SB 558 proposed replacing school property taxes with a statewide sales tax to fund public schools. It would create a new general sales tax, redirect all revenue to a dedicated school funding account, and repeal existing statewide property tax levies for schools. The bill would directly affect school districts and property taxpayers by shifting funding responsibility from local property taxes to a statewide sales tax, with certain exemptions (like agricultural sales) specified. However, the bill was tabled in committee and died in the legislative process in 2025, so it never became law.
HB 846 revises property taxation for school districts by establishing a system of "reconciliation payments" between them. These payments apply when a student, defined as an "isolated pupil," resides in one school district but attends school in a contiguous district because geographic conditions prevent access to the resident district's services. A school district educating an isolated pupil can petition the county superintendent for a payment from the pupil's resident district, provided specific financial and geographic criteria are met. If approved, the resident school district is required to levy a property tax to make this reconciliation payment, reimbursing the attending district for the isolated pupil's education.
HB 483 aims to reduce property taxes by revising school funding laws, while preserving the existing 95 school equalization mills. The bill fixes state and county school equalization mills and vocational-technical education mills, and exempts school levies from general property tax increase limits. It also increases guaranteed tax base multipliers for fiscal year 2026 and raises state reimbursement rates for school transportation, which helps lower local property tax burdens. Additionally, the bill requires reports from the Office of Public Instruction and Department of Revenue on the impacts of property reappraisal on school funding and property taxes.
HB 357 provides state funding specifically for career and technical education (CTE) programs in middle schools, junior high schools, and 7th and 8th-grade programs. It directs the Superintendent of Public Instruction to annually distribute these funds to eligible elementary and K-12 school districts. The bill appropriates $100,000 from the general fund for fiscal year 2027 to support these programs. The Superintendent will adopt rules to ensure equitable distribution and proper use of the funds, enhancing existing federal support without school size restrictions.
HB 168 revises state school funding laws to include 3- and 4-year-old children with disabilities in a school district's annual number belonging (ANB) calculations. This change enables school districts to receive state financial support for providing special education services to these preschool-aged children. Previously, these children were not included in ANB counts, meaning there was no state funding mechanism for their education, despite districts being obligated to provide these services. The bill amends Section 20-9-311, MCA, to allow their inclusion based on aggregate hours of pupil instruction.
HB 405 proposed to increase the maximum reimbursement rates that school districts receive from state and county sources for student transportation. The bill specifically raised the per-mile rates for school buses of different passenger capacities, as well as for non-bus mileage. The intent was to lower school district property taxes designated for transportation expenses. These changes would have applied to school district transportation budgets starting July 1, 2025.
HB 265 proposed changes to how Montana school districts manage their general fund budgets, primarily affecting school boards and local taxpayers. The bill would have allowed school boards to increase a previously voter-approved local property tax levy (an "over-BASE levy") by the same inflationary adjustment provided by the legislature for state school funding. This adjustment would not require a new vote from district electors, provided the increase was solely due to the legislative inflation adjustment and stayed within overall budget limits. The bill aimed to improve the alignment of school funding with the defined "basic system" and ensure annual inflationary adjustments are included in the funding formula.
HB 515 revises state laws concerning funding for school facilities and technology, directly affecting school districts across the state. The bill consolidates two existing state special revenue accounts and increases the amount and multiplier in the state's major maintenance aid formula. These changes are intended to provide more funding to school districts for significant upkeep projects without impacting property taxpayers. Additionally, it revises statutes related to state school technology payments and allows natural resource development payments to support state major maintenance aid and debt service assistance.
HB 15 updates Montana's K-12 school funding formula to adjust for inflation by increasing specific dollar amounts annually. It directly affects all public school districts in Montana by raising base funding rates for high schools, elementary schools, and K-12 programs, including per-pupil payments for American Indian students and other targeted programs. Key provisions include annual increases for basic entitlements (e.g., $343,483 to $375,333 for high school districts by 2026) and adjustments to payments like the American Indian achievement gap ($235 to $256 per student). The bill amends existing law to ensure funding keeps pace with rising costs, effective starting with the 2024 fiscal year. The legislation was signed into law by the Governor on April 1, 2025.
HB 153 revises the laws governing Montana's School Funding Interim Commission, which is responsible for studying public school educational needs and funding. The bill alters the commission's membership to include various state education officials and sets an April 1 appointment deadline. For the 2025-2026 interim, it creates an "Innovation and Excellence in Education Working Group" to compare Montana's education policies with high-performing systems and develop improvement recommendations. The bill also designates a presiding officer and appropriates $10,000 for early commission activities.