(1) Districts must provide local matching funds for special education to ensure that the districts pay at least one dollar for every three dollars of state special education allowable cost funds distributed in the form of instructional and related services block grants. The Superintendent of Public Instruction will provide to districts certified reports of required local match amounts.

(2) The Superintendent of Public Instruction will determine from district prior fiscal year trustees' financial summary reports if local match has been met.

(a) Demonstration that local match contributions have been made is determined by totaling the prior fiscal year special education allowable cost expenditures, defined in ARM 10.16.3806 and 10.16.3807, as reported on the annual trustees' financial summary for the general fund, the impact aid fund, the metal mines tax reserve fund and state mining impact fund. Those prior fiscal year expenditures must equal or exceed the district's minimum special education expenditures to avoid reversion for the prior fiscal year.

(3) Districts that are participating members of a cooperative must provide the required local related services block grant match, as certified by the superintendent, to their cooperative. This amount ensures that the districts pay at least one dollar for every three dollars of the districts' share of the related services block grant funds. The cooperatives' allowable cost expenditures from these funds is not limited to related services.

(a) A district's local related services block grant match for cooperative use may be demonstrated by:

(i) transfer of at least the required amount from the district general fund or impact aid fund to the cooperative; or

(ii) completion of a written agreement between the district and the cooperative that states the manner in which the contribution will be made, if different from (i) . This written agreement must be on file with the cooperative.

(b) At the close of each fiscal year, cooperatives must certify to the Superintendent of Public Instruction that each member district provided its required related services block grant match to the cooperative.