[Local-Maine-Schools] School Consolidation: Meet the Press Transcript, June 3 2007

[Brian Hubbell]

[This below just arrived, without other explanation, in my in-box]

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School Consolidation: Meet the Press Transcript, June 3 2007

MR. TIM RUSSERT:  Our issue this Sunday:  Public school consolidation
in the State of Maine.  An exclusive interview with a member of the
Maine state legislature who supports school consolidation.   Welcome
Senator/Representative to MEET THE PRESS.

REP/SENATOR:  Nice to be with you, Tim.

MR. RUSSERT:   I understand this is a defining moment for K-12 public
education policy in Maine.

REP/SENATOR:   Yes, Tim. It is.  We are talking about the most
profound change to public education in our lifetime.

MR. RUSSERT:   Tell us.   In January, your Governor proposed radical
changes to public education in your state.  His proposal seeks to
reduce the number of school districts in Maine from about 290 to only
26.  The Maine legislature is about to take action before it adjourns
by June 20 -- less than 3 weeks.  Where does school consolidation
stand in Maine?

REP/SENATOR:   Tim, this week the Appropriations committee voted
unanimously to mandate school consolidation across the state.  Our
goal is to reduce the number of school districts from about 290 to no
more than 80 by July 1, 2008.  Each new school district must serve at
least 2,500 students.

MR. RUSSERT:   Can you tell us what other states have states
implemented such monumental change in such a short period?

REP/SENATOR:   That's a good question.

MR. RUSSERT:   On what basis do you think 290 separate school
districts can merge in a year?

REP/SENATOR:   Tim, that's a good question.   But something needs to
happen.  Even critics of these plans agree that there needs to be some
level of school consolidation in Maine – no one thinks we need 290
separate school districts and no one thinks they are not taxed enough.
We all agree it does not make sense to pour more money into costly,
underperforming school districts.  There is agreement that the status
quo is not acceptable.

MR. RUSSERT:    What's driving the timetable?

REP/SENATOR:   Candidly, Tim, we need "political cover".

    * First, in 2004, Maine voters approved a referendum that requires
the State to pay 55% of the cost of public education.  We are in the
final year of the "ramp up" to the 55% level which puts increased
pressure on the state budget.  The Governor and legislature are simply
are not willing to make the budget cuts elsewhere to meet the
requirement for aid to education without increasing taxes.
    * Second, the Governor is required, by law, to produce a balanced
budget.   Together with the Governor, we've already "booked" $36.5
million. If we pushed the date out any further, we probably would
violate state law in producing a balanced budget.
    * Third, we live in fear of a Palesky II or TABOR II and want to
give the appearance that we're doing something meaningful to manage
state spending.

MR. RUSSERT: How solid are those savings?

REP/SENATOR:  That's a good question.

MR. RUSSERT:  One of your objectives is to inoculate yourselves from
another taxpayer initiative.  If you lead people to believe school
consolidation will solve the state' budget problems and will reduce
their property taxes -- and it does neither -- won't you be inviting
the next taxpayer initiative?

REP/SENATOR:  I could see that being a likely outcome, yes.

MR. RUSSERT:   You are advocating for an unprecedented numbers of
school mergers.  In the private sector, when businesses merge costs
increase initially due to severance costs,  broken leases,  moving
costs, systems integration, salary and benefit increases to equalize
compensation, program integration and so forth.   How could you save $
36.5 million in the same year you will incur significant
merger-related costs?

REP/SENATOR:  That's a good question.

MR. RUSSERT:   Senator/Rep, we understand there have been a dozen or
so different school consolidation plans during this session.  The
proposals differ in substantive ways and even have different
timetables.  Tell us how so many different proposals on different
timetables miraculously project the same exact amount of savings in
the 2008/2009 year?

REP/SENATOR:    That's a good question.

MR. RUSSERT:    I understand Maine lawmakers already have agreed to
reduce General Purpose Aid for Education by $ 36.5 million in fiscal
year 2009.

REP/SENATOR:  Yes, that is true.

MR. RUSSET:   Are you telling us that you and others have already
agreed to reduce funding for education regardless of what school
consolidation plan ultimately is enacted?

REP/SENATOR:  Yes, that is true.

MR. RUSSERT:   Senator/Rep, how can you reduce General Purpose Aid for
Education when the state is required to pay 55%?

