ADE Director's Communication Memo Form


Memo Number : FIN-09-052

Date Created : 02/06/2009

Attention:

Superintendents
Co-op Directors

Type of Memo: Informational
Response Required: No
   
Section:   Fiscal and Administrative Services - William J. Goff, Assistant Commissioner
Subject:
High Growth Loan Program

Regulatory Authority:
Ark. Code Ann. § 6-20-2511

Contact Person:
Cindy Hedrick

Phone Number:
501-682-4484

E-mail:
cindy.hedrick@arkansas.gov

The publication of the following list of school districts is in compliance with the Arkansas Department of Education (ADE) Rules Governing Loan and Bond Applications, Section 12.04.1, which states, ...the Department will publish a preliminary list of school districts that have voted at least ten (10) debt service mills and require at least ten (10) debt service mills to service outstanding bonded indebtedness. The required breakdown into academic and non-academic debt service mills required and voted will not be available at the time of the publication of this list.

It is important to note that in compliance with Section 12.15 of the Rule, the application process remains closed pending availability of an appropriation for this specific program.

SCHOOL DISTRICTS

DECATUR
PEA RIDGE
RIVERSIDE
ALMA
VAN BUREN
EARLE
MARION
TURRELL
POYEN
SPRING HILL
BISMARCK
CUSHMAN
SOUTHSIDE (INDEPENDENCE COUNTY)
DOLLARWAY
LONOKE
CARLISLE
GENOA CENTRAL
FOUKE
WICKES
DOVER
HECTOR
POTTSVILLE
HACKETT
LAVACA
CAVE CITY
FARMINGTON
BALD KNOB
PANGBURN

The purpose of this list is to provide a broad starting point to use once the application process begins, despite the lack of available required data. It can be deduced that a school district meeting the broad criteria of total academic plus non-academic debt service and required debt service mills may possibly meet the narrower academic-only definition in the law. Therefore, a district on this list should examine the requirements for qualification listed below to more accurately determine the probability that it may qualify for this program once all the required data has been received and reviewed.

All the following qualifications must be met for a school district to participate in the High Growth Loan Program:

-The school district has raised the maximum expected millage;
-The revenue generated from the maximum expected millage is less than the amount required to service the bonded indebtedness incurred for academic facilities;
-The school district has an approved project to meet the high growth need in the Academic Facilities Partnership program;
-The Average Daily Membership (ADM) of the school district in the present school year is at least 4% higher than the ADM of the school year that is two years prior to the present year, excluding growth resulting from annexation or consolidation;
-The total space available in the school district is less than the amount needed to accommodate the growth of students;
-The high growth school district is not able to further restructure the delivery of education to use all available space without incurring additional debt; and
-The purpose of the loan to a high-growth school district is to assist the school district with building new academic facilities that, as a result of high growth, will cause the school district to incur indebtedness for academic facilities that exceeds the maximum expected millage.

For further information about the High-Growth Loan Program see Ark. Code Ann. 6-20-2511, the Arkansas Department of Education Rules Governing Loan and Bond Applications, and the Arkansas Commission for Public School Facilities and Transportation Rules Governing the Academic Facilities High-Growth School District Loan Program. Direct all questions concerning this list to Cindy Hedrick at 501-682-4484. For questions concerning the High Growth Facilities Loan Program, call Doug Eaton at (501) 682-4261.

Attachments:
    None

Back to the Customer List

Copyright 1997 Arkansas Department of Education. All rights reserved.
Department of Education Home Page