North Dakota School Funding Status on November 26, 2008

Department of Public Instruction
600 E Boulevard Ave., Dept. 201, Bismarck, ND 58505-0440 Dr. Wayne G. Sanstead
(701) 328-2260 Fax - (701) 328-2461 State Superintendent
http://www.dpi.state.nd.us
To: School Superintendents
From: Dr. Wayne G. Sanstead
State Superintendent
Date: 11/26/2008
Re: State Aid Funding Status
In March you were provided preliminary information on the status of the state aid budget. At that
time we projected a very tight budget outlook concerning the state aid payments line.
This update is based on information to date regarding kindergarten, adjusted equity factors and
actual student membership data reported as of the December 2008 payment. Based on these
numbers and estimates of additional obligations through the remainder of the biennium the status
the state school aid appropriation lines are as follows:
Appropriation
Over/Under
Budget
State School Aid 726,765,879 (4,488,289)
Transportation 35,500,000 726,256
Regional Education Agencies 1,000,000 -
Special Education Contracts 17,500,000 4,622,985
Total 780,765,879 860,952
The existing appropriation language provides that remaining transportation funding will be
distributed based on transportation entitlements. There is no provision for remaining special
education contracts funding so any un-obligated funds must be returned to the general fund. The
state school aid entitlements will have to be reduced by $4.5 million (the current year entitlement
estimate is $373 million) to stay within the appropriation.
The Commission on Education Improvement plans to recommend legislation with an emergency
clause authorizing the transfer of un-obligated Special Education Contract funding to the State Aid
appropriation line as part of their recommendations to the governor and the legislature.
We are hoping the legislature will approve the transfer. Since this approval may not occur until
May we will withhold a prorated amount (15%) from the April payment. Once we receive
authorization to make the transfer funding will be reinstated.
If you have questions contact Jerry Coleman at (701) 328-4051.
Cc ND Legislators
Governor’s Office
Commission on Education Improvement