§ 21-6-219 — Adjustment of state foundation entitlement

(a) When two (2) or more districts or parts of districts
are organized into a school district and the total fiscal
resources of the new school district are less than the combined
fiscal resources of the districts the last year before
organization, then the state superintendent shall adjust the
state foundation entitlement to compensate for the differences
in fiscal resources. The adjustment shall be equal to one
hundred percent (100%) of the initial difference in each of the
first two (2) fiscal years after the new organization, fifty
percent (50%) of the initial difference in the third fiscal year
and twenty-five percent (25%) of the initial difference in the
fourth fiscal year. The adjustment shall also provide
reimbursement for expenses incurred by the school districts
involved in the new organization. Expenses which are
reimbursable shall be determined in accordance with rules
adopted by the state superintendent, shall not exceed one
hundred thousand dollars ($100,000.00), and shall be paid in
equal amounts over a period not to exceed three (3) fiscal
years.
(b) When any district consolidates two (2) or more schools
within the district and the total state aid to the district
would decrease because of the consolidation, the state
superintendent shall adjust the state foundation entitlement to
compensate for the decrease for not more than one (1) year.