The HB 1176 Conference Committee meeting held on April 23, 2025, focused on discussions surrounding proposed changes to school funding and taxation in North Dakota. The committee examined the implications of requiring counties to submit additional data to the Department of Public Instruction, which would help clarify the base year used for funding calculations and ensure consistency in capping levies.

One of the key points raised was the potential impact of these changes on local governments, including counties, cities, and park districts. Concerns were expressed about the necessity of a broader conversation regarding how these adjustments might affect various entities involved in the funding process.

Chairman Headland addressed a question regarding whether the proposed changes would effectively provide K-12 education an additional 3% in funding. He clarified that the cap would not result in an increase beyond 3% of the total levy. He explained that if the 60 mills, which represent a significant portion of school district budgets, were capped at 3%, it would not lead to an overall increase in funding. Instead, the cap would apply uniformly across the total levy, maintaining the intended limit.

Representative Nati proposed an alternative approach, suggesting that the committee consider freezing the 60 mills at their current level for school districts while allowing a 3% growth on other mills. This proposal aimed to explore different methods of managing school funding without increasing the overall tax burden.

The meeting concluded with a recognition of the complexities involved in school funding and the need for further discussions to ensure that any changes made would be equitable and effective for all stakeholders involved. The committee plans to continue deliberations on these topics in future sessions.