[{"_1":2,"_87":-5,"_88":-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",6264485,"mediaKeyId","3096374-5e2def8c3a3ade954d657189c7fbc103","parentId",3096374,"title","Conference committee debates how 3% cap would apply to school mill levies; asks Department of Public Instruction for cost scenarios","audioSeconds",1385,"startMs",2745,"endMs",1388000,"viewUrl","/Search/View?dp=1&key=3096374-5e2def8c3a3ade954d657189c7fbc103&start=2&end=1388","thumbnailUrl","https://assets.pipeline.soar.com/3096374-5e2def8c3a3ade954d657189c7fbc103/thumbnail_2745.jpg","articleUrl","/articles/6264485/North-Dakota/Conference-committee-debates-how-3-cap-would-apply-to-school-mill-levies-asks-Department-of-Public-Instruction-for-cost-scenarios","mediaUrl","https://secure.pipeline.soar.com/6264485-7dc311b610d307271090a0feed623549/orig.mp4?Expires=1771193986&Signature=O~SN8-otmAEH6iVxwrm06lXolAwYJzCR5PTrPN6h5h~7LAqGGLMtbxWLVrXz3y2bzACujWVPxSQ6hevUvxPlTNp86t9hdqnVuxcEQvb-aJRlqPB-MGDEllnG-gK9XJUsuY3BNYtENuNRSk7Dwcg-MP0d2SwkOlzRD~5rAYtqD1emKx0wJu8oqgXL0NnevJgv3w8a~G~YMRuQNkeiTrS-kFLQXp3wU2Q0wMuOkEiEVNmjMJ1GU7ag3wa~9B-ZCEHHdZaY3uxwxEc6AxFxyIzvGH0zkDzO23~RuaX7tt6Xpwq8-5IguE0NZ4lHLQI1I3pxDfapqfM5zyf1H1gjbZ-LBw__&Key-Pair-Id=KUT5TJCACFTXG","author","North Dakota Legislature","date","2025-04-23T00:00:00Z","article","Conference committee members reviewing House Bill 1176 spent substantial time on sections that would cap local property-tax growth at 3% and the effect that cap could have on public-school mill levies and state school funding.

Adam Tesher, school finance officer with the Department of Public Instruction, told the committee the amendment “makes the funding formula whole” so districts receive their full per-pupil payment, but levying authority outside the funding formula could still cause districts to see a net decrease in available dollars. “If [a school district] exceeds the growth, the 3% cap…we will reduce their state payment dollar for dollar,” Tesher said, describing how levies above the cap would trigger a state payment reduction and force districts to use other levies to make up the difference.

Committee members discussed two principal options that Tesher described as workable: (1) apply separate 3% caps to the 60‑mill levy that counts toward the funding formula and to the remaining levies (the 10‑mill general fund and 12‑mill miscellaneous levies), or (2) freeze each district’s 60‑mill base at current-year dollars and allow 3% growth on the other levies. Tesher said either approach could be mirrored in the funding formula or handled through expanded gap funding.

Tesher also provided context about current levy patterns: he said about 66 school districts currently max out their 70‑mill plus 12‑mill levies, while “probably a dozen school districts” levy only the 60 mills and have no extra levies to reduce. Those districts could qualify for gap funding under the proposed amendment because they lack other levies to absorb reductions.

When Representative Nathan asked about fiscal magnitude, Tesher said, “I wanna say we estimate about $30,000,000 annually in an increase in contribution of, taxable valuation. So if you look at a 30,000,000 and a 30,000,000, you're looking at about just shy of a hundred million dollars.” He cautioned that he would double-check numbers and follow up with more precise estimates.

Senator Beckettall and others raised practical experience with revenue bonds and transition funding and asked whether the proposed gap financing could recreate past complications such as transition minimums and equity concerns across districts. Tesher said the earlier transition-minimums/maximums construct was different but acknowledged the questions could reappear if districts diverge in mill levies and taxable values.

