Internship funds shall be allocated as follows:

(1) The superintendent of public instruction shall allocate administrator internship funding to each educational service district based on the percentage of public school students enrolled in each educational service district.

(2) Prior to allocating funding to a school district, the educational service district may retain sufficient moneys needed to implement the administrator internship program, including costs of the educational service district internship advisory board. The superintendent of public instruction shall determine the maximum dollar amount each educational service district may retain. In accordance with superintendent of public instruction memorandum No. 1-92M, each educational service district shall retain up to nine percent of their allocation to carry out their internship program responsibilities.

(3) By October 1 of each fiscal year, all educational service districts shall report to the superintendent of public instruction the following:

(a) If they will have unspent internship funding (and the amount of such funding) to reallocate to other educational service districts; or

(b) If they need additional internship funding, including the number of interns and the amount requested for each intern.

The superintendent of public instruction shall reallocate such funding among the requesting educational service districts, provided that if the requests exceed the total amount available, the superintendent of public instruction shall divide the amount available proportionately among the educational service districts needing additional funding.

(4) After selecting the interns, the educational service district shall reimburse the employing school district based on the actual release time cost.

(5) Administrator internship reimbursements to each school district may be used in a variety of ways to accommodate flexible implementation in releasing interns. Participating school districts shall receive allocations for a maximum of forty-five school days. Local districts shall not be reimbursed for other costs associated with implementing this program.

(6) Unexpended administrator intern funds shall revert to the state general fund.