Opinion ID: 1756151
Heading Depth: 2
Heading Rank: 5

Heading: Other Deficiencies

Text: We adopt the Masters' Report as it pertains to findings of other deficiencies directly related to the constitutionality of Arkansas' school funding system and discuss those deficiencies seriatim: 1. Education needs were not funded first, as required by Act 108 of the Second Extraordinary Session of 2003. [5] Rather, foundation-funding aid, as well as categorical funding, were established based upon what funds were available  not by what was needed. In this regard, inflation and unfunded mandates listed in the Masters' Report were not specifically addressed by the General Assembly. It seems patently clear to this court that new funds may be necessary to meet some, if not all, of these unfunded mandates. 2. Facilities funding, by all appearances, falls short. Only one half of the needed state funds for the one-year Immediate Repair Program was appropriated (approximately $20 million versus the $40 million needed) to correct deficiencies in facilities that present an immediate hazard to health and safety. While we recognize that transitional funds are available for transfer to the Immediate Repair Program, no funds were appropriated for either the Immediate Repair Program or the Transitional Program for 2006-2007. Priority One facilities construction and repair for safe, dry, and healthy facilities identified by the Task Force on Educational Facilities showed a cost of $205,342,568, where total facilities funding for the current biennium is $120 million. Should the State delay in commencing Priority One construction and repairs, the ultimate cost in terms of deterioration and disrepair will be significant. The Masters went further and underscored that the facilities needs of certain school districts may never be met due to the requirements of the academic facilities wealth index formula which may negate a local partnership. 3. The amount of the State's foundation aid is based in part on local revenues. The uniform rate of taxation for local revenues is tied to the assessed value of real property within a school district. While actual collection of local revenues may be lower, state foundation aid will not increase. The result is that state foundation aid and local revenues for some school districts may leave school districts with less than $5,400 per student. Such a result runs directly counter to substantial equality and adequacy. 4. The General Assembly froze the categorical funding for 2005-2006 and 2006-2007 for Alternative Learning Environment and English Language Learners. In conjunction with this, because of changes in counting National School Lunch Act qualifying students and decreasing enrollments in some school districts with a high number of NSLA qualifying students, NSLA funding will be reduced. This has a direct impact on remedial and mentoring programs, literacy and math coaches, counselors, school nurses, teachers, and homework hotlines since NSLA funding has been used to support these programs. 5. The Masters found other examples of unintended consequences that further affect the economic stability and adequacy of school districts. They underscored that when a school district loses students, its foundation funding is decreased for the following year though salary costs and personnel costs remain unchanged and are ongoing for the following year. They further alluded to the seeming impossibility of solving the perpetual inequities of teacher salaries between poor and wealthy school districts.