The proposed amendments to section 15.1-27-04.1 of the North Dakota Century Code aim to revise the school state aid formula by allowing school districts to adjust their local contribution deductions based on the percentage of contributions derived from in lieu of revenue. The bill includes significant deletions of existing legal language related to the baseline funding determination process for state aid, which was previously effective through June 30, 2025. The amendments introduce a new note indicating that the baseline funding provisions will now apply after this date. Furthermore, the superintendent of public instruction is tasked with establishing each district's baseline funding based on state aid received during the 2018-19 school year, property tax deductions, and a percentage of various revenue types from the 2017-18 school year.

Additionally, the bill outlines adjustments to funding calculations for school districts transitioning to elementary districts post-2012-13, requiring the superintendent to reduce baseline funding based on weighted student units offered through other districts. It specifies a formula for calculating state aid, including provisions for baseline funding per weighted student unit and adjustments based on district revenue from various sources. New requirements for the superintendent to calculate state aid based on specific dollar amounts per weighted student unit for the 2023-24 and 2024-25 school years are also introduced, along with a gradual increase in the reduction percentage for baseline funding. The bill emphasizes the need for accurate reporting from county auditors regarding school district revenues and mill levies to ensure proper funding calculations, while also mandating that any reductions in funding be allocated for capital projects or debt repayment.

Statutes affected:
INTRODUCED: 15.1-27-04.1
Prepared by the Legislative Council staff for Representative Richter: 15.1-27-04.1
FIRST ENGROSSMENT: 15.1-27-04.1
Adopted by the Senate Education Committee: 15.1-27-04.1