To Amend Public School Funding Amounts Under The Public School Funding Act Of 2003.
Summary
HB1312 amends Arkansas’s Public School Funding Act of 2003 to update several per-student funding amounts for future school years and to adjust how some education dollars are delivered. The bill raises the foundation funding amount for the 2025-2026 school year and again for 2026-2027 and later years, while also revising funding levels for alternative learning environments, English learners, and Enhanced Student Achievement funding tied to national school lunch eligibility. It also modifies teacher salary equalization funding and the statewide target average annual teacher salary provisions, including a gradual reduction in equalization funding over time.
A major structural change in the bill is the treatment of the minimum employer contribution for the state-sponsored insurance program. For 2025-2026, the foundation funding amount includes $320 for that contribution, but for 2026-2027 and later the foundation amount excludes the contribution and instead directs the Department of Education to pay $333 directly to the Employee Benefits Division on behalf of school districts. The bill also updates the statutory funding formulas and amounts in Arkansas Code § 6-20-2305 to reflect these new figures and timelines.
Impact
HB1312 directly amends Arkansas Code § 6-20-2305, changing the statutory per-student foundation funding formula and several categorical funding amounts used to distribute state aid to public school districts. It affects district budgeting for general foundation aid, alternative learning environment services, English learner services, poverty-based enhanced achievement funding, and teacher salary equalization. It also shifts the handling of school employee health insurance contributions from an embedded amount in foundation funding to a direct state payment mechanism beginning in 2026-2027, which changes how districts receive and account for those dollars.
Sentiment
The bill appears to have broad legislative support. It passed the House 93-3 and the Senate 34-0, indicating strong bipartisan approval and little recorded opposition. The bill’s findings and intent section frames it as a continuation of the state’s education funding and teacher compensation commitments under the LEARNS Act and the adequacy review process, suggesting it was viewed as a technical and policy update to existing school finance formulas rather than a controversial overhaul.
Contention
The main policy issues embedded in the bill are how quickly to phase out teacher salary equalization funding and how to structure the employer insurance contribution for school districts. The bill’s stated intent is to gradually reduce equalization funding and redirect those dollars toward meeting minimum teacher compensation requirements, which could raise concerns for districts that have relied on that aid. Another point of interest is the shift from including the insurance contribution in foundation funding to paying it directly to the Employee Benefits Division, which changes cash flow and administrative responsibility for districts even if the underlying support remains in place. No committee transcript is available, and the recorded floor votes suggest any disagreement was limited.