JAY – About 25 people attended a public hearing Thursday on a plan to unite Jay, Livermore and Livermore Falls schools into one system.

Jay Superintendent Robert Wall gave an overview of the plan developed over 18 months by a regional school planning committee.

It has been approved by Department of Education Commissioner Susan Gendron and will go to referendum in all three towns Tuesday, Jan. 27. To win approval, the plan must pass in all towns, Wall said.

SAD 36 officials will hold a public hearing on it at 7 p.m. Tuesday, Jan. 13, at Livermore Falls High School. More informational meetings will also be scheduled. Absentee ballots will be available Wednesday, Dec. 24.

The plan is an effort to comply with the state school reorganization law and to provide better educational opportunities for students at less cost to taxpayers. The estimated savings for the first two years of the plan are the avoidance of penalties that would be assessed by the state if there is a “no” vote. Jay is expected to be assessed about $201,192 the first year and SAD 36, $163,123.

An estimated $318,000 in savings is anticipated the third year due to reorganization of central office staff, staff attrition and going from two superintendents to one.

The merger is a big decision and one that is binding, Wall said.

For the first year, the law prohibits closing schools, moving students or displacing staff, he said.

Staff on the plan’s list as of July 1, 2009 – the effective date of the new school system – would be exempt from layoffs created by the consolidation for one year. Staff could be reduced before that day during the budget process and they could be reduced after that day if other conditions not related to consolidation make it necessary to do so, Wall said.

Residents of all three towns would share debt such as leases and costs for repairs to buildings.

The cost-sharing method to pay for expenses above the state’s funding of essential programs and services would be a percentage formula based on valuation the first five years, Wall said. There is a clause in the plan that allows a change to the method.

Under that method, Jay would pay a portion of the Livermore Elementary School bond. And, Livermore and Livermore Falls would pick up a share of Jay’s spending over the state funding formula. For 2008-09, Jay’s budget over EPS formula is $2.39 million; Livermore’s is $459,198, and Livermore Falls’ is $435,575. The latter two amounts include the bond for the Livermore Elementary School.

Based on current valuation, the cost-sharing would break down to Jay paying $2.37 million (72.3 percent); Livermore, $465,449 (14.2 percent); and Livermore Falls, $441,934 (13.5 percent). Using this formula, Jay would pay $12,611 less than it currently does, Livermore would pay $6,251 more and Livermore Falls would pay $6,359 more.

A combined school system would eventually slow the increase of costs, Wall said. The cost may not be less, especially at the beginning of consolidation. However, there could be efficiencies with a combined system, he said.

“We feel education-wise there will be some real pluses,” Wall said.

If the plan passes, a transition team would be established. A 10-member board of directors would be elected: five from Jay, three from Livermore Falls and two from Livermore. Each director would have one vote.