(1) Within available funds and until these funds are exhausted, the board may repay all or a portion of the educational expenses incurred by a teacher, or teacher candidate, for one year of master's level studies at an accredited Washington institution of higher education.

(2) The annual maximum reimbursement shall be set by the board. Depending upon the number of eligible applicants, the reimbursement may be prorated among eligible applicants at a rate less than the maximum.

(3) Funds are to be prorated among all eligible first priority applicants, not to exceed the annual maximum as set by the board.

(4) If funds remain after awards have been made to first priority applicants, the board may establish a second priority group to fully expend program funding. The award to this population of applicants shall not exceed the amount received by the first priority applicants.

(5) If funds continue to remain after reimbursing the second priority applicants, then the remaining funds shall be prorated among all remaining eligible applicants, not to exceed the award given to the first priority group.

(6) The reimbursement for any individual eligible applicant shall be reduced by the sum of all other tuition reimbursements received by the applicant from other public sources. Other public sources include the applicant's school and school district, but do not include student loans or student aid awarded through a college or university.