The purpose of this memo is to provide details of the funding change resulting from the implementation of Act 1450 of 2009. Act 1450 states, “For the 2008-2009 school year, miscellaneous funds used to calculate the state foundation funding aid for a school district will be the same as those used to calculate the state foundation funding aid for the school district for the 2007-2008 school year.” The miscellaneous funds data required by Act 1450 is shown on the July 31, 2008, state aid notice. This spreadsheet details the effect of Act 1450 on miscellaneous funds, state foundation funding aid, and on the educational excellence trust funds. The change is not applicable to calculations of state foundation funding aid beyond the 2008-2009 school year.
Act 1450 does not require a change to the miscellaneous funds used in the calculation of bonded debt assistance for the 2008-2009 school year. Therefore, the final state aid notice will reflect two amounts for miscellaneous funds and two amounts for local revenue per student. The state wealth index will not change as a result of Act 1450. It is used in the calculation of bonded debt assistance, but not in the calculation of state foundation funding aid. The attached spreadsheet provides both sets of miscellaneous funds data. The column titled “Per Act 1450 5-Yr Avg Misc Funds FY03 to FY07” was used in the calculation of state foundation funding aid for the 2008-2009 school year. The column titled “Prior to Act 1450 5-Yr Avg Misc Funds FY04 to FY08” was used in the calculation of bonded debt assistance funding for the 2008-2009 school year.
The change to foundation funding as a result of Act 1450 will be reflected in the May and June foundation funding disbursements. Questions related to this memo may be directed to Cindy Hedrick at 501-682-4484 or Vivian Roberts at 501-682-4486.