The third and final fiscal year 2020-21 state aid notice for school districts is posted on the Arkansas Division of Elementary and Secondary Education website at https://dese.ade.arkansas.gov/Offices/fiscal-and-administrative-services/publication-and-reports/state-aid-notices-for-school-districts. Under State Aid Notices for School Districts, select State Aid Notice 2020-21 Final (PDF) - July 14, 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 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 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 are 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 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 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. Recent changes to the total educational excellence trust fund available for distribution have resulted 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, student growth funding (includes Cycle 7 average daily membership updates), 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.

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 - Legal Services - Rules (arkansas.gov). The following Rules are found under Current Rules:

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

School District Education Excellence Trust Funds (arkansas.gov)

Misc Funds ADE 337 Final Oct 2014 (arkansas.gov)

Microsoft Word - dese_268_StudentSpecialNeedsFunding2020.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.