(1) For purposes of calculating a district's school flexibility payment for fiscal year 20XX, the following definitions apply:

(a) "Average student amount" means the amount calculated by:

(i) multiplying either the cash balance or the fiscal year 20XX appropriation in the school flexibility account, whichever is less, by 40 percent; and

(ii) dividing by average statewide budgeted ANB for the previous five-year period. Average statewide budgeted ANB is calculated using the final ANB for fiscal years 20XX-5 through 20XX-1.

(b) "Current student amount" means the amount calculated by:

(i) multiplying either the cash balance or the fiscal year 20XX appropriation in the school flexibility account, whichever is less, by 20 percent; and

(ii) dividing by the total statewide budgeted ANB for the previous fiscal year. Total statewide budgeted ANB is calculated using the final budgeted ANB for fiscal year 20XX-1.

(c) "District K-12 public school funding amount" means the K-12 public schools amount multiplied by the number of K-12 public schools in the district, as defined in 20-6-501 , MCA, that are open as of October 1 in the year of the payment.

(d) "District K-12 large public school funding amount" means the large K-12 public schools amount multiplied by the number of K-12 public schools in the district, as defined in 20-6-501 , MCA, that report at least 250 students enrolled on the October count date in the year of the payment.

(e) "District student funding amount" means the current student amount multiplied by the district's budgeted ANB for fiscal year 20XX-1 plus the average student amount multiplied by the district's average budgeted ANB for fiscal years 20XX-5 through 20XX-1.

(f) "K-12 public schools amount" means the amount calculated by:

(i) multiplying either the cash balance or the fiscal year 20XX appropriation in the school flexibility account, whichever is less, by 15 percent; and

(ii) dividing by the total number of K-12 public schools statewide, as defined in 20-6-501 , MCA, that are open as of October 1 in the year of the payment.

(g) "Large K-12 public schools amount" means the amount calculated by:

(i) multiplying either the cash balance or the fiscal year 20XX appropriation in the school flexibility account, whichever is less, by 25 percent; and

(ii) dividing by the total number of K-12 public schools, as defined in 20-6-501 , MCA, that report at least 250 students enrolled on the October count date in the year of the payment.

(h) "District flex fund allocation" means the sum of the district K-12 public school funding amount, the district large K-12 public school funding amount and the district student funding amount.

(2) No later than January 31, the Office of Public Instruction shall distribute a school flexibility payment to qualified districts for deposit in the district's school flexibility fund. Nonoperating districts are not qualified for a district flex fund allocation.

(3) If approved by the electorate, in addition to the amount distributed to a district's flex fund under this rule, the trustees may levy an amount not to exceed 25% of the Office of Public Instruction's most recent estimate of the district flex fund allocation.