Memo Text
Ark. Code Ann. § 6-21-304, as amended by Act 1124 of 2017, requires the Commissioner of Education to adjust the purchasing threshold for bidding amounts under Ark. Code Ann. § 6-21-304(a)(1)(A) by the percentage change in the Consumer Price Index (CPI) for All Urban Consumers or its successor. This adjustment shall be done by July 1 of each year.
The increase in the CPI for this category during the 12 month period ending April 2018 was 2.5%. Therefore, the purchasing threshold for bidding under Ark. Code Ann. § 6-21-304 will increase from $20,000 to $20,500 for the 2018-2019 school year.
See below for calculation:
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Purchasing threshold for bidding under Ark. Code Ann. § 6-21-304
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CPI - All Urban Consumers
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Percentage Change for the 12 month period ending April 2018
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2017-2018
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$20,000
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$244.524
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2.5%
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2018-2019
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$20,500
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$250.546
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2.5%
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While the legislation does not provide a specific source for the CPI data, the Arkansas Department of Education (ADE) recognizes the Bureau of Labor Statistics' as a valid source of CPI data.
The CPI data used for the percentage increase calculation is found at https://www.bls.gov/cpi/tables/supplemental-files/home.htm. Choose April 2018 and the category CPI-U to see the 2.5% change for the 12 month period ending April 2018.
For more information on the CPI, go to the following website: http://www.bls.gov/cpi/cpifaq.htm.
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