23.0984.02000
Sixty-eighth
Legislative Assembly HOUSE BILL NO. 1464
of North Dakota
Introduced by
Representatives Longmuir, Heinert, Jonas, Pyle, Richter, Schreiber-Beck, Strinden
Senators Rust, Schaible
1 A BILL for an Act to amend and reenact sections 15.1-27-04.1, 15.1-32-01, 15.1-32-14, and
2 15.1-32-18 of the North Dakota Century Code, relating to high-cost students.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Section 15.1-27-04.1 of the North Dakota Century Code is
5 amended and reenacted as follows:
6 15.1-27-04.1. Baseline funding - Establishment - Determination of state aid. (Effective
7 through June 30, 2025)
8 1. To determine the amount of state aid payable to each district, the superintendent of
9 public instruction shall establish each district's baseline funding. A district's baseline
10 funding consists of:
11 a. All state aid received by the district in accordance with chapter 15.1-27 during the
12 2018-19 school year;
13 b. An amount equal to the property tax deducted by the superintendent of public
14 instruction to determine the 2018-19 state aid payment;
15 c. An amount equal to seventy-five percent of the revenue received by the school
16 district during the 2017-18 school year for the following revenue types:
17 (1) Revenue reported under code 2000 of the North Dakota school district
18 financial accounting and reporting manual, as developed by the
19 superintendent of public instruction in accordance with section 15.1-02-08;
20 (2) Mineral revenue received by the school district through direct allocation from
21 the state treasurer and not reported under code 2000 of the North Dakota
22 school district financial accounting and reporting manual, as developed by
23 the superintendent of public instruction in accordance with section
24 15.1-02-08;
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1 (3) Tuition reported under code 1300 of the North Dakota school district
2 financial accounting and reporting manual, as developed by the
3 superintendent of public instruction in accordance with section 15.1-02-08,
4 with the exception of revenue received specifically for the operation of an
5 educational program provided at a residential treatment facility, tuition
6 received for the provision of an adult farm management program, and
7 beginning in the 2021-22 school year, seventeen percent of tuition received
8 under an agreement to educate students from a school district on an
9 air force base with funding received through federal impact aid, and an
10 additional seventeen percent of tuition received under an agreement to
11 educate students from a school district on an air force base with funding
12 received through federal impact aid each school year thereafter, until the
13 2024-25 school year when sixty-eight percent of tuition received under an
14 agreement to educate students from a school district on an air force base
15 with funding received through federal impact aid must be excluded from the
16 tuition calculation under this paragraph;
17 (4) Revenue from payments in lieu of taxes on the distribution and transmission
18 of electric power;
19 (5) Revenue from payments in lieu of taxes on electricity generated from
20 sources other than coal; and
21 (6) Revenue from the leasing of land acquired by the United States for which
22 compensation is allocated to the state under 33 U.S.C. 701(c)(3);
23 d. An amount equal to the total revenue received by the school district during the
24 2017-18 school year for the following revenue types:
25 (1) Mobile home tax revenue;
26 (2) Telecommunications tax revenue; and
27 (3) Revenue from payments in lieu of taxes and state reimbursement of the
28 homestead credit and disabled veterans credit; and
29 e. Beginning with the 2020-21 school year, the superintendent shall reduce the
30 baseline funding for any school district that becomes an elementary district
31 pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must
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1 be proportional to the number of weighted student units in the grades that are
2 offered through another school district relative to the total number of weighted
3 student units the school district offered in the year before the school district
4 became an elementary district. The reduced baseline funding applies to the
5 calculation of state aid for the first school year in which the school district
6 becomes an elementary district and for each year thereafter. For districts that
7 become an elementary district prior to the 2020-21 school year, the
8 superintendent shall use the reduced baseline funding to calculate state aid for
9 the 2020-21 school year and for each year thereafter.
10 2. a. The superintendent shall divide the district's baseline funding determined in
11 subsection 1 by the district's 2017-18 weighted student units to determine the
12 district's baseline funding per weighted student unit.
13 b. For any school district that becomes an elementary district pursuant to section
14 15.1-07-27 after the 2017-18 school year, the superintendent shall adjust the
15 district's baseline funding per weighted student unit used to calculate state aid.
16 The superintendent shall divide the district's baseline funding determined in
17 subsection 1 by the district's weighted student units after the school district
18 becomes an elementary district to determine the district's adjusted baseline
19 funding per weighted student unit. The superintendent shall use the district's
20 adjusted baseline funding per weighted student unit in the calculation of state aid
21 for the first school year in which the school district becomes an elementary
22 district and for each year thereafter.
23 c. Beginning with the 2021-22 school year and for each school year thereafter, the
24 superintendent shall reduce the district's baseline funding per weighted student
25 unit. Each year the superintendent shall calculate the amount by which the
26 district's baseline funding per weighted student unit exceeds the payment per
27 weighted student unit provided in subsection 3. The superintendent shall reduce
28 the district's baseline funding per weighted student unit by fifteen percent of the
29 amount by which the district's baseline funding per weighted student unit exceeds
30 the payment per weighted student unit for the 2021-22 school year. For each
31 year thereafter, the reduction percentage is increased by an additional fifteen
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1 percent. However, the district's baseline funding per weighted student unit, after
2 the reduction, may not be less than the payment per weighted student unit
3 provided in subsection 3.