REP/SENATOR:   Well, the Department of Education has latitude in
determining "55% of what".   By convincing people we will save
millions in school consolidation, we think we can reduce aid for
education without much of an uproar.

MR. RUSSERT:   But if you cut aid to education to local communities,
won't the outcome be increased local property taxes to make up the
difference?

REP/SENATOR:   Yes.

MR. RUSSERT:    If the new region school districts are also dealing
with merger-related costs, won't that result in even higher local
property taxes?

REP/SENATOR:  You make a good point.

MR. RUSSERT:    This is an important point.  If you cut aid to the
school districts and you force them to consolidate – to merge – and
incur these merger related costs, you will be increasing local
property taxes when your stated goal is to reduce property taxes.

REP/SENATOR:   Yes, it is ironic, isn't it?

MR. RUSSERT:  The plan you support requires significant reductions
immediately in local expenditures in special education, transportation
and buildings and maintenance.  Where will those savings come from?

REP/SENATOR:  I don't know.

MR. RUSSERT:   The prices of fuel and heating oil have never been
higher.   How low can school departments set their thermostats and how
long is it appropriate to have kids sitting on fewer buses with longer
routes?

REP/SENATOR: Good questions.

MR. RUSSERT:   It's well known that with advances in medicine, we're
seeing more children needing more expensive special services.   How do
schools find savings in special ed?

REP/SENATOR:  Good question.

MR. RUSSERT:   Besides reducing state EPS allocations for special
education, transportation, maintenance and administration next year,
the bill actually mandates that communities reduce THEIR OWN
EXPENDITURES in those areas by 5 percent.  It doesn't seem to matter
if the community is under funding or over funding special education
services now; just cut it by 5 percent.  It doesn't matter if three
students with out-of-district placement needs just moved into the
district, cut it by 5 percent now.  Why would any reasonable person
support that?

REP/SENATOR:  Tim, you ask very legitimate questions and I wish I had
answers for you.

MR. RUSSERT:  Let's get back to the timetable.  If this legislation
passes this month,   I understand that by August 31 of this year each
school administrative district must inform the DOE of its intention to
how it plans to consolidate.  If most school districts elect school
committees this month – in June -- on what basis would a new school
committee be in a position to make an informed decision by the end of
the summer?  Won't many school committees be comprised of people
haven't had any experience even serving on a school committee let
alone being asked to make a profound and lasting decision on behalf of
their community?

REP/SENATOR:  That's a good question.  But, again, if we don't make
the effective date July 1, 2008, then it actually may be illegal for
us to book $36.5 million in savings.

MR. RUSSERT:  When businesses merge, they have the fiduciary
responsibility to perform a complete analysis of the costs and
benefits so they can make an informed decision and act in the best
interest of their stakeholders.   Are lawmakers providing complete and
accurate information to local communities so they understand the
impact of school consolidation in terms of education and costs?

REP/SENATOR:   I am not aware that this is happening. No.

MR. RUSSERT:    If one community has been putting off significant
capital improvements and they are undertaken after joining an SAD, do
all the members of the new SAD now incur those costs?

REP/SENATOR:   That is my understanding.

MR. RUSSERT:   In business, we hear 50-75% of mergers fail in large
part due to the lack of management foresight, inadequate research,
underestimating practical challenges and ignoring cultural
differences.    Why do you think all these school mergers will
succeed?

REP/SENATOR:  It is a leap of faith.

MR. RUSSERT:   In business, a "hostile takeover" is defined as a
takeover against the wishes of a party.   If the state is forcing
local school districts to merge, is this a "hostile takeover" by the
state?

REP/SENATOR:   Yes.

MR. RUSSERT:    If you owned a business and you were thinking about
merging your company, would you want to understand if you and your new
partner were "strategically compatible"?

REP/SENATOR:   Yes.  Of course.

MR. RUSSERT:   I've read a number of reports in the Maine press over
the past six months.   It is clear lawmakers are portraying school
consolidation as being limited to "school administrative
consolidation". Is that really fair to Maine people?

REP/SENATOR:   I see your point.  In all honesty, our strategy has
been to sell school consolidation as being limited to "back office"
consolidation.

MR. RUSSERT:   Tell us, what should Maine people really expect from
"school consolidation"?

REP/SENATOR:  This will get me into trouble back home. In truth, it
really is a lot more than just sharing superintendents and central
office staff.

