The authority for this chapter is RCW 28A.300.165 which authorizes the superintendent of public instruction to adopt rules and regulations for the implementation of chapter 28A.150 RCW.

The purpose of this chapter is to establish policies and procedures for the distribution of state moneys to school districts or state agencies for the National Guard youth challenge program authorized by RCW 28A.150.310.

National Guard youth challenge means an alternative program that is operated in conjunction with the military department as defined in 2SHB 1646 in the 2002 legislative session. For the purposes of funding, the National Guard youth challenge program shall be defined as a separate and unique entity.

For the purpose of this chapter, the state average rate for basic and vocational programs shall be those rates established annually for the running start program.

For the purpose of this chapter, the state average rate for the free and reduced price lunch program shall be the statewide average of all students of all districts participating in the free and reduced price lunch program as reported to the superintendent of public instruction.

"Form P-223YC" means the report of enrollment for students enrolled in a National Guard youth challenge program submitted monthly by the hosting school district(s) or state agency to the superintendent of public instruction for the school year for the purpose of calculating the program allocations.

The count dates for the National Guard youth challenge program shall be:

(1) The fourth day of school in the months of January and July, or the start of the term of the educational program; and

(2) The first day of school in the months of February through June and the months of August through December.

For the purposes of this chapter, full-time equivalency is calculated as a 1.0 FTE for every one hundred hours of instruction each month in a course of study as defined in WAC 392-121-107, a course of study shall encompass that instruction which will generate credit towards a high school diploma when successfully completed. Students who participate in more than one hundred hours may be counted for more than a 1.0 FTE. FTE shall be rounded to two decimal places (e.g., 1.725 would be reported as 1.73).

For the purposes of this chapter, annual average full-time equivalency shall be calculated by taking the annual total of full-time equivalent students enrolled on the twelve count dates of the school year and reported to the superintendent of public instruction Form P-223YC for the months of September through August divided by ten. This calculation applies to the reporting of basic education and vocational students.

For the purposes of this chapter students may be counted for a maximum of one headcount for basic education, special education, or bilingual education. A student who participates in more than one of these educational opportunities shall be counted for a maximum of one headcount under each separate category.

For the purposes of this chapter, annual average headcount shall be calculated by taking the annual total of the monthly headcounts as reported on Form P-223YC for the months of September through August divided by ten. This calculation applies to the reporting of basic education, special education, and bilingual education students.

An eligible student shall be one who:

(1) Is likely to be expelled or is enrolled in a school district but has been suspended;

(2) Is academically at risk; or

(3) Has been subject to repeated disciplinary actions due to behavioral problems.

Apportionment shall be paid to the school district or state agency operating the National Guard youth challenge program pursuant to chapter 28A.510 RCW.

The apportionment allocation shall be based and made consistent with state funding formulas with the following items set as:

(1) The basic education funding rate shall be the basic state average rate as defined in WAC 392-124-030.

(2) The vocational education funding rate shall be the vocational state average rate as defined in WAC 392-124-030.

(3) The special education rate shall be 93.09% of the basic state average rate as defined in WAC 392-124-030 with the number of funded special education headcount limited to 12.7% of the reported basic education headcount.

(4) Funding under the following categorical programs shall use the legislative provided formulas and rates. Categorical programs are subject to legislative allotment and program standards and include:

(a) Highly capable;

(b) Bilingual;

(c) Learning assistance - Shall use the statewide average for the free and reduced price lunch rate.

(5) Funding for categorical programs and vocational education is subject to program approval by the superintendent of public instruction.