(a) In order to receive a grant under this chapter or an appropriation under AS 37.05.560, a district must provide a percentage share of the project cost, as determined under (b) or (c) of this section. Except as provided in (d) or (g) of this section, a district shall provide the required participating share within three years after the date that the appropriation bill funding the grant is passed by the legislature.

(b) The required participating share for a municipal school district is based on the district's full value per average daily membership (ADM), which is calculated by dividing the full and true value of the taxable real and personal property in the district, calculated as described in AS 14.17.510, by the district ADM as defined in AS 14.17.990, for the same fiscal year for which the valuation was made. The municipal district's full value per ADM determines the district's required participating share, as follows:

Full Value Per ADMDistrict Participating Share

$1 - $150,0005 percent

150,001 - 275,00010 percent

275,001 - 500,00020 percent

500,001 - 800,00030 percent

over 800,00035 percent.

(c) The required participating share for a regional educational attendance area is two percent. The participating share for any district may be satisfied by money from federal, local, or other sources, or with locally contributed labor, material, or equipment.

(d) If a district with full value per ADM of $200,000 or less can demonstrate in writing that it is unable to provide the required participating share or that the participating share required under this section will jeopardize receipt of federal assistance, the commissioner may waive all or a portion of the required participating share.

(e) State funds provided under this chapter may not be a source of the participating share required under (b) or (c) of this section.

(f) [Repealed, § 11 ch 3 SSSLA 2002.]

(g) The commissioner may extend the time allowed for a district to provide the required participating share for an additional period of not more than seven years if the district applies to the commissioner in writing to request an extension and demonstrates good cause for the requested extension. The commissioner may find good cause if

(1) a request for extension identifies a project constraint that requires a reasonable extension of time;

(2) the extension will not jeopardize the successful completion of the project as described in a grant agreement under AS 14.11.017;

(3) the extension will not result in an increase of state funding of the project cost; and

(4) the district demonstrates a good faith effort to secure funding for its participating share within the time required by (a) of this section and reasonably expects to secure the funding within the additional time requested by the extension.