North Dakota 2023-2024 Regular Session

North Dakota House Bill HB1238

Introduced
1/10/23  
Refer
1/10/23  
Report Pass
1/18/23  
Engrossed
1/23/23  
Refer
2/10/23  
Report Pass
3/7/23  
Enrolled
3/10/23  

Caption

Extending the moratorium on the unobligated general fund balance deductions from state aid formula payments; and to provide for a legislative management study regarding the impact of the ending fund balance on school credit and school efficacy.

Impact

The potential impact of HB 1238 on state laws relates to how districts manage their financial reserves in relation to state funding. The legislation aims to ensure that schools maintain sufficient ending fund balances to achieve favorable credit scores, allowing them to bond at reduced costs. An accompanying legislative management study will analyze these parameters to ensure equitable education funding and will explore trends linking state investment with student performance. This could result in reforms that favor adequately funded education initiatives over time.

Summary

House Bill 1238 aims to extend a moratorium on the deductions related to unobligated general fund balances from state aid formula payments. Specifically, the bill addresses the calculation of payments to school districts, ensuring that the deductions applied to their general fund balances do not negatively affect their overall funding. By prohibiting these deductions for a set period, the bill seeks to provide schools with more stability in their financial planning and resource allocation. This is especially relevant as districts often face varying funding requirements and temperatures in state education policy from year to year.

Sentiment

Overall, sentiment around HB 1238 appears to be supportive among legislators who are concerned about ensuring adequate funding for educational institutions. The decision to extend the moratorium is seen as a proactive measure needed to support districts that may otherwise be penalized financially due to their unobligated fund balances. However, some skepticism exists regarding the effectiveness of such measures, particularly about how they can impact long-term educational outcomes and resource management for future state funding cycles.

Contention

One notable point of contention revolves around how unobligated fund balances should be treated within the state aid formula. Critics may argue that the constraints placed by the original deductions could discourage prudent financial management by schools, pushing them to spend down reserves unnecessarily. Conversely, proponents laud the bill's intent to provide fast relief to school districts struggling with funding uncertainties while maintaining a focus on their operational effectiveness and educational outcomes in the face of increasing student needs and challenges.

Companion Bills

No companion bills found.

Previously Filed As

ND SB2158

The distribution of the unobligated cash balance of a dissolved school district.

ND HB1216

Create the local assistance fund and to provide for the transfer of certain unobligated cash balances.

ND SB2284

School district enrollment, the definition of "probationary teacher", a school district's policy governing possession of a weapon, the definition of "dangerous weapon", modification of weighting factors, transition maximums and an increase in per student payments, and the school construction revolving loan fund; to provide for a legislative management study; to provide a legislative management report; to provide an appropriation; to provide for an exemption; to provide for a transfer; and to provide an effective date.

ND LD1402

An Act Regarding Unobligated Balances from Amounts Appropriated for General Purpose Aid for Local Schools and to Require Annual Reports on School Demographics

ND A4608

Provides that school districts with unpaid balances on certain borrowed funds are not subject to State school aid reductions; requires use of surplus funds to repay borrowed funds.

ND SB2328

AN ACT to create a school funding task force; and to provide for a legislative management report.

ND HB1149

AN ACT to provide for a legislative management study regarding the impact of the North Dakota high school activities association on students.

ND HB1369

The determination of state aid, boarding care costs, the coal development trust fund, the school construction assistance revolving loan fund, public improvement construction, bonds from contractors for public improvements, and school district levies; and to provide an effective date.

ND HB3673

To rescind certain unobligated balances, and for other purposes.

ND HB1572

Park district bonding authority without a vote, reporting of legislative tax relief information, and delivery and contents of the real estate tax statement; to provide for a legislative management study; and to provide for a legislative management report.

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