Top five cost sharing plans under consideration
Four out of five towns in Regional School Unit 1 support per student education funding, said Woolwich selectman David King to fellow board members during their Nov. 5 meeting.
However, Woolwich selectmen were somewhat divided between two cost sharing plans the school district's cost sharing committee has been investigating over the past five months.
After changing the way these towns share the education budget, they now use a law (LD910) that breaks the education budget's total local costs into thirds. One third comes from the state valuation of a town, one third from student population and one third from the town's population.
Bath representatives on the school district board were reportedly not pleased with the formula change since it increased their city's share by roughly $300,000.
Towns must pay a local minimum share of education costs, plus an additional amount above what the state determines is needed to fund basic educational needs. At issue is how the local and additional amounts are funded, either by thirds, by total cost per student or some combination of these factors.
A cost per student funding formula ranked highest among the five cost sharing plans committee members have been reviewing, according to King. He said that committee members representing Bath were in favor of another cost sharing option.
According to board members, the best option for Bath and the cost sharing plan Bath representatives cling to, is one that combines a cost per student formulation and the state's ED279 calculation. According to a chart created by board member Allison Hepler, this formula would cut the city of Bath's costs by roughly $380,000.
Under the current LD910 formula, Woolwich pays less to the RSU. However, Board Chairman King said he would support the proposed cost per student formula. It involves taking the total cost of the RSU, deducting miscellaneous income and dividing that by the total number of students in the RSU to get an average cost per student.
Using this year's figures, it would cost each member town $11,189 per student, according to King. Less subsidy and debt, Woolwich would pay $8,573 per student under this formula.
By comparison, King said, “LD910 is a moving target,” since it uses one-third portions of student population, town population and state assessment, figures which vary from year to year.
“From a practical standpoint, I think I personally support going with a cost per student,” King said. “Even though it does cost Woolwich more than we're paying now, because it is equitable. Every town would be paying exactly the same amount per student, less the subsidy, and I think it's as fair a system we can come up with.”
Selectman Lloyd Coombs said he supports the cost per student formula. The problem he has with the current LD910 cost sharing method is that it assumes each third shares the same value.
Board members Allison Hepler and Jason Shaw vocally supported the LD910 cost sharing formula at the meeting and were in favor of the school district trying it out for a few years. A straw vote showed three Woolwich selectmen in favor of the LD910 formula, while two selectmen favored the cost per student method.
Town selectmen must make their recommendations to the school board, who will then decide which formula they would like to use in the future. The cost sharing formula for RSU 1 can't be changed for the 2012-2013 budget, but members have been discussing the alternative solutions for the following year.
The ultimate decision on this matter will be left to voters in RSU member towns.
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