(1) A district may be eligible for an advance on its special education allowable cost payment if it experiences severe economic hardship because of exceptional special education costs.

(2) Application for an advance on a special education allowable cost payment must be made to the Superintendent of Public Instruction in writing and include requested documentation.

(3) The Superintendent of Public Instruction will determine eligibility for an advance on a district's special education allowable cost payment based upon the following requirements:

(a) The Superintendent of Public Instruction has funds available to meet the advance request.

(b) The exceptional special education costs are an unforeseen need of the district that cannot be postponed until the next school year without dire consequences affecting the ability to provide a free appropriate public education to its students with disabilities.

(c) The district adopts a budget amendment under 20-9-161 (6) , MCA.

(d) Other revenues are not available to the district that could address the unforeseen cost, including:

(i) district reserves;

(ii) available cooperative funds;

(iii) Individuals with Disabilities Education Act, Part B funds; and

(iv) cash available in other funds of the district.

(e) The exceptional special education costs combined with budgeted special education allowable cost expenditures exceed 110 percent of the current fiscal year minimum special education budget to avoid reversion.

(4) Payments are for the fiscal year in which the actual costs are incurred.

(5) The amount of the advance will reduce the ensuing fiscal year's special education allowable cost payment by a like amount. If the district's special education allowable cost payment in the ensuing fiscal year is not sufficient to repay the advance, the district will repay the advance to the state by warrant no later than December 31 in the fiscal year following the advance.