AR SB645

Allows school districts to use savings from refunding bonds issued before January 1, 2005 for any legitimate school or school district purpose, eliminating the previous restriction to academic facilities only.

Maintains state financial bonded debt assistance to eligible school districts for retiring outstanding bonded indebtedness that existed as of January 1, 2005, based on the original principal and interest payment schedule.

Requires school districts to notify the Department of Education within 30 days of satisfying outstanding bonded indebtedness or issuing refunding bonds, at which point state financial participation expires.

Permits school districts to refund or issue second lien bonds without altering the amount of state financial bonded debt assistance they receive under the program.

Provides supplemental millage incentive funds to eligible school districts that voluntarily raised maintenance and operation mills during 2004-2005 and have property assessment per student below the state average.