23.0739.02000
Sixty-eighth
Legislative Assembly SENATE BILL NO. 2346
of North Dakota
Introduced by
Senators Larsen, Vedaa
Representatives Fisher, Toman
1 A BILL for an Act to amend and reenact sections 15.1-27-02, 15.1-27-04.1, and 57-15-01.1,
2 subsection 1 of section 57-15-14, section 57-15-14.2, subdivision c of subsection 1 of section
3 57-20-07.1, subsection 1 of section 57-39.2-02.1, and subsection 1 of section 57-40.2-02.1 of
4 the North Dakota Century Code, relating to required reports, the determination of state aid
5 payments, school district levy authority, and an increase in the rate of state sales and use tax; to
6 repeal sections 15.1-27-04.2, 15.1-27-04.3, 15.1-27-15.1, and 15.1-27-20.2 of the North Dakota
7 Century Code, relating to adjustments to state aid payments; to provide an appropriation; and to
8 provide an effective date.
9 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
10 SECTION 1. AMENDMENT. Section 15.1-27-02 of the North Dakota Century Code is
11 amended and reenacted as follows:
12 15.1-27-02. Per student payments - Required reports.
13 1. The superintendent of public instruction may not forward state aid payments to a
14 school district beyond the September payment unless the district has filed the
15 September tenth fall enrollment report with the superintendent.
16 2. The superintendent of public instruction may not forward state aid payments to a
17 school district beyond the October payment unless the district has filed the following
18 with the superintendent:
19 a. The June thirtieth student membership and attendance report;
20 b. An annual school district financial report; and
21 c. The personnel report forms for licensed and nonlicensed employees.
22 3. On or before December fifteenth, each school district shall file with the superintendent
23 of public instruction the taxable valuation and mill levy certifications. If a district fails to
24 file the taxable valuation and mill levy certifications by the required date, the
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1 superintendent of public instruction may not forward to the district any state aid
2 payments to which the district is entitled, until the taxable valuation and mill levy
3 certifications are filed.
4 SECTION 2. 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;
25 (3) Tuition reported under code 1300 of the North Dakota school district
26 financial accounting and reporting manual, as developed by the
27 superintendent of public instruction in accordance with section 15.1-02-08,
28 with the exception of revenue received specifically for the operation of an
29 educational program provided at a residential treatment facility, tuition
30 received for the provision of an adult farm management program, and
31 beginning in the 2021-22 school year, seventeen percent of tuition received
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1 under an agreement to educate students from a school district on an
2 air force base with funding received through federal impact aid, and an
3 additional seventeen percent of tuition received under an agreement to
4 educate students from a school district on an air force base with funding
5 received through federal impact aid each school year thereafter, until the
6 2024-25 school year when sixty-eight percent of tuition received under an
7 agreement to educate students from a school district on an air force base
8 with funding received through federal impact aid must be excluded from the
9 tuition calculation under this paragraph;
10 (4) Revenue from payments in lieu of taxes on the distribution and transmission
11 of electric power;
12 (5) Revenue from payments in lieu of taxes on electricity generated from
13 sources other than coal; and
14 (6) Revenue from the leasing of land acquired by the United States for which
15 compensation is allocated to the state under 33 U.S.C. 701(c)(3);
16 d. An amount equal to the total revenue received by the school district during the
17 2017-18 school year for the following revenue types:
18 (1) Mobile home tax revenue;
19 (2) Telecommunications tax revenue; and
20 (3) Revenue from payments in lieu of taxes and state reimbursement of the
21 homestead credit and disabled veterans credit; and
22 e. Beginning with the 2020-21 school year, the superintendent shall reduce the
23 baseline funding for any school district that becomes an elementary district
24 pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must
25 be proportional to the number of weighted student units in the grades that are
26 offered through another school district relative to the total number of weighted
27 student units the school district offered in the year before the school district
28 became an elementary district. The reduced baseline funding applies to the
29 calculation of state aid for the first school year in which the school district
30 becomes an elementary district and for each year thereafter. For districts that
31 become an elementary district prior to the 2020-21 school year, the
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1 superintendent shall use the reduced baseline funding to calculate state aid for
2 the 2020-21 school year and for each year thereafter.
3 2. a. The superintendent shall divide the district's baseline funding determined in
4 subsection 1 by the district's 2017-18 weighted student units to determine the
5 district's baseline funding per weighted student unit.
6 b. For any school district that becomes an elementary district pursuant to section
7 15.1-07-27 after the 2017-18 school year, the superintendent shall adjust the
8 district's baseline funding per weighted student unit used to calculate state aid.
9 The superintendent shall divide the district's baseline funding determined in
10 subsection 1 by the district's weighted student units after the school district
11 becomes an elementary district to determine the district's adjusted baseline
12 funding per weighted student unit. The superintendent shall use the district's
13 adjusted baseline funding per weighted student unit in the calculation of state aid
14 for the first school year in which the school district becomes an elementary
15 district and for each year thereafter.
16 c. Beginning with the 2021-22 school year and for each school year thereafter, the
17 superintendent shall reduce the district's baseline funding per weighted student
18 unit. Each year the superintendent shall calculate the amount by which the
19 district's baseline funding per weighted student unit exceeds the payment per
20 weighted student unit provided in subsection 3. The superintendent shall reduce
21 the district's baseline funding per weighted student unit by fifteen percent of the
22 amount by which the district's baseline funding per weighted student unit exceeds
23 the payment per weighted student unit for the 2021-22 school year. For each
24 year thereafter, the reduction percentage is increased by an additional fifteen
25 percent. However, the district's baseline funding per weighted student unit, after
26 the reduction, may not be less than the payment per weighted student unit
27 provided in subsection 3.
