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 new framework for calculating baseline funding 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. A significant change introduced is the retroactive application note and the modification of tuition revenue treatment related to agreements with school districts on air force bases, which will see a greater percentage of this tuition excluded from calculations starting in the 2025-26 school year.

Furthermore, the bill outlines adjustments to baseline funding for districts transitioning to elementary districts after the 2012-13 school year, ensuring that state aid calculations reflect these structural changes. It mandates a reduction in baseline funding based on the number of weighted student units offered through another district, starting with the 2020-21 school year. The bill also specifies a gradual reduction in baseline funding per weighted student unit beginning in the 2021-22 school year, with detailed calculations for state aid for the 2023-24 and 2024-25 school years. Notably, it adjusts the percentage of revenue types considered in funding calculations, changing "seventy-five" to "sixty" percent in one instance, emphasizing the need for accurate reporting by county auditors and school boards to ensure proper funding allocation.

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