23.0073.03000
Sixty-eighth
Legislative Assembly SENATE BILL NO. 2066
of North Dakota
Introduced by
Senators Schaible, Rust, Weber
Representatives Nathe, Porter, D. Ruby
1 A BILL for an Act to amend and reenact sections 15.1-27-04.1, 15.1-27-04.2, 57-15-01, and
2 57-15-01.1, subsection 1 of section 57-15-14, section 57-15-14.2, subdivision c of subsection 1
3 of section 57-20-07.1, and section 57-20-07.3 of the North Dakota Century Code, relating to the
4 determination of state aid payments, information displayed on property tax statements, school
5 district levy authority, and a credit against payments in lieu of taxes paid by centrally assessed
6 companies; to repeal sections 15.1-27-04.3, 15.1-27-15.1, and 15.1-27-20.2, relating to
7 adjustments to state aid payments; and to provide an effective date.
8 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
9 SECTION 1. AMENDMENT. Section 15.1-27-04.1 of the North Dakota Century Code is
10 amended and reenacted as follows:
11 15.1-27-04.1. Baseline funding - Establishment - Determination of state aid. (Effective
12 through June 30, 2025)
13 1. To determine the amount of state aid payable to each district, the superintendent of
14 public instruction shall establish each district's baseline funding. A district's baseline
15 funding consists of:
16 a. All state aid received by the district in accordance with chapter 15.1-27 during the
17 2018-19 school year;
18 b. An amount equal to the property tax deducted by the superintendent of public
19 instruction to determine the 2018-19 state aid payment;
20 c. An amount equal to seventy-five percent of the revenue received by the school
21 district during the 2017-18 school year for the following revenue types:
22 (1) Revenue reported under code 2000 of the North Dakota school district
23 financial accounting and reporting manual, as developed by the
24 superintendent of public instruction in accordance with section 15.1-02-08;
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1 (2) Mineral revenue received by the school district through direct allocation from
2 the state treasurer and not reported under code 2000 of the North Dakota
3 school district financial accounting and reporting manual, as developed by
4 the superintendent of public instruction in accordance with section
5 15.1-02-08;
6 (3) Tuition reported under code 1300 of the North Dakota school district
7 financial accounting and reporting manual, as developed by the
8 superintendent of public instruction in accordance with section 15.1-02-08,
9 with the exception of revenue received specifically for the operation of an
10 educational program provided at a residential treatment facility, tuition
11 received for the provision of an adult farm management program, and
12 beginning in the 2021-22 school year, seventeen percent of tuition received
13 under an agreement to educate students from a school district on an
14 air force base with funding received through federal impact aid, and an
15 additional seventeen percent of tuition received under an agreement to
16 educate students from a school district on an air force base with funding
17 received through federal impact aid each school year thereafter, until the
18 2024-25 school year when sixty-eight percent of tuition received under an
19 agreement to educate students from a school district on an air force base
20 with funding received through federal impact aid must be excluded from the
21 tuition calculation under this paragraph;
22 (4) Revenue from payments in lieu of taxes on the distribution and transmission
23 of electric power;
24 (5) Revenue from payments in lieu of taxes on electricity generated from
25 sources other than coal; and
26 (6) Revenue from the leasing of land acquired by the United States for which
27 compensation is allocated to the state under 33 U.S.C. 701(c)(3);
28 d. An amount equal to the total revenue received by the school district during the
29 2017-18 school year for the following revenue types:
30 (1) Mobile home tax revenue;
31 (2) Telecommunications tax revenue; and
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1 (3) Revenue from payments in lieu of taxes and state reimbursement of the
2 homestead credit and disabled veterans credit; and
3 e. Beginning with the 2020-21 school year, the superintendent shall reduce the
4 baseline funding for any school district that becomes an elementary district
5 pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must
6 be proportional to the number of weighted student units in the grades that are
7 offered through another school district relative to the total number of weighted
8 student units the school district offered in the year before the school district
9 became an elementary district. The reduced baseline funding applies to the
10 calculation of state aid for the first school year in which the school district
11 becomes an elementary district and for each year thereafter. For districts that
12 become an elementary district prior to the 2020-21 school year, the
13 superintendent shall use the reduced baseline funding to calculate state aid for
14 the 2020-21 school year and for each year thereafter.
