(1) The statewide formula for the authorizer oversight fee transmitted to an authorizer by the superintendent of public instruction, as provided for in RCW 28A.710.110, shall be calculated as a rate not to exceed four percent of state operating funding allocated under RCW 28A.710.220. The rate shall be determined annually by the state board of education in consultation with the authorizer. The determination of the rate shall take into consideration the performance of schools under the authorizer's oversight including, but not limited to, enrollment, financial stability, performance challenges, and other situations as identified by the authorizer or the board. Rates must be determined and reported to authorizers and the office of the superintendent of public instruction by May 15th for the subsequent school year.

(2) Authorizers shall report on the adequacy and efficiency of the authorizer oversight fee in the annual report submitted to the board by each authorizer as set forth in RCW 28A.710.100(4). The board shall consider this information to determine whether the formula should be adjusted in order to ensure fulfilling the purposes of chapter 28A.710 RCW.