ADE Director's Communication Memo Form

Memo Number : FIN-08-086

Date Created : 06/23/2008


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 (End of 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:


The full legal citation for the Regulatory Authority of this memo 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 final state aid notice for fiscal year 2007-2008 has been completed and will be posted after June 20, 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 June 20, 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. The percentage of State Foundation Funding that is Educational Excellence Trust Funds has not changed since the February 28, 2008, state aid notice. 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 was 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, Isolated Special Needs funding, Isolated Special Needs Transportation Funding and Declining Enrollment Funding are provided. According to law, no school district shall receive both Declining Enrollment Funding and Student Growth Funding.

Student Growth Funding is based on the comparison of 2007-2008 first, second, third and fourth quarter Average Daily Membership (ADM) to 2006-2007 three-quarter ADM. As the fourth quarter ADM will not be available until after June 30, an adjustment shall be made in the initial distribution of 2008-2009 student growth funding or the school district shall refund the overpayment. Refer to Commissioner’s Memo FIN-08-058, dated February 26, 2008, for important information regarding how Student Growth Funding is determined, how Student Growth Funding pertains to Declining Enrollment Funding, and how Declining Enrollment Funding pertains to Isolated Special Needs Funding. As a reminder, updates or corrections to data will change all affected funding categories.

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 its 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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