Bill > HB1130

This bill amends North Dakota's school state aid formula to provide an option for school districts to reduce their local contribution deduction by the percentage of local contribution that comes from in-lieu-of revenue. Specifically, the bill modifies the existing law by updating several technical aspects of how baseline funding is calculated for school districts, including adjusting the treatment of various revenue types and tuition calculations. The bill makes changes to how revenues from different sources (such as mobile home taxes, telecommunications taxes, and payments in lieu of taxes) are factored into state aid calculations. A key modification is in subsection 4, which now allows school districts to have revenues reduced by the percentage of mills levied for sinking and interest funds, with a specific requirement that the reduced amount be allocated to the school district's sinking and interest fund and applied directly to bonded indebtedness repayment. The changes appear designed to provide more flexibility to school districts in managing their state aid calculations and to clarify how different types of revenue and local tax levies impact their overall funding.