, the equalized homestead property tax rate for each municipality in the RED will not decrease or increase by more than five percent annually. Each town within the RED continues to have its own common level of appraisal (CLA).
Capital Debt. From FY18 forward, if a district merging into a RED has capital construction debt for which state aid remains due, then the state will pay the interest on the state portion of the debt.
Sale of Buildings. If sale of a school building is part of the merger plan to which the host town has consented, then statutory requirements to refund a portion of state construction aid are waived.
Merger Support Grants. Because small-school grants are based on numbers within a district, a RED would be ineligible for small-school grants even if one or more of the merging districts received them prior to merger. This incentive will continue payment of these amounts to the RED during the first five years of merger, in the form of a merger support grant, in an amount equal to the small-school grants the merging district(s) received two years prior to merger.
Consulting Services Grant. Merging districts are eligible to receive up to $20,000 in reimbursement for legal, consulting, and other services necessary for analyzing whether to merge and preparing the merger plan presented to the voters.
Multi-Year Budgets. The merger plan may provide authority for the RED board to propose multi-year budgets.
Transition Aid. The July 1, 2010 sunset on grants that help merging districts transition into a new, single district is extended to 2014. Grants are available in the lesser of five percent of the base education amount based on combined enrollment or $150,000. Grants received under this section are reduced by any amounts received under the Consulting Services Grant incentive.
Recent Merger. Addison Northwest Unified Union School District is eligible to receive any of these benefits if it is formed on or before July 1, 2010.
Related Analysis and Reports
The commissioner will ask the Regional Educational Laboratory - Northeast and Islands to study the possibility of making tuition vouchers available statewide.
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 REDs. In addition to interim reports, there will be a final report in January 2018 containing recommendations of the actions, if any, that should be taken to encourage or require merger by nonparticipating districts.
Supervisory Union Duties, Reports, and Other Issues
Supervisory Unions will perform common functions, including the provision of special education services to all schools within the SU; supervisory unions may seek a waiver. The effective date is on passage, but the new requirements must be fully implemented by July 1, 2012.
Superintendents are required to assume more responsibility and oversight for hiring and firing decisions. They will also assume all responsibility for financial reporting on behalf of the supervisory union and the districts. The effective date is on passage, but the new requirements must be fully implemented by July 1, 2012.
Exemptions to the general requirement of supervisory union-wide collective bargaining are repealed.
Superintendents will be required to work with school district boards to develop and implement minimum and optimal average class size policies.
The commissioner is required to collect data regarding student-to-staff ratios to inform potential legislative decisions regarding ratios in the future.
The commissioner is required to develop an integrated process, including consistent policies and practices, for financial management and reporting.
The department of education is required to review and analyze what results the current law regarding tuition overcharges and undercharges has had in practice and suggest any changes to the current law.
The commissioner of education will develop a proposal to identify districts that would be eligible for small-school support due to geographic necessity; calculate the support necessary to enable an education that complies with state and federal requirements; and withdraw small-school support gradually from other districts.
Districts' authority to contract with distance learning programs is expanded to include accredited out-of-state programs and postsecondary programs.
Existing session law that permits Pawlet, Rupert, and Wells to designate an out-of-state public school is codified, as is Wells's current practice of paying tuition to other nondesignated schools in an amount other than that permitted by 16 V.S.A. § 827.
Students with special needs may participate in graduation ceremonies and activities with their peers even if they have not yet completed graduation requirements.
Date Signed by the Governor: Governor did not sign the bill and allowed the bill to become law without his signature (June 3, 2010)
Effective Date: Various.