MR. RUSSERT:   What would happen to existing school districts?

REP/SENATOR:  They will cease to exist.

MR. RUSSERT:   Explain to us what this means about the impact to
education in a community.  For example, when you eliminate all the
school districts and combine them into larger ones, how will students
in the class room be impacted?

REP/SENATOR:  Tim, we haven't wanted to talk about this publicly, but
people should expect changes in their curriculum and the level of
service provided by the schools in their town.  For example, Mainers
should expect the first order of business for the new school
committees will be to start the "homogenization" process where the
curricula, school policies, labor contracts, etc.  of the former
school districts get "rationalized" and become the same.

MR. RUSSERT:  So, if people are saying it is not about "consolidating
schools" but instead it is consolidating "administration", you agree
this is misleading.

REP/SENATOR:  Let me just say that when you consolidate
administration, by extension you consolidate schools.  Look at any SAD
today.  One curriculum, one set of policies, one teacher contract. All
the schools in that system mirror the others.

MR. RUSSERT:   So, if a current school district provides certain
program like all-day kindergarten or offers certain courses or
maintains certain class-size standards or an extended laptop program,
those would be changed?

REP/SENATOR:  That is a likely outcome.  The new regional school
committee would decide what to keep and what to toss.

MR. RUSSERT:  Is it likely that teachers or principals in one school
district can be moved to other towns and schools within the new larger
school districts?

REP/SENATOR:  Absolutely.

MR. RUSSERT:  Public education has been the prerogative of local
communities in Maine.   Let's share with our viewers a statement by
the Appropriations Committee this week:

"It means there is flexibility for communities in terms of people they
partner with and the size. There might be circumstances where 1,200
would be appropriate number for a consolidated district. So
flexibility and local control have been very important to us.".

Tell us, REP/SENATOR, the bill endorsed unanimously by the
Appropriations Committee will eliminate state funding for any
community with does not go along with the state's consolidation plan.
 Hasn't the Appropriations Committee taken a position of "
"consolidate or starve"?

REP/SENATOR:  I suppose it has.

MR. RUSSERT:   And you think this is a real local vote and not just lip service?

REP/SENATOR:  If we provide a fair local vote, we fear many
communities will not consolidate on their own.

MR. RUSSERT:  Do you agree that schools are the "heart of a community"
and many people choose where to live because of the school system?

REP/SENATOR:  Absolutely.

MR. RUSSERT:  Do you think local communities should determine the fate
of their school systems?

REP/SENATOR:  I used to.

MR. RUSSERT:   Do you think it fair to withhold state aid to local
communities who do not wish to consolidate, even if they are high
performing and efficient?

REP/SENATOR:  Probably not.

MR. RUSSERT:  Let's talk about the local vote.  For the benefit of our
viewers, let's show on the screen the ballot question the
Appropriations Committee wants to use when communities decide to
consolidate their school departments:

A "YES" vote means that you approve of the (municipality or SAU)
joining the proposed regional school unit, which will be provided with
the following incentives:

    * More favorable consideration in approval and funding of school
construction projects; and
    * Eligibility for additional financial support for reorganization costs.

A "NO" vote means that you do not approve of the (municipality or SAU)
joining a regional school unit, which will result in the existing
(municipality or school administrative unit) receiving the following
penalties:

    * Less favorable consideration in approval and funding of school
construction projects; and
    * A reduction in state funding of education costs in an amount
estimated to be $_________ for school year 200_ and $_______ for
school year 200_, with the possibility of ongoing penalties for
continued failure to join an approved regional school unit.
Reductions in state education funding will result in an increased mill
rate expectation of _____ (mills) and an increase in property taxes of
$_____ for tax year _____.

Mr. REP/SENATOR, do you think this is a neutral ballot or do you think
it is intended to influence the voter to vote for consolidation?

REP/SENATOR:   Tim, clearly we want most school districts in Maine to
consolidate.  We will use every weapon at our disposal.

MR. RUSSERT:   Maine lawmakers are saying student performance is
lagging, student enrollment is falling, and yet state aid is
increasing an on an unsustainable path.  There is an expression "why
do you rob banks" and the answer is "because that's where the money
is".  What aren't Maine lawmakers focusing on school districts which
cost the state the most, are inefficient and are not delivering
results?

REP/SENATOR:  Good question.

