Page:Lake View School District No. 25 v. Huckabee, 351 Ark. 31 (2002).pdf/55

Rh In the ''Little Rock Sch. Dist.'' case, the Eighth Circuit discussed the fact that the state desegregation funds were "in addition to" existing state aid: The theme of the [Little Rock Schools Desegregation] Settlement Agreement was that the Pulaski County districts would receive the desegregation payments included in the agreement in addition to other state aid that they would have received. The language we previously cited expresses that theme, as does the statement that "[t]he funds paid by the State under this agreement are not intended to supplant any existing or future funding which is ordinarily the responsibility of the State of Arkansas." [Settlement Agreement] § II, paragraph E. 83 F.3d at 1019 (emphasis in original). According to this description, the state desegregation funds were separate and apart from normal state aid to education.

[31] We agree that the desegregation funds do not constitute "state aid." Under federal regulations, "state aid" is defined as "any contribution, no repayment for which is expected, which is made by a State to or on behalf of local educational agencies within the State for current expenditures in the provision of free public education[.]" 34 C.F.R. § 222.61(d)(1) (1994).

We agree with the trial court that the desegregation money was not "state aid" for current expenditures and should not form part of state funds for purposes of the Federal Range Ratio test. Judge Imber's conclusion to the contrary in her 1994 order was not law of the case, as already decided in this opinion. Lake View has simply failed to convince this court that Judge Kilgore erred in his legal conclusion. As a result, we affirm the trial court on this point.

c. Weighted Average Daily Membership
Lake View also advances the claim that Judge Kilgore erred in not reverting to the 1994 sch sool-funding formula, which used weighted average daily membership as opposed to categorical grants and aid. Again, Lake View posits that Judge Imber's 1994 order is law of the case, and her use of weighted average daily membership in the funding formula must be followed.