(a) (1) The Division of Public School Academic Facilities and Transportation shall establish formulas that shall be updated annually by the fourth quarter of the calendar year for determining the basic project cost per square foot for various types of new construction projects, including without limitation:

(A) New academic facilities;

(B) Additions to existing academic facilities; and

(C) Major improvements to academic facilities that bring the state of condition or efficiency of the academic facility to a state of condition or efficiency better than the facility's original condition of completeness or efficiency.

(2) In establishing the formulas, the division shall take into consideration:

(A) The academic programs offered;

(B) Current enrollment levels;

(C) Enrollment projections;

(D) Grade configuration;

(E) The type of public school; and

(F) Nationally recognized design and construction standards for cost per square foot.

(3) The division shall establish a process for determining the cost of local enhancements and shall include a mechanism in the formulas for determining basic project cost that excludes the cost of local enhancements from the qualified project cost.

(b)

(1) When a school district applies for state financial participation, the division shall use the appropriate formula to compute a qualified project cost.

(2) The division shall determine the estimated amount of the state's share of financial participation based on the qualified project cost and the school district's wealth index as determined under § 6-20-2502.