E. If the school administrative unit is eligible for targeted kindergarten to grade 2 funds pursuant to section 15681, subsection 1, the product of the per-pupil guarantee EPS per-pupil rate multiplied by the additional weight for kindergarten to grade 2 calculated pursuant to section 15675, subsection 3. ; and

F.__A necessary small unit adjustment.__A school administrative unit is eligible for a necessary small school adjustment when the unit meets the size and distance criteria as established by the commissioner and approved by the state board.__The amount of the adjustment is the result of adjusting the necessary student-to-staff ratios determined in section 15679, subsection 2, the per-pupil amount for operation and maintenance of plant in section 15680, subsection 1, paragraph B or other essential programs and services components in chapter 606-B, as recommended by the commissioner.

2. Adjustments. The base total calculated pursuant to subsection 1 must be adjusted as follows.

A. The base total calculated pursuant to subsection 1 must be reduced by the amount of all funds received by the school administrative unit under Title I of the federal Elementary and Secondary Education Act of 1965, 20 United States Code, Section 6301 et seq. during the most recent fiscal year.

B. The amount calculated pursuant to paragraph A must be adjusted by the regional adjustment pursuant to section 15682.

C. The amount calculated pursuant to paragraph B this subsection must be multiplied by the essential programs and services transition percentage for the appropriate year in accordance with section 15671, subsection 7, paragraph A.

Sec. D-46. 20-A MRSA §15683, as enacted by IB 2003, c. 2, §1, is repealed.

Sec. D-47. 20-A MRSA §15683-A is enacted to read: