ArkansasHB10072026 Fiscal SessionHouseWALLET

AN ACT FOR THE DEPARTMENT OF EDUCATION - DIVISION OF ELEMENTARY AND SECONDARY EDUCATION - PUBLIC SCHOOL FUND APPROPRIATION FOR THE 2026-2027 FISCAL YEAR.

Sponsored By: Joint Budget Committee

Enacted

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Bill Overview

Analyzed Economic Effects

21 provisions identified: 16 benefits, 0 costs, 5 mixed.

Arkansas funds schools and student services

For July 1, 2026, through June 30, 2027, the law provides about $3.662 billion for school aid and programs. This includes about $2.207 billion in basic school funding and $246.723 million for student achievement. It also funds $190 million for minimum teacher salaries and raises, $60 million for salary equalization, and $292 million for employee health insurance. Districts and programs receive the money; this appropriation does not create direct household payments.

Preschool funds stay, with spending limits

The Arkansas Better Chance early childhood program gets $114 million for July 1, 2026, through June 30, 2027. Up to 2% of available funds can cover administration, leaving less for other program spending. The first 1.8% covers administration and grant monitoring; the remaining 0.2% needs a written request and prior legislative approval. Unspent program money remaining June 30, 2027, stays with the program. Before that date, the agency must explain the need to the state budget office and report carryforward details to legislative budget groups.

Special education funds support summer services

For July 1, 2026, through June 30, 2027, about $2.803 million is reserved for specified special education services. It funds extended-year summer programs for students with disabilities who need those services. It also supports special education for foster children who are state wards and pays special education supervisor salaries.

Students keep schooling during district splits

Early enrollment in a new isolated district does not end the existing district's duty to educate the student. Before the new district opens, eligible students living there remain existing-district residents for funding and applicable law. The existing district keeps operating and receiving state funding until the new district certifies readiness. Certification after July 15 keeps that funding flowing through the existing district's last school day. Students living in the new district and attending the existing one when operations begin may stay until graduation or moving to another district.

District splits keep temporary leadership options

Until its board selects a superintendent, an isolated district can use a director it hires or a state-appointed director or superintendent. Creating the district does not immediately remove an existing-district board member who lives inside its new boundaries. That member remains qualified until the isolated district opens, consolidates, or dissolves. Before operations or consolidation, a zone-elected member can also remain qualified by establishing residence in the existing district and correct zone.

Matching grants support students needing help

For July 1, 2026, through June 30, 2027, the state sets aside $5.3 million for district matching grants. They support evidence-based programs for students identified through the National School Lunch program. Eligible uses are tutoring, before- and after-school academic programs including transportation, and prekindergarten. Grants match qualifying spending dollar for dollar, with proportional shares based on district spending until funds run out. Any unused balance carries into the next fiscal year for the same uses.

Reading funds support families and classrooms

During July 1, 2026, through June 30, 2027, R.I.S.E. Arkansas funding supports a statewide reading campaign. The campaign works with parents, teachers, and community partners to promote reading at home, school, and in communities. Up to $9.5 million from the same appropriation can buy and distribute high-quality classroom materials. Purchases and distribution must follow Arkansas Code § 6-17-429(f).

Sexual risk avoidance education gets funding

For July 1, 2026, through June 30, 2027, the Sexual Risk Avoidance Education Program gets $4 million. The money pays for staff, operating costs, and grants and aid. It funds program activities rather than direct payments or individual eligibility benefits.

Student competitions get targeted grant support

For July 1, 2026, through June 30, 2027, at least $302,000 supports student competitions. Allocations include $100,000 each for Quiz Bowl and State History Day, plus $75,000 for regional and state science fairs. Creativity in Arkansas and Destination Imagination each get $13,500; Creativity grants can be up to $1,000 each for students and chaperones. Up to $40,000 from Quiz Bowl funding can go to the Educational Television Division for documented Quiz Bowl costs.

Student technology programs get guaranteed funding

For July 1, 2026, through June 30, 2027, the EAST Initiative receives a minimum technology-program award. It gets at least $3.005 million or 18% of the Technology Grants appropriation, whichever is greater. At least $1 million must support staff and infrastructure for new programs; the rest supports existing operations. The grant or services contract must go to an organization with staff or experience implementing EAST.

Summer enrichment gets funding and oversight

For July 1, 2026, through June 30, 2027, the Department allocates an extra $250,000 from Gifted and Talented funding. It must either increase AEGIS summer enrichment grants or extend Arkansas Governor's School from four weeks to six. Before each Governor's School program begins, the Department must review and approve its curriculum. It also oversees curriculum use for consistency and accuracy.

Teachers get statewide training support funding

During July 1, 2026, through June 30, 2027, the Commissioner can authorize up to $3.5 million for teacher training support. The money must come from the Professional Development Funding appropriation. The Department of Education uses it to develop and run statewide support systems intended to improve student achievement.

Education renewal zones get grant funding

For July 1, 2026, through June 30, 2027, the Office of Education Renewal Zones gets about $1.333 million. This includes about $1.101 million in Education Renewal Zone grants. The law allows up to four regular employees. The funding goes to the office and grant recipients, not directly to households.

