(2)__Adjusting the amount calculated under subparagraph (1) by appropriate trends in the Consumer Price Index or a comparable index; and

(3)__Comparing the regional cooperative's costs to the adjusted costs calculated under subparagraph (2).

2.__Preliminary approval; eligibility for funding.__The commissioner may grant preliminary approval of a proposed regional cooperative if 5 or more participating school administrative units:

A.__Jointly request preliminary approval under this subsection; and

B.__Have entered into an agreement pursuant to section 3703 to form a regional cooperative.

Preliminary approval granted under this subsection is void if the proposed regional cooperative is not operational within 3 years of the date of preliminary approval, as determined by the commissioner.

3.__Final approval.__The commissioner shall grant final approval of a regional cooperative if:

A.__The participating school administrative units request final approval under this subsection; and

B.__The commissioner determines that the proposed regional cooperative meets the criteria of subsection 1.

At the time the commissioner issues final approval, the commissioner shall notify the state board, which shall set the first day of the fiscal year following that in which final approval is granted as the date for initiation of operations by the regional cooperative.

4.__Performance review; fund ineligibility and reimbursement.__ The commissioner shall annually determine, based on review of information submitted under subsection 1, whether a regional cooperative to which the commissioner has granted final approval under subsection 3 has achieved cost savings and reinvested these savings in school instructional programs in