4 3. a. For the 2021-22 school year, the superintendent shall calculate state aid as the
5 greater of:
6 (1) The district's weighted student units multiplied by ten thousand one hundred
7 thirty-six dollars;
8 (2) One hundred two percent of the district's baseline funding per weighted
9 student unit, as established in subsection 2, multiplied by the district's
10 weighted student units, not to exceed the district's 2017-18 baseline
11 weighted student units, plus any weighted student units in excess of the
12 2017-18 baseline weighted student units multiplied by ten thousand
13 one hundred thirty-six dollars; or
14 (3) The district's baseline funding as established in subsection 1 less the
15 amount in paragraph 1, with the difference reduced by fifteen percent and
16 then the difference added to the amount determined in paragraph 1.
17 b. For the 2022-23 school year and each school year thereafter, the superintendent
18 shall calculate state aid as the greater of:
19 (1) The district's weighted student units multiplied by ten thousand two hundred
20 thirty-seven dollars;
21 (2) One hundred two percent of the district's baseline funding per weighted
22 student unit, as established in subsection 2, multiplied by the district's
23 weighted student units, not to exceed the district's 2017-18 baseline
24 weighted student units, plus any weighted student units in excess of the
25 2017-18 baseline weighted student units multiplied by ten thousand
26 two hundred thirty-seven dollars; or
27 (3) The district's baseline funding as established in subsection 1 less the
28 amount in paragraph 1, with the difference reduced by thirty percent for the
29 2022-23 school year and the reduction percentage increasing by fifteen
30 percent each school year thereafter until the difference is reduced to zero,
31 and then the difference added to the amount determined in paragraph 1.
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1 c. The superintendent also shall adjust state aid determined in this subsection to
2 ensure the amount does not exceed the transition maximum as follows:
3 (1) For the 2021-22 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, multiplied by the district's weighted student
6 units from the previous school year.
7 (2) For the 2022-23 school year, the transition maximum rate is one hundred
8 ten percent of the district's baseline funding per weighted student unit, as
9 established in subsection 2, multiplied by the district's weighted student
10 units from the previous school year.
11 (3) For the 2023-24 school year, the transition maximum rate is one hundred
12 ten percent of the district's baseline funding per weighted student unit, as
13 established in subsection 2, plus twenty percent of the difference between
14 the rate under paragraph 1 of subdivision b of this subsection and
15 one hundred ten percent of the district's baseline funding per weighted
16 student unit. The transition maximum is determined by multiplying the
17 transition maximum rate, which may not exceed the rate under paragraph 1
18 of subdivision b of this subsection, by the district's weighted student units
19 from the previous school year.
20 (4) For the 2024-25 school year, the transition maximum rate is one hundred
21 ten percent of the district's baseline funding per weighted student unit, as
22 established in subsection 2, plus forty percent of the difference between the
23 rate under paragraph 1 of subdivision b of this subsection and one hundred
24 ten percent of the district's baseline funding per weighted student unit. The
25 transition maximum is determined by multiplying the transition maximum
26 rate, which may not exceed the rate under paragraph 1 of subdivision b of
27 this subsection, by the district's weighted student units from the previous
28 school year.
29 (5) For the 2025-26 school year, the transition maximum rate is one hundred
30 ten percent of the district's baseline funding per weighted student unit, as
31 established in subsection 2, plus sixty percent of the difference between the
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1 rate under paragraph 1 of subdivision b of this subsection and one hundred
2 ten percent of the district's baseline funding per weighted student unit. The
3 transition maximum is determined by multiplying the transition maximum
4 rate, which may not exceed the rate under paragraph 1 of subdivision b of
5 this subsection, by the district's weighted student units from the previous
6 school year.
7 (6) For the 2026-27 school year, the transition maximum rate is one hundred
8 ten percent of the district's baseline funding per weighted student unit, as
9 established in subsection 2, plus eighty percent of the difference between
10 the rate under paragraph 1 of subdivision b of this subsection and
11 one hundred ten percent of the district's baseline funding per weighted
12 student unit. The transition maximum is determined by multiplying the
13 transition maximum rate, which may not exceed the rate under paragraph 1
14 of subdivision b of this subsection, by the district's weighted student units
15 from the previous school year.
16 4. After determining the product in accordance with subsection 3, the superintendent of
17 public instruction shall:
18 a. Subtract an amount equal to sixty mills multiplied by the taxable valuation of the
19 school district, except the amount in dollars subtracted for purposes of this
20 subdivision may not exceed the previous year's amount in dollars subtracted for
21 purposes of this subdivision by more than twelve percent, adjusted pursuant to
22 section 15.1-27-04.3; and
23 b. Subtract an amount equal to seventy-five percent of all revenue types listed in
24 paragraphs 1, 2, 4, 5, and 6 of subdivisionssubdivision c of subsection 1 and
25 subdivision d of subsection 1. Before determining the deduction for seventy-five
26 percent of allthese revenue types, the superintendent of public instruction shall
27 adjust revenues as follows:
28 (1) Tuition revenue shall be adjusted as follows:
29 (a) In addition to deducting tuition revenue received specifically for the
30 operation of an educational program provided at a residential
31 treatment facility, tuition revenue received for the provision of an adult
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1 farm management program, and tuition received under an agreement
2 to educate students from a school district on an air force base with
3 funding received through federal impact aid as directed each school
4 year in paragraph 3 of subdivision c of subsection 1, the
5 superintendent of public instruction also shall reduce the total tuition
6 reported by the school district by the amount of tuition revenue
7 received for the education of students not residing in the state and for
8 which the state has not entered a cross-border education contract;
9 and
10 (b) The superintendent of public instruction also shall reduce the total
11 tuition reported by admitting school districts meeting the requirements
12 of subdivision e of subsection 2 of section 15.1-29-12 by the amount
13 of tuition revenue received for the education of students residing in an
14 adjacent school district.
15 (2) After adjusting tuition revenue as provided in paragraph 1, the
16 superintendent shall reduce all remaining revenues from all revenue types
17 by the percentage of mills l