[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6337190,"mediaKeyId","2273947-3ec4edfe562c7450ef07fbe2f1c37b4a","parentId",2273947,"title","Hearing on House Bill 13-81 highlights equity questions over changing local-revenue deduction from 75% to 50%","audioSeconds",3646,"startMs",3486000,"endMs",7132000,"viewUrl","/Search/View?dp=1&key=2273947-3ec4edfe562c7450ef07fbe2f1c37b4a&start=3486&end=7132","thumbnailUrl","https://assets.pipeline.soar.com/2273947-3ec4edfe562c7450ef07fbe2f1c37b4a/thumbnail_3486000.jpg","articleUrl","/articles/6337190/North-Dakota/Hearing-on-House-Bill-13-81-highlights-equity-questions-over-changing-local-revenue-deduction-from-75-to-50","mediaUrl","https://secure.pipeline.soar.com/6337190-93436fa4adee18f49ec93c8a95511f8d/orig.mp4?Expires=1771135183&Signature=f2zSSvvJ4wKr4ADnY2D-o4jiS4vsj69TdFPtuhtq-q1TG9BDBF2C5wNKXRn9DijuHZd1Zllyk9wxRyx9~1MVfT4FXjnVpaBBiwFyEmHbD~gVkrL0NBxXiDvoKGVmKR2ytCHXnfH8AQkbD9aaSS82zptsuKtLqEqgxOwUI30wKLt0-hsf213ByLFFa90Qwy93vLkOaUpOsnOmf9cFkuvLmHW1WAF7NxCm~SlfZ7I1txYXBzfgH2JtfnoC6OrF3L2hVZ053oF9Zb~HOHc6zACKwPvs0smDpccU5OEReWPoXrU~Mx0V3zfAoeeBeMRtjv--~LfaC1ZTI2uZfp9BNNvI0A__&Key-Pair-Id=KUT5TJCACFTXG","author","North Dakota State Legislature ","date","2025-02-12T00:00:00Z","article","BISMARCK, N.D. — Lawmakers heard opposing views Tuesday on House Bill 13-81, which would reduce the percentage of “contribution from other local revenue” deducted from state aid worksheets from 75 percent to 50 percent, a change sponsors said would let some districts retain more local funds.

Representative Pat Heiner, who introduced the measure to the Appropriations - Education and Environment Division, told committee members the bill would move the line on the student-aid form (lines 35–43) from a 75 percent deduction to 50 percent and estimated a statewide appropriation impact of about $34.4 million if fully funded. He described the change as targeted: only districts that report significant in-lieu or other local revenue — for example certain energy or utility-related receipts — would see substantial increases in local retained funds.

Why it matters: Witnesses said the change could prevent small, declining districts from cutting staff. Brent Vick, superintendent representing Glen Ellyn School District, walked the committee through the district’s packet of DPI worksheets and said Glen Ellyn’s state aid estimate dropped from about $1.45 million in preliminary October numbers to roughly $1.2 million in the January worksheet because of membership and weighting changes; Vick argued the proposed 50 percent deduction would let the district retain more of locally generated in-lieu funds and ease their budget challenges.

Arguments and context: Testimony from DPI finance officer Adam Tesher and superintendents emphasized that the “other local revenue” line captures a wide range of nontraditional local revenues — oil and gas production payments, wind-generation payments, certain telecommunications and mobile-home revenues, and in some cases payments in lieu of taxes. Tesher clarified that many of those amounts are not traditional property-tax values and that in-lieu formulas differ by revenue type. He told the committee that “every school district in the state except for one receives some sort of in lieu of property tax calculation.”

Supporters said keeping more local revenue would help financially stressed districts. Opponents and some committee members raised equity concerns: districts that receive little or no in-lieu revenue would see little to no benefit, while districts with energy production or wind payments would retain more local money than other districts. Chairman Heiner said he voted against the bill in an earlier committee because he felt it would treat districts differently and that lawsuits over equity have occurred in the past.

Fiscal and legal notes: Witnesses traced the 75 percent figure to past formula design choices and budget balancing in earlier sessions; testimony said impact-aid (federal) payments had previously been treated differently and, in a prior change, were removed from the deduction. Tesher told the committee he had provided an appropriation estimate to sponsors (roughly $34.4 million) but the bill was placed aside in the division pending more information and discussion.

Committee action and next steps: The hearing on House Bill 13-81 closed with the committee putting the bill “off to the side” for additional work; no formal recommendation was made. Members asked DPI and sponsors for more details on how the deduction is calculated, which revenue lines are included, and how the change would affect districts with different mixes of revenue and enrollment trends.

