As used in this part:

1. (1) “Annexation” means the joining of an affected school district or part of an affected school district with a receiving district pursuant to Arkansas Code § 6-13-1401 et seq.;

2. (2) “Capital outlay expenditures” means land, land improvements, buildings, infrastructure, and equipment having a:

   1. (A) Unit value of one thousand dollars ($1,000) or more; and
   2. (B) Life expectancy of more than one (1) year;
3. (3) “Consolidation” means the joining of two (2) or more school districts or parts of the districts to create a new single school district pursuant to Arkansas Code § 6-13-1401 et seq.;
4. (4) “Current year expenditures” means the total expenditures accruing to the combined teacher salary, operating, and debt service funds, excluding restricted funds;
5. (5) “Current year revenues” means the total revenues accruing to the combined teacher salary, operating, and debt service funds, excluding restricted funds;
6. (6) “Day” means a calendar day unless otherwise specified in this part, regardless of whether it is a day the Division of Elementary and Secondary Education or a public school district conducts official business;
7. (7) “Debt” means a legal liability, encumbrance, or contract, including employment contracts, to be paid out of future revenues or current reserves of the district;
8. (8) “Declining balance” means a balance that results when current year expenditures exceed current year revenues;
9. (9) “Fiscal distress financial improvement plan (“plan”)” means the written plan submitted by a district classified in fiscal distress and approved by the Division of Elementary and Secondary Education to be implemented by the district addressing each indicator of fiscal distress identified by the Division of Elementary and Secondary Education and the State Board of Education with a specific corrective action plan and timeline;

10. (10) “Fiscal distress status” means the status of a public school district identified by the Division of Elementary and Secondary Education and classified by the State Board of Education as being placed in fiscal distress status pursuant to:

    1. (A) The Arkansas Fiscal Assessment and Accountability Program, Arkansas Code § 6-20-1901 et seq.; and
    2. (B) This part;
11. (11) “Fiscal integrity” means to comply with financial management, accounting, auditing, and reporting procedures and facilities management procedures as required by state and federal laws and regulations in a forthright and timely manner;

12. (12) “General business manager” means a chief financial officer or business manager, however the position is titled, who:

    1. (A) Is responsible for the fiscal operations of a public school district;
    2. (B) Performs duties under the direction of a superintendent or equivalent of a public school district; and
    3. (C) Is not the superintendent or equivalent of the public school district;

13. (13) “Jeopardize” means to expose to:

    1. (A) Loss;
    2. (B) Injury; or
    3. (C) Peril;
14. (14) “Material failure, violation, default, or discrepancies” means an act, omission, event, circumstances, or combination thereof that directly jeopardizes the fiscal integrity of a school district;
15. (15) “Nonmaterial failure, violation, default, or discrepancies” means an act, omission, event, circumstance, or combination thereof that does not directly jeopardize the fiscal integrity of a school district, but without intervention could place the school district in fiscal distress;

16. (16)

    1. (A) "Public school" means:

       1. (i) A school operated by a public school district; or
       2. (ii) An open-enrollment public charter school, as defined in Arkansas Code § 6-23-103.
    2. (B) Schools or educational programs created by or receiving authority to exist pursuant to Arkansas Code § 6-15-501, Arkansas Code § 9-28-205, and Arkansas Code § 12-29-301 et seq. are specifically excluded from this definition;

17. (17)

    1. (A) “Public school district” means:

       1. (i) A geographic area that qualifies as a taxing unit for purposes of ad valorem property taxes under Arkansas Code § 26-1-101 et seq. and Arkansas Constitution, Article 14, § 3, and is either:

          1. (a) (a) Governed by an elected board of directors; or
          2. (b) (b) Under the administrative control of the State Board of Education or the Commissioner of Elementary and Secondary Education in place of an elected board of directors; or
       2. (ii) An open-enrollment public charter school, as defined in Arkansas Code § 6-23-103.
    2. (B) Schools or educational programs created by or receiving authority to exist pursuant to Arkansas Code § 6-15-501, Arkansas Code § 9-28-205, and Arkansas Code § 12-29-301 et seq. are specifically excluded from this definition;

18. (18) “Reconstitution” means the reorganization of the administrative unit or the governing school board of directors of a school district, including but not limited to:

    1. (A) The replacement or removal of a current superintendent;
    2. (B) The removal or replacement of a current school board of directors; or
    3. (C) Both;

19. (19) “Restricted funds” means funds accruing to the teacher salary, operating, and debt service funds that can be used only:

    1. (A) For specific purposes as stated in law; or
    2. (B) In accordance with a grant award such as ESA, ALE, ELL, or Professional Development;

20. (20) “School district systems” means the operations and procedures that occur within a public school district, including without limitation:

    1. (A) Academics;
    2. (B) Facilities;
    3. (C) Fiscal operations;
    4. (D) Human capital management; and
    5. (E) Student support services; and

21. (21) “School year” means a school year:

    1. (A) Beginning July 1 of one (1) calendar year; and
    2. (B) Ending June 30 of the following calendar year.

Codification Notes: “ESA” means enhanced student achievement. "ALE" means alternative learning environment. "ELL" means English language learners.