Arkansas Administrative Code
Agency 005 - DEPARTMENT OF EDUCATION
Division 01 - Division of Fiscal and Administrative Services
Rule 005.01.13-001 - Rules Governing School District Education Excellence Trust Fund
Universal Citation: AR Admin Rules 005.01.13-001
Current through Register Vol. 49, No. 2, February 2024
1.00 PURPOSE
1.01 These rules shall be
known as Arkansas Department of Education Rules Governing the School District
Educational Excellence Trust Fund.
1.02 The purpose of these rules is to provide
the process and procedures necessary to calculate and allocate the Educational
Excellence Trust Fund available to school districts.
2.00 AUTHORITY
2.01 The Arkansas State Board of Education
promulgated these rules pursuant to the authority granted to it by Ark. Code
Ann. §§
6-11-105,
6-5-301 et
seq.,
6-20-2301 et seq.,
19-5-942,
and
25-15-201 et
seq., and Acts 1138 and 1278 of 2013.
3.00 DEFINITIONS
As used in these rules:
3.01 "Educational Excellence Trust Fund"
(Trust Fund) means a fund for the Arkansas Department of Education made
available to school districts for teacher salaries as provided for by Ark. Code
Ann. §
6-5-301 et
seq.
3.02 "State Foundation
Funding" means the same as the definition set forth in Ark. Code Ann. §
6-20-2303(21)
and is the amount of state financial aid provided to a school district under
Ark. Code Ann. §
6-20-2305(a).
4.00 CALCULATION
4.01 Divide the Arkansas Department of
Education total educational excellence trust fund available for distribution by
the state total distribution of state foundation funding to determine the
percentage of state foundation funding that is the educational excellence trust
fund.
4.02 Calculate each
district's educational excellence trust fund amount by multiplying the result
of Section 4.01 by each district's state foundation funding amount.
4.03 Changes to the total educational
excellence trust fund available for distribution or changes to the state
foundation funding amount in one or more school districts may result in revised
educational excellence trust fund amounts.
5.00 ALLOCATION
5.01 To determine if a "salary increase" is
required:
5.01.1 Compare the Trust Fund amount
shown on the final State Aid Notice for the current school year with the
highest Trust Fund amount since the establishment of the Trust Fund (1991-1992
school year).
5.01.2 If the current
school year Trust Fund amount is the highest amount on record since the
1991-1992 school year, subtract the previous highest amount from the current
school year amount. The district is obligated to pay this increase in Trust
Fund amount in the form of salaries, social security and retirement matching
for current licensed personnel positions.
5.01.3 To determine the amount of the
increase in Section 5.01.2 to allocate to salaries, social security (FICA), and
retirement matching, first determine the current year percentage of social
security (FICA) and retirement matching.
5.01.3.1 Using for example, 2012-2013 school
year, the social security rate of 7.65% and the retirement matching of 14.00%,
the amount of Trust Fund increase to be paid in salaries is the Trust Fund
increase less the 7.65% social security and the 14.00% retirement matching.
Divide the Trust Fund increase by 1.2165 (1+.0765+.14) to determine the salary
obligation.
Example: If Trust Fund increase to be paid in salaries is: $12,000
12,000/1.2165 = $9,864
FICA 7.65% = 755
RET 14.00% = 1,381
Total obligation: 12,000
5.01.3.2 The difference between the trust
fund increase and the calculated salary obligation should be exactly enough to
cover the Social Security (FICA) and the retirement obligations.
5.02 If the amount
obligated to be paid in salaries is less than the annual increase provided by
the district for experience or advanced hours or degrees, there is no
obligation to provide an additional salary increase or to change the salary
schedule as a result of the Trust Fund increase.
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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