North Dakota school districts apparently are feeling few effects of the country's financial turmoil.

School districts in other parts of the country are cutting staff, programs and building projects to bridge budget shortfalls. Locally, it's business as usual.

"You're actually in good shape in North Dakota," said Mike Griffith, senior policy analyst with the Education Commission of the States.

The housing market, paired with the state's primary industries, could help it buffer the economic downturn or delay its effects, Griffith said.

North Dakota did not have a unsustainable housing boom like those experienced in other parts of the country. Consequently, property values in North Dakota are not overinflated, Griffith said.

This is good news for school districts that rely on property value to generate part of its revenue. A majority of revenue for North Dakota schools is local property tax collection.

"When we look in general, it is not a huge impact at this point in time," Mandan Superintendent Wilfred Volesky said.

The district is not cutting positions or programs and it recently accepted bids on a $2.1 million addition to Mandan Middle School. The bids came in $250,000 to $300,000 less than it anticipated.

"Was that part of the economy?" Volesky asked. He's not sure if it was. The district received many bids for the work.

The economy did affect the district's decision to take out a school construction loan from the state instead of funding it entirely with general obligation bonds. The rate on the bonds increased, making the state loan more appealing, Volesky said.

The Bismarck School District will continue to move forward on two building projects: an elementary school and a career and technical education center. If building in the private sector slowed, it could put the district in good position to get reasonable construction bids.

"Consequently, contractors need business," Superintendent Paul Johnson said. "I'm not an expert enough to say it will mean lower construction costs, but we could see bids come in lower because they need work."

State aid recently increased to some school districts based on a new state school funding formula. Coupled with local property tax values that showed an increase for the last year, districts are bringing in more revenue compared to previous years to cover increased costs.

If later the districts need to cut their budgets, the goal would be to hold harmless what happens in the classroom. Other services that are provided beyond what the state requires could be reduced or a fee imposed.

Mandan, for example, could charge a fee or eliminate in-town busing because it would be beyond the minimum state requirement for busing. It is not considering either option at this time.

If property values fall, it would take more time for it to affect the school districts than if state revenue decreased, Johnson said.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@;bismarcktribune.com.)