15 2. a. The superintendent shall divide the district's baseline funding determined in
16 subsection 1 by the district's 2017-18 weighted student units to determine the
17 district's baseline funding per weighted student unit.
18 b. For any school district that becomes an elementary district pursuant to section
19 15.1-07-27 after the 2017-18 school year, the superintendent shall adjust the
20 district's baseline funding per weighted student unit used to calculate state aid.
21 The superintendent shall divide the district's baseline funding determined in
22 subsection 1 by the district's weighted student units after the school district
23 becomes an elementary district to determine the district's adjusted baseline
24 funding per weighted student unit. The superintendent shall use the district's
25 adjusted baseline funding per weighted student unit in the calculation of state aid
26 for the first school year in which the school district becomes an elementary
27 district and for each year thereafter.
28 c. Beginning with the 2021-22 school year and for each school year thereafter, the
29 superintendent shall reduce the district's baseline funding per weighted student
30 unit. Each year the superintendent shall calculate the amount by which the
31 district's baseline funding per weighted student unit exceeds the payment per
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1 weighted student unit provided in subsection 3. The superintendent shall reduce
2 the district's baseline funding per weighted student unit by fifteen percent of the
3 amount by which the district's baseline funding per weighted student unit exceeds
4 the payment per weighted student unit for the 2021-22 school year. For each
5 year thereafter, the reduction percentage is increased by an additional fifteen
6 percent. However, the district's baseline funding per weighted student unit, after
7 the reduction, may not be less than the payment per weighted student unit
8 provided in subsection 3.
9 3. a. For the 2021-22 school year, the superintendent shall calculate state aid as the
10 greater of:
11 (1) The district's weighted student units multiplied by ten thousand one hundred
12 thirty-six dollars;
13 (2) One hundred two percent of the district's baseline funding per weighted
14 student unit, as established in subsection 2, multiplied by the district's
15 weighted student units, not to exceed the district's 2017-18 baseline
16 weighted student units, plus any weighted student units in excess of the
17 2017-18 baseline weighted student units multiplied by ten thousand
18 one hundred thirty-six dollars; or
19 (3) The district's baseline funding as established in subsection 1 less the
20 amount in paragraph 1, with the difference reduced by fifteen percent and
21 then the difference added to the amount determined in paragraph 1.
22 b. For the 2022-23 school year and each school year thereafter, the superintendent
23 shall calculate state aid as the greater of:
24 (1) The district's weighted student units multiplied by ten thousand two hundred
25 thirty-seven dollars;
26 (2) One hundred two percent of the district's baseline funding per weighted
27 student unit, as established in subsection 2, multiplied by the district's
28 weighted student units, not to exceed the district's 2017-18 baseline
29 weighted student units, plus any weighted student units in excess of the
30 2017-18 baseline weighted student units multiplied by ten thousand
31 two hundred thirty-seven dollars; or
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1 (3) The district's baseline funding as established in subsection 1 less the
2 amount in paragraph 1, with the difference reduced by thirty percent for the
3 2022-23 school year and the reduction percentage increasing by fifteen
4 percent each school year thereafter until the difference is reduced to zero,
5 and then the difference added to the amount determined in paragraph 1.
6 c. The superintendent also shall adjust state aid determined in this subsection to
7 ensure the amount does not exceed the transition maximum as follows:
8 (1) For the 2021-22 school year, the transition maximum rate is one hundred
9 ten percent of the district's baseline funding per weighted student unit, as
10 established in subsection 2, multiplied by the district's weighted student
11 units from the previous school year.
