Gov. John Hoeven proposed a $300 million state spending infusion for K-12 education Thursday, saying such a move would accomplish the dual tasks of improving education and lowering North Dakotans' property tax burden.

Hoeven said his plan would save property taxpayers 13 percent of their bill. That's $337 on a $150,000 home and $930 on a 1,300 acre farm, according to calculations from the governor's office. The savings would be achieved because school districts could offset money raised from property taxes with money newly provided by the state.

"We're excited about this plan," Hoeven said. "We think it's a big step forward for education and also for property tax relief."

His plan relies on a school funding formula that was heavily revised during the last legislative session to achieve an equitable distribution of state aid among school districts.

It calls for a $200 million infusion into this formula, and a requirement that the money be used to offset property taxes. It also allocates $100 million into the formula for increased education spending. It will be used to implement suggestions by the Governor's Commission on Education Improvement, which has moved from studying equality of state funding before the 2007 session to adequacy of state funding today.

"We've been asking for this for a long time," said Paul Johnson, superintendent of the Bismarck Public School District.

The plan will likely improve North Dakota's ranking in per-pupil expenditure, which sits at 24th in the nation at $8,159 per pupil, according to the latest Census Bureau data. New York leads the pack, spending $14,119 per pupil, while Utah is last with just $5,257 per pupil.

Hoeven, a two-term Republican, made Thursday's announcement in the midst of a re-election campaign.

In announcing such a plan, he is echoing unsuccessful proposals by the state House Democrats during the 2007 legislative session.

House Minority Leader Merle Boucher, now a candidate for governor, drafted a plan called the "70-30 initiative." It aimed to increase school aid by $195 million, stipulating that 70 percent would go to education improvement and 30 percent could be used for property tax relief. This plan was defeated in the Legislature.

Boucher said Thursday that Hoeven's plan sounded "very familiar."

"The dollar amount and the approach to it - the idea that the state has to step up and fund schools more in order to lower property taxes - is the same," he said.

Hoeven said his plan is substantially different because of the requirement that school districts pass on a certain amount in property tax relief, thus assuring that such relief occurs.

Sen. Tim Mathern, a Fargo Democrat who's also running for governor, called the governor's plan a "positive development" that recognizes the link between state education funding and property taxes.

The plan comes after a 2007 legislative session where property tax relief was a top priority that demanded much attention from both sides of the aisle.

After sorting through numerous options last session, lawmakers came out with a plan that offered more than $100 million in property tax rebates through residents' state income taxes. It was a variation on a plan proposed in 2006 by Hoeven and Tax Commissioner Cory Fong, which called for 10 percent rebates from local entities, with the difference made up by state aid to those entities.

(Reach reporter Jonathan Rivoli at 223-8482 or jonathan.rivoli@bismarcktribune.com.)