Bill Summary – FastDemocracy

Unofficial Draft Copy
****                                              As of: 11/20/2024, 04:43:54
69th Legislature 2025                             Drafter: Pad McCracken, ****                                      LC 0262
                                                   **** BILL NO. ****
                                                 INTRODUCED BY ****
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  A BILL FOR AN ACT ENTITLED: “AN ACT GENERALLY REVISING SCHOOL FUNDING LAWS; ENHANCING
  THE SCHOOL FUNDING FORMULA THROUGH INCENTIVES AND A HOUSING COST BUDGET
  AUTHORITY INCREASE; REVISING THE INCENTIVE TO INCREASE TEACHER BASE SALARIES AND
  ESTABLISHING A NEW INCENTIVE RELATED TO RESOURCE SHARING AMONG SCHOOL DISTRICTS;
  RENAMING AND REVISING THE QUALITY EDUCATOR FUNDING COMPONENT; RESTORING FULL
  FUNDING TO THE ADVANCED OPPORTUNITIES PROGRAM; INCLUDING DISTRICT CLERKS
  PERFORMING CERTAIN FUNCTIONS IN THE QUALITY EDUCATOR AND QUALIFIED STAFF FUNDING
  COMPONENT; INCLUDING INDIVIDUALS WORKING UNDER AN EMERGENCY AUTHORIZATION IN THE
  QUALITY EDUCATOR AND QUALIFIED STAFF FUNDING COMPONENT; ESTABLISHING A NEW K-12
  BASE AID "FUTURE READY" FUNDING COMPONENT RELATED TO POST-GRADUATION PREPARATION;
  PROVIDING INCREASED BUDGET AUTHORITY FOR CERTAIN SCHOOL DISTRICTS IMPACTED BY HIGH
  HOUSING COSTS; REQUIRING THE LEGISALTIVE FISCAL ANALYST TO CREATE A SCHOOL FUNDING
  DATA DASHBOARD; PROVIDING DEFINITIONS; PROVIDING AN APPROPRIATION; AMENDING
  SECTIONS 20-3-325, 20-7-1506, 20-9-306, 20-9-324, AND 20-9-327, MCA; PROVIDING AN IMMEDIATE
  EFFECTIVE DATE; PROVIDING AN APPLICABILITY DATE.”
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          WHEREAS, the definition of a "basic system of free quality public elementary and secondary schools"
  under 20-9-309, MCA, includes educational programs tailored to the specific needs of students and the
  qualified teachers, administrators and staff to implement those programs; and
          WHEREAS, 20-9-309, MCA, includes the requirement that in developing and maintaining a funding
  formula, the Legislature consider various educationally relevant factors, including the ability of school districts to
  attract and retain qualified educators and other personnel.
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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                                                    Unofficial Draft Copy
****                                               As of: 11/20/2024, 04:43:54
69th Legislature 2025                              Drafter: Pad McCracken, ****                                     LC 0262
          Section 1. Section 20-3-325, MCA, is amended to read:
          "20-3-325.    Clerk of district. (1) As provided in 20-3-321, the trustees shall employ and appoint a
  clerk of the district. The clerk of the district shall attend all meetings of the trustees to keep an accurate and
  permanent record of all the proceedings of each meeting. If the clerk is not present at a meeting, the trustees
  must have one of their members or a district employee act as clerk for the meeting, and that person shall
  supply the clerk with a certified copy of the proceedings. The clerk of the district must be the custodian of all
  documents, records, and reports of the trustees. Unless the trustees provide otherwise, the clerk shall:
          (a)      keep an accurate and detailed accounting record of all receipts and expenditures of the district
  in accordance with the financial administration provisions of this title; and
          (b)      prepare the annual trustees' report required under the provisions of 20-9-213.
          (2)      The clerk of the district shall provide the county treasurer with a minimum of 30 hours' notice in
  advance of cash demands to meet payrolls, claims, and electronic transfers that are in excess of $50,000. If the
  clerk of the district fails to provide the required 30-hour notice, the district must be assessed a fee equal to any
  charges demanded by the state investment pool or other permissible investment manager for improperly
  noticed withdrawal of funds.
