Arkansas Code
Subchapter 25 - Arkansas Public School Academic Facilities Funding Act
§ 6-20-2502. Definitions

As used in this subchapter:
(1)
(A) For fiscal years 2024-2025 and each year thereafter, “academic facilities wealth index” means a percentage derived from the following computations:
(i) Determine the value of one (1) mill per student in each school district as follows:
(a) Multiply the value of one (1) mill by the total assessed valuation of taxable real, personal, and utility property in the school district as shown by the applicable county assessment for the most recent year; and
(b) Divide the product from subdivision (1)(A)(i)(a) of this section by the largest average daily membership of a school district over the previous decade;

(ii)
(a) Calculate each school district's relative median income by dividing the household median income for the area served by each school district by the household median income of the school district with the highest household median income.
(b) The household median income used in subdivision (1)(A)(ii)(a) of this section shall be the household median income as estimated by the United States Bureau of the Census's American Community Survey;

(iii) Calculate the median income per mill value by multiplying each school district's value of one (1) mill per student as calculated under subdivision (1)(A)(i) of this section by the school district's relative median income as calculated under subdivision (1)(A)(ii)(a) of this section; and
(iv) Identify the school district at the ninety-fifth percentile according to the value calculated under subdivision (1)(A)(iii) of this section by:
(a) Determining student millage rankings by listing the median income per mill value under subdivision (1)(A)(iii) of this section for each school district from districts with the lowest median income per mill value to school districts with the highest median income per mill value;
(b) Allocating the student millage rankings into percentiles with the first percentile containing the one percent (1%) of students based on the prior year average daily membership with the lowest value per mill and the one-hundredth percentile containing the one percent (1%) of students with the highest value per mill;
(c) Dividing the median income per mill value as computed under subdivision (1)(A)(iii) of this section by the amount corresponding to the ninety-fifth percentile of the student millage rankings under subdivision (1)(A)(iv)(b) of this section; and
(d) Every school district with a wealth index of one (1.00) or greater will be funded at the same level as the first school district with a wealth index below one (1.00), except that funding under this subdivision (1)(A)(iv)(d) shall not exceed the amount of funding provided to a school district with a wealth index of nine hundred ninety-five thousandths (0.995).

(B) For fiscal years 2022-2023, “academic facilities wealth index” means a percentage derived from the following computations:
(i) Determine the value of one (1) mill per student in each school district as follows:
(a) Multiply the value of one (1) mill by the total assessed valuation of taxable real, personal, and utility property in the school district as shown by the applicable county assessment for the most recent year; and
(b) Divide the product from subdivision (1)(B)(i)(a) of this section by the prior year average daily membership of the school district or the prior three-year average of the school district's average daily membership, whichever is greater;

(ii) Determine student millage rankings by listing the computation under subdivision (1)(B)(i) of this section for each school district from school districts with the lowest value per mill to school districts with the highest value per mill;
(iii) Allocate the student millage rankings into percentiles with the first percentile containing the one percent (1%) of students with the lowest value per mill and the one-hundredth percentile containing the one percent (1%) of students with the highest value per mill;
(iv) Divide the value of one (1) mill per student in each school district as computed under subdivision (1)(B)(i) of this section by the amount corresponding to the ninety-fifth percentile of the student millage rankings under subdivision (1)(B)(iii) of this section;
(v) Every school district with a wealth index of one (1.00) or greater will be funded at the same level as the first school district with a wealth index below one (1.00), except that funding under this subdivision (1)(B)(v) shall not exceed the amount of funding provided to a school district with a wealth index of nine hundred ninety-five thousandths (0.995);
(vi) Subtract the academic facilities wealth index as determined under subdivisions (1)(B)(iv) and (v) of this section from the academic facilities wealth index as determined under subdivision (1)(A)(iv) of this section;
(vii) Divide the result from subdivision (1)(B)(vi) of this section by two (2); and
(viii) Add the value from subdivision (1)(B)(iv) of this section with the number calculated in subdivision (1)(B)(vii) of this section.

(C)
(i) The percentage derived from the computation under subdivision (1)(A)(iv) of this section is the academic facilities wealth index for a school district, which shall be computed annually and used to determine the amount of the school district's share of financial participation in a local academic facilities project eligible for state financial participation under priorities established by the Division of Public School Academic Facilities and Transportation.
(ii) The state's share of financial participation in a local academic facilities project eligible for state financial participation under priorities established by the division is the percentage derived from subtracting the school district's percentage share of financial participation determined under subdivision (1)(C)(i) of this section from one hundred percent (100%).

