ADE Director's Communication Memo Form

Memo Number : FIN-08-065

Date Created : 02/29/2008


Co-op Directors

Type of Memo: Regulatory
Response Required: Optional
Section:   Fiscal and Administrative Services - Dr. Bobbie Davis, Assistant Commissioner
State Aid Notice 2007-08 (Mid-Year)

Regulatory Authority:
A.C.A. §§ 6-5-301, 6-20-601, 6-20-2301, 6-20-2501 (all et seq.); Acts 229, 272, 273, 989, 1052, and 1573 of 2007

Contact Person:
Vivian Roberts

Phone Number:


Full legal citation for Regulatory Authority of Commissioner's Memorandum is as follows: Ark. Code Ann. §§ 6-5-301 et seq., 6-20-601 et seq., 6-20-2301 et seq., and 6-20-2501 et seq., and Acts 229, 272, 273, 989, 1052, and 1573 of the Regular Session of 2007.

The second state aid notice for fiscal year 2007-2008 has been completed and will be posted after February 28, 2008, to the Arkansas Department of Education (ADE) web site: To view a district’s state aid notice, from the drop-down menu located under Quick Links, select School Finance Reports. From the list of school finance reports, under State Aid Notices, select State Aid Notice 2007-08 - PDF February 28, 2008. Then, select Edit and Find. Type the name of the school district in the Find box, and click Next. To print a copy of the selected state aid notice, select File, Print, and then Current Page under the Print Range section. Then, click OK.

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 code; 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. Current year data has been added. Updates to the FUNDING section since the first state aid notice include a slight increase in the percentage of State Foundation Funding that is Educational Excellence Trust Funds. Alternative Learning Environment Funding is based on prior year full-time equivalent data. English Language Learners Funding is based on data reported on the home language survey completed by school districts in October 2007. National School Lunch Act Funding is based on October 1, 2006, enrollment data. The effect of National School Lunch Act (NSLA) Transition Funding is shown on a separate line, but is included in the NSLA payments effective the October 2007 payment. National School Lunch Act Growth Funding is based on enrollment data from prior years. Isolated Funding and Isolated Special Needs funding are provided based on available data. Isolated Special Needs Transportation Funding will be provided on the final state aid notice. Declining Enrollment Funding is provided. According to law, no school district shall receive both Declining Enrollment Funding and Student Growth Funding. A partial amount of Student Growth Funding is provided based on the comparison of 2007-2008 first quarter Average Daily Membership (ADM) data to 2006-2007 three-quarter ADM data. Refer to Commissioner’s Memo FIN-08-058, dated February 26, 2008, for important information regarding the determination of Student Growth Funding, how Student Growth Funding pertains to Declining Enrollment Funding, and how Declining Enrollment Funding pertains to Isolated Special Needs Funding. Updates or corrections to data will change all affected funding catetories.

Arkansas Department of Education Rules pertaining to state aid may be found at From the drop-down menu located under Rules, select Current Rules, and then select the specific rule as follows: Calculation of Miscellaneous Funds - PDF Sept. 10, 2007; Closing Isolated Schools - PDF July 2005; Education Excellence Trust Funds - PDF 6/10/1996; Funding of Public School Districts - PDF September 2007; Limited English Proficiency Funding - PDF April 2000; Professional Development - PDF 7/11/2005; Special Needs Funding and the Determination of Allowable Expenditures of Those Funds - PDF Nov. 13, 2006. The Arkansas Division of Public School Academic Facilities and Transportation Rule Governing the Retirement and Termination of Bonded Debt Assistance, General Facilities Funding and Supplemental Millage Incentive Funding dated November 2005 is posted on the Arkansas Division of Public School Academic Facilities & Transportation web site The Schedule of State Aid Disbursements Fiscal Year 2007-2008 is attached to Commissioner’s Memo FIN-08-001 and was posted July 11, 2007. Please review the local district’s state aid notice carefully. Questions may be directed to Vivian Roberts at 501-682-4486.


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