21.0866.01000
Sixty-seventh
Legislative Assembly HOUSE BILL NO. 1388
of North Dakota
Introduced by
Representative Owens
Senator Schaible
1 A BILL for an Act to amend and reenact sections 15.1-27-03.2 and 15.1-27-04.1 of the North
2 Dakota Century Code, relating to adjustments to school district size weighting factors and the
3 education foundation aid funding formula transition maximum and payment rates.
4 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
5 SECTION 1. AMENDMENT. Section 15.1-27-03.2 of the North Dakota Century Code is
6 amended and reenacted as follows:
7 15.1-27-03.2. School district size weighting factor - Weighted student units.
8 1. For each high school district in the state, the superintendent of public instruction shall
9 assign a baseline school district size weighting factor of:
10 a. 1.36 if the students in average daily membership number fewer than 110;
11 b. 1.35 if the students in average daily membership number at least 110 but fewer
12 than 125;
13 c. 1.34 if the students in average daily membership number at least 125 but fewer
14 than 130;
15 d. 1.33 if the students in average daily membership number at least 130 but fewer
16 than 135;
17 e. 1.32 if the students in average daily membership number at least 135 but fewer
18 than 140;
19 f. 1.31 if the students in average daily membership number at least 140 but fewer
20 than 145;
21 g. 1.30 if the students in average daily membership number at least 145 but fewer
22 than 150;
23 h. 1.29 if the students in average daily membership number at least 150 but fewer
24 than 155;
Page No. 1 21.0866.01000
Sixty-seventh
Legislative Assembly
1 i. 1.28 if the students in average daily membership number at least 155 but fewer
2 than 160;
3 j. 1.27 if the students in average daily membership number at least 160 but fewer
4 than 165;
5 k. 1.26 if the students in average daily membership number at least 165 but fewer
6 than 175;
7 l. 1.25 if the students in average daily membership number at least 175 but fewer
8 than 185;
9 m. 1.24 if the students in average daily membership number at least 185 but fewer
10 than 200;
11 n. 1.23 if the students in average daily membership number at least 200 but fewer
12 than 215;
13 o. 1.22 if the students in average daily membership number at least 215 but fewer
14 than 230;
15 p. 1.21 if the students in average daily membership number at least 230 but fewer
16 than 245;
17 q. 1.20 if the students in average daily membership number at least 245 but fewer
18 than 260;
19 r. 1.19 if the students in average daily membership number at least 260 but fewer
20 than 270;
21 s. 1.18 if the students in average daily membership number at least 270 but fewer
22 than 275;
23 t. 1.17 if the students in average daily membership number at least 275 but fewer
24 than 280;
25 u. 1.16 if the students in average daily membership number at least 280 but fewer
26 than 285;
27 v. 1.15 if the students in average daily membership number at least 285 but fewer
28 than 290;
29 w. 1.14 if the students in average daily membership number at least 290 but fewer
30 than 295;
Page No. 2 21.0866.01000
Sixty-seventh
Legislative Assembly
1 x. 1.13 if the students in average daily membership number at least 295 but fewer
2 than 300;
3 y. 1.12 if the students in average daily membership number at least 300 but fewer
4 than 305;
5 z. 1.11 if the students in average daily membership number at least 305 but fewer
6 than 310;
7 aa. 1.10 if the students in average daily membership number at least 310 but fewer
8 than 320;
9 bb. 1.09 if the students in average daily membership number at least 320 but fewer
10 than 335;
11 cc. 1.08 if the students in average daily membership number at least 335 but fewer
12 than 350;
13 dd. 1.07 if the students in average daily membership number at least 350 but fewer
14 than 360;
15 ee. 1.06 if the students in average daily membership number at least 360 but fewer
16 than 370;
17 ff. 1.05 if the students in average daily membership number at least 370 but fewer
18 than 380;
19 gg. 1.04 if the students in average daily membership number at least 380 but fewer
20 than 390;
21 hh. 1.03 if the students in average daily membership number at least 390 but fewer
22 than 400;
23 ii. 1.02 if the students in average daily membership number at least 400 but fewer
24 than 600;
25 jj. 1.01 if the students in average daily membership number at least 600 but fewer
26 than 900; and
27 kk. 1.00 if the students in average daily membership number at least 900.
