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HB 1381

extending the time of the party filing period.

2026 Regular Session Introduced by Ross Berry and 1 co-sponsor

ND HB 1381 shifts state aid from baseline funding to a per-weighted-student-unit payment, with phased reductions of baseline over time, affecting districts unevenly; not enacted.

Signed by Governor Ayotte 06/11/2026; Chapter 129; eff. I. Sec 2 eff 1/1/28 II. Rem eff 6/11/26
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Bill Summary · HB 1381

HB 1381 — Summary (North Dakota: amendment to § 15.1‑27‑04.1, determination of state aid)

Status
- Introduced: Nov 18, 2024
- Legislative action: Read first time and progressed; Second reading — failed to pass (yeas 14, nays 31) (3/31/2025).
- Bill would have amended and reenacted NDCC § 15.1‑27‑04.1 and provided an appropriation (appropriation amount not shown in provided text). The statute text notes “effective through June 30, 2025” and contains a retroactive-application note.

Purpose / Intent
- To revise how the superintendent of public instruction establishes each school district’s baseline funding and how state aid is calculated and phased over time — shifting from prior baseline preservation toward a per‑weighted‑student‑unit payment methodology with phased reductions of baseline‑based payments.

Key provisions and changes
- Baseline funding composition (uses 2017‑18 and 2018‑19 reference years):
- Baseline includes: all state aid received under chapter 15.1‑27 in 2018‑19; an amount equal to the property tax deducted to determine 2018‑19 state aid; and 75% of several 2017‑18 revenue types (including certain local revenues reported under code 2000, some mineral revenues, most tuition revenue with specified exemptions and phased exclusions for tuition associated with students on an Air Force base, certain payments‑in‑lieu‑of‑tax (PILT) on electricity and transmission, and leasing revenue under federal statute).
- Additional 2017‑18 revenues (mobile home tax, telecommunications tax, PILT and state reimbursement of homestead/disabled veteran credits) are included at 100%.

  • Adjustments for districts becoming elementary districts:

    • If a district becomes an elementary district after 2012‑13, baseline is reduced proportionally to students/grades no longer provided; adjusted baseline funding per weighted student unit is used for aid calculations beginning the first year the district is elementary.

  • Phased reduction of baseline funding per weighted student unit:

    • Beginning 2021‑22 the superintendent must reduce each district’s baseline funding per weighted student unit by the amount it exceeds the statutory payment per weighted student unit.
    • For 2023‑24 the reduction is 40% of that excess; thereafter the reduction percentage increases by 15 percentage points each year (subject to a floor: the reduced baseline per WSU cannot be less than the payment per WSU set in subsection 3).

  • State aid computed as the greater of alternative formulas:

    • 2023‑24: greater of (a) weighted student units × $10,646; (b) 102% of baseline funding per WSU × WSUs (capped at 2017‑18 baseline WSUs) plus any excess WSUs × $10,646; or (c) baseline less amount in (a), difference reduced by 40% then added to amount in (a).
    • 2024‑25 and thereafter: analogous structure but with the statutory per‑WSU amount set at $11,072 (and continuing the phased baseline reductions described above).

Affected parties / likely impacts
- All North Dakota school districts — but impact varies:
- Districts with high historical baseline funding per weighted student unit (relative to the statutory per‑WSU amounts) will see their baseline‑based component phased down over time toward the per‑WSU payment, altering their state aid trajectory.
- Districts that have become elementary districts after 2012‑13 face proportional baseline reductions.
- The treatment and phased exclusion of certain tuition and federal impact‑aid‑related revenues (air force base students) will affect baseline calculations for districts receiving those funds.
- The Department of Public Instruction (superintendent) implements the new computations and reductions; state budget effects depend on appropriation and aggregate formula outcomes.

Timing / procedural notes
- The bill text contains multiple date references for phase‑in (2020‑21 adjustments for elementary districts; 2021‑22 start of reductions; 2023‑24 and 2024‑25 specific calculation years).
- The bill was ultimately not adopted on second reading (failed 14–31) and therefore did not become law in the 2025 session as presented.

Notes
- The provided bill text references retroactive application and an appropriation but the appropriation amount was not included in the supplied materials.

Compiled from official sources — confirm details with the bill’s official record.

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