K-12 Funding Legislation - 2017 Update

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Final Status May 1, 2017
HB 1013 appropriates the funding for the Department of Public Instructions budget including State School Aid, Transportation and Special Education.  The bill also contains language for distributing gifted and talented, REA operating and transportation grants.
  • The transportation appropriation and corresponding reimbursement rates were reduced 3% from the current biennium.
  • The authorization for a $3 million contingent appropriation for transportation was removed.
  • The student contracts line was increased $2 million over the current biennium.
  • Transfers from un-obligated state aid to cover shortfalls in student contracts and transportation were approved.
  • $800,000 REA coordinator grants were removed and replaced with $500,000 operating grants.
  • $100,000 was included in other grants for incentive grants for successful REA mergers.  The funding source is the foundation aid stabilization fund
  • Authorizes $295 million from the foundation aid stabilization fund to protect school districts from budget reductions.  $185 million is considered one time funding.
  • Recommends a study for combining ELL, distance learning, REA, teacher centers, adult learning centers, CTE programs, EduTech, continuing education for counselors, LEAD center and teacher mentoring programs.
HB 1324 carries the policy language supporting the appropriation for state school aid.
  • Weighting factors for ELL levels I and II were increased to .40 and .28 respectively.  This change was authorized last session.
  • The per student payment rate remains at $9,646 for 2017-18 and 2018-19.
  • Section 7 provides intent language for REA mergers.
  • Recommends a study of entities that deliver support services to K-12 schools with a focus on governance, nature, scope and quality of services.
HB 2272 covers uses, definitions, transfers and appropriations relating to the foundation aid stabilization fund.  This bill also contains language on implementation of school construction loan programs.
  • Appropriates $6 million for rapid enrollment grants and removes tier 2 schools from eligibility
  • Appropriates $500,000 for supplemental ELL grants.
  • Transfers $75 million to the school construction loan fund of which $50 million is authorized for refinancing loans under the Bank of North Dakota program.
Other bills with fiscal impact include SB 2307 relating to eligibility criteria for student contracts, SB 2321 relating to determining excess ending fund balance adjustments.
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