ADE Director's Communication Memo Form


Memo Number : FIN-09-043

Date Created : 01/20/2009

Attention:

Superintendents
Co-op Directors

Type of Memo: Informational
Response Required: No
   
Section:   Fiscal and Administrative Services - William J. Goff, Assistant Commissioner
Subject:
2008, 2009, and remaining 2007 Qualified Zone Academy Bond allocation

Regulatory Authority:
Ark. Code Ann. §§ 6-11-105, 6-20-1201, 6-20-1202, and ADE Rules and Regulations Governing the Allocation of QZABs

Contact Person:
Cindy Hedrick

Phone Number:
501-682-4484

E-mail:
cindy.hedrick@arkansas.gov

On October 3, 2008, President Bush signed into law, H.R. 1424, the Emergency Economic Stabilization Act of 2008, containing a two-year extension of the Qualified Zone Academy Bond (QZAB) program for 2008 and 2009 at a national bond allocation level of $400 million per year. The Internal Revenue Service (IRS) has not yet published the list of allocations for each of the 50 states plus territories. The Arkansas allocation amount for years 2008 and 2009 will be provided via Commissioners Memo as soon as possible following the IRS publication of the allocation list.

Currently, $761,000 remains available from the 2007 allocation. The remaining 2007 allocation will expire on December 31, 2009, if a QZAB application is not approved and the corresponding debt has not been issued by this deadline.

In accordance with the Arkansas Department of Education (ADE) Rules and Regulations Governing the Allocation of Qualified Zone Academy Bonds (QZAB Rules), section 7.04, the total allocation of $761,000 remaining for calendar year 2007 is available in the April 2009 allocation cycle. Applications for this allocation cycle will be accepted through the application deadline of March 16, 2009. The allocation amount of $761,000 could increase if any of the allocation approved in prior cycles is unused and returned or if the IRS publishes the 2008 and 2009 list of statewide allocations before the next cycle application deadline of March 16, 2009. The approval of the applications will be considered at the Arkansas State Board of Education (ASBE) meeting on April 13, 2009. If the full amount of available allocation is not approved at the April 13, 2009, SBE meeting, the remaining allocation will be available in the August 2009 cycle.

Questions may be directed to Cindy Hedrick at 501-682-4484. A fiscal agent or bond attorney may be able to provide additional information regarding applicable federal regulations.

Attachments:
    None

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