This bill amends section 15.1-27-04.1 of the North Dakota Century Code, which governs the determination of state aid for school districts. Key changes include the removal of the effective date through June 30, 2025, and the introduction of a note regarding retroactive application. The bill establishes a framework for calculating baseline funding for each district, incorporating state aid from the 2018-19 school year, property tax deductions, and a percentage of various revenue types from the 2017-18 school year. Notably, it specifies that starting in the 2025-26 school year, eighty-five percent of tuition received for educating students from a school district on an air force base with federal impact aid will be included in the calculation, transitioning to full exclusion by the 2026-27 school year.

Furthermore, the bill outlines the process for calculating state aid based on the established baseline funding, including adjustments for districts that transition to elementary districts after the 2017-18 school year. It mandates that the superintendent of public instruction will determine state aid amounts by considering factors such as the number of weighted student units and specific revenue types. The bill aims to ensure a more equitable distribution of state aid while providing a clear methodology for calculating baseline funding and state aid entitlements. Additionally, it introduces a gradual reduction in baseline funding per weighted student unit starting in the 2021-22 school year, with specific percentages for reductions in subsequent years, and requires annual reporting from county auditors to enhance transparency in the funding process.

Statutes affected:
INTRODUCED: 15.1-27-04.1
Prepared by the Legislative Council staff for House Appropriations Committee: 15.1-27-04.1
FIRST ENGROSSMENT: 15.1-27-04.1