R277-420-3. Eligibility

  (1) A school district may qualify as financially distressed if the district:

  (a) has a deficit of three percent or more in its year end unappropriated maintenance and operation fund balance following a reduction for any amount in an undistributed reserve;

  (b) is unable to meet its financial obligations in a timely manner;

  (c) is unable to reduce the maintenance and operation deficit by 25 percent in its budget for the next year;

  (d) can demonstrate that it has made reasonable, local efforts to eliminate the deficit;

  (e) is financially incapable of meeting statewide educational standards adopted by the Board; and

  (f) has a deficit resulting from circumstances not subject to administrative decisions.

  (2) The Superintendent shall evaluate the criteria outlined in Subsection (1) and make a determination on whether a district is financially distressed following an on-site visit and consultation with the school district and local school board.