JAY — Under one scenario, there could be about a $700,000 reduction in a joint school budget if both the Livermore Falls middle and high schools are closed during the first year of a school system merger.

However, that would depend on voters in Jay, Livermore and Livermore Falls voting to consolidate school systems on Jan. 25, 2011. It also would depend on a new school board that would oversee the system voting to close the schools, and the voters in Livermore and Livermore Falls approving that proposal.

It is one cost-efficiency scenario Jay Superintendent Robert Wall reviewed Tuesday with members of the regional school planning committee.

Members of the committee requested possible scenarios be drafted so that residents of the three towns would know the savings potential under a consolidated district. They will be presented during an upcoming informational meetings and public hearing in the months ahead.

If the consolidation is approved, and both a new school board and voters in both Livermore and Livermore Falls approve closing the middle school, then there is an estimate of between $243,000 and $300,000 in reduced expenses. This includes an allowance for fuel oil, electricity and minimal upkeep of Livermore Falls Middle School building, Wall said.

The recommendation is that students from all three towns in grades six through eight would attend Jay Middle School. Fourth- and fifth-graders in Jay would move back down to the Jay Elementary School to make it a kindergarten through fifth grade school. Livermore Elementary School would be a kindergarten-through-fifth-grade school. Prekindergarten students from both systems would attend the Cedar Street Learning Complex in Livermore Falls, where the central office would be located.

Other cost differentials are predicted in sports, transportation, central office and other categories.

It’s hard to try and predict what a new board and voters will do, officials say.

One revenue savings is definite in the first year. That is that both school systems would not have educational subsidies reduced by a combined $395,602 due to the avoidance of state penalties. Jay is estimated to lose $224,235 and RSU 36, $171,367, if the districts don’t comply with the state reorganization law.

If the consolidation plan is approved, then it calls for Jay to pay 71.71 percent of the amount the new system would exceed the state’s Essential Programs and Services funding model. Livermore would pay 14.56 percent and Livermore Falls, 13.73 percent, based on the 2009 state valuation. The amount that would be shared under the current budget is $1.59 million, Wall said. All three towns would still get their regular education subsidy to help fund their shares of the budget, he said.

Using the current $18.2 million combined budget figure, the option of not closing schools would  mean that Jay would pay $1.14 million, which is $39,674.67 less than the current local amount. Livermore’s share would be $231,671.40, an increase of $20,409.40, and Livermore Falls, $218,379.27, an increase of $19.265.67, according to Wall’s data.

There are other new factors not included in the projections from both systems, including Jay High School’s roof project and the Livermore Falls High School technology lease for laptop computers that will also influence a 2011-12 budget.

But, overall, the lease debt in RSU 36 is projected to decrease $20,000 and Jay’s preliminary bond/lease debt is projected to be $30,000 less, in 2011-12, Wall’s information shows.

With student enrollment projected to drop in both school systems, the districts, if they continue to stand alone, will pay more to provide less services, Wall said.

If they combine, school officials believe taxpayers will be able to provide enhanced student offerings at a more efficient cost, he said.

dperry@sunjournal.com