Elements of the state plan:

• All school units must work with other units to reorganize and consolidate administration.

• If expansion is impractical, the unit must look at its own structure to cut costs.

• All new districts must try to meet a 2,500-student benchmark for urban areas and 1,200 for rural. Offshore islands and tribal schools are exempt.

• Legislative intent is to have no more than 80 school districts.

• Reorganization plans are subject to a referendum vote.

• Districts that choose not to reorganize by July 2009 could face penalties, including a loss of minimum state subsidies or an increase in mill rates.

• The plan is expected to book $36.5 million in savings.