Section 1I. The board of education, in this section called the board, shall provide technical and other assistance in the formulation of plans to reduce or eliminate racial imbalance to be filed as provided by section thirty-seven D of chapter seventy-one, may approve such plans if they meet the requirements of said section thirty-seven D, and shall provide technical and other assistance for the implementation of approved plans and mandatory plans. If a school committee or a regional district school committee has failed to file with the board a plan within the time limit established by regulation of the board as provided by said section thirty-seven D or has filed a plan which does not meet the requirements of said section thirty-seven D, the board shall consult with and, after a public hearing, make specific recommendations for such a plan, together with an explanation of how such recommendations meet the requirements of said section thirty-seven D, to such school committee or regional district school committee, and such school committee or regional district school committee may file a revised plan in response to such recommendations; provided, however, that if the board has not approved such a plan or its revision within four months after the time limit established by such regulation of the board for its filing, the board may order that its recommendations shall be the mandatory plan to be implemented by such school committee or regional district school committee to meet the requirements of said section thirty-seven D. Any such recommendations and any such mandatory plan may include any of the following measures, and no others, to meet the requirements of said section thirty-seven D: additions to existing school buildings, use of leased or portable facilities, and changes in use of school buildings.

If, following the receipt of notification from the board that racial imbalance exists, any school committee or regional district school committee does not show progress within a reasonable time in reducing or eliminating racial imbalance in its schools as provided by said section thirty-seven D, the commissioner of education shall not certify the amount of state aid for such city or town or for such towns which are members of such regional school district, as required by section five of chapter seventy, and the board shall not approve any project for school construction for such city, town, or regional school district under chapter 70B and the commissioner of education may notify the commissioner of revenue and the comptroller to hold such funds as have been so certified under said section five but have not been disbursed. Thereafter, upon receipt by the board of plans acceptable to it and showing progress within a reasonable time in reducing or eliminating racial imbalance in its schools as provided by said section thirty-seven D, the commissioner of education may notify the commissioner of revenue and the comptroller to pay any such withheld funds to such city or town in such amounts and at such times as he may designate, and the board may approve such projects.

The commonwealth shall, subject to appropriation and upon approval of the board, pay to a city, town, or regional district school committee one hundred percent of the cost of transportation of non-white pupils and minority pupils as defined in regulations promulgated under the federal Emergency School Aid Act, Public Law 92–318, as amended, transferred from schools in which racial imbalance exists and one hundred per cent of the cost of transportation of white pupils transferred from schools in which racial isolation exists to schools in which racial imbalance or racial balance exists for the purpose of reducing or eliminating racial imbalance as provided by said section thirty-seven D. The commonwealth shall, subject to appropriation and upon the approval of the board, also pay to a city, town or regional district school committee one hundred per cent of the cost of transportation of pupils for the purpose of reducing or eliminating an imbalance of minority students, as defined in regulations promulgated under the federal Emergency School Aid Act, Title VII of Public Law 92–318, as amended.

The board of education shall designate and administer a separate ''Equal Education Improvement Fund'' for each city, town or regional school district participating under the provisions of the act, to be known as the (name of city, town or regional school district) Fund. The Commonwealth shall, subject to appropriation, pay into such fund, five hundred dollars for each non-white pupil transferred from a school in which racial imbalance exists to a school in which racial isolation or racial balance exists, and five hundred dollars for each white pupil transferred from a school in which racial isolation exists to a school in which racial imbalance or racial balance exists for the purpose of reducing or eliminating racial imbalance.

The board shall establish guidelines by which the school committee of a city, town, or regional school district participating under the provisions of this act, may prepare and submit to the board for its approval, a plan(s) for a program(s) including an estimate of expenses necessary to implement such plan, to improve the quality of education in said city, town or regional school district. Upon approval of such plan or plans, the board shall designate that the amount needed for such plan be paid to the applying community from the Equal Education Improvement Fund of said city, town or regional school district.

The board may add to such funds such monies as are appropriated therefor and pursuant to regulations promulgated thereto and as requested of the Department for the purposes of voluntary transfers of students under Chapter 15, for magnet school programs, for minority teacher and administrator recruitment and salary supplementation in the public schools, and for inservice teacher training projects.