ND SB2321

Amends North Dakota Century Code section 15.1-27-35.3 to modify how the superintendent of public instruction calculates payment reductions based on school district unobligated general fund balances.

Changes the threshold for general school districts from 40 percent to 35 percent of actual expenditures, effective July 1, 2017, and increases the allowable reserve amount from $20,000 to $50,000.

Creates a special provision for school districts in cooperative agreements considering reorganization, allowing them to retain up to $100,000 in unobligated general fund balance instead of the standard $50,000, for a maximum of two years.

Specifies that unobligated general fund balance includes all moneys in a district's miscellaneous fund as established under section 57-15-14.2.

Passed the Senate 47-0 and the House 84-6.