AUGUSTA (AP) – The Maine House has rejected Gov. John Baldacci’s bill to encourage moneysaving regional school cooperatives, but the governor says he’ll be back with a scaled down proposal when lawmakers return next week.

Most Republicans and many rural Democrats joined in defeating the proposal by a 76-53 vote last Friday. Baldacci plans to offer a revised, less-expensive plan to the Senate after the Legislature returns to complete the year’s business on next Tuesday.

With statewide school enrollments on the decline, Baldacci has identified regional cooperation as a priority, saying scattered, independent districts need to find ways to lower costs.

The House and Senate have both endorsed separate legislation to encourage regional cooperation among towns and cities, counties and other state-chartered regional groups.

Under the bill, which faces final fiscal review, a 17-member panel would recommend legislation to improve the functioning of state, local and regional agencies.

But Baldacci’s bill that focuses on school districts encountered serious opposition when it surfaced for floor votes last week. The proposal calls for incentives to encourage the creation of regional school districts.

It also encourages school districts to form regional cooperatives to share services like transportation. The bill would redistribute $3.5 million in incentive funds next year to districts that regionalize and form cooperatives.

“The real issue is the idea that bigger is better,” said Rep. Stephen Bowen, a teacher and Rockport Republican. “That’s the presumption woven into that piece of legislation, and nobody buys it, and there isn’t any evidence to suggest that’s the case.”

Baldacci spokesman Lee Umphrey said the debate is being colored by emotion.

“This is a voluntary approach, meant to encourage school districts to maximize resources. This is not about closing schools. Those who say that are fighting an imaginary fight,” said Umphrey.

An amended bill backed by the administration scales back the $3.5 million in incentive money to $1 million, and lowers payments in future years as well.

AP-ES-04-20-04 1045EDT