ADE Director's Communication Memo Form

Memo Number : FIN-06-079

Date Created : 05/31/2006


Co-op Directors

Type of Memo: Regulatory
Response Required: Optional
Section:   Fiscal and Administrative Services - Dr. Bobbie Davis, Assistant Commissioner
State Foundation Funding Aid 2005-2006 Notice

Regulatory Authority:
A.C.A. ßß6-5-301 et seq., 6-20-601 et seq., 6-20-2301 et seq., Acts 19 & 20, 1st Ex. Session, 2006, Act 2131of 2005

Contact Person:
Vivian Roberts

Phone Number:


The final notification of state aid for 2005-2006 has been completed. Each school districtís state aid notice will be attached to a hard copy of this memo and mailed June 1, 2006. State aid notices can be seen after June 1, 2006, on the Arkansas Department of Education (ADE) web site, Click on Publications, then Reports, and scroll down until the State Aid Notice 2005-2006 (Report dated May 25, 2006) comes into view. For a copy of an individual notice, select Edit, then Find. Type the name of the selected school district in the search box and click Search. To print a copy of the selected individual state aid notice, select File, Print, and then select Current Page under the Print Range section.

For each funding category, the following information is provided on the state aid notice: indication of the existence of an ADE Rule; the amount of state aid; the applicable statutory act; indication of the existence of expenditure restrictions; the Revenue Code; and the Source of Funds Code. The DATA section of the state aid notice shows the data supporting the funding calculations. This state aid notice has been updated to include some current year data. The percentage of State Foundation Funding Aid designated as Educational Excellence Trust Funds is currently .09851. Student Growth funding is calculated using the 2005-2006 Average Daily Membership (ADM) from the first two quarters averaged. Alternative Learning Environment (ALE) funding is based on the full-time equivalent of ALE students in 2004-2005. English Language Learners funding is based on identified English-language learners in 2005-2006. National School Lunch Act funding is calculated using October 1, 2004, enrollment data. National School Lunch Act Growth funding is included on this state aid notice, and was provided via Commissionerís Memo number FIN-06-029 dated September 23, 2005. Commissionerís Memo number FIN-06-046 dated January 4, 2006, provides information on Isolated funding and Act 1452 Isolated funding. On the state aid notice, funding information for districts with more than one isolated school area is listed separately on lines 18, 19, 36, and 37. For districts receiving Bonded Debt Assistance, line 39 shows the calculated amount of additional funding resulting from the reversal of all or a portion of the 10% reduction in the scheduled debt payment. To stay within the appropriation for State Financial Assistance - Supplemental Millage Incentive, this category is funded at 97.3% of the computed amount.

The Arkansas Department of Education Rules may be found at Click on Rules, then Current Rules, and then click the specific rule. The Rules Governing the Distribution of Student Special Needs Funding and the Determination of Allowable Expenditure of These Funds may be accessed by selecting Rules, Current Rules, and then Funding - Student Special Needs July 2005. Both the Rules Governing Professional Development and the Rules Governing the Closing of Isolated Schools may be accessed using the same steps, but as the last step select either Professional Development July 11, 2005, or Closing Isolated Schools July 2005. The Educational Excellence Trust Funds Rule may be accessed in this same manner. The Arkansas Division of Public School Academic Facilities and Transportation published the Emergency Rule Governing the Retirement and Termination of Bonded Debt Assistance, General Facilities Funding and Supplemental Millage Incentive Funding as an attachment to Commissionerís Memo number COM-06-035 dated October 13, 2005. The Schedule of 2005-2006 State Aid Disbursements is attached to Commissionerís Memo Number FIN-05-045, dated June 30, 2005.

Please review the information on the state aid notice carefully and direct all questions to Ms. Vivian Roberts at 501-682-4258. In the calculation of Bonded Debt Assistance, questions regarding the Rule or the calculation of the reversed portion of the 10% reduction in the scheduled debt payment may be directed to Mr. Doug Eaton 501-682-4261.


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