STATE OF EDUCATION FUNDING
Arkansas
Fair school funding systems ensure that districts, schools, and ultimately students receive significant additional funding according to their specific needs. Providing high-quality learning opportunities for students living in poverty, English learners, students with disabilities, and rural students requires additional resources.
According to The Education Trust’s State of Funding Equity, in Arkansas:
- The highest poverty districts receive $405 or 3.8% more state and local revenue than the lowest poverty districts.
- The districts serving the most students of color receive $660 or 6.1% more state and local revenue per student than the districts serving the fewest students of color.
- The districts serving the most English learners receive $192 or 1.8% less state and local revenue per student than the districts serving the fewest English learners.
For more information about how these data compare with other states or district specific information, see The Education Trust’s State of Funding Equity report.
Learn more about
how Arkansas
funds students
According to EdBuild, “Arkansas has a primarily student-based formula. It assigns a cost to the education of a student with no special needs or services, called a base amount, and provides increased funding to educate specific categories of students. The categories of students considered in Arkansas’ funding policy are students in certain grade levels; English-language learners; low-income students and students in high-poverty districts; students identified as gifted; students enrolled in career and technical education programs; students in alternative learning environments; and students enrolled in small, isolated, and sparsely populated districts.”
The Education Law Center’s 2023 Making the Grade Report rated Arkansas school funding:
- F on per-pupil funding relative to the national average.
- C on the percentage difference in per-pupil funding in high-poverty districts relative to low-poverty districts.
- C on the PK-12 funding as a percentage of state GDP.
How fair is
Arkansas’s Funding?
Strong schools build strong communities, and that starts with fair and transparent funding. Our State Ratings Rubric shows how Arkansas is doing when it comes to making sure every student gets the resources they need to thrive. Using criteria grounded in research, best practices, and what we know works for students, we rate Arkansas across five key areas: whether the state funds students adequately, funds student needs equitably, funds districts appropriately, funds students transparently and effectively, and keeps public dollars in public schools.
To explore ratings across Southern states and learn more about the criteria we use, click here.
Hover over ratings for more information.
Last updated: August 2025
Tap on ratings for more information.
| Component | Description | Rating | Explanation |
|---|---|---|---|
| FUND STUDENTS ADEQUATELY | |||
| Funding Adequacy | Per student funding is at or above the national average ($16,645). | Per student funding was $3,455 less than the national average in the 2021-22 school year. | |
| Yearly Increases | Base funding for all students increases every year to account for inflation. | The per-student base amount increased by 5.03% for the 2025-26 school year, from $7,771 to $8,162. | |
| Progressive Tax Policies | The state maintains healthy revenue sources for schools. | No major reforms to property, income, or sales tax in 2025. | |
| FUND STUDENT NEEDS EQUITABLY | |||
| Student-Based Formula | The funding formula is primarily student-based. | Primarily student-based formula. | |
| Students from Low-Income Backgrounds | The state provides additional funds for students from low-income backgrounds. | No additional funding for individual students from low-income backgrounds. (see Concentrated Poverty) | |
| English Learners | The state provides additional funds for English Learners. | $375 more per student | |
| Students with Disabilities | The state provides additional funds for students with disabilities, based on their needs. | No additional funding, except for extremely high-cost services. | |
| FUND DISTRICTS APPROPRIATELY | |||
| Cost Sharing | The state requires local governments to share the cost based on their ability to pay. | Local governments contribute based on their revenue from property, sales, and other taxes. | |
| Local Revenue Cap | The state limits wealthy districts from contributing excessively more than other districts. | The state sets a cap that voters can override. | |
| Rural Districts | Small districts and districts with few students per square mile ("sparse districts") receive additional funds. | Additional funding for both small districts and sparse districts for transportation. | |
| Concentrated Poverty | Districts with high concentrations of poverty receive additional funds. | Additional funding based on the district poverty level, ranging from $551 to $1,653 more per student. | |
| FUND STUDENTS TRANSPARENTLY & EFFECTIVELY | |||
| Formula Transparency | The funding formula is easy to understand and clearly explained. | The state education department's school funding guide is not user-friendly. | |
| Funding Data | The state shares detailed, timely, and user-friendly public data on districts’ funding. | Data is timely and user-friendly but is only somewhat detailed. | |
| District Spending Plans | The state requires districts to share public reports about how they invest funds to meet students' needs. | No requirement. | |
| Formula Review | The state requires a clear, stakeholder-led process to evaluate the formula and recommend improvements. | The legislature conducts an adequacy study every two years, but there is little stakeholder involvement. | |
| FUND PUBLIC SCHOOLS EXCLUSIVELY | |||
| Vouchers | The state does not divert public funds to private schools through voucher programs, education savings accounts, or scholarship tax credits. | The Children's Education Freedom Account program provides vouchers with universal eligibility starting in the 2025-2026 school year. | |
Who’s Who
in Arkansas
Legislature
The Arkansas General Assembly is the state legislature of Arkansas. The bicameral body is composed of a 35-member Senate and a 100-member House of Representatives. The Republican supermajority in the Arkansas legislature expanded slightly in the November 2022 elections. Legislators agreed in May 2023 to study their funding formula for more than a year until fall 2024 with plans to pass new formula or changes to existing formula in the 2025 session.
State Secretary and Commissioner of Education
The Arkansas Commissioner of Education is a state executive position in the Arkansas state government. The Secretary of Education is a cabinet-level executive official that oversees the operations of the state Department of Education, which runs Arkansas’ public school system. He or she is appointed by the governor. The State Board of Education also appoints a Commissioner of Education, subject to the approval of the governor. Jacob Oliva serves both as Governor Huckabee’s appointed Secretary and as the Commissioner of Education.
State Board of Education
The Arkansas State Board of Education is a nine-member policy-making body appointed by the governor. The board meets monthly and is composed of one at-large member and two members from each of the four congressional districts. Members are appointed for seven-year terms.
