1. GISU Act 46 Committee “Side by Side” Presentation March 22, 2016 M. R. Deweese

2. Side by Side: Technical Status Side by Side Mergers fall under Phase 2: “REDs and RED Variations” Phase 2 incorporates the processes and incentives enacted in Act 153 of 2010 for Regional Education Districts (REDs) and Act 156 of 2012 for Side-by-Side Mergers as a variation on REDs that are eligible to receive incentives available to REDs.

3. So, What is a Side by Side Merger? Side-by-Side Mergers are the result of 2 or more newly merged districts...

4. Side by Side: The Finer Print Each newly merged district results from the merger of at least two (pre-existing) districts At least one of the newly merged districts minimally operates grades K-12 After merger, all newly formed districts are part of the same Supervisory Union

5. Graphic Example of a Side by Side Forming Districts Merged Districts Grades Operated........................................................................................................................... pK - 12 pK - 8 Supervisory UnionSupervisory Union

6. Side-by-Side Merger Eligibility 1. Will the proposal result in the creation of two or more newly merged districts? If NO, then you are not eligible for a Side-by-Side Merger; explore other options. If YES, then continue to question #2.

7. Side-by-Side Merger Eligibility 2. Will the two or more proposed merged districts belong to same supervisory union on the effective date of merger? If NO, then you are not eligible for a Side-by- Side Merger; explore other options. If YES, then continue to question #3.

8. Side-by-Side Merger Eligibility 3. Will each of the proposed merged districts be formed by the merger of at least two existing districts? If NO, then you are not eligible for a Side-by- Side Merger; explore other options. If YES, then continue to question #4.

9. Side-by-Side Merger Eligibility 4. Will each of the proposed merged districts be organized and responsible for the education of all resident prekindergarten through grade 12 students in that district? If NO, then you are not eligible for a Side-by- Side Merger; explore other options. If YES, then continue to question #5.

10. Side-by-Side Merger Eligibility 5. Will at least one of the proposed merged districts be organized to educate all resident students in PK through grade 12 by operating one or more schools for PK or K through grade 12? If NO, then you are not eligible for a Side-by- Side Merger; explore other options. If YES, then continue to question #6.

11. Side-by-Side Merger Eligibility 6. Will at least one of the proposed merged districts be organized to educate resident students in PK through grade 12 by paying tuition for some or all grades? If NO, then you are not eligible for a Side-by-Side Merger; explore other options. If YES, then continue to question #7.

12. Side-by-Side Merger Eligibility 7. Are you able to bring each of the proposed mergers to the voters of each potentially merging district so that the local votes are final prior to July 1, 2017? If NO, then you are not eligible for a Side-by- Side Merger; explore other options. If YES, then continue to question #8.

13. Side-by-Side Merger Eligibility 8. Will each of the proposed merged districts be able to become operational on the same day? If NO, then you are not eligible for a Side-by- Side Merger; explore other options. If YES, then continue to question #9.

14. Side-by-Side Merger Eligibility 9. Will each of the proposed merged districts be able to be operational on or before July 1, 2019? If NO, then you are not eligible for a Side-by-Side Merger; explore other options. If YES, then you are eligible to present a proposal under the Side-by-Side Merger process and, if successful, will be eligible for incentives described in Act 153, Sec. 4, as amended by Act 156, Sec. 13 and Act 46, Sec. 15.

15. Under the Side-by-Side Merger Process (A) Merging districts do not need to be contiguous.

16. Under the Side-by-Side Merger Process (B) There is no requirement that all districts within one existing supervisory union are included in the proposal for the two or more newly merged districts, although it is permissible if they are.

17. Under the Side-by-Side Merger Process (C) It is permissible for the proposal for two or more newly merged districts to include districts from more than one existing supervisory union, but it is not required.

18. Transitional Assistance and Incentives 1. Decreased equalized homestead property tax rate. The new district’s equalized homestead property tax rate shall be decreased by $0.08 in the first fiscal year of operation, $0.06 in the second, $0.04 in the third, and $0.02 in the fourth. During the years in which the homestead property tax is reduced, the equalized tax rate for each town will not increase or decrease by more than five percent in a single year.

19. Transitional Assistance and Incentives 2.Merger Support Grant. If one or more of the merging districts received a small school support grant in accordance with 16 V.S.A. § 4015 in fiscal year 2016, then the new district will receive an annual Merger Support Grant in an amount equal to the small school support grant(s) received (requires affirmative vote by June 30, 2017): (continued...)

20. Transitional Assistance and Incentives a.Payment of the grant will continue in perpetuity (unless repealed by the Legislature). b. Payment will be discontinued in the fiscal year following closure of the small school. c. If a small school is closed and another school is renovated or constructed in connection with the closure, then the grant continues until the capital debt is paid.

21. Transitional Assistance and Incentives 3. Transition Facilitation Grant. After voter approval, the transitional school board will receive either: (a) a transition facilitation grant equal to the lesser of 5% of the base education amount multiplied by the greater of either the combined enrollment or the average daily membership of the merging districts on October 1 of the year in which the successful vote is taken; or, (b) $150,000 (less any State reimbursement of study committee expenses per Act 156 (2010)).

22. So... Q: What’s the educational relationship between the merged non pK-12 operating district and the newly merged pK-12 operating district? A: It’s their choice. However, the non pK-12 operating side does not have to tuition its (secondary) students to the pK-12 operating side for grades not operated.

23. So... Q:If a forming district that does not operate some grades (i.e., 9-12 or 7-12), and opts to merge with an existing pK-12 operating district (to form one side), then does it forego “choice” for grades currently not operated? A:Other than grand-parented conditions and Act 129 provisions, yes.

24. Some Hypothetical GISU Variations on the Side by Side Theme A, GI, ILM, NH & SH form a side (preK-6 or preK- 8) and Two other pK-12 districts form another side

25. Some Hypothetical GISU Variations on the Side by Side Theme A, GI and SH form a pK-8 side and ILM and NH join a pre-existing pK-12 to form the second side

26. Some Hypothetical GISU Variations on the Side by Side (by Side) Theme A, GI and SH form a pK-8 side and ILM and NH form a pK-6 side and Two other pK-12 districts form another side

27. Are Side by Sides Only About Finding “Dance Partners?” No!

28. The Spirit & Intent of Act 46 Remains Each prospective side must responsibly address how the proposals will: Provide substantial equity in the quality and variety of educational opportunities statewide; Lead students to achieve or exceed the State’s Education Quality Standards, adopted as rules by the State Board of Education at the direction of the General Assembly; Maximize operational efficiencies through increased flexibility to manage, share, and transfer resources, with a goal of increasing the district-level ratio of students to full-time equivalent staff; Promote transparency and accountability; and Are delivered at a cost that parents, voters, and tax

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