Arkansas Department of Education Division of Elementary and Secondary Education School District Mid-Year State Aid Notice 2020-21

Memo Information

Memo Number
FIN-21-034
Memo Date
3/31/2021
Memo Type
Regulatory
Unit
Fiscal & Administrative Services
Regulatory Authority
Ark. Code Ann. ยงยง 6-5-301 et seq., 6-20-601 et seq., 6-20-2301 et seq., and 6-20-2501 et seq.
Response Required
NO
Attention
Superintendents; General Business Managers

Primary Contact Information

Secondary Contact/s Information

Memo Reference

No references available.

Memo Text

The second fiscal year 2020-21 state aid notice for school districts is posted on the Arkansas Division of Elementary and Secondary Education website at Division of Elementary and Secondary Education - Offices (arkansas.gov). Under State Aid Notices for School Districts, select State Aid Notice 2020-21 Preliminary (PDF) – March 25, 2021.  

For each listed funding category, the following information is provided: indication of the existence of an Arkansas Division of Elementary and Secondary Education Rule; the preliminary amount of state aid; the applicable statutory code or act; indication of the existence of expenditure restrictions; the revenue code; and the fund/source of fund code. The data section of the state aid notice provides much of the available data supporting the funding calculations. The funding section of the state aid notice provides funding amounts based on available data. Changes to data due to updates or corrections will be reflected in all associated funding categories. Please note the following when viewing the state aid notice: 

• All data supporting the funding calculations are subject to review. 

• Net revenues and 98% of URT X assessment less net revenues amounts are provided. 

• Miscellaneous funds are defined and are calculated as per Arkansas Code Annotated §§ 6-20-2303 (12), 6-20-2308, and 6-20-2503 (a) (3). Calendar year 2019 calculated miscellaneous funds and district total millage rate effective January 1, 2019, are used in the initial calculation of 2020-21 state foundation funding aid and in the calculation of 2020-21 bonded debt assistance. Calendar year 2020 calculated miscellaneous funds and district total millage rate effective January 1, 2020, are used to update the calculation of state foundation funding aid for fiscal year 2020-21.     

• The available average daily membership data reflects data submitted during the most recent submission cycle of the corresponding school year.

• Alternative learning environment funding is based on prior year full-time equivalent data. Contact Jared Hogue at 501-324-9660, Jared.Hogue@ade.arkansas.gov, or C.W. Gardenhire at 501-580-5660, C.W.Gardnenhire@ade.arkansas.gov, for further information.  

• English language learners funding is provided and is based on students identified in the current school year as not proficient in the English language. Contact Tricia Kerr at 479-267-7450, Tricia.Kerr@ade.arkansas.gov, for further information.

• District square miles as calculated by ArcGIS 10 software are provided and may affect eligibility for special needs isolated funding pursuant to Arkansas Code Annotated § 6-20-604 (c) and (d), and small district funding pursuant to Arkansas Code Annotated § 6-20-604 (f). School district density ratio is one of several determining factors for qualification for some funding categories pursuant to Arkansas Code Annotated § 6-20-604.

• The calculated portion of foundation funding that is educational excellence trust funds is provided. Changes to the total educational excellence trust fund available for distribution may result in revised educational excellence trust fund amounts. Refer to Arkansas Code Annotated § 6-5-307 and the Arkansas Division of Elementary and Secondary Education Rules Governing the School District Educational Excellence Trust Fund Effective January 1, 2020, for information regarding the determination of an increase in educational excellence trust funds allocated for teacher salaries.  

• Enhanced student achievement funding is based on October 1, 2019 national school lunch data. If applicable, the effect of enhanced student achievement transition and the amount of enhanced student achievement funding withholding pursuant to Ark. Code Ann. § 6-20-2305 (b) and (e) are provided. Refer to Commissioner’s Memo Number FIN-21-018, published 11/2/2020, for information on enhanced student achievement matching grant funds set aside for eligible school districts. Information regarding enhanced student achievement matching grant funds is not provided on this state aid notice.

• Declining enrollment funding, partial student growth funding, and isolated funding are provided on the state aid notice. Pursuant to state law, a district cannot receive both declining enrollment funding and either student growth or special needs (isolated/small district/transportation) funding. A district that is eligible to receive declining enrollment and student growth funding or declining enrollment and special needs (isolated/small district/transportation) funding will receive the category or categories that yield the most funding.

• As data becomes available, affected funding categories will be updated and provided on the final 2020-21 state aid notice, published in July 2021.

Arkansas Division of Elementary and Secondary Rules (categorized as current and pending) pertaining to state aid are found at Division of Elementary and Secondary Education - Offices (arkansas.gov). The following Rules are found under Current Rules:

School District Education Excellence Trust Funds (arkansas.gov)

Microsoft Word - dese_268_StudentSpecialNeedsFunding2020.docx (arkansas.gov)

Microsoft Word - FINAL-- Declining Enrollment.docx (arkansas.gov)

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.

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