ADE Director's Communication Memo Form


Memo Number : FIN-99-012

Date Created : 01/19/1999

Attention:

Superintendents
Co-op Directors

Type of Memo: Regulatory
Response Required: No
   
Section:   Public School Finance and Admin Support - Ms. Patricia Martin
Subject:
State Equalization & Trust Fund Aid

Regulatory Authority:
A.C.A. (97-98 Edition) Section(s) 6-5-3; 6-20-3; 6-20-601 and Acts 1300 & 1361 of 1997

Contact Person:
Vivian Roberts

Phone Number:
501-682-4486

E-mail:
vroberts@arkedu.k12.ar.us

Enclosed is your second State Aid Printout for 1998-99. All funding amounts are shown including Student Growth Funding (line 12) and Growth Facilities Funding (line 16).

Due to corrections in data for some school districts since June and the addition of $12.4 million to State Equalization Aid, the Base Local Revenue Per Student (line 5) is now $4,099.22, an increase of $26.55 per student. These changes consequently affect each category of funding on your printout.

A.C.A. 6-20-303 (28) requires that Student Growth Funding be provided to each school district not later than December 30. It also requires that Student Growth Funding be based on the increase in ADM for the first two quarters of the current year over the ADM of the previous year. Since the second quarter attendance is currently not available, Student Growth Funding is calculated using growth from the first quarter ADM. Seventy-five percent (75%) of this amount was paid in December. The balance will be paid in May based on growth from the two quarter ADM. Growth Facilities Funding is based on growth from the first quarter ADM and may require adjustments if errors are found in district's attendance figures.

Additional Base Funding and Incentive Funding are not reduced due to growth funds and growth ADM. Additional Base Funding and Incentive Funding are calculated using growth funds and growth ADM from the first quarter ADM. They will be recalculated in May to include growth funds and growth ADM from the two quarter ADM. The Minimum State and Local Revenue Per ADM (MSLRP) increased due to the addition of $12.4 million to State Equalization Aid. This caused a decline in Additional Base Funding. The MSLRP was held constant when growth funds and growth ADM were calculated in the formula. This was done to prevent non-growing districts from being adversely affected by the growth in the district at the 95th percentile.

The following is payment information on the various funding categories (*revised from June):

State Equalization Aid:
Paid monthly in 11 payments beginning in August and ending in June.

General Facilities:
Paid quarterly beginning in August. The final payment is in May.

Student Growth Funding:
75% paid in December based on the increase in ADM for the first quarter. Balance paid in May based on the increase in ADM for the first two quarters.

Isolated Aid:
75% paid in September. Balance paid in June.

Consolidation Aid:
100% paid in August.

Debt Service Supplemental Payment:
Paid quarterly beginning in August. The final payment is in May.

Growth Facilities:
75% paid in *March. Balance paid in June.

Additional Base Funding:
75% paid in March. Balance paid in June.

Incentive Funding:
75% paid in March. Balance paid in June.

Please refer to A.C.A. 6-5-307 (1997-98 Edition) for classroom teacher salary requirements pertaining to Educational Excellence Trust Fund funds. It is important to note that all amounts on the attached printout are as of January 14. Districts should expect revised printouts in May 1999. Separate funding announcements will be provided to districts who qualify for other programs within the Public School Fund.


Attachments:
    None

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