4.__Effective date.__This section takes effect July 1, 2005.

§15689.__Adjustments to state share of total allocation

Beginning July 1, 2005, adjustments to the state share of the total allocation must be made as set out in this section.

1.__Minimum state allocation.__Each school administrative unit must be guaranteed a minimum state share of its total allocation that is determined by the sum of the following:

A.__Multiplying 5% of each school administrative unit's essential programs and services per-pupil elementary rate by the average number of resident kindergarten to grade 8 pupils as determined under section 15674, subsection 1, paragraph C, subparagraph (1); and

B.__Multiplying 5% of each school administrative unit's essential programs and services per-pupil secondary rate by the average number of resident grade 9 to grade 12 pupils as determined under section 15674, subsection 1, paragraph C, subparagraph (1).

These funds must be included as part of the school administrative unit's total allocation as computed under this chapter and not as an adjustment to the school administrative unit's total allocation.

2.__Adjustment for debt service grandfather clause.__Each school administrative unit may receive an adjustment for a debt service grandfather clause determined as follows:

A.__A school administrative unit is eligible for this adjustment under the following conditions.

(1)__The school administrative unit's local share results in a mill rate expectation less than the local cost share expectation as described in section 15671-A.

(2)__The school administrative unit has debt service costs defined under section 15603, subsection 8 that have been placed on the state board's priority list by January 2005.

B.__The amount of the adjustment is the difference, but not less than zero, between the state share of the total