HB 1227 Summary

• Eliminates the 45 percent cap on school district ending fund balances, allowing boards to carry over moneys to the ensuing fiscal year to meet cash requirements without a specific percentage limitation.

• Repeals section 15.1-27-35.3 of the North Dakota Century Code, which previously regulated school district unobligated general fund balances.

• Modifies school construction loan eligibility under the Bank of North Dakota by removing the reduction mechanism that limited loans to 80 percent of project cost when unobligated fund balances exceeded certain thresholds.

• Updates subsection 5 of section 15.1-36-08 to set a maximum loan amount of $10 million for school districts under the school construction assistance revolving loan fund program.

• Provides a continuing appropriation to support the changes to school financing and construction loan provisions.