North Dakota House Bill HB1130

North Dakota 2026 1st Special Session

Caption

A BILL for an Act to amend and reenact section 15.1-27-04.1 of the North Dakota Century Code, relating to the option for a school district to reduce its local contribution deduction in the school state aid formula by the percentage of the local contribution which comes from in lieu of revenue.

Summary

HB1130 aims to amend section 15.1-27-04.1 of the North Dakota Century Code, specifically addressing the calculation of state aid for school districts. The bill provides an option for school districts to reduce their local contribution deduction in the state aid formula based on the percentage of local contributions derived from in lieu of revenue. This adjustment is intended to provide a more equitable distribution of state aid by considering various revenue sources that contribute to a district's funding, thereby potentially increasing the financial support for districts that rely on such contributions. The bill outlines a detailed methodology for determining baseline funding for each school district, which includes state aid received in a specified prior school year and various revenue types. It also establishes a framework for adjusting this funding based on the district's enrollment and the nature of its revenue sources. The changes proposed in HB1130 are designed to ensure that state aid calculations reflect the current financial realities faced by school districts, particularly those with significant in lieu of revenue contributions.

Impact

If enacted, HB1130 would modify how state aid is calculated for school districts in North Dakota, potentially leading to increased funding for districts that have significant local contributions from in lieu of revenue. This could result in a redistribution of state aid, favoring districts that may have previously been disadvantaged in the funding formula. The bill's provisions would require adjustments to the existing state aid calculations and could necessitate updates to the financial reporting processes for school districts to ensure compliance with the new requirements.

Sentiment

The sentiment around HB1130 appears to be mixed, as indicated by its failure to pass. While some stakeholders may support the bill for its potential to enhance funding equity among school districts, others may have raised concerns about the complexities involved in implementing the proposed changes or the implications for state budget allocations. The lack of recorded votes or committee discussions suggests that the bill did not garner sufficient support or attention during the legislative process.

Contention

Notable points of contention likely revolve around the implications of changing the state aid calculation method, particularly how it may affect funding for various districts differently. Some legislators may have expressed concerns about the fairness of the proposed adjustments, especially for districts that do not benefit significantly from in lieu of revenue contributions. Additionally, there may have been apprehensions regarding the administrative burden placed on school districts to comply with the new reporting requirements.