Any proposal to contract for funding a program which meets the definition of a supplemental program given in § 273.2(t) will be considered an eligible proposal under this part.

To contract for operational support, a public school district shall be required to establish as part of the proposal that:

It cannot meet the applicable minimum State standards or requirements without such funds.

It has made a reasonable tax effort with a mill levy at least equal to the State average in support of educational programs.

It has fully utilized all other sources of financial aid, including all forms of State aid and Pub. L. 874 payments. The State aid contribution per pupil must be at least equal to the State average.

There is at least 70 percent eligible Indian enrollment within the school district.

It shall clearly identify the educational needs of the students intended to benefit from the contract.

It has made a good faith effort in computing State and local contributions without regard to contract funds pursuant to this part.

It shall not budget or project a deficit by using contract funds pursuant to this part.

The requirements given in paragraph (b)(1) of this section do not apply to previously private schools.

At his discretion, the Commissioner may consider as eligible a proposal to contract under which a school district will be reimbursed for the full per capita costs of educating Indian students who meet all of the following:

Are members of recognized Indian tribes.

Do not normally reside in the State in which the school district is located.

Are residing in Federal boarding facilities for the purpose of attending public schools within the school district.