| F. If for any fiscal year the total amount appropriated for |
| the State's share of the total allocation is less than the |
| amount specified in the certified funding level for that |
| year, then all subsidizable costs except as noted in |
| subparagraphs (1) and (2) are reduced by a percentage of the |
| original cost amounts. The reduction percentage is the |
| smallest percentage that results in a state share of the |
| total allocation that does not exceed the amount |
| appropriated for this purpose, except that the reduction |
| percentage that would ordinarily be used for operating and |
| program costs must be reduced for the purpose of computing |
| state subsidy for transportation operating costs as defined |
| in subsection 29. Until fiscal year 2000-01, the reduction |
| percentage ordinarily used for transportation operating |
| costs must be reduced by the amount necessary to provide |
| additional state subsidy equal to $4,500,000 for this |
| category of costs. The statewide adjustment factor under |
| section 15654, subsection 1, paragraph B must be adjusted by |
| an amount sufficient to provide this additional funding for |
| program costs until July 1, 2004. Beginning July 1, 2004, |
| the statewide adjustment factor under section 15654, |
| subsection 1-A must be adjusted by an amount sufficient to |
| provide this additional funding for program costs. |
| Beginning in fiscal year 1999-00, the reduction percentage |
| must be phased out over 4 years. In fiscal year 1999-00, |
| the reduction percentage for program costs other than |
| transportation operating costs must be 15.88%. It is the |
| intent of the Legislature that the reduction percentage for |
| all program costs and the insured value factor be lowered to |
| 9.97% in fiscal year 2000-01, to 4.98% in fiscal year 2001- |
| 02 and to 0% in fiscal year 2002-03. Beginning in fiscal |
| year 2000-01, if the appropriation and any increase in the |
| mill rate determined by the Legislature to be needed under |
| section 15653 are not sufficient to achieve both the |
| targeted reduction percentage and the targeted per pupil |
| guarantee, as defined in section 15653, then the per pupil |
| guarantee must advance toward the targeted per pupil |
| guarantee in the same proportion as the reduction |
| percentage, as defined in this section, is lowered toward |
| the targeted reduction percentage. The following |
| subsidizable costs may not be reduced: |
