Opinion ID: 2276904
Heading Depth: 1
Heading Rank: 3

Heading: Whether the State Constructively Retained and Misapplied Educational Excellence Trust Funds

Text: Appellants make a similar argument with respect to the Educational Excellence Trust Fund (EETF). Under section 6-5-308, the funds from general revenues allocated and accruing to the EETF were to supplement, not supplant, funding for public education in this case. Appellants assert that the State constructively retained funds from the EETF because, as the EETF grows, the funding to public schools either remains static, actually declines, or does not keep pace with the growth in EETF. Appellees respond that EETF is a revenue source to fund the Public School Fund, and it does not replace the Public School Fund, but provides an additional source of revenue for that fund. The State alleges that there is no restriction on the General Assembly's ability to allocate this revenue source that it has created, and Appellants cannot have this court take over that role of the General Assembly and direct how state revenue is to be allocated. The EEFT was established in 1991 by Act 10, as amended, and is currently codified at Ark.Code Ann. §§ 6-5-301 et seq. (Repl.2007). Arkansas Code Annotated § 6-5-302 provides that a portion of specified general revenues is to be used to contribute to certain education accounts. [3] Ark.Code Ann. § 6-5-302 (Repl.2007). Section 6-5-308 is entitled Legislative intentSupplemental funding for public education and states, It is the intent of this subchapter to supplement, not to supplant, funding for public education in this state. Nothing herein shall be construed to reduce that portion of general revenue or growth revenues which would otherwise accrue to the Public School Fund. The moneys provided by this subchapter are intended to be in addition to those anticipated to be provided to fund public education for the children of this state at the same historical proportionate levels. Ark.Code Ann. § 6-5-308 (Repl.2007). Appellants contend that public school funding has been reduced after the establishment of the EETF and the State is using EETF proceeds to meet the funding levels for an `adequate' education to supplant state funds, but not to supplement that level. Appellants assert that, while state revenues increased from 1991 to 2006, the Public School Fund represented 49.79% of total state revenues in 1991; whereas, in 2006, the Public School Fund, excluding EETF proceeds, represented 44.05% of total state revenue. Appellees respond that the General Assembly appropriates state funds to the Public School Fund based not on available revenue, but on educational need as determined by the biennial studies performed pursuant to Act 57, codified at Ark.Code Ann. §§ 10-3-2101 to -2104. We agree. This court has expressly rejected a school-funding system that looks primarily to the resources available instead of need. See Lake View 2002, 351 Ark. 31, 91 S.W.3d 472; Ark.Code Ann. § 6-20-2305. Appellants have not shown how the State is using EETF funds to supplant its foundation-funding aid contribution to reach the amount per student established pursuant to section 6-20-2305. Thus, Appellants' illegal-exaction claim based upon the misapplication of EETF proceeds is without merit. We agree with the circuit court that the Appellees are entitled to judgment as a matter of law. Because we affirm the circuit court's grant of summary judgment in favor of Appellees, we need not consider the affirmative defenses raised by Appellees. Affirmed. Special Justice GARY B. ROGERS, joins. WILLS, J., not participating.