Transcript Slide 1

ND Department of Public Instruction
New Administrators
Conference
August 2, 2013
Summary of Legislation Impacting K12 Education to be the Impacting K12 Education by the 63rd Legislative
Assembly
COMMISSION ON EDUCATION
IMPROVEMENT
• No Longer in Existence – Legislatively and
Resulted in:
•
•
No Unified “Omnibus” K-12 Education Policy Bill
Little or No Coordinated Effort of Education
Associations with State Level Efforts Not Coordinated
• Major Education Bill HB1319 which became
part of NDDPI Funding bill HB1013 on Last
Day of Session
Highlights of Legislative
Action on Major K-12
Funding Bill:
HB1013
(aka HB1319)
SECTION 9
Transportation Grants
$5 million increase for next biennium ($53,500,000)
Rates based on transportation formula as it existed on
June 30, 2001, with the following rate changes:



Large bus (capacity 10 or more)
$1.13 per mile
$0.30 per one‐way trip
Small bus (capacity less than 10)
$0.52 per mile
$0.50 family transportation
Per day per one‐way trip
Per day up to two one‐way trips is required by IEP to attend
outside the district
SECTION 23
15.1-07-32
Student Performance Strategist
Allows Special Ed teachers to be student
performance strategists if:
 School teacher is licensed to teach or approved to
teach by ESPB and
 Holds a special education endorsement or
credential
SECTION 32
15.1-27-03.1 (sunset) & 15.1-27-03.2 (2013-15)
Weighted ADM Determination
Resets all weighting factors back to current (2011-13) factors due to sunset
on HB1013 in June 30, 2015
15.1-27-03.2 School District Size Weighting Factor – Weight Student
Units 7/1//13 through 6/30/15
Keeps isolated school size at 100 students for eligibility
Changes home based instruction monitoring weighting factor from 0.50 to
0.2
Increases Special Ed weighting factor by .0003 (.0790 to .0820) and adds
testing for placement for purposes of identifying. FYs 2013-15)
Reduces Powerschool factor from .0060 to.0030 because increases in PPP
generates a lot more funds
Reduces REA factor from 0.0040 to 0.0020 because increases generates a
lot more funds FYs 2013-15
SECTION 33
15.1-27-03.2
School District Size Weighting Factor –
Weight Student Units
Resets all school district weighting factors on a new scale ranging
from 1.35 for districts with fewer than 100 students to 1.00 for 900 or
more students:
<125
1.35
125-129
1.34
130-134
1.33
135-139
1.32
140-144
1.31
145-149
1.30
150-154
1.29
155-159
1.28
160-164
1.27
165-174
1.26
175-184
1.25
185-199
1.24
200-214
1.23
215-229
1.22
230-244
1.21
245-260
1.20
260-269
1.19
270-274
1.18
275-279
1.17
280-284
1.16
285-289
1.15
290-294
1.14
295-299
1.13
300-304
1.12
305-309
1.11
310-319
1.10
320-334
1.09
335-349
1.08
350-359
1.07
360-369
1.06
370-379
1.05
380-389
1.04
390-399
1.03
400-499
1.02
600-899
1.01
>900
1.00
SECTION 34
15.1-27-04.1
Baseline Payment & Funding Formula
Basic Premise is a K‐12 Education Equity and
Adequacy formula which provides that:


“Every student in elementary and secondary education in North
Dakota should have a base of financial support that is adequate to
allow the district to provide a quality education, regardless of
where the student lives or how much taxable valuation is available
to the local school district”
Per student base payment rates: $8,810 (FY 13-14) and $9,092
FY (14-15)
Property Tax Component



Ends the mill levy buy down program yet provides an additional 50
mills of property tax relief on top of the 75 mills currently provided.
Severs the relationship with property valuation changes.
Provides a base level of funding necessary to educate students to
state standards from a combination of state and local taxes.
SECTION 34
15.1-27-04.1
Baseline Payment & Funding Formula
Establishing the Baseline
Current state aid payment (2012-13) plus,
MLRG dollars (2012 taxable value) plus,
Dollars generated from the total of a district’s
general fund levy or 110 mills whichever is less plus,
Dollars generated from the total of a district’s
 Long distance learning and technology levy plus,
 Alternative education program levies
SECTION 34
15.1-27-04.1
Baseline Payment
Establishment - Continued
In lieu of moneys received by the district which include:

75% of all mineral revenue

75% of all tuition from sending district except for revenue received
for operation of residential treatment facility and tuition received
for adult farming management programs

75% of all revenue from distribution and transmission of electric
power

75% of all revenue from electricity generated from sources other
than coal

All (100%) revenue Mobile homes

All (100%) revenue from taxes on telecommunications
All (100%) revenue from taxes on homestead credit and disabled
veteran’s
Divided by Districts wsu
SECTION 34
15.1-27-04.1
Baseline Payment
Determination of State Aid
2013-14 Payment
For 2013-14 payment NDDPI
Multiplies district’s wsu for 2013-14 by $8810
Adjusts product so district gets at least equal to the greater of:

102% or

100% of districts 2012-13 baseline funding per wsu
(Baseline minimum)
Adjusts product so district does not exceed

110% of districts 2012-13 baseline funding per wsu
(Baseline maximum)
SECTION 34
15.1-27-04.1
Baseline Payment
Determination of State Aid
2014-15 Payment
For 2014-15 payment NDDPI
Multiplies district’s wsu for 2013-14 by $9092
Adjusts product so district gets at least equal to the greater of:

104% or

100% of baseline per wsu or 12-13 baseline (Baseline
minimum) or
Adjusts product so district does not exceed

120% or (Baseline maximum)
SECTION 34
15.1-27-04.1
Baseline Payment
Determination of State Aid Payment
The NDDPI will then subtract from the above product for each
year of the 2013-15 biennium:
An amount equal to 60 mills multiplied by the taxable valuation
of the school district,
After 2013, the amount in dollars subtracted for purposes of
this subdivision may not exceed the previous year's amount in
dollars subtracted by more than twelve percent; and
An amount equal to 75% of all “in lieu: of money described
above
An amount equal to 100% of all “in lieu: of money described
above
The amount remaining will be a districts state aid.
SECTION 35
15.1-27-04.2
State Aid Minimum Local Effort
For districts with state taxable valuation which is >
20% (was 40%):
 State will use an amount equal to 60 mills times
 State Average Valuation Per Student times
 Weighted Student Unit (wsu) of the district
(60 mills x state Avg Valuation Per Student X wsu of district)
SECTION 38
15.1-27-35
Unobligated General Fund Balance (EFB)
Beginning July 1, 2015, Ending Fund Balance
(EFB) from preceding June 30th can not exceed
40% + $20,000
Beginning July 1, 2017, Ending Fund Balance (EFB)
from preceding June 30th can not exceed 35% +
$20,000 expenditures, plus twenty thousand
dollars.
A districts EFB includes all moneys in the district’s
12 mill “miscellaneous fund”
SECTION 39
15.1-27-39
Minimum Annual Salary
Increases minimum teacher salary from $22,500 to
$27,500 beginning 2014-15
70% rule for teachers salary is no longer applicable
as that is “session “ law which was not renewed in
HB1013
SECTION 43
15.1-27-39-09
Beverages – Snack Breaks
Allows school districts to use funds from “at-risk
factor” (15.1-27-03.1 subdivision ‘n’) for
students eligible for free or reduced lunches to
get 1 serving of milk or juice if a mid-morning
snack break is provided
SECTION 44
15.1-27-36-02
School Construction Loans
Loan Fund increased to $200 million



$50 million from the coal development trust for school construction
loans and
$150 million from strategic investments and improvements fund to
provide school construction loans
As of January 1, 2015 up to $50 million in any unused funds of $150
million from SI&I fund will be used to fund medical structure facility loan
requests (SB2187)
1% minimum interest rate
Eligibility based on district tax value per pupil:



< 80% up to $20 million … 90% of project … up to 4½% discount
80%‐90% up to $15 million … 80% of project … up to 3½% discount
> 90% up to $10 million … 70% of project … up to 3% discount
A loan payable solely from OGPT (oil & gas property tax) receipts
not subject to debt limit
SECTION 47
57-15-01.1
Protection of Taxpayers and Taxing
Districts
Adds following language to current law which states that
“Each taxing district may levy the lesser of the amount in dollars as
certified in the budget of the governing body, or the amount in
dollars as allowed in this section subject to the following”:
If the base taxable year before 2013, reduced by the
amount of state aid in NDCC 15.1-27, which is
determined by multiplying the budget year taxable
valuation of the school district by the lesser of:


The base year of the school district minus 60 mills; or
50 mills
SECTION 49
57-15-14.2.1
School District Levies
Eliminates all levies requiring board action and replaces it with
the following:
Sets maximum levy at 82 mills for “any purpose related to provision of
educational purposes” which after 2013 may not exceed the amount levied
the year before plus 12%
Sets a maximum levy of 12 mills by a school board for miscellaneous
purposes and expenses which must deposited in a special “miscellaneous
fund” and may not be transferred to any other fund
A board may levy no more than 3 mills for deposit into a special reserve
fund.
Board may levy "no more than the number of mills necessary" for HS tuition
and the funds must be deposited in a special "tuition fund" and may not be
transferred into any other fund.
Boards are not limited from levying for:
Mills for a building fund; and
Paying on principal and interest on bonded indebtedness, incurred before
July 1, 2013.
SECTION 49
57-15-14.2.1
School District Levies
For taxable year 2013 only

Establish a baseline amount by multiplying 2013 taxable valuation
by the sum of 60 mills plus the number of mills levied under former
sections 57‐15‐14.5 (technology) and 57‐15‐17.1 (HVAC) in 2012
Example: If the district levied 5 mills for technology and 7 mills for
remodeling under 57‐15‐17.1 for the 2012‐13 school year then:
60 plus 5 plus 7 = 72 mills x 2013 taxable valuation establishes the
baseline amount.

The general fund and miscellaneous levy is limited to 112% of the
baseline amount, up to a levy of 82 mills on the taxable valuation of
the district
After taxable year 2013


General fund levy is limited to 112% of the levy in dollars over the prior
year, up to 70 mills on the taxable valuation of the district.
Misc fund levy is limited to a levy of 12 mills on the taxable valuation of the
district.
SECTION 49
57-15-14.2.1
Establishing Levies – How It Works
For 2013 taxable year you may levy the amount in dollars up to 12% of what
your district levied for 2012 taxable year up to a total of for a combined levy of
82 mills.
The maximum amount of the 10 mills available for a district by board vote for
2013 is capped at a 12% increase which would translate into a 7.2 mill
increase. If a district has no additional mills for tech-HVAC-Alt HS this would
be the maximum they could raise in mills.
The additional 12 mills above the 60 mills are to include any levies that
districts had levied that year for those levies that will be lost (tech – Alt HS –
HVAC-etc) in the 2014 taxable year and replaced with the 12 mill
miscellaneous.
District A would include dollars generated by .11 mills tech and .11 mills for HVAC (.22 mills)

District B would include dollars generated by 5 mills for tech and 3.36 mills for Alt HS (8.36
mills)

District C would include dollars generated by 5 mills for tech and 7 mills for HVAC (12 mills)
The dollars generated from the levies in 3 above would be included in their
base line for 2013 for the 12% rule in dollars
The total mills of all of the above cannot exceed a total combined levy of 82
mills as stated in first bullet above.
SECTION 49
Establishing Levies – How It Works
Here is Are Examples for Three Districts Would Work



District A would include dollars generated by .11 mills tech and .11 mills for
HVAC (.22 mills)
District B would include dollars generated by 5 mills for tech and 3.36 mills for
Alt HS (8.36 mills)
District C would include dollars generated by 5 mills for tech and 7 mills for
HVAC (12 mills)
The dollars generated from the levies in 3 above would be
included in their base line for 2013 for the 12% rule in dollars
The total mills of all of the above cannot exceed a total
combined levy of 82 mills as stated in previous slide above.
Here’s how the above districts mill levies would play out:
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District A = dollars generated by 60+00.22 = 60.22mills x 1.12% = 67.45 mills
District B= dollars generated by 60+08.36 = 70.56 mills x 1.12% = 72.20 mills
District C = dollars generated by 60+12.00 = 72.00 mills x 1.12% = 80.64 mills
SECTIONS 50 & 52
57-15-14.5 & 57-15-17.1
Technology Levies
Education Technology and HVAC/Asbestos Levies are
eliminated as of July 1, 2013
Balance of funds remaining are to be transferred to a
district’s general fund
Things to know:


Revenues transferred to general fund from this levy, along with
the HVAC/Asbestos levy revenues are included in the
calculation of the total allowable increase in local revenue for a
school district for 2013-14 by 12%
Make sure district EFB (Ending Fund Balance) does not
exceed:
45% plus $20,000 by June 30, 2014 if don’t want to lose state
funding
25% if you plan on applying for a School Safety Grant (SB2267
SECTIONS 54,55, & 56
57-19-01, 57-19-02 & 57-19-09
Special Reserve Levy
Special Reserve Levy remains at 3 mills
New law limits Special Reserve Levy balance to no more
than could be produced by 15 mills in the district for that
year (was total dollars produced by all local levies)
Revenues from this levy in excess of the 15 mill cap are to
be transferred to general fund on each July 1st (57-19-02)
Things to know if you have to transfer revenues from this
fund this year:

Make sure district EFB (Ending Fund Balance) does not exceed:
45% plus $20,000 by June 30, 2014 if you don’t want to lose state
funding
25% if you plan on applying for a School Safety Grant (SB2267)
Highlights of Legislative
Action on Other K-12
Policy Bills:
School Safety Grants
SB2267
$3 million appropriation
$10,000 plus pro rata share on ADM
Use for projects to improve safety
Eligibility



Not subject to ending fund balance offset
Provide equal monetary match
Ending fund balance cannot exceed 25%
School District Rapid Enrollment
Growth Grants
HB 1261



Appropriates $13.6 million
District must have 4% growth and at least 20
student increase
Uses Fall K‐12 Enrollment compared to Foundation
Aid ADM

Provides payment of $3,900 for each student over 2%.
ND Scholarships
Academic Scholarships

HB 1258
Now allows for a Career and Technical Education “coordinated
plan of study” to be meet foreign language requirement (15.1-2102.5)
Removes CTE requirement from additional five units taken
(15.1-21-02.5)
Lowers from 15 to 12 the requirements for required credits during
final year in college
Home School Student Scholarship Eligibility

HB1291
Allows eligibility for home schooled students for Career and
Technical Education Scholarship (15.1-21-02.5) or an Academic
Scholarship (15.1-21-02.5)
State Assessments
SB2102 (15.1-21-08)

State Assessments for Reading, Mathematics,
Science – Test Administration
Math &reading annually grades 3, 4, 5, 6, 7, 8,
and in at least one grade level selected from 9-11
Science annually in one grade selected from 3-5;
6-9; and in at least one grade level selected from
9-11
Early Childhood
Education Programs
HB 1429 (15.1-09-58)

Districts can operate an early childhood
education program with local provided the
program is approved by DPI (15.1-37) and
can support the program with
Local tax revenues, other than those necessary to
support the district’s kindergarten program and the
provision of elementary and high school services
State moneys appropriated for the program
Federal funds appropriated for the program
Gifts, grants, and donations for the program
Concussion Management Program Changes
HB1028 15.1-18.2-04
Program must require student be removed from practice,
training or competition of the signs and symptoms of a
concussion
Duty remove student is extended to officials, coaches,
and any other individual designated by the school as
having direct responsibility for the student
Student must be evaluated as soon as possible by a licensed health
care provider trained in the evaluation and management of
concussion
Student cannot return until authorized by licensed health care
provider in writing, presented to the student’s school district, and
that it be retained by the school or school district for 7 years after
student’s conclusion of enrollment who
Zero Increase Number of Mills
57-15-02.1
Districts may not impose a property tax levy in a greater
number of mills than the “zero increase number of mills” unless
they advertise and hold a public hearing
“Zero increase number of mills”

Means the number of mills against the taxing district’s
current year taxable valuation, excluding consideration of
new growth, which will provide the same amount of property
tax revenue as the property tax levy in the prior year
Zero Increase
“Things to Keep In Mind”
The law states that a "Property tax levy" means the
tax rate, expressed in mills, for all property taxes
levied by the taxing district – so you must include
ALL property tax levies when doing your calculation.
If you have any increase in total dollars from the 2013
levy over your 2012 levy you must post the hearing
notification in your local newspaper.
The notice must be published at least 7 days before
the hearing and the hearing (generally when you
adopt your preliminary budget in July) cannot be held
before 6:00PM on that date.
Zero Increase
“More Things to Keep In Mind”
SB2036 requires notification by mail of each property
owner who received notice of an assessment increase
under 57-12-09 ($3,000 or 10% increase of last
assessment) 7 days prior to the hearing. Contact you
local auditor for this mailing list!!!!
The hearing notice has very specific requirements
which are on the NDCEL website and can be
accessed by using the following link: Zero Increase
Number of Mills
Announce at your first hearing (preliminary budget) the
date and time of your final meeting when you adopt
your budget (usually in October). If you do that you do
not need to post another notification in the your local
newspaper.
Calculating “Zero Increase Mill Levy”
for All Mills Levied
Zero Increase Mills - Valuation and Levy Information
Taxable Valuation
Previous Tax Year
$42,951,281
Present Tax Year
$44,500,000
Mills Levied in Previous Tax Year
General
110.00
Technology
0.00
Transportation
0.00
HS Tuition
7.00
Judgment
0.00
Asbestos
0.00
Remodeling
0.00
Alternative Ed
5.00
Special Reserve
0.00
Special Assessment
2.00
Building
10.00
Sinking and Interest
21.40
Other Bonding
0.00
Valuation of New Land Growth in District
Present Tax Year
$950,000
Proposed Mill Levy for Present Tax Year
General
60.00
Miscellaneous Fund
5.00
HS Tuition
7.00
0.00
2.00
10.00
21.40
0.00
0.00
105.40
105.40
TOTAL Mills Levied
155.40
Special Reserve
Special Assessment
Building
Sinking and Interest
Judgment Bonding
57-15.17.1 Bonded Debt
TOTAL Mills Levied
Required Mill Rate Adjustment
Comparative Previous Mill Levy
50.00
105.40
Proposed Mill Levy
Calculating
Zero Increase Number of Mills
Calculation of Zero Increase Number of Mills - NDCC 57-15-02.1
Taxable Valuation
Minus New Growth
Taxable Valuation Excluding New Growth
Comparative Previous Mill Levy
Zero Increase Number of Mills
Property Tax Revenue
Proposed Mill Levy
Proposed Property Tax Revenue
Increase/(Decrease) in Dollars
Percentage Increase for Public Hearing Notice
Previous Tax Year Present Tax Year
$42,951,281
$44,500,000
($950,000)
$43,550,000
105.40
$4,527,065
103.95
$4,527,065
105.40
$4,690,300
$163,235
1.39%
Other Bills Impacting K12 Ed
HB1038-Human services will create an autism spectrum registry
HB1228-$160,000 in CTE grants for STEM advancement
HB1268-Drivers Education curriculum requirement

Beginning July 1, 2014, driver’s ed. curriculum must contain process for
making an anatomical gift

Parents of driver’s ed. students must be notified in writing or electronically that
the curriculum includes this process
HB1276- Exempts personnel dispensing medication to students from liability if
trained
HB 1283- bill does not allow for guns on school property or at school functions
HB 1288-Requires a 55% vote of the people to use a building authority for any
project $4 million or more
SB2238- Reimbursement to districts for student CPR training. $22.50/trained
student first year; $15 second
SB2270-Allows bid advertisements to place in on-line publications
SB2329-Homeschoolers may opt out of testing under certain circumstances. Have
to read it to believe it!