It’s not consolidation yet — and might not ever be — but the Le Center and Montgomery-Lonsdale school districts have begun discussions on sharing services.

Earlier this year, after each school board passed a resolution, the two districts asked the South Central Service Cooperative to coordinate a long-term study and monthly meetings between administrators. Presently, the districts are reviewing several pieces of data — including enrollment projections, budget forecasts and staffing models — to determine if sharing, and potential consolidation, are beneficial to both districts.

“There is still a long ways to go before any decisions are made,” said Deb Dwyer, elementary principal and co-superintendent of Le Center schools, which have an enrollment of more than 600. “We’re taking it slow.”

Montgomery-Lonsdale Supt. Corey Lunn oversees a district of about 1,200 students, 125 employees and three separate facilities. He also characterized the discussions as “really tentative” so far, but said continued budget challenges will force districts to look elsewhere for ways to maintain classroom quality.

“At some point, we need to look outside the district,” Lunn said, “because there’s nothing left to cut inside.”

Ed Waltman, former superintendent of Mankato Area Public Schools who now serves as an SCSC consultant, is leading the study. He said he’ll collect the internal data from both districts and present a synopsis to each school board before the end of the year. He’s also met individually with board members to create district profiles.

If both districts agree to move forward, they would likely adopt a formal plan next spring and have an opportunity to begin implementing some shared services next year. Waltman said the 2012-13 school year would be the earliest possible start date for a new, consolidated school district. If the districts do decide to consolidate, the new entity would be eligible for up to $100 per pupil for two years from the state.

“We’re taking it one step at a time,” Waltman said. “This has to be a win-win.”

The two districts are already sharing some services.

In past years, the two have shared girls tennis and they have a continuing agreement to share wrestling. This year, they are also sharing a community education director and some business staff.

Le Center has also shared some athletic teams with Cleveland in the past. Dwyer said an agreement to share spring sports with that district has been continued for one more year.

The last consolidation in this region occurred in 1997 when Blue Earth, which had already joined with Winnebago in 1993, joined Delavan and Elmore. That agreement came at the tail end of a statewide wave of consolidations between 1990 and 2000 that was prompted by an economic downturn and incentives from the state to consolidate. During that time, the number of Minnesota school districts declined by 83 — a 20 percent decrease.