Small School Districts Considering Merger

January 11, 2010

A recently completed feasibility study recommended that St. Johnsville Central School District enter into a merger study with Oppenheim-Ephratah Central School District.

And Oppenheim-Ephratah Superintendent Dan Russom warned more than 20 residents at a meeting last week that a merger may be the only way for their district to continue to meet educational goals of providing viable programs and a sustainable budget.

“I’m not sure we’re going to be able to do this as we continue to grow smaller,” Russom said of the district, which has a kindergarten through ninth grade student population of 362. “And I don’t foresee us growing bigger.”

The feasibility study projects the student enrollment will drop to 333 by 2014. St. Johnsville’s K-12 enrollment is 460, according to the study, and is projected to increase to 514 by 2014.&lt ;/p>

A combined district would have an estimated enrollment of 847 in 2014. If the enrollment decline continues at Oppenheim, however, Russom feels the district will be limited in its ability to provide academic programs and extra-curricular activities.

What’s next?

With the feasibility study finished, both districts’ boards of education will be asked to vote on whether to proceed with a merger study.

State Education Department approval then would be required if both boards vote to proceed. And after the completion of the study, both communities would get to vote on forming a single district.

The Fort Plain Central School District also was included in the feasibility study as an option to merge with St. Johnsville. But the impact on St. Johnsville’s tax rate made a merger with Oppenheim-Ephratah more feasible, according to Russom.

A merger of the St. Johnsville and Fort Plain districts would result in a $5.39 decrease to $19.23 per $1,000 of assessed value for Fort Plain residents, but it would increase St. Johnsville residents’ tax rate by $2.10, up from $17.22, according to the study.

Despite all three districts having contributed $10,000 each towards the feasibility study, Russom said he still would not recommend moving forward with a formal merger study without a state Department of State grant.

The cost

State officials have said the grant application, which is yet to be submitted, would be approved, Russom said.

The two districts without assistance would have to absorb an estimated $30,000 to $40,000 for the formal study, he said.

But Russom said a grant for the study is just the start of state aid incentives offered to entice smaller districts to merge.

& lt;p>A new district would receive a 40 percent increase in operating aid for five years, being reduced by 4 percent per year for the subsequent 10 years.

The new district’s school board would decide how to spend the funds, but Russom said the ideal is giving a third each to program improvements, tax reductions and a reserve fund.