For school fiscal years through school fiscal year 2012-13, the department shall calculate a local choice adjustment for each district that:

(1) Has fewer than three hundred ninety formula students;

(2) Is not in a sparse local system or a very sparse local system; and

(3) Did not receive federal funds in excess of twenty-five percent of its general fund budget of expenditures in the most recently available complete data year or in either of the two school fiscal years preceding the most recently available complete data year.

The local choice adjustment for each such district shall equal fifty percent of the difference between the basic funding per formula student for the district for which the local choice adjustment is being calculated and the basic funding per formula student for the district that has the closest to three hundred ninety formula students multiplied by the formula students for the district for which the local choice adjustment is being calculated, except that the local choice adjustment shall equal zero if the basic funding per formula student for the district for which the local choice adjustment is being calculated is less than the basic funding per formula student for the district that has the closest to three hundred ninety formula students. If more than one district has the closest to three hundred ninety formula students, the basic funding representing the district that has the closest to three hundred ninety formula students shall equal the average of the basic funding per formula student for each such district. The closest to three hundred ninety formula students shall be measured using the absolute value of the difference of three hundred ninety students minus the district formula students with the difference rounded to the nearest whole number.