MR. RUSSERT:  But if many school districts are being funded to a large
extent by the state and they are not delivering results, shouldn't the
state be focused on them?

REP/SENATOR:   I suppose.

MR. RUSSERT:  Then why does your plan turn nearly all school districts
in Maine upside down, even the highest performing and those receiving
the least state aid?

REP/SENATOR:  Good point.

MR. RUSSERT:  If you were a doctor in a medical practice and you
generated 80-90% of the revenue and your junior partner announced that
he had decided, on his own, to merge your practice with other medical
practice, if he couldn't tell you what would happen to your practice,
your patients or your income, etc.   what would you do?

REP/SENATOR:  I'd call 911, have him rushed to the hospital and have
him evaluated.

MR. RUSSERT:   Isn't this essentially what the state is doing to local
communities?

REP/SENATOR:  I see your point.

MR. RUSSERT:  Let's turn to what you in Maine call your "Essential
Programs and Services" - or EPS.   The state has portrayed EPS as
being the "adequate" level of education for children; however, they
also recognize that the EPS funding formula does NOT cover all
necessary costs.  Why is it appropriate to include EPS in the new
budget process?

REP/SENATOR:  Tim, I admit EPS is flawed but again our goal is to
create an environment that makes it very difficult for local
communities to invest in education.

MR. RUSSERT:   Is it true that more than 80% of school districts
exceed the EPS level?

REP/SENATOR:   That sounds about right.

MR. RUSSERT:   Moving forward, are you sayin that 8 out of 10 school
districts in Maine will be required to adopt the new budget adoption
process?

REP/SENATOR:  Yes, that is right.  They will need to use what we call
a "budget validation process" which includes a separate budget
referendum vote.

MR. RUSSERT:  How will this process work?

REP/SENATOR:  The new regional school committees will come up with
their proposed budget like they have in the past.  There will be a
regional "town meeting" to adopt a budget. At that meeting the budget
can be cut.  Whatever gets approved at the town meeting is then sent
to a regional referendum. This happens several days later and will be
a secret written ballot where towns normally hold elections.

MR. RUSSERT:  Tell how the state's EPS formula is used in that process.

REP/SENATOR:  Voters will see a comparison of the states EPS formula
with the amount the publicly elected officials are recommending after
their lengthy budget process.  In most cases, voters will get to
choose between the lower EPS amount and the higher amount their school
committee has recommended.

MR. RUSSERT:   Wait.  Earlier in this conversation, you confirmed that
EPS is not an accurate comparison.  Is it fair to use the EPS amount
as the benchmark?

REP/SENATOR:  Listen Tim. This is not about being fair.  It is a
clever way to force local communities to spend less on K-12 public
education.

MR. RUSSERT:  How do you respond to critics of this budget validation
process claim when they say it requires friends of education to
participate in the process twice, but if  you want to kill the budget,
you need only to vote in the referendum.

REP/SENATOR:   I would say they are very observant.

MR. RUSSERT:    It would seem that your largest municipal districts
like Portland, Biddeford, Lewiston, Auburn and Bangor could have a
very difficult time passing budgets above the EPS level.

REP/SENATOR:  Another keen observation. The new process could be the
hardest on those communities and their schools.  Our intent is to make
it extremely difficult, if not impossible, for voters to approve
school budgets above the state defined EPS level.  If we are
successful at getting local voters to reduce the level of educational
programming in their communities, we think we will have the best
chance of reducing property taxes in Maine.  It is that simple.

MR. RUSSERT:   Are you confirming that the real savings do not come
from school administration, but actually come from reducing
educational programming?

REP/SENATOR:  Indeed.  The lion's share of the savings resulting from
the consolidation plan will come from reducing the level of
educational programming across the state.

MR. RUSSERT:  Tell us what is wrong with the present system of
governance. If a school community conducts all its business in public,
holds public hearings on the budget and invites public input, if they
make a budget recommendation to their town council and if the town
council holds public hearings and ultimately recommends a budget to
the community at a town meeting, how is the current process not
transparent and open?

REP/SENATOR:   To be honest with you, it probably is transparent and
open but it doesn't produce the outcome we want.

MR. RUSSERT:   If most of the cost for education is paid through
locally raised property taxes,  then why are you making it so
difficult for local communities to spend their own money?