          (3)      In order to qualify for the payment provided in 20-9-327, a clerk of the district must have a job
  description that includes performance of the following functions for the district:
          (a)      advise the board on financial and operational constraints as outlined by law;
          (b)      serve as a member of the administrative team, working closely with the district superintendent
  and other administrative staff to align the educational goals and financial stability of the district;
          (c)      assist the board in ensuring all district policies comply with local, state, and federal laws;
          (d)      attend trustees’ meetings and ensure that a permanent record is maintained as required by
  law, and if unable to attend ensure a qualified designee maintains an accurate permanent record;
          (e)      act as the custodian of all documents, records, and reports of the trustees, including the
  trustees’ report required under 20-9-213;
          (f)      maintain accurate and detailed accounting records of all financial transactions of the district,
  serving as a liaison during any financial and labor audits as required; and
          (g)      serve as the election administrator for the district unless the county is administering an election
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                                                     Unofficial Draft Copy
****                                                As of: 11/20/2024, 04:43:54
69th Legislature 2025                               Drafter: Pad McCracken, ****                                      LC 0262
  at the request of the district."
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           Section 2. Section 20-7-1506, MCA, is amended to read:
           "20-7-1506.     Incentives for creation of advanced opportunity programs. (1) A district that satisfies
  the conditions of subsection (2) and is qualified by the board of public education pursuant to subsection (3) is
  eligible for the funding and flexibilities in subsections (4) and (5).
           (2)      (a) To qualify for the funding and flexibilities in subsections (4) and (5), the board of trustees of
  a district shall submit an application that has been approved by motion of the board and signed by the presiding
  officer to the board of public education for approval of an advanced opportunity program on a form provided by
  the superintendent of public instruction.
           (b)      The school board's application must include a strategic plan with appropriate planning horizons
  for implementation, measurable objectives to ensure accountability, and planned strategies to:
           (i)      develop an advanced opportunity plan for each participating pupil from grades 6 through 12
  that fosters individualized pathways for career and postsecondary educational opportunities and that honors
  individual interests, passions, strengths, needs, and culture and is supported through relationships among
  teachers, family, peers, the business community, postsecondary education officials, and other community
  stakeholders;
           (ii)     embed community-based, experiential, online, and work-based learning opportunities and
  foster a learning environment that incorporates both face-to-face and virtual connections; and
           (iii)    ensure equality of educational opportunity to participate by all qualifying pupils of the district.
           (3)      The board of public education shall:
           (a)      establish the opening and closing dates for receipt of applications and annual reports;
           (b)      no later than January 31, qualify for the subsequent school year nonparticipating districts that
  submit an application meeting the requirements of subsection (2) for the funding in subsection (4) and the
  flexibilities in subsection (5);
           (c)      no later than January 31, requalify for the subsequent school year participating districts that
  submit an annual report demonstrating continued qualification for funding under this section and including a
  report of progress toward measurable objectives under the district's advanced opportunity plan and any
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                                                        Unofficial Draft Copy
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69th Legislature 2025                               Drafter: Pad McCracken, ****                                   LC 0262
  updates to the plan;
          (d)      limit the districts qualified under subsections (3)(b) and (3)(c) based on the appropriation
  available in the subsequent year and on the order of date received, after which further applications are to be
  deferred for consideration in a subsequent year, in the order of date received. An application deferred for
  consideration in a subsequent year due to lack of funding must be annually updated each year after more than
  1 full fiscal year has passed from the date of original submission of the application in order for the application to
  retain its priority by original date received.
          (e)(d)   on or before September 15 of even-numbered years, report to the education interim committee
  pursuant to 5-11-210 on the progress made by districts operating under approved advanced opportunity plans.
  The report must address, at a minimum:
          (i)      the number of pupils benefiting from advanced opportunity aid;
          (ii)     the number and type of credits and certifications or credentials earned by pupils that have been
  paid for by the program;
          (iii)    projected growth in the program and funding needs for the next biennium; and
          (iv)     any issues with the program reported by pupils, parents, districts, postsecondary institutions, or
  examination administrators and how these issues are being addressed and whether the issues require
  legislative action.
          (4)      The superintendent of public instruction shall provide advanced opportunity aid to each district
  qualified by the board of public education under subsection (3) by October 1. The aid under this section must
  be distributed directly to the school district's flexibility fund under 20-9-543.