(D) A school district identified as a high-growth school district as defined in § 6-20-2511 shall receive the lesser of the wealth index as calculated under the formulas under subdivisions (1)(A) and (B) of this section until the school district fails to meet the definition of a high-growth school district as defined in § 6-20-2511 for two (2) consecutive years;

(2)
(A) “Academic facility” means a building or space, including related areas such as the physical plant and grounds, where students receive instruction that is an integral part of an adequate education as described in § 6-20-2302.
(B)
(i) A public school building or space, including related areas such as the physical plant and grounds, used for an extracurricular activity or an organized physical activity course as defined in § 6-16-137 shall not be considered an academic facility for the purposes of this subchapter to the extent that the building, space, or related area is used for extracurricular activities or organized physical activities courses, except for physical educational training and instruction under § 6-16-132.
(ii) The division shall determine the extent to which a building, space, or related area is used for extracurricular activities or organized physical activities courses based on information supplied by the school district and, if necessary, on-site inspection.
(iii) A leased facility shall not be considered an academic facility for the purpose of this subchapter.

(C) Buildings or spaces, including related areas such as the physical plant and grounds, used for prekindergarten education shall not be considered academic facilities for purposes of this subchapter.
(D) District administration buildings and spaces, including related areas such as the physical plant and grounds, shall not be considered academic facilities for the purposes of this subchapter;

(3)
(A) “Average daily membership” means the total number of days of school attended plus the total number of days absent by students in kindergarten through grade twelve (K-12) during the first three (3) quarters of each school year divided by the number of school days actually taught in the school district during that period of time rounded up to the nearest hundredth.
(B) As applied to this subchapter, students who may be counted for average daily membership are:
(i) Students who reside within the boundaries of the school district and who are enrolled in a public school operated by the school district;
(ii) Legally transferred students living outside the school district but attending a public school in the school district; and
(iii) Students who are eligible to attend and reside within the boundaries of a school district and who are enrolled in the Arkansas National Guard Youth Challenge Program, so long as the students are participants in the program;

(4) “Building” means a structure used or intended for supporting or sheltering any use or occupancy;
(5) “Facility condition index” means a methodology established by the division for comparing the cost of repairing the condition of a public school academic facility to the cost of replacing the public school academic facility with a public school academic facility containing the same amount of square footage;
(6) “Immediate repair project” means a project involving a public school academic facility that is necessary to resolve a deficiency that presents an immediate hazard to:
(A) The health or safety of students, teachers, administrators, or staff;
(B) The integrity of the public school academic facility with regard to meeting minimum health and safety standards; or
(C) The extraordinary deterioration of the public school academic facility;

(7) “Local enhancements” means the portion of any maintenance, repair, or renovation project or new construction project that is designed to bring an academic facility or related areas such as the physical plant or grounds to a state of condition or efficiency that exceeds state academic facilities standards;
(8) “Local resources” means any moneys lawfully generated by a school district for the purpose of funding the school district's share of financial participation in any academic facilities project for which a school district is eligible to receive state financial participation under priorities established by the division;
(9) “Maintenance, repair, and renovation” means any activity or improvement to an academic facility and, if necessary, related areas such as the physical plant and grounds, that maintains, conserves, or protects the state of condition or efficiency of the academic facility;
(10) “Millage rate” means the millage rate listed in the most recent tax ordinance approved by the county quorum court under the authority of § 14-14-904;
(11)
(A) “New construction” means any improvement to an academic facility and, if necessary, related areas such as the physical plant and grounds, that brings the state of condition or efficiency of the academic facility to a state of condition or efficiency better than the academic facility's current condition of completeness or efficiency.
(B) “New construction” includes additions to existing academic facilities and new academic facilities;

(12) “Project” means an undertaking in which a school district engages in:
(A) Maintenance, repair, and renovation activities with regard to an academic facility;
(B) New construction of an academic facility; or
(C) Any combination of maintenance, repair, and renovation and new construction activities with regard to an academic facility; and

(13) “Space utilization” means the number of gross square feet per student in a public school academic facility adjusted for academic program, school enrollment, grade configuration, and type of public school in accordance with rules promulgated by the Commission for Arkansas Public School Academic Facilities and Transportation.