REP/SENATOR:  Tim, there is a view that it is unfair for some
communities to invest more in education than others, even if they are
investing their own money.   One of our objectives is to "levelize"
K-12 public education in Maine.

MR. RUSSERT:   Provide some examples of where the budget validation
process is used by high performing school districts.

REP/SENATOR:   I am not aware of any.  Tim, at the risk of repeating
myself, the budget validation process is not intended to support
educational excellence.

MR. RUSSERT:   For the benefit of our viewers, let's show a sample of
the information the Appropriations Committee wants to show on the
ballot:

"Do you favor approving the (name of regional school unit) budget for
the upcoming school year that was adopted at the latest regional
school unit budget meeting and that includes locally raised funds that
exceed the required local contribution as described in the Essential
Programs and Services Funding Act?

Yes/No

A YES vote allows the additional money to be spent for K-12 public education.

A NO vote results in a reduction in the property tax mill rate
required for education purposes."

Mr. REP/SENATOR, how do you respond to those who say language is less
than "neutral"?

REP/SENATOR:  Tim, it is not intended to be neutral.  The goal of the
new budget validation process is to make it extremely difficult for
school budgets to pass.   It is a tool to help protect voters from
themselves.

MR. RUSSERT:  So, when lawmakers talk about the "transparency" of the
budget validation process, they are talking about the transparent
attempt to make it hard to pass school budgets?

REP/SENATOR:  Precisely.

MR. RUSSERT:  Why single out school budgets?  We hear that Maine
lawmakers have the same appetite for social services as Massachusetts
but the resources of Mississippi.   Why not apply the budget
validation process to all levels of government, including the state
budget?  Why not show how Maine's level of services compares with
other states and let the public vote on the elements of the Maine
state budget?

REP/SENATOR:   Good question.

MR. RUSSERT:  Tell us about cost shifting.  What do you have to say
about towns where property taxes will increase as a result of these
mergers because the new regional school budget will be apportioned in
part due to town property valuations?

REP/SENATOR:  Yes, we expect there to be cost shifting across the
state.  Many communities will see their property taxes increase as
they are charged educational services in the other towns which
comprise their new school district.  You see, Tim,  if you have a
municipal school system,  it is like a family going out to dinner and
the family pays its own bill.  Once you become part of an SAD,
however, the bill is apportioned by the value of the property in your
community.

MR. RUSSERT:   What do you tell a taxpayer who pays more in property
taxes but receives no corresponding increases in services?

REP/SENATOR:  I'd probably say "thanks for taking one for the team".

MR. RUSSERT: In all seriousness, in addition to cost-shifting just
based on local town property valuations, won't there also be
cost-shifting as communities "levelize"?

REP/SENATOR:  Absolutely.  It is likely that taxpayers will not only
start subsidizing school costs in the other town in their SAD, but
these same taxpayers will also subsidize the costs of any "leveling"
of the educational programming.  For example, if their community
provides a richer program and their SAD adopts that level of service
across the SAD, they will be paying for improvements in the
neighboring communities.

MR. RUSSERT:   Consultants tell us more often than not there is a
"leveling up" when school districts merge.  For example, if teachers
have a richer salary and benefits package in one school district, then
often the staff in the new SAD rise to that level. We're talking about
significant expenses. Shouldn't this cost be considered in any school
consolidation plan, just as it is in business mergers?

REP/SENATOR:  I suppose.

MR. RUSSERT:  So you do agree that as a result of the legislation,
there will be significant cost-shifting between communities across the
state.

REP/SENATOR:  Yes.

MR. RUSSERT:   Before we decided to go to war in Iraq, Secretary of
State Powell warned the president by alluding to the Pottery Barn rule
"you break it, you own it".    If lawmakers "break" education in
Maine,    should you, other lawmakers, the Governor be held
accountable?

REP/SENATOR:   Certainly.

MR. RUSSERT:   I understand Maine's Legislature is the sixth largest
in the country – with 151 Representatives and 35 Representative --
but Maine is 40th in population.  There was a bill to shrink the size
of the legislature somewhat to save money, but it was killed earlier
this week.   In terms of school consolidation, does the Maine
legislature have a double-standard in asking for such a reduction of
school districts and not taking a similar position on the legislature.

REP/SENATOR:   I have to run.

MR. RUSSERT:  And that's all for today. We'll be back next week.  If
it's Sunday, it's MEET THE PRESS.