The bill amends section 15.1-27-04.1 of the North Dakota Century Code, which governs the determination of state aid for school districts. It establishes a baseline funding formula that incorporates all 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. The bill removes the previously set effective date of June 30, 2025, and introduces a note regarding retroactive application. Starting in the 2025-26 school year, eighty-five percent of tuition from agreements to educate students from a school district on an air force base with federal impact aid will be included in the funding calculation until the 2026-27 school year, after which all such tuition will be excluded.

Additionally, the bill outlines the process for calculating state aid based on the established baseline funding, including adjustments for districts transitioning to elementary districts. 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 also 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. Notably, it modifies the percentage of revenue types to be deducted from state aid calculations, changing "seventy-five percent" to "seventy-fivesixty percent." Overall, the bill aims to create a more equitable funding system for school districts while ensuring that state aid calculations reflect the evolving educational landscape.

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