12 (2) For the 2022-23 school year, the transition maximum rate is one hundred
13 ten percent of the district's baseline funding per weighted student unit, as
14 established in subsection 2, multiplied by the district's weighted student
15 units from the previous school year.
16 (3) For the 2023-24 school year, the transition maximum rate is one hundred
17 ten percent of the district's baseline funding per weighted student unit, as
18 established in subsection 2, plus twenty percent of the difference between
19 the rate under paragraph 1 of subdivision b of this subsection and
20 one hundred ten percent of the district's baseline funding per weighted
21 student unit. The transition maximum is determined by multiplying the
22 transition maximum rate, which may not exceed the rate under paragraph 1
23 of subdivision b of this subsection, by the district's weighted student units
24 from the previous school year.
25 (4) For the 2024-25 school year, the transition maximum rate is one hundred
26 ten percent of the district's baseline funding per weighted student unit, as
27 established in subsection 2, plus forty percent of the difference between the
28 rate under paragraph 1 of subdivision b of this subsection and one hundred
29 ten percent of the district's baseline funding per weighted student unit. The
30 transition maximum is determined by multiplying the transition maximum
31 rate, which may not exceed the rate under paragraph 1 of subdivision b of
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1 this subsection, by the district's weighted student units from the previous
2 school year.
3 (5) For the 2025-26 school year, the transition maximum rate is one hundred
4 ten percent of the district's baseline funding per weighted student unit, as
5 established in subsection 2, plus sixty percent of the difference between the
6 rate under paragraph 1 of subdivision b of this subsection and one hundred
7 ten percent of the district's baseline funding per weighted student unit. The
8 transition maximum is determined by multiplying the transition maximum
9 rate, which may not exceed the rate under paragraph 1 of subdivision b of
10 this subsection, by the district's weighted student units from the previous
11 school year.
12 (6) For the 2026-27 school year, the transition maximum rate is one hundred
13 ten percent of the district's baseline funding per weighted student unit, as
14 established in subsection 2, plus eighty percent of the difference between
15 the rate under paragraph 1 of subdivision b of this subsection and
16 one hundred ten percent of the district's baseline funding per weighted
17 student unit. The transition maximum is determined by multiplying the
18 transition maximum rate, which may not exceed the rate under paragraph 1
19 of subdivision b of this subsection, by the district's weighted student units
20 from the previous school year.
21 4. After determining the product in accordance with subsection 3, the superintendent of
22 public instruction shall:
23 a. Subtract an amount equal to sixty mills multiplied by the taxable valuation of the
24 school district, except the amount in dollars subtracted for purposes of this
25 subdivision may not exceed the previous year's amount in dollars subtracted for
26 purposes of this subdivision by more than twelve percent, adjusted pursuant to
27 section 15.1-27-04.3; and
28 b. Subtract an amount equal to seventy-five percent of all revenue types listed in
29 subdivisions c and d of subsection 1. Before determining the deduction for
30 seventy-five percent of all revenue types, the superintendent of public instruction
31 shall adjust revenues as follows:
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1 (1) Tuition revenue shall be adjusted as follows:
2 (a) In addition to deducting tuition revenue received specifically for the
3 operation of an educational program provided at a residential
4 treatment facility, tuition revenue received for the provision of an adult
5 farm management program, and tuition received under an agreement
6 to educate students from a school district on an air force base with
7 funding received through federal impact aid as directed each school
8 year in paragraph 3 of subdivision c of subsection 1, the
9 superintendent of public instruction also shall reduce the total tuition
10 reported by the school district by the amount of tuition revenue
11 received for the education of students not residing in the state and for
12 which the state has not entered a cross-border education contract;
13 and
14 (b) The superintendent of public instruction also shall reduce the total
15 tuition reported by admitting school districts meeting the requirements
16 of subdivision e of subsection 2 of section 15.1-29-12 by the amount
17 of tuition revenue re