Act 995 of 2007 amends Ark. Code Ann. § 6-20-2511 by establishing the Academic Facilities High Growth District Loan Program under the Arkansas Department of Education (ADE)to provide interest-free loans to school districts meeting the definition of a “high growth school district” and in which the mills required to service the bonded indebtedness incurred for academic facilities exceeds the “maximum expected millage for the district”.
A “high growth district” is defined as a public school district in which the average daily membership for the public school district in the present school year is at least 4% higher than the school year that is two (2) years prior to the present school year, excluding growth resulting from annexation or consolidation. The maximum expected millage means ten (10) debt service mills representing the maximum number of debt service mills that a public school district is expected to raise to service its bonded indebtedness incurred for academic facilities.
School districts meeting these criteria, as set forth in The Arkansas Commission for Public School Academic Facilities and Transportation Rules Governing the Academic Facilities High Growth School District Loan Program June 18, 2008, may apply for an interest free loan under the Revolving Loan Fund as established by the Arkansas Department of Education Rules Governing Loan and Bond Applications May 12, 2008. (See links below).
Attached is the Application Supplement to be submitted in accordance with both the High Growth and Revolving Loan rules to the Arkansas Department of Education.
The execution of this program is subject to the availability of funds approved specifically for the High Growth Program in the 2009-2011 biennium.