Memo Text
Ark. Code Ann. § 6-21-304 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 2019 was 2.0%. Therefore, the purchasing threshold for bidding under Ark. Code Ann. § 6-21-304 will increase from $20,500 to $20,910 for the 2019-2020 school year.
See below for calculation:
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Purchasing threshold for bidding under Ark. Code. §6-21-304
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CPI – All Urban Consumers
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Percentage Change for the 12 month period ending April 2019
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2018-2019
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$20,500
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$250.546
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2.0%
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2019-2020
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$20,910
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$255.548
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2.0%
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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 2019 and the category CPI-U to see the 2.0% change for the 12 month period ending April 2019.
For more information on the CPI, go to the following website: https://www.bls.gov/cpi/.
If you cannot click on the above links, copy and paste the URLs into the Internet browser address bar.