(1) The instructional services block grant rate for the ensuing fiscal year is calculated by multiplying the state special education appropriation by .525 and dividing by the ensuing year statewide current ANB of eligible districts, truncated to two decimal places.

(2) The related services block grant rate for the ensuing fiscal year is calculated by multiplying the state special education appropriation by .175 and dividing by the ensuing year statewide current ANB of eligible districts, truncated to two decimal places.

(3) A district's eligibility to receive reimbursement for disproportionate costs for the ensuing fiscal year is calculated as follows for each district that is eligible per ARM 10.16.3803:

(a) sum the district's prior fiscal year special education state allowable cost expenditures for instructional and related services;

(b) from (3) (a) subtract the district's prior fiscal year minimum special education expenditure to avoid reversions;

(c) if the result of (3) (b) is less than or equal to zero, a district is not eligible for reimbursement;

(d) if the result of (3) (b) is greater than zero, a district may receive reimbursement for disproportionate costs provided that the district's rate of expenditures calculated by dividing (3) (a) by the district's prior fiscal year minimum special education expenditure to avoid reversion reaches the threshold for eligibility based on the following formula:

(i) multiply the state special education appropriation by .25;

(ii) for all districts where the result of (3) (b) is greater than zero, sum the results of (3) (b) and multiply by .40;

(A) if (3) (d) (i) equals (3) (d) (ii) , the threshold for eligibility is 1.00, and the district shall be reimbursed $0.40 for each dollar calculated in (3) (b) ;

(B) if (3) (d) (i) exceeds (3) (d) (ii) , the threshold for eligibility is 1.00. The .40 multiplier in (3) (d) (ii) shall be increased to a multiplier which causes the result of (3) (d) (ii) to equal (3) (d) (i) , and the district shall be reimbursed at that multiplier for each dollar calculated in (3) (b) ;

(C) if (3) (d) (ii) exceeds (3) (d) (i) , the threshold rate in (3) (d) (ii) shall be increased to a percent which causes the result of (3) (d) (ii) to equal (3) (d) (i) . The district shall be reimbursed $.40 for each dollar calculated in (3) (a) that exceeds the amount calculated by multiplying the threshold rate times the district's prior year special education spending to avoid reversion.

(4) The statewide amount for cooperative administration and travel is calculated by multiplying the state appropriation by .05. This figure is distributed to cooperatives under the following two components:

(a) to calculate administration:

(i) multiply the figure in (4) by .60;

(ii) divide (4) (a) (i) by the ensuing year's current ANB for all participating districts in all approved cooperatives to determine per ANB rate;

(iii) multiply (4) (a) (ii) by the cooperative's ensuing year's current ANB from member districts.

(b) to calculate travel:

(i) multiply the figure in (4) by .40;

(ii) use the following factors to distribute, on a weighted basis, the figure from (4) (b) (i) among approved cooperatives (weight assigned to each cooperative is determined by dividing the number of rural miles within the boundaries of a cooperative by the total current ANB of member districts within the cooperative and add to that figure the number of member districts and full-time equivalent of itinerant personnel in the cooperative) ;

(A) the number of member districts;

(B) the number of full-time equivalent reported for itinerant personnel on the most current annual data collection report;

(C) the most up-to-date current ANB reported by member school districts; and

(D) the number of road miles within the boundaries of the cooperative.

(5) Cooperatives shall report staff information to the Superintendent of Public Instruction on the annual data collection report. Annual membership information and any additional information needed to administer the provisions of 20-9-321 , MCA, shall be reported on forms provided by the Superintendent of Public Instruction. Cooperatives shall notify the Superintendent of Public Instruction of any revisions to the annual data collection report or membership information by February 1.

(6) The Superintendent of Public Instruction calculates an eligible district's special education allowable cost payment for the ensuing fiscal year by multiplying the instructional block grant rate by the district's ensuing fiscal year current ANB, adding the related services block grant rate multiplied by the district's ensuing fiscal year current ANB, adding the district's reimbursement for disproportionate costs, if applicable. If the district is a participating member of a cooperative, the special education allowable cost payment will not include the related services block grant.

(7) A cooperative's special education allowable cost payment for the ensuing fiscal year consists of the cooperative travel and administration amounts plus the related services block grants of districts who are participating members of the cooperative.