Stricken language would be deleted from and underlined language would be added to present law. *TNL202* 02/20/2025 9:29:56 AM TNL202 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 1539 3 4 By: Representatives A. Collins, D. Garner, Gonzales Worthen, McCullough, Springer 5 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE PUBLIC SCHOOL FUNDING ACT OF 9 2003; TO ADD AN ADDITIONAL EDUCATION CATEGORY OF 10 FUNDING FOR SPECIAL EDUCATION; AND FOR OTHER 11 PURPOSES. 12 13 14 Subtitle 15 TO AMEND THE PUBLIC SCHOOL FUNDING ACT 16 OF 2003; AND TO ADD AN ADDITIONAL 17 EDUCATION CATEGORY OF FUNDING FOR 18 SPECIAL EDUCATION. 19 20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 21 22 SECTION 1. DO NOT CODIFY. Legislative findings and intent. 23 The General Assembly finds that: 24 (1) Under the Arkansas Constitution, the General Assembly must 25 provide funding for an adequate and equitable education for every child in 26 the State of Arkansas; 27 (2) To provide an adequate and equitable education for every 28 child in the state, the General Assembly should adopt the recommendations 29 presented by the House Committee on Education and Senate Committee on 30 Education in the 2024 Educational Adequacy Study final report for funding 31 public schools in the upcoming biennium, except in the areas of special 32 education, staff pay, and mental health; 33 (3) Special education funding should be increased and moved from 34 foundation funding to categorical funding; 35 (4) Special education is underfunded by the state according to 36 HB1539 2 02/20/2025 9:29:56 AM TNL202 the 2024 Educational Adequacy Study, with seventy -two percent (72%) of 1 superintendents reporting that their school districts are in moderate or 2 extreme need of more funding for special education teachers; 3 (5) Special education funds are currently allocated by the 4 number of students in a school district rather than the number of students 5 with special needs in a school district, leading to a mismatch of funds; 6 (6) Special education funds are part of foundation funding, 7 meaning they do not currently have to be spent on special education, but if 8 they were categorical funds, they would have to be spent on only special 9 education; 10 (7) Public school classified staff members should get a real 11 raise; 12 (8) Public school classified staff members are vital members of 13 a learning community and are often underpaid; 14 (9) Inadequate pay for public school classified staff members 15 negatively impacts a public school district's ability to recruit and retain 16 quality public school classified staff members, which negatively impacts the 17 student experience, school morale, and educational outcomes; 18 (10)(A) In 2023, the General Assembly approved foundation 19 funding, including what the biennial matrix called a “$2 salary increase”, 20 for public school classified staff members. 21 (B) Despite approving a salary increase, there was enough 22 money allocated for only five and four -tenths (5.4) full-time equivalent 23 classified staff members per five hundred (500) students, whereas there are 24 actually twenty-nine and eight-tenths (29.8) full-time equivalent public 25 school classified staff members per five hundred (500) students in Arkansas 26 public schools, meaning that the “$2 salary increase” was only a 30 cents 27 (30¢) per hour raise when spread among all full -time public school equivalent 28 classified staff members; 29 (11) The state should not only deliver on its previous promise 30 of funding a two dollars ($2.00) per hour raise for public school classified 31 staff members, but should catch up with inflation and deliver a four dollars 32 ($4.00) per hour raise for public school classified staff members, ensuring 33 that the funding is there to pay every public school classified staff member 34 at least fifteen dollars ($15.00) per hour; 35 (12) Funding should be added for more counselors and social 36 HB1539 3 02/20/2025 9:29:56 AM TNL202 workers in public schools; 1 (13) Mental health is a statewide crisis, especially among 2 youth; 3 (14) Public school counselors perform many functions that 4 directly and indirectly impact youth mental health, but due to limited public 5 school district funds and a statewide counselor shortage, public school 6 counselors are often overworked and asked to perform functions outside their 7 intended responsibilities; and 8 (15) The state should provide sufficient funding for either two 9 (2) counselors per five hundred (500) students or one (1) counselor and one 10 (1) social worker per five hundred (500) students to improve counselor 11 working conditions and student outcomes. 12 13 SECTION 2. Arkansas Code § 6 -20-2305(a)(2), concerning per -student 14 foundation funding amounts under the Public School Funding Act of 2003, is 15 amended to read as follows: 16 (2)(A) For the 2023-2024 2025-2026 school year, the foundation 17 funding amount is equal to seven thousand six hundred eighteen dollars 18 ($7,618) eight thousand one hundred sixty -five dollars ($8,165) multiplied by 19 the school district's average daily membership for the previous school year. 20 (B) For the 2024-2025 2026-2027 school year and each 21 school year thereafter, the foundation funding amount is equal to seven 22 thousand seven hundred seventy -one dollars ($7,771) eight thousand three 23 hundred sixty-one dollars ($8,361) multiplied by the school district's 24 average daily membership for the previous school year. 25 26 SECTION 3. Arkansas Code § 6 -20-2305(b)(2)(A), concernign alternative 27 learning environment funding under the Public School Funding Act of 2003, is 28 amended to read as follows: 29 (2)(A)(i) For the 2023-2024 2025-2026 school year, alternative 30 learning environment funding shall be four thousand nine hundred eighty -seven 31 dollars ($4,987) five thousand two hundred twelve dollars ($5,212) multiplied 32 by the number of identified alternative learning environment students 33 enrolled during the previous school year. 34 (ii) For the 2024-2025 2026-2027 school year, 35 alternative learning environment funding shall be five thousand eighty -six 36 HB1539 4 02/20/2025 9:29:56 AM TNL202 dollars ($5,086) five thousand three hundred forty -one dollars ($5,341) 1 multiplied by the number of identified alternative learning environment 2 students enrolled during the previous school year. 3 (iii) Funding for students in alternative learning 4 environments shall be distributed based on rules promulgated by the State 5 Board of Education. 