A.C.A. §6-61-234 (Act 148 of 2017) directs the Arkansas Higher Education Coordinating Board (AHECB) to adopt polices developed by the Arkansas Department of Higher Education (ADHE) necessary to implement a productivity-based funding model for state-supported institutions of higher education. At its October 27, 2017 meeting, the AHECB approved the productivity funding model policies for the two-year colleges and universities. The AHECB shall use the productivity-based funding model as the mechanism for recommending funding for applicable state-supported institutions of higher education. According to A.C.A. §6-61-234, the productivity-based funding model shall not determine the funding needs of special units such as a medical school, division of agriculture, or system offices. These special units are known as non-formula entities and ADHE staff reviews justification requests submitted by the non-formula entities and prepares funding recommendations based upon those requests. The state higher education institution operating recommendations for the 2020-21 fiscal year are based upon the productivity funding formula policies approved by the AHECB at its October 2017 meeting as well as requests submitted by the non-formula entities. The following data tables are included in this year's report: (1) Summary of Operating Recommendations for the 2020-21 Fiscal Year; (2) Year 3 - Productivity Index; (3) 2020-21 Four-Year Universities Recommendations; (4) 2020-21 Two-Year Colleges Recommendation; and (5) 2020-21 Non-Formula Entities Recommendations. [For the 2019-2020 Operating Recommendations, see ED596358.]