Board discusses True North reorganization; district staff say new model will cut central staff and shift costs to usage-based fees

Dr. Montgomery updated the board on a proposed reorganization of the True North cooperative that member districts are considering. The plan would replace the existing governance structure with a superintendent-led governing body meeting monthly and a reduced council meeting twice a year; districts would pay only for services they use rather than a fixed membership fee.

"This new financial model will only incur cost to member districts if they're utilizing services," Dr. Montgomery said, explaining the reorganization intends to let districts retain a portion of the cooperative fund balance and ownership of property while avoiding a standing 'country club' fee. Montgomery said the new model anticipates a significant reduction in centralized staff—"over 50% of the staff will be reduced at the end of the school year"—to make the revised structure financially viable.

Board members asked how that change would affect service delivery and costs to individual schools. Montgomery said savings already captured in the budget work plus the restructuring would produce roughly $400,000 in annual savings across the two districts discussed; outplacement costs for day‑school placements were estimated at about $85,000 to $95,000 per student.

The board was told the articles of agreement and amendments will come for a first reading in October and a second reading in November; districts that voted earlier to indicate intent to withdraw may have the opportunity to remain under the new model if they notify True North by November. No formal district action to withdraw was recorded at this meeting; the board received updates and asked clarifying questions.