Arkansas Code
Subchapter 4 - District Finances
§ 6-20-401. Definitions

As used in this subchapter:
(1) “Current indebtedness” means a debt obligation incurred by a school district for the purpose of paying maintenance or general operation expenses for the fiscal year in which the debt is incurred or for a purpose for which a postdated warrant, installment contract, or lease-purchase agreement may be issued;
(2) “Energy conservation measure” means any improvement, repair, alteration, or betterment of any new building design or any existing building or facility owned or operated by a school district or any equipment, fixture, or furnishing to be added to or used in any building or facility that is designed to reduce energy consumption or operating costs and may include, without limitation, one (1) or more of the following:
(A) Insulation of the building structure or systems within the building;
(B) Storm windows or doors, caulking or weather stripping, multi-glazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, additional glazing, reductions in glass area, or other window and door system modifications that reduce energy consumption;
(C) Automated or computerized energy control systems;
(D) Heating, ventilating, or air conditioning system modifications or replacements;
(E) Replacements or modifications of lighting fixtures to increase the energy efficiency of the lighting system;
(F) Indoor air quality improvements to increase air quality that conform to the applicable state or local building code requirements even in lieu of an increase in energy usage;
(G) Any additional building infrastructure improvements, cost savings, and life safety or other safety or conservation measures that provide long-term operating cost reductions and are in compliance with state and local codes; and
(H) Building operation programs that reduce operating costs;

(3)
(A) “Nonrevenue receipts of a school district” means those receipts which either incur an obligation which must be met at some future date or which change the form of an asset from property to cash.
(B) Specifically, they consist of the proceeds of a bond sale, payment of losses on an insurance policy, the receipts from the sale of property, etc.; and

(4) “Revenue receipts of a school district” means those receipts that do not result in increasing school indebtedness or in depleting school property. Specifically, revenue receipts of a school district for any fiscal year shall consist of the following funds:
(A) Net cash balance on hand at the beginning of the school fiscal year, July 1;
(B) The remaining net proceeds of local taxes collected in the calendar year in which the school fiscal year started;
(C)
(i) For the 2011-2012 school year, the proceeds of the local taxes collected by June 30 in the succeeding calendar year. If the amount collected is less than thirty-six percent (36%) of the proceeds of the local taxes that are not pledged to secure bonded indebtedness, the amount necessary to equal thirty-six percent (36%) may be accrued.
(ii) The percentage under subdivision (4)(C)(i) of this section shall be reduced by four percent (4%) each subsequent school year until it is zero (0), as follows:
(a) Thirty-two percent (32%) in the 2012-2013 school year;
(b) Twenty-eight percent (28%) in the 2013-2014 school year;
(c) Twenty-four percent (24%) in the 2014-2015 school year;
(d) Twenty percent (20%) in the 2015-2016 school year;
(e) Sixteen percent (16%) in the 2016-2017 school year;
(f) Twelve percent (12%) in the 2017-2018 school year;
(g) Eight percent (8%) in the 2018-2019 school year;
(h) Four percent (4%) in the 2019-2020 school year; and
(i) Zero percent (0%) in the 2020-2021 school year.

(iii) Declining balances attributed solely to a school district's compliance with the requirements of subdivision (4)(C)(ii) of this section shall not be considered an indicator of fiscal distress; and

(D) The net proceeds of all other funds accrued or placed to the credit of the district during the fiscal year from regular revenue sources, including without limitation state and federal funding.