(1) REQUIREMENTS.

(a) School systems shall be eligible to receive full funding under the capital outlay
program when they have met the requirements of law regarding the minimum school
size and system organizational pattern.

(b) Capital outlay program participation by local school systems shall be limited to
administrative units with not less than 200 FTE in any single grade or combination of
grades K-8 for elementary schools or not less than 400 FTE in any single grade or
combination of grades 4-8 for middle schools or not less than 500 FTE in any single
grade or combination of grades 9-12 for high schools.

(c) Local school systems with schools below the minimum size shall be eligible for
capital outlay participation when they meet or exceed the allowable variations of size
as described in this rule under one of the following conditions:

1. When the FTE is 100 percent of the system's population.

2. When sizes are approved as a result of a consolidation feasibility study.

(d) If a system chooses to continue the operation of schools below the minimum
size, the school or schools in question shall be excluded from all calculations
involving the allotment of state capital outlay funds. The school system shall include
as a part of the local facility plan a statement that the system assumes the
responsibility for providing an instructional program and physical facilities
essentially comparable to those offered at the other schools of the same grade level in
the system. The school shall be listed in the system's order of priorities with all
construction needs identified.

(e) Under the Capital Outlay Program, entitlement earnings and funding levels are
based on the minimum square footage requirements established for the grade
configuration specified in the system’s Local Facilities Plan and any subsequent
application for state funding approved by the local board of education and the State
Board of Education. If a school system decides to reorganize to a different grade
configuration with a lower square footage requirement after entitlement has been
earned or state funds have been appropriated to construct the school, entitlement
earnings or state funds shall be adjusted to reflect the lower square footage
requirements.