Act 1426 of 2005 established a requirement for each school district to dedicate nine percent (9%) of its foundation funding exclusively to the payment of utilities and custodial, maintenance, repair, and renovation activities, and related personnel costs of academic facilities. Academic facilities are defined at A.C.A. §6-21-803. This specifically excludes facilities used exclusively for extracurricular activities, pre-kindergarten education, stand-alone district administration buildings, and transportation and maintenance buildings. Districts should determine the allowable expenditures for multi-use facilities based on the pro-rated square footage or by time used for academic purposes.
A spreadsheet is attached to this Commissioner’s Memo showing each district’s 9% expenditure requirement.
Districts are allowed to include the following expenditures in the 9% requirement: Fund =2, Function Codes 2600 through 2699, Object Codes 61000 through 65199, and Object Codes 65300 through 69999, minus the district’s athletic expenditures. To determine maintenance expenditures related to athletics, a district may use actual athletic expenditures, the allocation method provided in CM IA-05-123, or an allocation method the district believes more accurately states athletic expenditures related to maintenance.
For questions concerning the calculation of the 9% requirement or allowable expenditures, please contact Patty Martin at 501- 682-5124.
For questions concerning if a building qualifies as an Academic Facility, please contact Dave Floyd at 501 682-4261.