15.1-27-04.1. Baseline funding - Establishment - Determination of state aid

15.1-27-04.1. Baseline funding - Establishment - Determination of state aid

1. To determine the amount of state aid payable to each district, the superintendent of

public instruction shall establish each district's baseline funding. A district's baseline

funding consists of:

a. All state aid received by the district in accordance with chapter 15.1-27 during the

2018-19 school year;

b. An amount equal to the property tax deducted by the superintendent of public

instruction to determine the 2018-19 state aid payment;

c. An amount equal to seventy-five percent of the revenue received by the school

district during the 2017-18 school year for the following revenue types:

(1) Revenue reported under code 2000 of the North Dakota school district

financial accounting and reporting manual, as developed by the

superintendent of public instruction in accordance with section 15.1-02-08;

(2) Mineral revenue received by the school district through direct allocation from

the state treasurer and not reported under code 2000 of the North Dakota

school district financial accounting and reporting manual, as developed by

the superintendent of public instruction in accordance with section

15.1-02-08;

(3) Tuition reported under code 1300 of the North Dakota school district

financial accounting and reporting manual, as developed by the

superintendent of public instruction in accordance with section 15.1-02-08,

with the exception of revenue received specifically for the operation of an

educational program provided at a residential treatment facility, tuition

received for the provision of an adult farm management program, and

beginning in the 2025-26 school year, eighty-five percent of tuition received

under an agreement to educate students from a school district on an

air force base with funding received through federal impact aid, until the

2026-27 school year, and each school year thereafter, when all tuition

received under an agreement to educate students from a school district on

an air force base with funding received through federal impact aid must be

excluded from the tuition calculation under this paragraph;

(4) Revenue from payments in lieu of taxes on the distribution and transmission

of electric power;

(5) Revenue from payments in lieu of taxes on electricity generated from

sources other than coal; and

(6) Revenue from the leasing of land acquired by the United States for which

compensation is allocated to the state under 33 U.S.C. 701(c)(3);

d. An amount equal to the total revenue received by the school district during the

2017-18 school year for the following revenue types:

(1) Mobile home tax revenue;

(2) Telecommunications tax revenue; and

(3) Revenue from payments in lieu of taxes and state reimbursement of the

homestead credit and disabled veterans credit; and

e. Beginning with the 2020-21 school year, the superintendent shall reduce the

baseline funding for any school district that becomes an elementary district

pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must

be proportional to the number of weighted student units in the grades that are

offered through another school district relative to the total number of weighted

student units the school district offered in the year before the school district

became an elementary district. The reduced baseline funding applies to the

calculation of state aid for the first school year in which the school district

becomes an elementary district and for each year thereafter. For districts that

become an elementary district prior to the 2020-21 school year, the

superintendent shall use the reduced baseline funding to calculate state aid for

the 2020-21 school year and for each year thereafter.

2. a. The superintendent shall divide the district's baseline funding determined in

subsection 1 by the district's 2017-18 weighted student units to determine the

district's baseline funding per weighted student unit.

rict prior to the 2020-21 school year, the

superintendent shall use the reduced baseline funding to calculate state aid for

the 2020-21 school year and for each year thereafter.

2. a. The superintendent shall divide the district's baseline funding determined in

subsection 1 by the district's 2017-18 weighted student units to determine the

district's baseline funding per weighted student unit.

b. For any school district that becomes an elementary district pursuant to section

15.1-07-27 after the 2017-18 school year, the superintendent shall adjust the

district's baseline funding per weighted student unit used to calculate state aid.

The superintendent shall divide the district's baseline funding determined in

subsection 1 by the district's weighted student units after the school district

becomes an elementary district to determine the district's adjusted baseline

funding per weighted student unit. The superintendent shall use the district's

adjusted baseline funding per weighted student unit in the calculation of state aid

for the first school year in which the school district becomes an elementary district

and for each year thereafter.

c. Beginning with the 2021-22 school year and for each school year thereafter, the

superintendent shall reduce the district's baseline funding per weighted student

unit. Each year the superintendent shall calculate the amount by which the

district's baseline funding per weighted student unit exceeds the payment per

weighted student unit provided in subsection 3. For the 2023-24 school year the

superintendent shall reduce the district's baseline funding per weighted student

unit by forty percent of the amount by which the district's baseline funding per

weighted student unit exceeds the payment per weighted student unit for the

2023-24 school year. For each year thereafter, the reduction percentage is

increased by an additional fifteen percent. However, the district's baseline funding

per weighted student unit, after the reduction, may not be less than the payment

per weighted student unit provided in subsection 3.

