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.