ND HB1238

Extends the moratorium on deductions from state aid payments to school districts based on unobligated general fund balance from July 1, 2023 to July 1, 2027.

School districts with excess unobligated general fund balances above 35 percent of actual expenditures plus $50,000 will have state aid payments reduced, except for cooperative districts considering reorganization which have a $100,000 threshold and can receive payments for a maximum of two years.

Excludes federal impact aid funding from the calculation of unobligated general fund balance.

Requires legislative management to study effective parameters for school district ending fund balances during the 2023-24 interim, including analysis of expenditure efficiency, impact on planning and staffing, trends between state investment and student performance, and the increased behavioral and mental health issues addressed by school budgets.

Directs legislative management to report findings and recommendations to the sixty-ninth legislative assembly.