(a)
(1) The General Assembly determines that, although funds may be distributed to school districts under this subchapter, it is the duty and responsibility of the State of Arkansas to monitor such expenditures to ensure that each public school child in Arkansas is provided with an adequate education.
(2) The General Assembly further finds that a uniform system of accounting for and reporting expenditures is necessary to allow the state to monitor expenditures.
(b) Each school district shall ensure that funds distributed by the State of Arkansas to the district are utilized in an efficient manner in order to provide an adequate education.
(c) Each school district shall:
(1) Expend sums for teacher salaries in order to meet the requirements of Arkansas law;
(2)
(A) Expend the sums allocated to the school district under § 6-20-2305(b) for salaries and other instructional aid components to benefit students in the special needs categories within the school district unless other expenditures are allowed by law or rule of the State Board of Education or the Division of Elementary and Secondary Education.
(B) Further ensure that those sums are used to improve the educational opportunity of those children with a primary emphasis on improving each student's proficiency;
(3) Expend other sums as may be allocated under this subchapter and as may be required by law in order to provide an equal opportunity for an adequate education;
(4) Ensure that sums appropriated by law and allocated to the school district are used to meet standards for accreditation and to provide the required curriculum for all students in the school district;
(5) Ensure that sums allocated for facilities or other capital needs are spent in accordance with law; and
(6) Expend state and local revenues on gifted and talented programs:
(A) In an amount equal to fifteen hundredths (0.15) of the foundation funding amount multiplied by five percent (5%) of the school district's average daily membership for the previous year; and
(B) Only upon gifted and talented programs in accordance with rules promulgated by the state board.
(d)
(1) During the appropriate Arkansas public school computer network reporting cycle each year, each school district shall submit appropriate data to the division establishing the school district's compliance with this section.
(2) The data shall be timely, accurate, and in the format required by rules promulgated by the state board.
(3) The data reported shall reflect the expenditure of each category of additional education categories.
(4) Reports for each school district shall be developed by the division and transmitted to the Governor, the Senate Committee on Education, and the House Committee on Education.