ND Superintendent, Lawmaker Propose Trust Fund Teacher Retention Bonuses
North Dakota ranks 41st nationally in teacher pay, operating at a roughly 20 percent wage gap compared to other professionals with bachelor’s degrees in the state. To counter ongoing recruitment and retention struggles, Superintendent of Public Instruction Levi Bachmeier and Representative Mike Nathe announced a proposal on Monday, Oct. 5, to fund annual teacher retention bonuses using distributions from the state’s Common Schools Trust Fund.
The Common Schools Trust Fund Proposal
The initiative, dubbed the “STAYS” stipend (Support Teachers And Youth Succeed), proposes tapping annual distributions from the Common Schools Trust Fund to issue direct retention bonuses to full-time classroom teachers. The Common Schools Trust Fund currently holds more than $9 billion in assets derived from sources like state-owned land sales and mineral royalties. These assets are projected to generate $585 million in revenues during the 2025-2027 biennium.
Under the framework announced at the Capitol press conference, the state would direct 10 percent of the trust fund’s annual distribution toward block grants for local school districts, divided among full-time educators statewide. The principal balance of the trust fund remains untouched under the plan, utilizing only investment returns, land earnings, and royalties.
Teachers Could Receive Annual Bonuses up to $10,000
Based on current annual trust distributions of approximately $290 million divided among roughly 10,000 educators statewide, initial calculations place the starting annual bonus between $2,500 and $3,000 per teacher. Bachmeier stated that calculations indicate payments could scale up to $10,000 per year by the time his second daughter graduates high school as the trust fund balance grows.
The bonuses would be paid as lump sums to returning teachers at the start of each school year. These disbursements are designed to bypass the Teachers’ Fund For Retirement pension calculations to direct funds cleanly into take-home pay without straining pension system liabilities.
Safeguards Against Salary Reductions
To prevent local school boards or lawmakers from supplanting regular base salary increases with the state-funded stipends, the proposal incorporates specific accountability measures. Bachmeier noted that the plan includes financial penalties for districts if teacher base pay goes backward, ensuring the stipend functions as an addition to existing compensation rather than a replacement.
Governor Armstrong Backs Proposal to Attract Quality Instructors
The proposal requires approval during the upcoming legislative session, though it has already secured backing from the executive branch. Bachmeier stated that Governor Kelly Armstrong has agreed to include the proposal within his executive budget.
The rollout addresses persistent hurdles in filling classrooms across the state. “At the end of the day, the research is clear that the single largest impact on learning is the quality of the instructor in front of the room,” Bachmeier said, noting that pay concerns frequently deter prospective educators from entering the profession.