Act 2206 of the 85th General Assembly adds to A.C.A. § 6-20-2503 a method to calculate Debt Service Funding Supplement. The calculation will be based on the principal and interest payment schedule in effect and on file with the Department of Education on January 1, 2005. This schedule is available at: http://arkedu.state.ar.us/publications/reports.html#Reports. This amount will be reduced by 10% for purposes of calculating debt service funding supplement. The remaining 90% of the principal and interest payment will be divided by the total assessed value of the district, multiplied by 1,000 to calculate the required debt service mills. This product is multiplied by the State Wealth Index, multiplied by the prior year’s three quarter average Average Daily Membership, and multiplied by a funding factor of $18.03.
These funds will be paid by August 1 and February 1 of each year. If a district qualifies for Debt Service Funding Supplement, the amount of aid shall not be reduced as a result of refunding bonds outstanding in effect and on file with the Department of Education on January 1, 2005.
The Public School Academic Facility and Transportation Division will provide information concerning an appeal of the 10% withholding.
Questions or comments should be directed to Vivian Roberts at
501/682-4258.