Ending note: Supporters argued the measure gives struggling districts a way to keep more local revenue amid declining enrollment and taxable valuation; critics warned the change could raise equity questions that might prompt legal challenges or require broader formula adjustments.","mediaType","Video","parentTitle","House Appropriations - Education and Environment Division Wednesday, Feb 12, 2025 9:00 AM - 12:00 PM","oneSentenceSummary","The Appropriations - Education and Environment Division heard testimony on House Bill 13-81, which would change how the state deducts “contribution from other local revenue” from state aid worksheets — moving the deduction from 75% to 50%.","taxTitle","Appropriations - Education and Environment Division, House of Representatives, Legislative, North Dakota","taxId",28886,"location","North Dakota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6337195,"Committee backs replacing transportation block grant with formula in House Bill 12-14",2672,1083000,3755000,"/Search/View?dp=1&key=2273947-3ec4edfe562c7450ef07fbe2f1c37b4a&start=1083&end=3755","https://assets.pipeline.soar.com/2273947-3ec4edfe562c7450ef07fbe2f1c37b4a/thumbnail_1083000.jpg","/articles/6337195/North-Dakota/Committee-backs-replacing-transportation-block-grant-with-formula-in-House-Bill-12-14","https://secure.pipeline.soar.com/6337195-decf457feb6ae0203f2f970876a6e658/orig.mp4?Expires=1771135183&Signature=lCOBlw3zn4raUckFOXbJPUZ-EoZKLdAOyUmQWbyPbCu49PZI9yS28p2ll7DF-cM0pU6fwyKs0ozhUb4pR4rTduFc6vWAYfVMC6d6wKbBH5QEh~lDJDUG4VCzMJcEBFIl0E-N1wTJTR1UKaW94uQ~TytXb-OaiUZX~4HIOM8lBwPbl7NV15MMh3oxV6pQqNE6Y2AEzQqwfGw3bMCH~vL7ttLPJPp4gCgla8rbr6HTkRGYAodNxFdR~pRlw0ipvQScOGkyEvCOykfBwfVimrWSVh64CckfBx9xKzRKPQpcVWiJ8wVQd05738mDMOO02qsEOd6Kd9A1PyD~i17vWyEuYQ__&Key-Pair-Id=KUT5TJCACFTXG","BISMARCK, N.D. — The Appropriations - Education and Environment Division voted to advance House Bill 12-14 on a due-pass recommendation after testimony that the bill replaces the current block grant for K-12 transportation with a formula tied to the foundation aid payment.

The bill’s sponsor, Representative Pat Heiner, District 32, told the committee the measure “sets up parameters” and moves transportation funding into a worksheet linked to the K-12 foundation aid rather than awarding a post-session grant to the Department of Public Instruction (DPI). Heiner said the change would give districts more certainty about funding.

Why it matters: Supporters said tying transportation to the foundation aid will make funding automatic when that aid is adjusted and let the state target money to costs that vary by district. Opponents in committee raised equity concerns because districts that receive significant in-lieu or production-based revenue will be affected differently than districts that do not.

What the bill does: Superintendent Steve Holden of Mackenzie County School District No. 1 in Watford City, who helped develop the proposal through the Interim School Funding Task Force and the University of North Dakota study, said the bill removes “rides” as a reimbursement factor, keeps miles, and adds two new weighting factors: district geographic size (square miles) and the number of buildings the district serves. Holden said those two factors were statistically significant in the UND study and “should increase the greater accuracy” of payments.

DPI school finance officer Adam Tesher described the fiscal calculations: last biennium the Legislature appropriated about $58.1 million for transportation; DPI expects to turn back roughly $7 million of that, and the proposal would increase the total distributed to about $61 million. Tesher told the committee the fiscal note attached to the bill reflects that the change is largely a reallocation of funds already appropriated and would require roughly an additional $3 million of appropriation compared with amounts actually spent in the current biennium. Committee members and witnesses clarified that a separate fiscal scenario — moving the foundation aid baseline to a higher rate (3-and-3 in testimony) — would raise the appropriation further (testimony estimated an additional $2.6 million in that scenario).

Several members and witnesses told the committee the formula aims for greater predictability. Holden said the state’s prior per-student target for transportation had “dropped on average below 40 percent,” meaning districts were reimbursed far less than historical targets, and that the proposed approach would let transportation funding escalate alongside the foundation aid.

Operational and reporting details: Witnesses and DPI officials said the bill uses data districts already report to DPI (large-bus miles, small-bus miles, large-bus runs, small-bus runs) and keeps the existing 90 percent reimbursement cap. DPI staff noted one counting decision used for the fiscal note: school buildings counted for the new “number of buildings” factor were those with enrollment associated in DPI counts; career-technical center facilities or buildings that host students from multiple schools were not counted in the initial fiscal note unless enrollment is recorded there. Tesher also said DPI will need to refine how it counts runs where districts use staggered start times (one vehicle serving two schedules) so the data reflect intended policy.

Committee action and next steps: Representative Lauser moved a due-pass recommendation; Representative Martinson seconded. The committee voted in favor (roll call recorded the motion as passing). Representative Richter will carry the bill to the full appropriations committee for further consideration and potential appropriation adjustments.

What committee members asked for: Legislators and witnesses discussed potential follow-up changes, including adding more weighting factors in future sessions if additional data systems (e.g., statewide student-information system) make more detailed reporting feasible. Members also asked DPI and sponsors to clarify building-count definitions and the exact fiscal impact under alternative foundation aid scenarios. Tesher and proponents said they would bring clarifications back to the committee.

Ending note: Proponents described House Bill 12-14 as a first step toward a transportation funding structure intended to increase predictability and better target funds; supporters urged further technical refinement during the appropriations process.","The Appropriations - Education and Environment Division voted to advance House Bill 12-14, shifting K-12 transportation funding from a post-session block grant to a formula tied to the K-12 foundation aid payment.","actionData","errors"]

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Hearing on House Bill 13-81 highlights equity questions over changing local-revenue deduction from 75% to 50%

Committee backs replacing transportation block grant with formula in House Bill 12-14