(a) In addition to other appropriations and funding sources, the department may provide grant funding from the fund established under AS 14.11.030 to a school district that is a regional educational attendance area or a small municipal school district.
(b) The amount of money available each fiscal year for expenditure under (a) of this section shall be the annual debt service on debt incurred under AS 14.11.100(a) divided by the percentage of all schools that are located in a city or borough school district that is not a small municipal school district, the quotient of which is to be multiplied by .244.
(c) In this section, “small municipal school district” means a city or borough school district in the state that has an ADM of not more than 300 and in which the district's full value per ADM is not more than $500,000. In this subsection, the district's full value per ADM is determined 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.