Bureau staff brief committee on Arkansas school funding: $6.6B in state/local revenue and $7,771 per‑student foundation figure for 2025

Bureau staff presented a detailed overview of Arkansas’s K–12 funding model, explaining revenue sources, foundation‑funding calculations and categorical and supplemental funds used to meet additional pupil needs.

Adrienne Beck (Bureau) recapped statutory requirements under the Continuing Adequacy Evaluation Act of 2004 and outlined national principles from NCSL and the Education Commission of the States. Katie Walden (BLR fiscal division) said state and local revenues for K–12 totaled about $6.6 billion in 2025, with approximately $3.1 billion from state sources and $3.0 billion from local sources. Walden reported a 2025 per‑student foundation funding amount of $7,771 and explained that the matrix translates staffing, benefits and school‑level resources for a prototypical 500‑student school into a per‑pupil amount.

The presenters described major dedicated funds: the Educational Excellence Trust Fund (an off‑the‑top transfer tied to a share of prior year sales and use tax collections) and the Educational Adequacy Fund (funded by a sales tax component established after the Lakeview decision). They also described the educational facilities partnership restricted reserve created in 2024 and a $292 million remaining balance in that set‑aside. Presenters noted categorical funding streams (ALE, English learner, ESA/professional development) and several supplemental funds (enhanced transportation, special‑education high‑cost reimbursements, teacher‑salary equalization, declining‑enrollment support and student growth funding).

Member questions focused on definitional and operational details. Representative Gonzales asked what "student support staff" in the matrix includes; BLR staff said there is no statutory definition for that line and they will provide follow‑up detail in tomorrow’s spending report. On special‑education high‑cost claims, staff said districts cover the first $15,000 per student and costs above that threshold typically generate claims to the high‑cost fund. Members requested a list of districts receiving teacher‑salary equalization funds and historical trends; BLR staff agreed to supply those lists and additional spending breakdowns.

Why it matters: The session clarified how Arkansas calculates foundation funding and uses categorical/supplemental mechanisms to address higher‑need students, and it identified several follow‑up items staff will provide (line‑item spending, definitions, district lists) to inform the adequacy study and potential legislative options.

Speakers quoted in this article include Adrienne Beck and Katie Walden (Bureau/BLR staff) and multiple legislators who requested follow‑up.