AR Code § 6-20-601 (2020)
2020 Arkansas Code|Title 6 - Education|Subtitle 2 - Elementary and Secondary Education Generally|Chapter 20 - Finances|Subchapter 6 - Local School District Isolated Funding|§ 6-20-601. Qualifications for receiving isolated funding — Definition

 (a) As used in this section, “isolated school district” means a school district that meets any four (4) of the following five (5) criteria:  (1) There is a distance of twelve (12) miles or more by hard-surfaced highway from the high school of the district to the nearest adjacent high school in an adjoining district;  (2) The density ratio of transported students is less than three (3) students per square mile of area;  (3) The total area of the district is ninety-five square miles (95 sq. mi.) or greater;  (4) Less than fifty percent (50%) of bus route miles is on hard-surfaced roads; and  (5) There are geographic barriers such as lakes, rivers, and mountain ranges that would impede travel to schools that otherwise would be appropriate for consolidation, cooperative programs, and shared services.    (b) An isolated school district shall be eligible to receive isolated funding under this section if:  (1) The school district's budget is prepared by the school district with Division of Elementary and Secondary Education approval;  (2) The school district has a prior-year three-quarter average daily membership of fewer than three hundred fifty (350); and  (3) The school district and each school within the school district meets the minimum standards for accreditation of public schools prescribed by law and rule.    (c) Any school district designated as an isolated school district for the 1996-1997 fiscal year that used geographic barriers as one (1) of the four (4) criteria necessary to receive isolated funding shall be allowed to continue to use geographic barriers as a criterion for future allocations of isolated funding.  (d)  (1) State financial aid in the form of isolated funding shall be provided to school districts qualifying under this section.  (2) There are two (2) categories of isolated funding:  (A) Category I isolated funding shall be provided to all school districts that qualify under this section and shall be calculated as:  (i) Three hundred fifty (350) minus the prior-year three-quarter average daily membership; divided by  (ii) Eight hundred fifty (850); multiplied by  (iii) The prior-year three-quarter average daily membership; and multiplied by  (iv) The per-student foundation funding amount under § 6-20-2305(a)(2); and    (B) Category II isolated funding shall be additionally provided to those school districts that qualify under this section and have a prior-year three-quarter average daily membership density ratio of less than one and two-tenths (1.2) students per square mile and shall be calculated at fifty percent (50%) of Category I funding.    (3)  (A) An isolated school district whose per-student revenue exceeds the per-student foundation funding amount shall receive isolated funding calculated as follows:  (i) The sum of Category I plus Category II; minus  (ii) The per-student foundation funding amount; minus  (iii) The school district's per-student revenue; and multiplied by  (iv) The prior-year three-quarter average daily membership.    (B) As used in this subdivision (d)(3), “revenue” has the same meaning as defined in § 6-20-2303.      (e)  (1) Except as provided under subdivision (e)(2) of this section, a school district that qualifies under § 6-20-603 to receive additional state aid because its prior-year three-quarter average daily membership is less than three hundred fifty (350) is not eligible to receive funding under this section.  (2) A school district may elect to receive funding under this section in lieu of funding under § 6-20-603 if the school district qualifies for funding under § 6-20-603 and for funding under this section.