10.__Subsidizable operating costs.__"Subsidizable operating costs" for each unit are equal to the product of the foundation per pupil operating rate times the unit's average pupil count.

11.__Unit.__"Unit" means a school administrative unit as defined in section 1, subsection 26.

12.__Year.__"Year" means a fiscal year starting July 1st and ending June 30th of the succeeding year.

§15663.__Operating cost subsidy

By March 31st of each year, the Legislature shall appropriate funds to subsidize operating costs for all units for the ensuing fiscal year.

1.__Default appropriation.__In the absence of timely legislative action, the operating cost subsidy for the ensuing year must be calculated and paid by the commissioner based on the appropriation and the operating cost mill rate in effect for the current year.

2.__How calculated.__The operating cost subsidy for each unit is the amount of that unit's subsidizable operating costs less its local share.__The local share is the product of the operating cost mill rate, as calculated under subsection 4, times the unit's fiscal capacity.

If the unit fails to raise and provide toward operating costs a level of funds sufficient to pay its local share, then the State's subsidy must be reduced by an amount equal to what the unit fails to provide.__The reduction in state subsidy must be added to the commissioner's reserve fund and distributed in accordance with subsection 5.

3.__Minimum subsidy.__If a unit's subsidy when calculated under subsection 2 is less than 5% of its subsidizable operating costs, it must receive a subsidy that is equal to 5% of its subsidizable operating costs.

4.__Operating cost mill rate.__The operating cost mill rate is a single statewide property mill rate that must be calculated