In this article, unless the context otherwise requires, "noncustodial federal monies":

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1. Means federal monies that are received by the department of education and that meet at least one of the following criteria:

(a) Are designated by the federal government as block grant monies.

(b) Are designated by the federal government as general revenue sharing monies.

(c) Provide this state with broad authority to make spending decisions regarding the development, implementation or operation of a program or service.

(d) Are considered essential to meet total spending obligations of a federally required or matched program or service authorized by the legislature in which the federal government requires at least one percent of the program or service funding to come from this state.

2. Does not include federal monies awarded directly to school districts or charter schools.