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Committee briefed on K‑12 funding mechanics, Common Schools Trust Fund and Foundation Aid Stabilization Fund
Summary
Legislative Council staff summarized the Burgum executive’s K‑12 recommendations, the role of the Common Schools Trust Fund and Foundation Aid Stabilization Fund in school funding, and proposed limitations on school board use of new dollars for compensation.
Legislative fiscal analysts told the House Appropriations Committee that state K‑12 funding will rely heavily on trust‑fund earnings and that the Burgum recommendation would increase integrated student payments while committing much of new money to personnel compensation.
Sheila Sandness, senior fiscal analyst, summarized key elements of the executive recommendation and the trust fund context: the executive budget proposes a $60 million increase in state school aid, implemented as a 2% per‑year increase in the integrated per‑student payment rate (to $11,293 in year one and $11,519 in year two under the Burgum recommendation). Sandness said: "The executive budget also recommends that the school boards be required to use 70% of all new money received as a result of the increased rate, for increased compensation to non administrative personnel." She also described a $5 million one‑time program grant from the Foundation Aid Stabilization Fund and a $50 million SIF proposal for an educational savings account pilot program.
Why it matters: staff highlighted that the Common Schools Trust Fund has grown substantially and now supports a larger share of school finance. The report shows the Foundation Aid Stabilization Fund estimated ending balance and the executive's planned disbursements would reduce the available balance going into the following biennium. Sandness noted that the executive recommendation reduces general fund reliance by drawing more from the state tuition fund and Foundation Aid Stabilization Fund.
Members asked how the trust fund is financed. Sandness explained the Common Schools Trust Fund receives oil-related allocations, investment earnings and land rents. Representative Munson asked about federal funding to districts; staff said federal funding varies by district and is not tracked on the state formula but could be summarized from Department of Public Instruction reports.
Next steps: staff said committee divisions will examine school funding line items and program grants in detail; the committee received direction to review the Foundation Aid Stabilization Fund balance and planned SIF transfers before deciding on one‑time versus ongoing uses.
