(a) The Local Improvement Program is hereby established as a pilot program. The State Board of Education may select school districts, applying on behalf of public schools that provide instruction in kindergarten or any of grades 1 to 12, inclusive, to voluntarily participate in the Local Improvement Program in accordance with criteria that the state board may adopt. The number of schools participating in the program for all school districts approved by the state board may not exceed 5 percent of the total number of public schools, in no more than 15 school districts, that provide instruction in kindergarten or any of grades 1 to 12, inclusive. Participating school districts shall allocate instructional program funding to participating schools with maximum flexibility in the development and implementation of schoolsite funding in order to support and improve pupil learning. (b) As a condition of voluntary participation, the governing board of a participating school district shall develop and implement policies and procedures pursuant to this chapter that support the schoolsite goals and objectives of the participating schools.