2019 Arkansas Code
Title 6 - Education
Subtitle 2 - Elementary and Secondary Education Generally
Chapter 20 - Finances
Subchapter 25 - Arkansas Public School Academic Facilities Funding Act
§ 6-20-2514. Academic Facilities Extraordinary Circumstances Program
(a) The General Assembly finds that:
(1) In Lake View School District No. 25 v. Huckabee, 364 Ark. 398 (2005), the Supreme Court raised concerns that some school districts might not receive any state financial assistance with academic facilities projects because the districts might not have sufficient resources to qualify for state funds under this subchapter, which requires a local contribution based on the relative wealth of the district;
(2) During the 2006 hearings conducted by the House Committee on Education and Senate Committee on Education after the 2005 Supreme Court decision in the Lake View matter, no school district came forward to testify that the district will be unable to adequately repair, renovate, or construct school buildings;
(3) The contention in subdivision (a)(1) of this section, while not without merit as a theory, has not been substantiated. Therefore, the implementation and funding of a program to provide additional state financial assistance to school districts with limited resources is premature; and
(4) While implementation and funding may be premature, the development of a program to provide state financial assistance to eligible school districts that do not have sufficient means to contribute an amount of local resources necessary to qualify for state financial participation should be initiated immediately.
(b)
(1) The Commission for Arkansas Public School Academic Facilities and Transportation shall develop by rule the Academic Facilities Extraordinary Circumstances Program under which the Division of Public School Academic Facilities and Transportation shall provide state financial assistance to eligible school districts that do not have sufficient means to contribute an amount of local resources necessary to qualify for state financial participation under the Academic Facilities Partnership Program, § 6-20-2507, or the Academic Facilities Catastrophic Program, § 6-20-2508.
(2) At a minimum, eligibility criteria for the Academic Facilities Extraordinary Circumstances Program shall address:
(A) School districts with declining enrollment;
(B) School districts with rapid enrollment growth;
(C) School districts with insufficient bonding capacity;
(D) School districts with low assessed-property valuations;
(E) School districts at or above the ninety-fifth percentile on the academic facilities wealth index; and
(F) Any other circumstance deemed extraordinary by the division.
(3) At a minimum, the application process for the Academic Facilities Extraordinary Circumstances Program shall require a school district to provide the division with evidence of:
(A) The estimated cost of the project;
(B) The amount of local resources available to contribute to the project;
(C) The amount and availability of funds from school district fund balances;
(D) The amount and availability of other public or private assistance;
(E) Effort made by the school district and the local community to develop and provide local resources; and
(F) How state financial participation, if granted, will support the prudent and resourceful expenditure of state funds and will improve the school district's ability to deliver an adequate and equitable education to public school students in the district.
(c) The division shall report to the House Committee on Education and the Senate Committee on Education by October 15, 2015, on the development of the Academic Facilities Extraordinary Circumstances Program and shall obtain formal legislative approval before implementing the Academic Facilities Extraordinary Circumstances Program.
