LIVERMORE FALLS – A public hearing will be held Tuesday on a proposal to consolidate the school systems of SAD 36 and Jay.

The hearing is scheduled to begin at 7 p.m. Jan. 13 at the Livermore Falls High School cafeteria.

A regional school planning committee made up of members of Jay, Livermore and Livermore Falls developed the plan over 18 months to comply with the state’s school reorganization law.

The plan will go to voters in all three towns during a referendum on Tuesday, Jan. 27. Absentee ballots are already available in respective town offices.

Though the consolidation is not expected to save money the first couple years, there would be a savings of about $201,192 the first year and $163,123 in avoidance of penalties that would be assessed by the state if the merger is turned down.

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.

For the first year, the reorganization law prohibits closing schools, moving students or displacing staff due to consolidation. Staff on the consolidation plan’s list as of July 1 – 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.

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

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.

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.