Funding keeps school computer systems running

For July 1, 2026, through June 30, 2027, the Arkansas Public School Computer Network gets about $38.933 million. The money covers staff and operating costs, including $300,000 for data access work. The law allows up to 45 regular positions. These systems support school finance and student data, not direct household payments.

Separated communities get cross-state school funding

For July 1, 2026, through June 30, 2027, qualifying districts share up to $67,856 in school-cost reimbursements. A district must contract with a school district in an adjoining state to educate affected pupils. Their area must be separated by a reservoir covering at least 12,000 acres at normal water level. The nearest road trip to their own district must exceed 35 miles round trip and pass through another district. Districts must request reimbursement and provide Department-required records; payments cannot exceed available funds.

University education program gets protected funding

Beginning July 1, 2026, the state transfers $200,000 from the Public School Fund Account for the Arkansas/STRIVE Program. The money goes to the University of Arkansas at Little Rock Fund. The university cannot charge indirect costs against these funds. The transfer authority applies through June 30, 2027.

Unused funds help isolated school districts

For July 1, 2026, through June 30, 2027, unused Isolated Funding moves to Special Needs Isolated Funding. Districts qualifying under Arkansas Code § 6-20-604(c)-(f) first share it in proportion to their additional funding amounts. Any balance is divided equally among districts qualifying under § 6-20-604(h). The amount available depends on how much Isolated Funding remains unused.

School employers must fund employee retirement

For July 1, 2026, through June 30, 2027, school districts must pay retirement contributions for eligible employees. Eligibility follows Teacher Retirement Board rules, and the payments are employer costs. The law also provides about $14.777 million for employer retirement matching at Cooperative Education Services Areas and Vocational Centers. The matching funds also cover Arkansas Easter Seals and the Department of Correction school.

New districts face readiness deadlines

New isolated districts must hire authorized leaders, establish eligible accounts, get an agency number, prepare enrollment, and set a school start date. Officials receiving state funds must first complete any required funding training. Signed readiness certification, under penalty of perjury, goes to the Commissioner and existing district's superintendent. Certification by July 15 permits operations that fiscal year; later certification delays opening until the next fiscal year. Districts have 16 months after the election to certify; after missing that deadline, boards may consolidate or dissolve. Without either action within 24 months after the election, automatic dissolution returns the property and area to the existing district.

District property protections include debt duties

Existing districts must hold designated personal property and fixtures in trust until the isolated district can take custody. The isolated district can sue to enforce transfer. If a court finds concealment, removal, waste, divestment, or withholding, it can award punitive damages up to three times the property's value. It can also award attorney's fees to the prevailing party and other relief. The isolated district must assume debt for capital projects on its transferred campus, but can refinance or arrange repayment through the existing district. Both districts can agree to a different division of property, assets, and funding, and a court can enforce that agreement.

New districts receive funding in stages

Existing districts must transfer allocated funds to new isolated districts in stages. The first 25% is due within 10 business days after notice of authorized leadership selection and eligible account setup. Another 25% is due December 31 of the election year if the new district has not begun operating. The balance transfers when the new district certifies readiness. This gives the new district funding before opening but holds back part until later steps.

Sponsors & Cosponsors

Sponsor

  • Joint Budget Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 125 • No: 7

Senate vote • 4/29/2026

Senate Vote - Wednesday, April 29, 2026 11:26:46 AM

Yes: 34 • No: 0

House vote • 4/28/2026

House Vote - Tuesday, April 28, 2026 2:01:11 PM

Yes: 91 • No: 7

Actions Timeline

  1. Notification that HB1007 is now Act 157

    5/1/2026House
  2. Correctly enrolled and ordered transmitted to the Governor's Office.

    4/29/2026House
  3. TO BE ENROLLED

    4/29/2026House
  4. Returned from the Senate as passed.

    4/29/2026House
  5. Returned to the House as Passed.

    4/29/2026Senate
  6. EMERGENCY CLAUSE ADOPTED

    4/29/2026Senate
  7. Read the third time and passed.

    4/29/2026Senate
  8. Read the first time, rules suspended, read the second time and placed on the calendar.

    4/28/2026Senate
  9. Received from the House.

    4/28/2026Senate
  10. EMERGENCY CLAUSE ADOPTED

    4/28/2026House
  11. Read the third time and passed and ordered transmitted to the Senate.

    4/28/2026House
  12. REPORTED CORRECTLY ENGROSSED

    4/27/2026House
  13. Amendment No. 2 read and adopted and the bill ordered engrossed.

    4/27/2026House
  14. Placed on second reading for the purpose of amendment.

    4/27/2026House
  15. Returned by the Committee with the recommendation that it do pass as amended 2

    4/23/2026House
  16. REPORTED CORRECTLY ENGROSSED

    4/22/2026House
  17. Amendment No. 1 read and adopted and the bill ordered engrossed.

    4/22/2026House
  18. Placed on second reading for the purpose of amendment.

    4/22/2026House
  19. Read the first time, rules suspended, read the second time and referred to the Committee on JOINT BUDGET COMMITTEE

    4/8/2026House
  20. Filed

    4/1/2026House

Bill Text

  • HB1007 - Introduced

    4/1/2026

  • Act Version

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