Bill would cut funding to schools defying state law

School districts could lose hundreds of thousands of dollars or more in funding for failure to comply with state laws under a bill before the North Dakota Legislature. The measure would require the state superintendent to verify districts implement and follow laws governing educators or face significant financial consequences. Schools would get a warning and an opportunity to comply before being penalized, according to InForum.

Testimony on Senate Bill 2104, sponsored by Republican Sen. Todd Beard of Williston, was heard by the Senate Education Committee on Tuesday, Jan. 21. It would impose a 2% reduction in state aid payments on a school district if the state superintendent had to issue “guidance” for non-compliance more than once

The proposed penalty stems from public statements made by the superintendent of one of the state’s largest districts, Fargo public schools, following the passage of transgender-related legislation in 2023.

At that school board meeting, Gandhi said his administration would make decisions regarding transgender students that may not be interpreted as being in accordance with the state law. He said the state law might even violate federal laws.

“We’re going to do what’s right for our kids and when we see a conflict between federal law and state law, we’re going to double down to advocate for our youth,” Gandhi said at the time.

Proponents maintain that government entities shouldn’t be above facing consequences of failing to follow laws on the books any more than individuals. Opponents insist compliance can be accomplished through other ways that avoid a painful financial impact.

Mike Heilman, executive director of North Dakota Small Organized Schools, said financial penalties could be devastating to school districts, resulting in teacher reductions.

Schools already have processes and procedures in place to address complaints about non-compliance, he said.

Amy De Kok, executive director of the North Dakota School Boards Association, said there are no means in the bill to prevent frivolous or politically motivated complaints.

Regardless of the legislation’s outcome, the message to schools appears clear. Districts aren’t above the law, whether administrators agree with it or not.