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Lawmakers press education officials on wealth index, district reserves and millage practices
Summary
Committee members questioned department staff about whether district building-fund balances and excess debt-service millage should affect state partnership eligibility and whether millages properly sunset when bonds are paid off.
Lawmakers at the Senate Education Committee pressed Department of Education and facilities division staff on how district reserves and local millage practices affect eligibility for partnership funding and statewide equity.
Representative Lauer questioned why district building-fund balances were not factored into the facility wealth index calculation and said districts collectively hold large reserves. "Arkansas school districts are currently sitting on $1,400,000,000 in construction or building fund balance," he said, urging the division to consider those balances in funding decisions.
Division staff said they did not have a ready answer on whether and how building fund balances should alter wealth-index calculations and committed to following up with data. Tim Cain, Facilities and Transportation Director, and other staff acknowledged the concern and welcomed further review.
Committee members also pressed on excess debt-service millage and voter disclosure. Greg Rogers of the Department explained object codes for charter expenditures and said statutorily defined allowable uses include lease, purchase, renovation, repair, construction, installation, restoration, alteration, modification, operation and maintenance, which can encompass some maintenance salaries under operations codes.
On court supervision, a committee member asked whether the state remains under Lakeview supervision on facilities funding; Lori Frino of the Division of Elementary and Secondary Education clarified, "No, we are no longer under court supervision in the Lakeview case, but we still do have to provide adequate financing, which for the schools includes facilities."