28 2. For each elementary district in the stateBeginning with the 2021-22 school year and
29 each school year thereafter until the 2027-28 school year, the superintendent of public
30 instruction shall assign a school district size weighting factor determined by increasing
31 the baseline weighting factor under subsection 1 each year by fourteen and
Page No. 3 21.0866.01000
Sixty-seventh
Legislative Assembly
1 twenty-nine hundredths percent of the difference between the weighting factor under
2 this subsection and the baseline weighting factor under subsection 1 for the same
3 school district size. For the 2027-28 school year and each school year thereafter, the
4 superintendent of public instruction shall assign a school district size weighting factor
5 of:
6 a. 1.251.72 if the students in average daily membership number fewer than 125110;
7 b. 1.171.68 if the students in average daily membership number at least 125110 but
8 fewer than 200125; and
9 c. 1.001.64 if the students in average daily membership number at least 200125 but
10 fewer than 130;
11 d. 1.60 if the students in average daily membership number at least 130 but fewer
12 than 135;
13 e. 1.56 if the students in average daily membership number at least 135 but fewer
14 than 140;
15 f. 1.52 if the students in average daily membership number at least 140 but fewer
16 than 145;
17 g. 1.49 if the students in average daily membership number at least 145 but fewer
18 than 150;
19 h. 1.45 if the students in average daily membership number at least 150 but fewer
20 than 155;
21 i. 1.42 if the students in average daily membership number at least 155 but fewer
22 than 160;
23 j. 1.39 if the students in average daily membership number at least 160 but fewer
24 than 165;
25 k. 1.36 if the students in average daily membership number at least 165 but fewer
26 than 175;
27 l. 1.33 if the students in average daily membership number at least 175 but fewer
28 than 185;
29 m. 1.30 if the students in average daily membership number at least 185 but fewer
30 than 200;
Page No. 4 21.0866.01000
Sixty-seventh
Legislative Assembly
1 n. 1.27 if the students in average daily membership number at least 200 but fewer
2 than 215;
3 o. 1.25 if the students in average daily membership number at least 215 but fewer
4 than 230;
5 p. 1.22 if the students in average daily membership number at least 230 but fewer
6 than 245;
7 q. 1.20 if the students in average daily membership number at least 245 but fewer
8 than 260;
9 r. 1.19 if the students in average daily membership number at least 260 but fewer
10 than 270;
11 s. 1.18 if the students in average daily membership number at least 270 but fewer
12 than 275;
13 t. 1.17 if the students in average daily membership number at least 275 but fewer
14 than 280;
15 u. 1.16 if the students in average daily membership number at least 280 but fewer
16 than 285;
17 v. 1.15 if the students in average daily membership number at least 285 but fewer
18 than 290;
19 w. 1.14 if the students in average daily membership number at least 290 but fewer
20 than 295;
21 x. 1.13 if the students in average daily membership number at least 295 but fewer
22 than 300;
23 y. 1.12 if the students in average daily membership number at least 300 but fewer
24 than 305;
25 z. 1.11 if the students in average daily membership number at least 305 but fewer
26 than 310;
27 aa. 1.10 if the students in average daily membership number at least 310 but fewer
28 than 320;
29 bb. 1.09 if the students in average daily membership number at least 320 but fewer
30 than 335;
Page No. 5 21.0866.01000
Sixty-seventh
Legislative Assembly
1 cc. 1.08 if the students in average daily membership number at least 335 but fewer
2 than 350;
3 dd. 1.07 if the students in average daily membership number at least 350 but fewer
4 than 360;
5 ee. 1.06 if the students in average daily membership number at least 360 but fewer
6 than 370;
7 ff. 1.05 if the students in average daily membership number at least 370 but fewer
8 than 380;
9 gg. 1.04 if the students in average daily membership number at least 380 but fewer
10 than 390;
11 hh. 1.03 if the students in average daily membership number at least 390 but fewer
12 than 400;
13 ii. 1.02 if the students in average daily membership number at least 400 but fewer
14 than 600;
15 jj. 1.01 if the students in average daily membership number at least 600 but fewer
16 than 900; and
17 kk. 1.00 if the students in average daily membership number at least 900.
18 3. The superintendent of public instruction shall impute an average daily membership for
19 each school district that does not include a high school and use the imputed average
20 daily membership to determine the school district size weighting factor under this
21 section. To determine the imputed average daily membership, the superintendent of
22 public instruction shall divide the school district's average daily membership by 0.60.
23 The superintendent of public instruction shall adjust the school district size weighting
24 factor for each school district that does not include a high school by multiplying the
25 school district size weighting factor determined under subsection 2 by ninety-two
26 percent.
27 4. The school district size weighting factor determined under this section and multiplied
28 by a school district's weighted average daily membership equals the district's weighted
29 student units.
30 4.5. Notwithstanding the provisions of this section, the school district size weighting factor
31 assigned to a district may not be less than the factor arrived at when the highest
Page No. 6 21.0866.01000
Sixty-seventh
Legislative Assembly
1 number of students possible in average daily membership is multiplied by the school
2 district size weighting factor for the subdivision immediately preceding the district's
3 actual subdivision and then divided by the district's average daily membership.
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 and tuition
30 received for the provision of an adult farm management program;
Page No. 7 21.0866.01000
Sixty-seventh
Legislative Assembly
1 (4) Revenue from payments in lieu of taxes on the distribution and transmission
2 of electric power;
3 (5) Revenue from payments in lieu of taxes on electricity generated from
4 sources other than coal;
5 (6) Revenue from the leasing of land acquired by the United States for which
6 compensation is allocated to the state under 33 U.S.C. 701(c)(3);and
7 d. An amount equal to the total revenue received by the school district during the
8 2017-18 school year for the following revenue types:
9 (1) Mobile home tax revenue;
10 (2) Telecommunications tax revenue; and
11 (3) Revenue from payments in lieu of taxes and state reimbursement of the
12 homestead credit and disabled veterans credit; and
13 e. Beginning with the 2020-21 school year, the superintendent shall reduce the
14 baseline funding for any school district that becomes an elementary district
15 pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must
16 be proportional to the number of weighted student units in the grades that are
17 offered through another school district relative to the total number of weighted
18 student units the school district offered in the year before the school district
19 became an elementary district. The reduced baseline funding applies to the
20 calculation of state aid for the first school year in which the school district
21 becomes an elementary district and for each year thereafter. For districts that
22 become an elementary district prior to the 2020-21 school year, the
23 superintendent shall use the reduced baseline funding to calculate state aid for
24 the 2020-21 school year and for each year thereafter.
25 2. a. The superintendent shall divide the district's baseline funding determined in
26 subsection 1 by the district's 2017-18 weighted student units to determine the
27 district's baseline funding per weighted student unit.
28 b. For any school district that becomes an elementary district pursuant to section
29