Arkansas K-12 Funding System Under Scrutiny in Latest BLR Report

In the third installment of a series analyzing Arkansas's K-12 funding system, the Bureau of Legislative Research (BLR) focuses on the state's biennial adequacy review process, emphasizing the funding formula rather than student achievement trends. The report critiques the current matrix, which is designed to allocate funds based on staffing assumptions but may not adequately support small districts in meeting state class-size accreditation standards. The BLR's analysis categorizes funding allocation into three main areas: school-level staffing, school-level resources, and district-level resources. It highlights disparities in spending, noting that districts with larger minority populations and higher poverty rates tend to allocate more per student for special education, while spending on supervisory aides and extra duty funds falls short of matrix assumptions. The report indicates that approximately $658 of the $7,413 per-student funding is designated for these categories. Additionally, the report references recommendations from education experts Odden and Picus, suggesting a shift to a transportation funding formula based on actual needs rather than a flat per-student rate. It also points out inconsistencies in funding patterns since the state facilities program's inception in 2005, with notable disparities in funding per student among districts with similar poverty rates. Finally, the BLR report reveals that expenditures outside the matrix reached $2.1 billion in the 2022-2023 fiscal year, with local revenues significantly contributing to facilities construction and bond payments, raising questions about the overall equity and effectiveness of the funding system.