§ 6-20-2503 — Bonded debt assistance - Definitions

Arkansas § 6-20-2503

• Jurisdiction: Arkansas
• Title: 6

Text

(a) As used in this section: (1) "Eligible school district" means a school district that applied for bonded debt assistance under this section before July 1, 2005; (2) "Foundation funding" means an amount of money specified by the General Assembly for each school year to be expended by school districts for the provision of an adequate education for each student as that amount is established in § 6-20-2305 ; (3) "Miscellaneous funds" means the amount of miscellaneous funds, as defined in § 6-20-2303 , calculated under § 6-20-2308(a) ; (4) "Per-student revenue" means the sum of projected revenue from the uniform rate of tax and miscellaneous funds divided by the average daily membership for the school district for the previous school year; (5) "Projected revenue from the uniform rate of tax" means in each school year ninety-eight percent (98%) of the amount of revenue available in a school district solely from the levy of the uniform rate of tax; and (6) "State wealth index" means the result of one (1) minus the ratio derived by dividing per-student revenue by the difference between the per-student foundation funding amount under § 6-20-2305 and per-student revenue. (b) (1) In accordance with the requirements and limitations of this section, the state shall provide eligible school districts with financial assistance for the purpose of retiring outstanding bonded indebtedness in existence as of January 1, 2005. (2) The amount of financial assistance under this section is based on: (A) The total amount required to satisfy a school district's outstanding bonded indebtedness in existence as of January 1, 2005; (B) The annual amount due on a fiscal year basis from the school district in accordance with the principal and interest payment schedule in effect and on file with the Division of Elementary and Secondary Education on January 1, 2005, for the outstanding bonded indebtedness identified under subdivision (b)(2)(A) of this section; and (C) The calculation in subdivision (b)(3)(A) of this section. (3) (A) The Commission for Arkansas Public School Academic Facilities and Transportation shall determine the amount of bonded debt assistance for each eligible school district as follows: (i) (a) For the year that financial assistance under this section will be provided, ascertain the scheduled debt payment on a fiscal year basis from the principal and interest payment schedule in effect and on file with the Division of Elementary and Secondary Education on January 1, 2005, and reduce the amount of the payment by ten percent (10%) except as provided in subdivision (b)(3)(A)(i) (b) of this section. (b) (1) If a school district can demonstrate to the satisfaction of the commission that all or a portion of the ten-percent reduction in its scheduled debt payment under subdivision (b)(3)(A)(i) (a) of this section can be attributed to the support of academic facilities, the commission shall reverse all or a portion of the ten-percent reduction by a percentage proportionate to the amount attributable to academic facilities. (2) A school district that applied to the commission during the 2006-2007 school year for a reversal of the ten-percent reduction but was denied the reversal by the commission due to the failure of the school district to submit timely appeals shall be entitled to receive bonded debt assistance for the relevant period of the program beginning with the 2007-2008 school year in the amount approved by the Division of Public School Academic Facilities and Transportation; (ii) For the year that bonded debt assistance will be provided, divide the scheduled debt payment as adjusted under subdivision (b)(3)(A)(i) of this section 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 with the result multiplied by one thousand (1,000); (iii) (a) Multiply the calculation under subdivision (b)(3)(A)(ii) of this section by a funding factor per average daily membership that will distribute a total amount of bonded debt assistance no less than the total amount of funds that would have been distributed during fiscal year 2005 if every school district in the state had received an amount of bonded debt assistance equal to an amount calculated by applying the debt service funding supplement formula under the Supplemental School District Funding Act of 2003, § 6-20-2401 et seq. [repealed], during Fiscal Year 2005 with a funding factor of eighteen dollars and three cents ($18.03). (b) The funding factor for each fiscal year after Fiscal Year 2006 shall be equal to the funding factor derived for Fiscal Year 2006 under subdivision (b)(3)(A)(iii) (a) of this section; and (iv) Multiply the calculation under subdivision (b)(3)(A)(iii) of this section by the state wealth index. (B) As the amount of bonded debt assistance under this section decreases to correlate with reductions in principal and interest payments and increases in property assessments, the commission shall distribute any remaining funded bonded debt assistance appropriation through the Educational Facilities Partnership Fund Account in accordance with rules promulgated by the commission. (4) (A) The commission shall determine the amount of bonded debt assistance for each eligible school district no later than July 15 of each year. (B) (i) Bonded debt assistance under this subsection is payable to each eligible school district in two (2) installments. (ii) The commission shall arrange for the payment of the first installment by August 1 of each year and the second installment by February 1 of each year. (5) For tracking purposes, the school district shall account for the funds received as state bonded debt assistance under this section as restricted funds and shall account for the funds in accordance with provisions of law, including, without limitation, the Arkansas Educational Financial Accounting and Reporting Act of 2004, § 6-20-2201 et seq., and rules established by the commission. (c) (1) (A) Nothing in this section shall prohibit a school district from refunding bonds that were issued and outstanding as of January 1, 2005. (B) If a school district qualifies for bonded debt assistance under this section, the amount of bonded debt assistance under this section shall not be altered or reduced as a result of refunding the bonds that were issued and outstanding as of January 1, 2005, and the bonded debt assistance shall continue after the refunding based on the principal and interest payment schedule in effect and on file with the Division of Elementary and Secondary Education on January 1, 2005. (2) Nothing in this subsection shall prevent the annual adjustment of bonded debt assistance under this section in accordance with annual variations in the state wealth index and the school district's principal and interest payment schedule in effect and on file with the Division of Elementary and Secondary Education on January 1, 2005. (d) (1) The state shall not assume any debt of a school district or incur any obligation with regard to a school district's bonded indebtedness by providing the bonded debt assistance described in this section. (2) The school district receiving bonded debt assistance under this section is and will remain independently liable for all outstanding indebtedness. (e) [Repealed.] (f) [Repealed.] (g) Within thirty (30) days after the satisfaction of a school district's outstanding bonded indebtedness in existence as of January 1, 2005, the school district shall notify the Division of Elementary and Secondary Education that the school district's outstanding bonded indebtedness in existence as of January 1, 2005, has been satisfied, which shall include defeasance, but shall exclude refunding.

Legislative History

Amended by Act 2022, No. 111,§ 6, eff. 3/1/2022. Amended by Act 2019, No. 910,§ 1705, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 1704, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 1703, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 1702, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 1701, eff. 7/1/2019. Amended by Act 2017, No. 931,§ 2, eff. 8/1/2017. Amended by Act 2013EX1, No. 1,§ 2, eff. 7/1/2014. Amended by Act 2013EX1, No. 1,§ 1, eff. 7/1/2014. Amended by Act 2013, No. 322,§ 5, eff. 8/16/2013. Acts 2005, No. 2206, § 1; 2007, No. 989, §§ 3-5; 2007, No. 1573, § 33; 2009, No. 1479, § 1; 2011, No. 266, § 1.