The committee asked Tesher to prepare cost estimates and draft language showing both scenarios (separate caps by levy and freezing the 60‑mill base) and to return with the estimates; Tesher said he would “do my best” to produce estimates by 3:30. No formal vote was taken on final language during the session.","mediaType","Video","parentTitle","HB 1176 Conference Committee Apr 23, 2025","oneSentenceSummary","Committee members examined options for applying a 3% cap to K‑12 mill levies under House Bill 1176, discussed gap funding, and asked Adam Tesher of the Department of Public Instruction to produce cost estimates and draft language showing two scenarios: separate 3% caps by levy type, and freezing current 60‑mill levels in dollars.","taxTitle","House of Representatives, Legislative, North Dakota","taxId",28308,"location","North Dakota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6264491,"Conference committee weighs narrowing certificate-of-indebtedness exemption to BND infrastructure loan fund",0,845000,"/Search/View?dp=1&key=3096374-5e2def8c3a3ade954d657189c7fbc103&start=845&end=845","https://assets.pipeline.soar.com/3096374-5e2def8c3a3ade954d657189c7fbc103/thumbnail_845000.jpg","/articles/6264491/North-Dakota/Conference-committee-weighs-narrowing-certificate-of-indebtedness-exemption-to-BND-infrastructure-loan-fund","https://secure.pipeline.soar.com/6264491-1b27da8445444219e0207b286d8513b5/orig.mp4?Expires=1771193986&Signature=jlADsMsA9t0l3iZoef~hPy7oyil3ijSOf~awVtxKs1e3BUbRqdBE53nV0HJ1YbmkHMIJT8E9lcKY-0YBXTmdxXhL0ldNGnWZ9IWEviTkpI4Oz0pJcrvbim5R1Hd8vUrdLm9Pb1Jiwh5curdyK38ffAj4ptgWQz2fD1MQADMWsrgyBDdDJOFqHKjxfjpR8RtqF-yN6FBMS~VmRxaJbtwo5rDeEpTjNinsyPgkw8oA5vDGVGa-W9JfqTwqJkPc92OYZ4sA7RFevvy12bgXfisRLfQXP87JWDtf6DduBP~huCJP4uz7IgYOpZ9L0rJz2PAVSGKDT8g8MS6HNsoHuDbpCA__&Key-Pair-Id=KUT5TJCACFTXG","The conference committee on House Bill 1176 discussed a proposed amendment to narrow an exemption for certificates of indebtedness so it applies only to instruments issued by the Bank of North Dakota's (BND) infrastructure revolving loan fund.

The change was proposed to address concerns that a broad exemption for certificates of indebtedness under chapter 57-47 could be used to evade the bill’s 3% cap on local government levies. Aaron Burst, representing the Association of Counties, told the committee he had provided a one-page amendment showing how the sentence would read and urged adding language that names the BND infrastructure revolving loan fund specifically.

“I've handed out, 1 page amendment, with the proposed amendment, and how it would look in that whole sentence,” Aaron Burst said. He argued the bill contains caps on local government at 3% but that the Senate’s bonding exemption and the certificates-of-indebtedness language are broader than some committee members intended.

Burst said the BND revolving loan fund is limited to infrastructure uses and not for government operations. “The BND revolving loan fund is only for infrastructure, and you can read it. I won't insult your intelligence, but it's it's large infrastructure buildings. It's not for government operations,” he said. He also said he had discussed the proposed change with councils and bond counsel, who “did not see a problem with this.”

Senator Beckettall and other members noted that traditional bonds typically require voter approval at a supermajority and are often used for revenue-generating projects; certificates under chapter 57-47 do not always require voter approval, which prompted the request to narrow the exemption to BND’s infrastructure lending.

Committee Chair Hedlund said he would discuss adding the amendment to the House amendment if the committee decides to move forward. No formal motion or vote on the amendment was taken during the session.

The committee paused its work on the amendment and moved on to other items on the house amendment schedule.","Members of the conference committee on House Bill 1176 discussed adding language to limit a certificate-of-indebtedness exemption so it applies only to loans issued by the Bank of North Dakota's infrastructure revolving loan fund, a change proponents say would protect the bill's 3% local-tax cap while preserving infrastructure financing.","actionData","errors"]

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Conference committee debates how 3% cap would apply to school mill levies; asks Department of Public Instruction for cost scenarios

Conference committee weighs narrowing certificate-of-indebtedness exemption to BND infrastructure loan fund