3. a. For the 2025-26 school year, the superintendent shall calculate state aid as the

greater of:

(1) The district's weighted student units multiplied by eleven thousand three

hundred forty-nine dollars;

(2) One hundred two percent of the district's baseline funding per weighted

student unit, as established in subsection 2, multiplied by the district's

weighted student units, not to exceed the district's 2017-18 baseline

weighted student units, plus any weighted student units in excess of the

2017-18 baseline weighted student units multiplied by eleven thousand

three hundred forty-nine dollars; or

(3) The district's baseline funding as established in subsection 1 less the

amount in paragraph 1, with the difference reduced by seventy percent and

then the difference added to the amount determined in paragraph 1.

b. For the 2026-27 school year and each school year thereafter, the superintendent

shall calculate state aid as the greater of:

(1) The district's weighted student units multiplied by eleven thousand

six hundred thirty-three dollars;

(2) One hundred two percent of the district's baseline funding per weighted

student unit, as established in subsection 2, multiplied by the district's

weighted student units, not to exceed the district's 2017-18 baseline

weighted student units, plus any weighted student units in excess of the

2017-18 baseline weighted student units multiplied by eleven thousand

six hundred thirty-three dollars; or

ne hundred two percent of the district's baseline funding per weighted

student unit, as established in subsection 2, multiplied by the district's

weighted student units, not to exceed the district's 2017-18 baseline

weighted student units, plus any weighted student units in excess of the

2017-18 baseline weighted student units multiplied by eleven thousand

six hundred thirty-three dollars; or

(3) The district's baseline funding as established in subsection 1 less the

amount in paragraph 1, with the difference reduced by eighty-five percent

for the 2026-27 school year and the reduction percentage increasing by

fifteen percent each school year thereafter until the difference is reduced to

zero, and then the difference added to the amount determined in

paragraph 1.

4. After determining the product in accordance with subsection 3, the superintendent of

public instruction shall:

a. Subtract an amount equal to sixty mills multiplied by the taxable valuation of the

school district; and

b. Subtract an amount equal to seventy-five percent of all revenue types listed in

subdivision c and paragraphs 1 and 2 of subdivision d of subsection 1 and

revenue from payments in lieu of taxes. Before determining the deduction for

seventy-five percent of all revenue types, the superintendent of public instruction

shall adjust revenues as follows:

(1) Tuition revenue shall be adjusted as follows:

(a) In addition to deducting tuition revenue received specifically for the

operation of an educational program provided at a residential

treatment facility, tuition revenue received for the provision of an adult

farm management program, tuition received for the education of

high-cost and special education students, and tuition received under

an agreement to educate students from a school district on an

air force base with funding received through federal impact aid as

directed each school year in paragraph 3 of subdivision c of

subsection 1, the superintendent of public instruction also shall reduce

the total tuition reported by the school district by the amount of tuition

revenue received for the education of students not residing in the state

and for which the state has not entered a cross-border education

contract; and

(b) The superintendent of public instruction also shall reduce the total

tuition reported by admitting school districts meeting the requirements

of subdivision e of subsection 2 of section 15.1-29-12 by the amount

of tuition revenue received for the education of students residing in an

adjacent school district.

(2) After adjusting tuition revenue as provided in paragraph 1, the

superintendent shall reduce all remaining revenues from all revenue types

by the percentage of mills levied in 2024 by the school district for sinking

and interest relative to the total mills levied in 2024 by the school district for

all purposes.

5. The amount remaining after the computation required under subsection 4 is the

amount of state aid to which a school district is entitled, subject to any other statutory

requirements or limitations.

6. On or before June thirtieth of each year, the school board shall certify to the

superintendent of public instruction the final average daily membership for the current

school year.

7. For purposes of the calculation in subsection 4, each county auditor, in collaboration

with the school districts, shall report the following to the superintendent of public

instruction on an annual basis:

a. The amount of revenue received by each school district in the county during the

previous school year for each type of revenue identified in subdivisions c and d of

subsection 1;

b. The total number of mills levied in the previous calendar year by each school

district for all purposes; and

c. The number of mills levied in the previous calendar year by each school district

for sinking and interest fund purposes.