ADE Director's Communication Memo Form

Memo Number : FIN-10-067

Date Created : 02/26/2010


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 Mid-Year

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 second 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 February 26, 2010.

For each listed funding category, 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. Changes to data due to updates or corrections are likely and will result in changes to all associated 2009-10 estimated funding categories. Districts will be notified of any changes on subsequent state aid notices.

• The portion of state foundation funding aid that is educational excellence trust funds (EETF) reflects a change in the revenue forecast for EETF since the July 31, 2009, state aid notice.

• Alternative learning environment funding is based on prior year full-time equivalent (FTE) data.

• English language learners' funding is based on students identified in the current year as not proficient in the English language.

• National school lunch act (NSLA) funding is based on October 1, 2008, enrollment data. The effect of NSLA transition is included.

• Bonded debt assistance is revised to reflect a change in the method of calculating miscellaneous funds. 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. On 1/11/10, the legislative rules committee reviewed the miscellaneous funds rule showing the foundation funding method of calculation will be used for both foundation funding and bonded debt assistance.

• In addition to declining enrollment funding, quarter one and estimates of quarters two, three, and four of student growth funding are provided. The final determination of FY10 student growth funding will be made in FY11 pursuant to Ark. Code Ann. § 6-20-2305 as amended by Act 1501 of 2009. Preliminary calculated amounts of isolated funding pursuant to Ark. Code Ann. § 6-20-603 are provided. Isolated funding amounts pursuant to Ark. Code Ann. § 6-20-601 and § 6-20-604 will be provided on the next state aid notice. Pursuant to state law, a district cannot receive both declining enrollment funding (with the exception of adequacy funding of both isolated special needs and declining enrollment) and either student growth or isolated special needs. A district that is eligible to receive declining enrollment and student growth or declining enrollment and isolated special needs, will receive the category that yields the most funding. A preliminary comparison of declining enrollment funding to estimated student growth funding and/or isolated special needs funding has been made and is reflected on this state aid notice.

Sufficient data is not currently available to finalize the calculation of the 98% of URT less actual URT collections and some of the calculations of isolated and isolated special needs funding. As data becomes available, the associated funding amounts will be reflected on the next state aid notice. Please note that since student growth funding is based on an estimate of quarters two, three, and four, the final comparison of declining enrollment to student growth and isolated special needs funding cannot be made until FY 11.

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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