North Dakota calculates school aid and sets construction loan rules

The state education superintendent calculates state aid for each school district. The formula applies to North Dakota school districts. The calculation uses student counts and baseline funding, then subtracts specified taxes and other revenues. The text labels this formula effective after June 30, 2025.

The board of university and school lands may make loans from the coal development trust fund. These rules cover school construction loans from the coal development trust fund, including projects on an air force base. A district generally must show an unanticipated project, emergency repair, or legislatively defined condition, get project approval, and apply. Air force base projects are allowed during the 2025–27 budget period and require federal approvals and funding commitments. For an air force base project, the loan may be no more than the smaller of 20 percent of project costs or $20 million. Its interest rate may not exceed 2 percent a year. The text allows air force base projects under this loan provision during the 2025–27 budget period.

The state education superintendent sets aside available revolving loan funds for an air force base project, and the Bank of North Dakota may lend from the fund. These rules apply to school construction projects on an air force base seeking a loan from the school construction assistance revolving loan fund. The district must get project approval, secure federal approvals and funding commitments, and submit an application. The loan may cover no more than the smaller of 20 percent of project costs or $20 million. The text sets aside $20 million of available loan funds for a base project; it does not state that new money is appropriated. The $20 million set-aside lasts until June 30, 2027, or until a loan is made, whichever comes first.

Public agencies must require a contractor bond for covered public construction contracts. The bond rule covers public improvement contracts over $250,000, unless another rule in the chapter applies. The bond must cover at least the contract price and back payment for work and materials. A person with a lawful claim may sue on the bond. When there is reason to believe design services are needed to protect public health, safety, or welfare, the agency must consider consulting an architect or engineer. The text makes these provisions effective July 1, 2025.

School boards may levy taxes for education and other listed school purposes. These rules apply to North Dakota school district boards and the listed school levies. The education levy is limited by the prior year's dollar amount plus 12 percent and a 70-mill cap. Separate caps apply to miscellaneous, reserve, and school safety levies; some other listed levies are limited by the amount needed for their stated purpose. The text makes this section effective for tax years beginning after December 31, 2024.