28 3. a. For the 2021-22 school year, the superintendent shall calculate state aid as the
29 greater of:
30 (1) The district's weighted student units multiplied by ten thousand one hundred
31 thirty-six dollars;
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1 (2) One hundred two percent of the district's baseline funding per weighted
2 student unit, as established in subsection 2, multiplied by the district's
3 weighted student units, not to exceed the district's 2017-18 baseline
4 weighted student units, plus any weighted student units in excess of the
5 2017-18 baseline weighted student units multiplied by ten thousand
6 one hundred thirty-six dollars; or
7 (3) The district's baseline funding as established in subsection 1 less the
8 amount in paragraph 1, with the difference reduced by fifteen percent and
9 then the difference added to the amount determined in paragraph 1.
10 b. For the 2022-23 school year and each school year thereafter, the superintendent
11 shall calculate state aid as the greater of:
12 (1) The district's weighted student units multiplied by ten thousand two hundred
13 thirty-seven dollars;
14 (2) One hundred two percent of the district's baseline funding per weighted
15 student unit, as established in subsection 2, multiplied by the district's
16 weighted student units, not to exceed the district's 2017-18 baseline
17 weighted student units, plus any weighted student units in excess of the
18 2017-18 baseline weighted student units multiplied by ten thousand
19 two hundred thirty-seven dollars; or
20 (3) The district's baseline funding as established in subsection 1 less the
21 amount in paragraph 1, with the difference reduced by thirty percent for the
22 2022-23 school year and the reduction percentage increasing by fifteen
23 percent each school year thereafter until the difference is reduced to zero,
24 and then the difference added to the amount determined in paragraph 1.
25 c. The superintendent also shall adjust state aid determined in this subsection to
26 ensure the amount does not exceed the transition maximum as follows:
27 (1) For the 2021-22 school year, the transition maximum rate is one hundred
28 ten percent of the district's baseline funding per weighted student unit, as
29 established in subsection 2, multiplied by the district's weighted student
30 units from the previous school year.
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1 (2) For the 2022-23 school year, the transition maximum rate is one hundred
2 ten percent of the district's baseline funding per weighted student unit, as
3 established in subsection 2, multiplied by the district's weighted student
4 units from the previous school year.
5 (3) For the 2023-24 school year, the transition maximum rate is one hundred
6 ten percent of the district's baseline funding per weighted student unit, as
7 established in subsection 2, plus twenty percent of the difference between
8 the rate under paragraph 1 of subdivision b of this subsection and
9 one hundred ten percent of the district's baseline funding per weighted
10 student unit. The transition maximum is determined by multiplying the
11 transition maximum rate, which may not exceed the rate under paragraph 1
12 of subdivision b of this subsection, by the district's weighted student units
13 from the previous school year.
14 (4) For the 2024-25 school year, the transition maximum rate is one hundred
15 ten percent of the district's baseline funding per weighted student unit, as
16 established in subsection 2, plus forty percent of the difference between the
17 rate under paragraph 1 of subdivision b of this subsection and one hundred
18 ten percent of the district's baseline funding per weighted student unit. The
19 transition maximum is determined by multiplying the transition maximum
20 rate, which may not exceed the rate under paragraph 1 of subdivision b of
21 this subsection, by the district's weighted student units from the previous
22 school year.
23 (5) For the 2025-26 school year, the transition maximum rate is one hundred
24 ten percent of the district's baseline funding per weighted student unit, as
25 established in subsection 2, plus sixty percent of the difference between the
26 rate under paragraph 1 of subdivision b of this subsection and one hundred
27 ten percent of the district's baseline funding per weighted student unit. The
28 transition maximum is determined by multiplying the transition maximum
29 rate, which may not exceed the rate under paragraph 1 of subdivision b of
30 this subsection, by the district's weighted student units from the previous
31 school year.
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1 (6) For the 2026-27 school year, the transition maximum rate is one hundred
2 ten percent of the district's baseline funding per weighted student unit, as
3 established in subsection 2, plus eighty percent of the difference between
4 the rate under paragraph 1 of subdivision b of this subsection and
5 one hundred ten percent of the district's baseline funding per weighted
6 student unit. The transition maximum is determined by multiplying the
7 transition maximum rate, which may not exceed the rate under paragraph 1
8 of subdivision b of this subsection, by the district's weighted student units
9 from the previous school year.
10 4. After determining the product in accordance with subsection 3, the superintendent of
11 public instruction shall:
12 a. Subtract an amount equal to sixty mills multiplied by the taxable valuation of the
13 school district, except the amount in dollars subtracted for purposes of this
14 subdivision may not exceed the previous year's amount in dollars subtracted for
15 purposes of this subdivision by more than twelve percent, adjusted pursuant to
16 section 15.1-27-04.3; and
17 b. Subtract an amount equal to seventy-five percent of all revenue types listed in
18 subdivisions c and d of subsection 1. Before determining the deduction for
19 seventy-five percent of all revenue types, the superintendent of public instruction
20 shall adjust revenues as follows:
21