Chapter 34: North Dakota

A foundation aid program designed to provide financial assistance to local school districts has been in effect in North Dakota since 1959. This initial program was adopted in part because the legislature recognized that property valuations, demographics and educational needs varied from school district to school district. The following is a condensed version of the evolution of the program.²

The main school aid funding formula in North Dakota distributes well over 90% of total state K-12 funding. Transportation and special education excess cost funding have separate appropriations. The formula is driven by average daily membership (ADM) and uses various weights to account for the increased costs associated with school district size and serving students with special needs. In addition, there are adjustments to minimize budget impacts as districts transition to the new formula.