AR SB756

School districts' year-end categorical fund balance cannot exceed 15% of the sum of current year distributions plus previous year carryover funds without written approval from the Commissioner of Education.

Commissioner of Education must approve any carryover amount exceeding the 15% threshold.

Department of Education must prepare an annual Categorical Fund Carryover Variance Report including school district names, approved variances, approval rationale, student achievement data, and carryover balances.

Annual report must be submitted to the Governor, House Committee on Education, Senate Committee on Education, and Commission on Closing the Achievement Gap in Arkansas.

Federal funds provided under the American Recovery and Reinvestment Act of 2009 are excluded from categorical fund balance carryover calculations.