SB 2327 Summary

• Creates a grant program requiring the superintendent of public instruction to provide funding to retire all outstanding principal and interest on school construction-related bonded indebtedness incurred before July 1, 2021, using general fund or common schools trust fund assets.

• Eliminates school district property tax levy authority by repealing provisions allowing school districts to levy taxes for general funds, building funds, special reserve funds, tuition funds, and school safety plans effective for taxable years after December 31, 2020.

• Modifies state aid calculation formulas in chapter 15.1-27 with adjusted baseline funding periods, shifting key dates from 2019-20/2020-21 school years to 2021-22/2022-23 school years.

• Removes school district references from municipal bonding authority provisions in section 21-03-07 and eliminates school district-specific tax levy limitations while maintaining limits for other taxing districts.

• Requires all school districts to transfer remaining balances in miscellaneous funds, special reserve funds, and tuition funds to general funds by July 1, 2021.