Study on Impact of Ending Fund Balances
BISMARCK – The North Dakota State Senate voted Wednesday to extend the moratorium of school districts no longer being required to spend all of the emergency funds given to them.
House Bill 1238 would extend the school district moratorium from July 1, 2023, to July 1, 2027, on the unobligated general fund balance deductions from state aid formula payments. The bill also requires legislative management to study ending fund balances and what the impact of that would be on the credit ratings of schools.
“Schools won’t be forced to spend dollars unwisely just to meet the ending fund balance restrictions,” said Sen. Cole Conley, R-Dis. 12, Jamestown. “Previously any amount beyond the ending fund balance was subtracted from the payment that is due to the district.”
The bill passed by a vote of 46 to 1 and will be sent to the governor’s desk for consideration.