D.__Include at least one high school with a resident student population of 300 or more in 2004 as recorded by the department;

E.__Implement a school-level budgeting and accounting system; and

F.__Be formed by an agreement pursuant to section 3703 that requires annual documentation to the department, on a form developed by the department, of cost savings determined by:

(1)__Calculating the total costs incurred by the school administrative units that combined to form the regional school district, including and distinguishing total annual administrative expenditures, in the fiscal year prior to that in which the regional school district initiated operations;

(2)__Adjusting the amount calculated under subparagraph (1) by appropriate trends in the Consumer Price Index or a comparable index; and

(3)__Comparing the regional school district's total costs to the adjusted cost calculated under subparagraph (2).

2.__Preliminary certification.__The state board may grant preliminary certification of a proposed regional school district if the school administrative units to be combined to form the district:

A.__Jointly request preliminary certification under this subsection; and

B.__Have entered into an agreement to form a regional school district pursuant to section 3703.

Preliminary certification granted under this subsection is void if the proposed regional school district is not operational within 3 years of the date of that preliminary certification, as determined by the state board.

3.__Final certification.__The state board shall issue final certification as a regional school district to a proposed regional school district if: