CHINA -- School Administrative District 47 Superintendent James Morse told more than two dozen China residents Monday he sees the proposed regional school unit as key to reducing the expected loss of state education funds.

He said he expects state aid to be cut in the next biennium, perhaps by as much as the 10 percent Gov. John Baldacci recently asked all state departments to try to save.

State aid is based on two factors, he explained: student population and state valuation.

More students means more aid. A higher state valuation for the town means less aid.

All five towns in the proposed unit -- China and the SAD 47 towns of Belgrade, Oakland, Rome and Sidney -- are seeing rapid valuation increases compared to other municipalities, because each has lakefront properties with skyrocketing market values.

But, Morse said, the five towns combined should take a smaller hit than the four Messalonskee towns alone because the total student population will be larger.

Morse's district has more than the 2,500 students state law requires to be a standalone unit. China does not; and China's current School Union 52 partners -- Vassalboro and Winslow -- are planning a new unit without China.

Morse said for students in the five towns, consolidation would make no difference. No school would close; China students would continue to have their choice of high schools; and the regional unit would pay for busing to Erskine Academy, the private high school in South China, as the town of China now does.

Messalonskee High School would accept China students who wanted to go there, plus those who would benefit from its special-education programs, Morse said. But the school does not have space to accommodate all of China's high-school students, so he is glad they have other options.

"We don't see ourselves as competitors with Erskine, we see ourselves as partners," he said, praising Erskine representatives who participated in regional planning meetings.

Morse's presentation and question-and-answer session took up most of the public hearing.

Three other of China's seven local ballot questions also generated some discussion.

* Selectmen realized that an explanatory statement on the question asking if voters will approve a new Telecommunications Facilities Siting Ordinance is untrue: The ordinance would not require a new tower to be five miles from any existing tower. They discussed ways to publicize a correction.

* Resident Paul MacDonald called for rejection of proposed amendments to the Streets and Ways Ordinance, because he said reducing the required minimum paved roadway from 22 feet to 20 feet is unsafe for pedestrians, cyclists and drivers of trucks and other large vehicles.

* Town Manager Daniel L'Heureux assured the audience that if voters appropriate up to $15,000 for a town-owned windmill to generate electricity, the town would look for the best deal and would seek bids.

China voters also will be asked to amend the Land Development Code's height requirements; to add up to $10,000 to this year's general assistance fund; and to adopt a revised comprehensive plan.