M&O Expenditure

Ark. Code Ann.§ 6-21-808(d)(1), concerning the annual expenditure requirement for utilities and facilities maintenance, requires school districts to dedicate nine percent (9%) of Foundation Funding exclusively to payment of utilities and costs of custodial, maintenance, repair, and renovation activities, which include related personnel costs, for public school facilities.  

The following definitions are included in Ark. Code Ann. § 6-21-803:

(4) Custodial Activities means routine and renovation cleaning activities related to the daily operations and upkeep of a public school facility, including related supervisory and management activities.

(10) Maintenance, Repair, and Renovation means any activity or improvement to a public school facility that maintains, conserves, or protects the state, condition, or efficiency of the public school facility.

(13) Public School Facility means any public school building or space, including related areas such as the physical plant and grounds that is used for any purpose, including, without limitation:

(A) An extracurricular activity;

(B) An organized physical activity course as defined in Ark. Code Ann. § 6-16-137;

(C) Pre-kindergarten education;

(D) District administration; or

(E) Delivery of instruction to public school students that is an integral part of an adequate education as described in Ark. Code Ann.§ 6-20-2302.

The expenditure requirement is based on nine percent (9%) of Foundation Funding.  For 2023-2024 Foundation Funding is equal to $7,618 multiplied by the 3 Quarter Average Daily Membership (ADM) for 2022-2023.  Foundation Funding for 2024-2025 will increase to $7,771.

School districts should code expenditures eligible to meet the nine percent (9%) requirement as follows:  Fund = 2000 or 2100-2199, 65300 through 69999.  This will include all Operating Fund expenditures charged to Operating and Maintenance of Plant Services in the "General Operating Fund" except for " Insurance Other than Employee Benefits".

If any amount of the dedicated nine percent (9%) is unspent at the end of the school district's fiscal year, the funds shall carry over, and the school district must transfer the remaining amount into a public school facilities escrow account.  Fund Source of Fund code 2391 shall be used for this escrow account.  The funds in escrow may be used in any fiscal year for payment of utilities and costs of custodial, maintenance, repair, and renovation activities, which include related personnel costs, for public school facilities.

If a school district wants to use funds from its public school facilities escrow account for new construction, the school district shall apply to the Division of Public School Academic Facilities and Transportation for approval.

An updated spreadsheet, that shows each district's 2023-24 spending requirement for M&O based on the Foundation Funding amount of $7,618 can be found on APSCN - District Warehouse Page. titled "M&O 9% Required Expenditure YTD with NBC Bonus." 

Gifted and Talented

Pursuant to Ark. Code Ann. § 6-20-2208(c)(6), school districts are required to expend state and local revenues on Gifted and Talented Programs in an amount equal to fifteen percent (15%) of the Foundation Funding amount multiplied by five percent (5%) of the school district's prior year three quarter average daily membership (3 QTR ADM).

An updated spreadsheet, that shows each district's 2023-24 spending requirement for Gifted and Talented Programs based on the Foundation Funding amount of $7,618 can be found on APSCN - District Warehouse Page titled "Gifted/Talented Expenditure Required Summary YTD With NBC Bonus."