Financial Committee

of Lisbon/M.S.A.D. No. 75 RPC

{Printed copies are duplex printed on both sides of paper.}

 

Minutes

January 30, 2008

 

The Financial Sub-committee of the Lisbon/M.S.A.D.  No.75 RPC met during the break-out session of the Wednesday, January 30, 2008, meting of the RPC at Mt. Ararat Middle School.  The break-out session convened at 6:45 p.m.

 

Committee members present were: Elinor “Ellie” Multer, Chair; Martha Poliquin, Roy Letourneau; James Trusiani and Joanne Reinhart.

 

Also present were M.S.A.D. No.75 Business Manager Ron Lavender and Union 30 Business Manager Catherine Messmer.  Jay Bartner, RPC facilitator and moderator, also attended.

 

The Sub-committee revisited Item #9 on the Working Template for Reorganization by Drummond Woodsum.  Mr. Bartner was asked to request from the State an assurance of a dollar amount to support the transition process.  He said he would approach the State with said request, but he feels that the answer might be “we don’t know yet.”

Also, Mr. Lavender would like to know what the verbiage would be for such a clause when written up in the reorganization Plan.

 

The Sub-committee then looked at Item #12 (estimate of cost-savings to be achieved).  Mr. Lavender and Ms. Messmer provided the attached chart (see Proposed Administrative Organization Chart).  They both emphasized that this was as far as the planning can go at this point with provided information.  The overall estimated savings for the merger is a projected $333,608.  However, there are also potential additional costs such as increased salaries for administrator with increased responsibilities, any newly-created positions, merging of contracts, and software. We can only speculate as we get into the process what other expenditures will occur.

 

Chair Multer asked what the basis or starting point would be for the savings calculation, and Mr. Lavender said it would be the cost to operate the two districts separately.

 

Ms. Messmer talked about penalties for not reorganizing and given what the State will cut on amounts given to Lisbon and the increase in mill rates, Lisbon would be looking at approximately $270,000 in additional local expense.  On the other hand, there would be no penalty to S.A.D. No.75 because it had the option to stand alone; and that option is still open if the regionalization should fall through.  However, there would still be a cut in state funding approaching one million dollars if we didn’t combine.

 

Indeed, savings due to reorganization will be difficult to differentiate from normal cost savings required by tighter budgets as we move forward.

 

Page 2 – Minutes – Financial Committee – January 30, 2008

 

A definition of Systems Administration was requested.  The departments included are Superintendent, Administrative Assistant, Assistant Superintendent, Administrative Assistant, Human Resources Positions, Director of Business, and Business Office

Supervisor.   Savings below the management level have not been calculated at this point.

 

Ms. Messmer felt that the Superintendents at this time may not make additional cuts until they see how smoothly departments run the first year.

 

The Sub-committee would like to present to the full RPC several options on cost-sharing formulas, starting with the original numbers presented to the School Boards at the beginning of this process.  An EPS formula and a 50/50 formula are two options, and Ms. Messmer will work these up using the most current figures.  Her charts will be available to RPC members before the next meeting on February 13, 2008.  With any and all the options considered, it is understood that the new RPC will need to be flexible in looking at changes in the towns’ property valuations and pupil counts.  Flexibility is extremely important in this process in order to be fair to all parties and to be responsive to community changes.

 

The meeting was adjourned at 8:15 P.M. to rejoin the RPC.

 

Respectfully submitted,

 

Joanne Reinhart

Scribe

 

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