1. School District Organization Informational Workshop on the Process and Fiscal Implications of School District Reorganization

2. The Role of the County Committee The County Committee on School District Organization has a major role in review and approval of proposals to change school district organization in the county. This committee believes that requests for reorganization should not come from the committee, but from interested districts or members of the public.

3. Goals for Today  Understand the process  Understand fiscal implications

4. Types of Reorganization Proposals 1. Territory Transfers Boundary Changes – a portion of a district is transferred to another district. Consolidation – an entire district is transferred to another district. 2. Unification The combination of elementary and high school districts into a K-12 district.

5. Territory Transfers: Signature Requirements for Petitions A petition may be signed by: The majority of owners of uninhabited territory. 25% of the registered voters in an inhabited area. The majority of Board Members in each of the affected districts. 10% of the registered voters in an inhabited area.

6. Differences Between Petitions Signed by 10% or 25% of the Registered Voters in an Area 10% Petition –the county committee must hold a preliminary public hearing and may approve the proposal and adopt it as its own tentative recommendation; however, if the county committee does not approve the proposal, further action is halted. 25% Petition – the county committee recommends approval or disapproval to the State Board of Education.

7. What’s Common Between Petitions Signed by 10% or 25% of the Registered Voters in an Area See Flowcharts A and B on pages 39 and 43 of Chapter 5 of the CDE District Organization Handbook Beginning with the Notice of Public Hearings (lower middle portion of both flowcharts) the processes for 10% and 25% petitions are the same.

8. Flowchart A

9. Flowchart B

10. Information to be Included Three items of basic information should be included in a petition: A legal description and map of the territory to be covered by the proposed action. A list of school districts affected by the proposal. The reasons for the proposed reorganization.

11. Determination of Sufficiency County superintendent must determine the sufficiency of the petition. A petition signed by registered voters must be verified by the county elections department.

12. Public Hearings The county committee must hold a public hearing in each affected district within 60 days of receipt of a valid petition.

13. CEQA Review The county committee must determine the impact that the territory transfer may have on the environment.

14. County Committee Study Ed. Code 35753 Criteria The county committee must determine the impact of the territory transfer on the 10 criteria listed in Ed. Code 35753. (1) The reorganized districts will be adequate in terms of number of pupils enrolled. (2) The districts are each organized on the basis of a substantial community identity. (3) The proposal will result in an equitable division of property and facilities of the original district or districts.

15. (4) The reorganization of the districts will preserve each affected district's ability to educate students in an integrated environment and will not promote racial or ethnic discrimination or segregation. (5) Any increase in costs to the state as a result of the proposed reorganization will be insignificant and otherwise incidental to the reorganization.

16. (6) The proposed reorganization will continue to promote sound education performance and will not significantly disrupt the educational programs in the districts affected by the proposed reorganization. (7) Any increase in school facilities costs as a result of the proposed reorganization will be insignificant and otherwise incidental to the reorganization.

17. (8) The proposed reorganization is primarily designed for purposes other than to significantly increase property values. (9) The proposed reorganization will continue to promote sound fiscal management and not cause a substantial negative effect on the fiscal status of the proposed district or any existing district affected by the proposed reorganization.

18. (10) Any other criteria as the board may, by regulation, prescribe. (b) The State Board of Education may approve a proposal for the reorganization of school districts if the board determines that it is not practical or possible to apply the criteria of this section literally, and that the circumstances with respect to the proposals provide an exceptional situation sufficient to justify approval of the proposals.

19. Approval Process All territory transfers are decided at the local level. If all the criteria of Ed. Code 35753 are substantially met within 120 days of the first public hearing, the county committee must approve or disapprove the petition to transfer territory.

20. If the county committee approves the transfer the county superintendent must call an election unless: If inhabited, the territory consists of less than 10% of the assessed valuation of the district or If uninhabited, a majority of the owners of the territory consent, and Whether inhabited or uninhabited, the governing boards of all affected districts consent to the transfer.

21. Unification Process See Flowcharts C and D on pages 46 and 49 of Chapter 5 of the CDE District Organization Handbook The unification process is very similar to the Territory Transfer process.

22. Sample Petition to Election Timeline  Gather Petition  Petition Verified  CEQA Hearing  County Committee Hearing  County Committee Study  SBE Study and Hearing  Election order delivered  County Clerk  From a November Election to the effective date of unification Copyright © School Services of California 90 days 30 days Within 60 days of hearing 60 days 120 days 120 days (or more) 35 days 120 days 235 days 810 days (2.2 years or longer)

23. Fiscal Implications Base Revenue Limit (see next slide for example) Revenue Neutral

24. Example: Blended Base Revenue Limit Using 2004-05 Date – for a Reorganization Effective 2006-07 District2004-05 Base revenue Limit per ADA (A) 2004-05 Revenue Limit ADA (B) Affected ADA (C) Percent of District in Reorganization (D) = (C) (B) Computed Total Base Revenue Limit (E) = (A) x (C) Elementary District 1$4,523.00900 100.00%$4,070,700 Elementary District 2$4,548.001,500 100.00%$6,822,000 Elementary District 3$4,788.00200 100.00%$957,600 High School District$5,446.003,0001,20040.00%$6,535,200 Totals3,800$18,385,500 Blended Base Revenue Limit per ADA $18,385,500 divided by 3,800 affected ADA = $4,838.29 Check: $4,838.29 times 3,800 ADA = $18,385,502 (or same amount to within a $2 round-off error) Copyright © 2006 by School Services of California

25. Salary and Benefit Adjustment Based on differences and average cost per FTE Calculate one average for all certificated staff Calculate a second average for all classified staff Cost to “level-up” is capped at 10% of the blended base revenue limit Salary and Benefit adjustment may provide more or less than is needed to move all employees to the highest schedule of component districts There is no requirement that the reorganized district adopt the highest schedule In a unification, classified salaries/benefits may not be negotiated below the level paid at the time of election.

26. Options and Alternatives New Millennium Example