North Dakota Senate Bill SB2279

North Dakota 2025-2026 Regular Session

• Introduced: 1/20/25
• Refer: 1/20/25
• Report DNP: 2/10/25

Caption

A BILL for an Act to amend and reenact sections 15.1-27-04.1, 15.1-27-04.2, and 57-15-01.1, subsection 1 of section 57-15-14, section 57-15-14.2, and subdivision c of subsection 1 of section 57-20-07.1 of the North Dakota Century Code, relating to the determination of state aid payments, state aid minimum local effort, the protection of taxpayers and taxing districts, voter approval of excess levies in school districts, school district levies, and information displayed on property tax statements; to repeal sections 15.1-27-04.3, 15.1-27-15.1, and 15.1-27-20.2 of the North Dakota Century Code, relating to adjustments to state aid payments, isolated school district transition payments, and taxable valuation impact on state aid; and to provide an effective date.

Impact

The anticipated impact of SB2279 extends primarily to educational financing at the state level. By establishing clearer standards for baseline funding calculations, the bill intends to reduce discrepancies in state aid allocations to districts. It emphasizes irregularities that arise particularly for districts newly categorized as elementary, introducing methodologies that allow for adjusted funding proportional to the number of students. This strategy could lead to more equitable financial support across diverse districts, especially those with fluctuating student populations.

Summary

Senate Bill 2279 focuses on amending the calculations involved in determining state aid payments to school districts in North Dakota. The bill outlines a structured approach to establish baseline funding for districts, which includes various forms of revenue over specified school years. The provisions are retroactive and include adjustments based on property tax deductions and specific revenue calculations from prior years, specifically aimed at ensuring fair funding distributions amongst school districts based on their unique financial conditions.

Contention

Notable points of contention surrounding SB2279 include concerns regarding how these adjustments might affect districts with limited local resources. Critics may argue that the phased reductions in baseline funding per weighted student units may lead to deficits in school funding over the long-term. Moreover, there may be apprehensions on how these funding alterations interact with existing local taxation capabilities, particularly as the bill introduces further limitations on local mill rates while seeking to reformulate state aid sources.