LIVERMORE FALLS – Voters in Jay, Livermore and Livermore Falls will decide Tuesday, Jan. 27, whether to consolidate school systems as ordered by the state or face financial penalties.

Combined, the two systems have about 1,800 students and spend about $10 million each to educate, house, and bus them.

Though planners could not estimate any savings for the first two years, they said they could save by avoiding paying penalties if there is a “no” vote. In Jay those penalties would be $201,192 the first year and to SAD 36, $163,123.

In the third year, it was estimated that $318,000 could be saved by going to one superintendent, restructuring central office, staff attrition, combining services and resources.

The towns would be responsible for their share of the operating budget under the state formula just as they are now.

What they would share is costs above the state’s essential programs and services funding model. The state allows a certain amount to educate students. Anything above is raised by taxpayers locally.

The planning committee agreed to share those costs above the EPS model based on a percentage formula using state valuations for each town. That method would stay in place five years and includes a provision to modify it.

Under this 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. Over the life of the remaining bond that expires in 2019 and based on current valuation figures, Jay would pay $1.84 million, Livermore would pay $320,137 and Livermore Falls would pay $319,137. Those figures could fluctuate if valuation changes, Jay Superintendent Robert Wall said.

On the other hand, 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 include the Livermore Elementary School.

The state is paying the remainder of Jay Middle School bond of $3.78 million. Jay has already paid its share of the project. SAD 36’s school was not state funded.

Based on current valuation, the cost-sharing for money needed above the state’s formula 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.

The planning committee decided it was necessary to include the debt service of Livermore Elementary School in order to have a fair cost-sharing and the school becomes part of the regional system, Wall said.