Wednesday, March 22, 2017

Reorganization and New Opportunities

The next step in the process is reorganization, or what we used to commonly refer to as consolidation.  The Alta and Aurelia school boards have heard from schools that have successfully gone through this process. They have heard from the Northwest AEA Chief Administrator to review time lines and procedures, and they have sought joint legal counsel to begin setting the process in motion.  Exciting times. It is understandable that there will be apprehension and questions along the way, as this is definitely a major change in how we organize and govern our schools.  All questions are welcome as we progress.
  • Stability - Whole grade sharing is only as stable as the length of your contract and the wording in the contract.  The sharing agreement for the past 6 years has been very positively received. Reorganization will ensure continued stability both now and into the future.
  • Tax Rate Incentives - When districts reorganize, they receive a property tax relief incentive. The first year, property taxes are reduced a full dollar.  The next three years the property tax rate raises incrementally until it is fully restored. So we get three years of reduced property tax rates. Any loss of tax revenue is made up through state aid.
  • Financial Incentives Through the Jointly Employed Sharing Funds - these will carry over for an additional three year as long as we reorganize before 2019, according to current legislation.
  • Debt Service Levy - Currently, the Alta school district has a Debt Service Levy (voter approved bond issue) of approximately $1.20.  It is the agreement of the Alta and Aurelia school boards that this levy rate will remain with the residents of the existing Alta school district until it is paid off in 2021 if we reorganize prior to that date.
To the "user" (parents, students, staff) not much will change in the day-to-day operation of the district. Reorganization will allow us, over time, to realize addition efficiencies in operation, saving money to be returned to the classroom for our teachers and students.  Truly, exciting times!
The Alta Community School District and the Aurelia Community School District entered into a whole grade sharing agreement, beginning with most extra-curricular activities in 2010 and academics at the high school and middle school levels in 2011. Last July, both school boards agreed to extend the original 5 year whole grade sharing agreement to an additional ten years.  This shows confidence in the educational system we have created and a desire to create stability.  

So, what is the difference between whole grade sharing and reorganization?

In Whole Grade Sharing, two school districts agree to share students, classes, and staff but remain separate school districts. The two districts maintain separate school boards, separated budgets, and separate taxing authorities.  Currently, Alta and Aurelia whole grade share student in middle school through high school and all extra-curricular activities.

In Reorganization (commonly referred to as ‘consolidation’).  Two separate school districts join to become one new district with one new school board, one budget and one taxing authority. 

Whole Grade Sharing requires action taken by the school boards to approve.  Reorganization (consolidation) requires a vote of the public passed by simple majority.

There are pro’s and con’s to each.  In the current Whole Grade Sharing Agreement between Alta and Aurelia there are a number of shared positions for which both districts receive additional funding (superintendent, business manager, transportation director, curriculum coordinator to name a few). This additional funding would not be available if the two districts consolidated.  

For districts that vote to consolidate, there are some financial incentives.  If we, as a school system, begin to act now we could be eligible for a form of sharing incentive call "Jointly Employed."  Districts are considered jointly employed districts when they are so closely aligned that they function like one district.  Salary schedules, professional development plans, and teacher evaluation instruments, all need to be the same.

Alta-Aurelia has all of the pieces in place to be considered jointly employed districts and can be eligible for roughly $144,000 in additional funding for the next two years. This is above the operational sharing funds.  If we vote to reorganize prior to or at the end of those two years, that additional funding carries over for the first three years of reorganization. Stretching two years of additional funding into five years of additional funding.

Some positives about reorganization at this time: