Transcript ND Association of School Business Managers

Western ND School District Funding
Information Session
July 17, 2013
Comfort Inn
Bismarck, ND
New State School Funding Model
ND Department of Public Instruction
School Finance
Jerry Coleman
(701)-328-4051
[email protected]
Foundation Aid Formula
• K-12 Education Equity and Adequacy
• Permanent Property Tax Relief
• Main principle – 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 rates: $8,810 and $9,092
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.
Levy Authority Rewrite
• New General Fund cap of 70 mills.
• New Misc Fund levy of 12 mills.
• Special Reserve Fund maintained.
– Up to 3 mills
– Balance cannot exceed 15 mills
– Excess balances transferred on July 1
• Building Fund
• Sinking and Interest levies, including repealed
sections.
Levy Limitations
• 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 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.
Transportation
• $5 million increase for next biennium.
• 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
Student Contracts
• $16.5 million appropriation for excess cost
reimbursements
• HB 1301 made permanent the eligibility for
students placed in residential facilities within
their home district.
School Construction Loans
• Loan Fund increased to $200 million.
• 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 receipts not
subject to debt limit.
SB 2267 Safety Grants
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$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%
HB 1261 Rapid Enrollment Growth
Grants
• $13.6 million appropriation
• 4% growth and at least 20 student increase
• Fall K-12 Enrollment compared to Foundation
Aid ADM
• $3,900 for each student over 2%.
SB 2036 State Paid Property Tax Relief
Credits
• 12% reduction in property tax bill
• $200 million fiscal note
• Has language requiring formal notices of
assessment increases
• Taxing districts, prior to the public hearing,
must send notice to taxpayers whose property
assessment increased.
HB 1286 Building Authorities
• Requires a 50% vote for school district
building projects in excess of $4 million.
• Subjects these projects to construction
approval requirements through DPI.