A.__Multiplying 5% of each school administrative unit's essential programs and services per-pupil elementary rate by the average number of resident kindergarten to grade 8 pupils as determined under section 15674, subsection 1, paragraph C, subparagraph (1); and

B.__Multiplying 5% of each school administrative unit's essential programs and services per-pupil secondary rate by the average number of resident grade 9 to grade 12 pupils as determined under section 15674, subsection 1, paragraph C, subparagraph (1).

These funds must be included as part of the school administrative unit's total allocation as computed under this chapter and not as an adjustment to the school administrative unit's total allocation.

2.__Adjustment for debt service.__Each school administrative unit may receive an adjustment for a debt service determined as follows.

A.__A school administrative unit is eligible for this adjustment under the following conditions.

(1)__The school administrative unit's local share results in a full-value education mill rate less than the local cost share expectation as described in section 15671-A.

(2)__The school administrative unit has debt service costs defined under section 15603, subsection 8 that have been placed on the state board's priority list by January 2005.

B.__The amount of the adjustment is the difference, but not less than zero, between the state share of the total allocation under this chapter and the amount computed as follows.

(1)__The school administrative unit's state share of the total allocation if the local share was the sum of the following:

(a)__The local share amount for the school administrative unit calculated as the lesser of the total allocation excluding debt service costs