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.

69th Legislative Assembly (2025-26) Introduced by Keith Kempenich and 4 co-sponsors

SB 2279 restructures North Dakota's school funding formula, eliminates rural district transition payments, and modifies excess levy approval requirements, but failed passage 41-6.

Second reading, failed to pass, yeas 6 nays 41

Legislative bill overview

SB 2279 would significantly restructure North Dakota's school funding formula by amending how state aid payments are calculated, eliminating certain transition provisions for isolated school districts, and changing requirements for school district excess levy approvals. The bill also mandates specific information be displayed on property tax statements and repeals three existing statutes related to state aid adjustments and valuation impacts.

Why is this important

School funding formulas directly affect educational resources, property tax burdens, and district solvency across rural and urban communities. Changes to state aid calculations and excess levy approval processes impact both school district budgets and taxpayer obligations. Property tax statement transparency requirements affect how residents understand their tax bills.

Potential points of contention

Rural district impacts: Repealing isolated school district transition payments could disproportionately affect small, geographically remote districts with higher per-pupil costs and lower tax bases

Excess levy voter approval changes: Modifications to how voters approve excess levies may increase or decrease administrative flexibility, depending on specific language changes

State aid recalculation: Altering the state aid determination formula could shift funding between districts, creating winners and losers that may face political opposition from affected communities