(b) Programs to be considered for such reimbursement are:

1. (1) pre-kindergartens for children in disadvantaged areas;
2. (2) experimentation and innovation in improvement of instruction;
3. (3) elimination of racial imbalance and improvement of integrated education.

(d) The criteria for review of such applications shall be as follows:

1. (1) Significance of proposed program.

   1. (i) Will the program test important proposals for improving education for all students of the district or districts, or for some categories of students having special educational needs?
   2. (ii) Will the results of the program, if successful, show the suitability of such program for improvement of educational offerings in other districts?

2. (2) Adequacy of planning.

   1. (i) Does the proposal reflect knowledge of available research?
   2. (ii) Are the purposes and goals clearly stated?
   3. (iii) Are the procedures to be followed clearly outlined?
   4. (iv) Is provision made for suitable evaluation of results?
   5. (v) Does the plan provide for qualified personnel, adequate facilities and resources to carry out the program?

3. (3) Economic efficiency.

   1. (i) Are anticipated expenditures reasonable in relation to procedures to be followed and anticipated results?
   2. (ii) Are the proposed expenditures over and above those which the district would make in its regular instructional program?

(e) The application for aid shall indicate the budgeted amount of the proposed program which shall be in addition to existing programs or in addition to the normal cost of instruction provided by the district for children in the area covered by the experimental program. If such program is approved, the State aid shall be computed as follows:

1. (1) In the case of a school district, the approved excess costs of the program shall be multiplied by the aid ratio of the district, but not less than 50 per cent.
2. (2) In the case of a board of co-operative educational services, county vocational education and extension board or an area center for co-operative educational services, the aid ratio shall be determined by dividing the total true valuation of taxable real property of the school districts participating in the program by the total weighted average daily attendance of such districts. The aid shall be the approved excess costs of the program multiplied by such aid ratio, but not less than 50 per cent. All districts participating in such a project must be listed by legal designation in the application.
3. (3) Except in (5) below, all allowances for the purchase of equipment shall be determined by prorating the cost on the basis of the reasonable life expectancy of the item and the expected period of time it will be used in the proposed experiment. The total cost of equipment must be shown in the application.
4. (4) Capital expenditures for construction or major alterations of buildings cannot be aided. The rental of approved temporary quarters may be aidable as an excess cost.
5. (5) State aid for approved purchases of equipment in the first year of operation of a pre-kindergarten class shall be at the district's aid ratio plus 10 percentage points, but not less than 60 per cent. The commissioner shall determine the amount and type of pre-kindergarten equipment to be approved for aid.
6. (6) A limited number of experimental pre-kindergarten programs may be designated by the commissioner as demonstration and in-service teacher education centers for specified regions, and in such cases the district or other applicant shall be entitled to the full cost of services specifically required for such regional demonstration and teacher education functions.
7. (7) Approved expenditures for initial planning for a limited time may be considered part of the excess cost and approvable for aid.
8. (8) The commissioner may modify the above aid provisions if in his judgment highly unusual circumstances prevail which warrant such modification.

(g) If the project is approved for aid, said aid will be distributed to the district based on the following schedule:

1. (1) twenty-five percent at the time of project approval;
2. (2) quarterly payments as requested by local districts for projects of less than $100,000;
3. (3) monthly payments as requested by local districts for projects of more than $100,000;
4. (4) but no more than 90 percent of the total project cost until after receipt and audit of the final expense report at which time the balance will be paid.