ADE Director's Communication Memo Form

Memo Number : FIN-10-005

Date Created : 07/30/2009


Co-op Directors
other: General Business Managers

Type of Memo: Regulatory
Response Required: Optional
Section:   Fiscal and Administrative Services - William J. Goff, Assistant Commissioner
State Aid Notice 2009-10

Regulatory Authority:
A.C.A. §§ 6-5-301 et seq., 6-20-601 et seq., 6-20-2301 et seq. and 6-20-2501 et seq.

Contact Person:
Vivian Roberts

Phone Number:


The 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 811, 1186, 1397, 1421, 1469, 1474 and 1501 of the Regular Session of 2009.

The first state aid notice for fiscal year 2009-2010 will be posted to the Arkansas Department of Education (ADE) web site Scroll down to State Aid Notices. Select State Aid Notice 2009-10 Preliminary - PDF July 31, 2009.

For each listed funding category on the state aid notice, the following information is provided: indication of the existence of an ADE Rule; the estimated amount of state aid; the applicable statutory code; indication of the existence of expenditure restrictions; the Revenue Code; and the Source of Fund Code. The DATA section of the state aid notice provides most of the data supporting the funding calculations. The FUNDING section of the state aid notice provides preliminary funding estimates based on available data. Changes to data due to updates or corrections are likely and will result in changes to all associated 2009-2010 estimated funding categories. Districts will be notified of changes to subsequent state aid notices.

• Two miscellaneous funds amounts and two corresponding local revenue per student amounts are shown on the state aid notice. Act 1469 of 2009, Section 15, defines miscellaneous funds used in the calculation of state foundation funding aid, in part, as the average of the miscellaneous funds collected in the five years immediately preceding the previous year, multiplied by the ratio of the uniform rate of tax to the school district’s total millage rate. Ark.Code Ann. § 6-20-2503(a)(3) defines miscellaneous funds used in the calculation of bonded debt assistance as the average miscellaneous funds collected in the previous five years. Since the immediate previous year data of miscellaneous funds is not yet available, an estimate using the average miscellaneous funds in the five years immediately preceding the previous year is currently used in the calculation of bonded debt assistance. This average of miscellaneous funds will be updated when the FY 09 miscellaneous funds data is available.

• Prior year three-quarter Average Daily Membership (ADM) is subject to review.

• The portion of State Foundation Funding Aid that is Educational Excellence Trust Funds (EETF) is preliminary at this time. An increase in the revenue forecast for EETF is expected and should be reflected on the mid-year state aid notice.

• Alternative Learning Environment Funding is based on prior year full-time equivalent (FTE) data and is subject to review.

• National School Lunch Act (NSLA) Funding is based on October 1, 2008, enrollment data and is subject to review. The effect of NSLA transition is provided, if applicable.

• The Professional Development Funding Rate will be updated following the receipt of the July 30, 2009, enrollment data of new open-enrollment charter schools which, in part, is used to determine this rate.

• The calculated amount of Declining Enrollment Funding is provided on the state aid notice. However, isolated special needs funding and student growth funding have not yet been calculated. Pursuant to state law, a district cannot receive both declining enrollment funding (with the exception of adequacy funding of isolated special needs and declining enrollment) and either student growth or isolated special needs. A district that is eligible to receive both declining enrollment and student growth; or declining enrollment and isolated special needs; or declining enrollment and student growth and isolated special needs, will receive the category or categories yielding the most funding.

Sufficient data is not currently available for the calculation of English Language Learners (ELL), Isolated (Regular, Special Needs, Special Needs Transportation and Adequacy), Declining Enrollment Adequacy, Student Growth, and 98% of URT less Actual URT Collections funding categories. As data becomes available, the associated funding amounts will be reflected on the next state aid notice.

Arkansas Department of Education Rules pertaining to state aid may be found at by selecting Current Rules. Updates to existing current rules are expected as a result of changes in law from the 2009 Legislative Session. Currently, the following rules can be found on the list of Current Rules: Academic Facilities Bonded Debt Assistance - PDF November 2005; 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 July 11, 2005; Special Needs Funding and the Determination of Allowable Expenditures of Those Funds - PDF Nov. 13, 2006.

Please review the state aid notice carefully. A comparison of the most recent state aid notice to prior state aid notices may prove helpful in detecting errors and variances. Questions may be directed to Vivian Roberts at 501-682-4486.


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