6 7 SECTION 4. Arkansas Code § 6 -20-2305(b)(3), concerning funding for 8 English learners under the Public School Funding Act of 2003, is amended to 9 read as follows: 10 (3)(A) For the 2023-2024 2025-2026 school year, funding for 11 students who are identified as English learners shall be three hundred sixty-12 six dollars ($366) three hundred seventy -five dollars ($375) for each 13 identified English learner. 14 (B) Funding for English learners shall be distributed to 15 public school districts for students who have been identified as not 16 proficient in the English language based upon a state -approved English 17 proficiency assessment instrument. 18 (C) Funds allocated for English learners to public school 19 districts under this subchapter shall be expended only for eligible 20 activities as identified in current rules promulgated by the State Board of 21 Education and are a supplement to funding for national school lunch students 22 provided in subdivision (b)(4) of this section. 23 (D) For the 2024-2025 2026-2027 school year and each 24 school year thereafter, funding for students who are identified as English 25 learners shall be three hundred sixty-six dollars ($366) three hundred eight-26 four dollars ($384) for each identified English learner. 27 28 SECTION 5. Arkansas Code § 6 -20-2305(b)(4)(A), concerning Enhanced 29 Student Achievement Funding under the Public School Funding Act of 2003, is 30 amended to read as follows: 31 (4)(A) Enhanced Student Achievement Funding for each identified 32 national school lunch student shall be as follows: 33 (i) For a public school district in which ninety 34 percent (90%) or more of the previous school year's enrolled students are 35 national school lunch students, the amount of per -student Enhanced Student 36 HB1539 5 02/20/2025 9:29:56 AM TNL202 Achievement Funding for the 2023-2024 2025-2026 school year is one thousand 1 six hundred thirteen dollars ($1,613) one thousand six hundred fifty -three 2 dollars ($1,653) and for the 2024-2025 2026-2027 school year is one thousand 3 six hundred thirteen dollars ($1,613) one thousand six hundred ninety -four 4 dollars ($1,694); 5 (ii) For a public school district in which at least 6 seventy percent (70%) but less than ninety percent (90%) of the previous 7 school year's enrolled students are national school lunch students, the 8 amount of per-student Enhanced Student Achievement Funding for the 2023-2024 9 2025-2026 school year is one thousand seventy -six dollars ($1,076) one 10 thousand one hundred and three ($1,103) and for the 2024-2025 2026-2027 11 school year is one thousand seventy -six dollars ($1,076) one thousand one 12 hundred thirty dollars ($1,130) ; and 13 (iii) For a public school district in which less than 14 seventy percent (70%) of the previous school year's enrolled students are 15 national school lunch students, the amount of per -student Enhanced Student 16 Achievement Funding for the 2023-2024 2025-2026 school year is five hundred 17 thirty-eight dollars ($538) five hundred fifty-one dollars ($551) and for the 18 2024-2025 2026-2027 school year is five hundred thirty-eight dollars ($538) 19 five hundred sixty-five dollars ($565). 20 21 SECTION 6. Arkansas Code § 6 -20-2305(b)(5)(C)(i), concerning 22 professional development funding for professional learning communities under 23 the Public School Funding Act of 2003, is amended to read as follows: 24 (C)(i) For the 2023-2024 2025-2026 school year and each 25 school year thereafter, additional funding up to sixteen million five hundred 26 thousand dollars ($16,500,000) provided for professional development above 27 the amount in subdivision (b)(5)(A) of this section shall be used by the 28 Division of Elementary and Secondary Education for the development and 29 administration of professional learning communities for the benefit of public 30 school districts. 31 32 SECTION 7. Arkansas Code § 6 -20-2305(b)(6)(A), concerning the 33 statewide target average annual salary for teachers under the Public School 34 Funding Act of 2003, is amended to read as follows: 35 (6)(A)(i) Beginning with the 2021 -2022 school year, for school 36 HB1539 6 02/20/2025 9:29:56 AM TNL202 districts identified by the Division of Elementary and Secondary Education as 1 having an average annual teacher salary below the statewide target average 2 annual salary, teacher salary equalization funding shall be equal to one 3 hundred eighty-five dollars ($185) multiplied by the average daily membership 4 of the school district for the previous school year. 5 (ii) For the 2023-2024 2025-2026 and 2024-2025 2026-6 2027 school years, the statewide target average annual salary shall be fifty -7 one thousand eight hundred twenty -two dollars ($51,822). 8 (iii) The House Committee on Education and the Senate 9 Committee on Education shall set jointly the statewide target average annual 10 salary for the 2025-2026 2027-2028 and 2026-2027 2028-2029 school years, and 11 each biennium thereafter, as part of the adequacy review process required 12 under § 10-3-2102. 13 14 SECTION 8. Arkansas Code § 6 -20-2305(b), concerning education 15 categories of funding in addition to state foundation funding aid, is amended 16 to add an additional subdivision to read as follows: 17 (7)(A) For the 2025 -2026 school year and each school year 18 thereafter, special education funding shall be three thousand eight hundred 19 sixty-two dollars ($3,862) multiplied by the number of students who receive 20 special education and related services required by an individualized 21 education plan. 22 (B) Funding for students who receive special education and 23 related services required by an individualized education plan under 24 subdivision (b)(7)(A) of this section shall be distributed based on rules 25 promulgated by the state board. 26 (C) Funding for students who receive special education and 27 related services required by an individualized education plan shall not be 28 incorporated into the state foundation funding aid amount established under 29 subsection (a) of this section. 30 31 32 33 34 35 36