          (5)      Advanced opportunity aid may be expended on any qualifying pupil by the district subject to the
  following conditions:
          (a)      at least 75% of a district's annual distribution of advanced opportunity aid must be spent or
  encumbered to address out-of-pocket costs that would otherwise, in the absence of such expenditure, be
  assumed by a qualifying pupil or the pupil's family as a result of participation in an advanced opportunity. The
  trustees have full discretion to allocate expenditures among all pupils of the district or any select group of
  pupils, using any reasonable method they consider appropriate in their full discretion to meet the individual
  needs of each pupil who pursues an advanced opportunity. The trustees may create free district initiatives of
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                                                       Unofficial Draft Copy
****                                                  As of: 11/20/2024, 04:43:54
69th Legislature 2025                                 Drafter: Pad McCracken, ****                                      LC 0262
  their own that satisfy the conditions of this subsection (5)(a). Permissible expenditures include but are not
  limited to:
           (i)        dual credit tuition at any institution under authority of the board of regents;
           (ii)       exam fees used for postsecondary advancement, placement, or credit, including but not limited
  to exam fees associated with the ACT, SAT, CLEP, career advancement, international baccalaureate, and
  advanced placement;
           (iii)      fees charged by and any out-of-pocket costs of any business providing work-based learning
  opportunities to a qualifying pupil of the district, including the cost of workers' compensation insurance for work-
  based learning opportunities;
           (iv)       exam and other fees of any industry-recognized credential or license for which a qualifying
  pupil is eligible as a result of participation in an advanced opportunity;
           (v)        the costs of participation for qualifying pupils in out-of-school enrichment activities that, in the
  discretion of the trustees, advance the pupil's opportunity for postsecondary career and educational success;
  and
           (vi)       the costs of participation for qualifying pupils that are identified as necessary, in the discretion
  of the district and upon request of a qualifying pupil, to maximize the benefit of an advanced opportunity for a
  qualifying pupil;
           (b)        advanced opportunity aid remaining that is not expended or carried forward for the purposes of
  subsection (5)(a) may be spent by the district to provide any K-12 career and vocational/technical education
  course offered by the district.
           (6)        A district qualified for funding under subsection (3) may supplement state funding of advanced
  opportunity aid with matched expenditures from its adopted adult education budget, not to exceed 25% of the
  district's advanced opportunity aid. The conditions under subsection (5) apply to any matched expenditures
  funded under this subsection (6).
           (7)        The present law base calculated for K-12 local assistance under Title 17, chapter 7, part 1,
  must include advanced opportunity aid in an amount sufficient to provide advanced opportunity aid to all
  districts of the state. Any shortfalls must be addressed in the same manner as funding of deficiencies in BASE
  aid under 20-9-351."
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                                                    Unofficial Draft Copy
****                                                As of: 11/20/2024, 04:43:54
69th Legislature 2025                               Drafter: Pad McCracken, ****                                   LC 0262
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          Section 3. Section 20-9-306, MCA, is amended to read:
          "20-9-306.    Definitions. As used in this title, unless the context clearly indicates otherwise, the
  following definitions apply:
          (1)      "BASE" means base amount for school equity.
          (2)      "BASE aid" means:
          (a)      direct state aid for 44.7% of the basic entitlement and 44.7% of the total per-ANB entitlement
  for the general fund budget of a district;
          (b)      guaranteed tax base aid for an eligible district for any amount up to 35.3% of the basic
  entitlement, up to 35.3% of the total per-ANB entitlement budgeted in the general fund budget of a district, and
  40% of the special education allowable cost payment;
          (c)      the total quality educator payment;
          (d)      the total at-risk student payment;
          (e)      the total Indian education for all payment;
          (f)      the total American Indian achievement gap payment;
          (g)      the total data-for-achievement payment; and
          (h)      the total future ready payment; and
          (h)(i)   the special education allowable cost payment.
          (3)      "BASE budget" means the minimum general fund budget of a district, which includes 80% of
  the basic entitlement, 80% of the total per-ANB entitlement, 100% of the total quality educator payment, 100%
  of the total at-risk student payment, 100% of the total Indian education for all payment, 100% of the total
  American Indian achievement gap payment, 100% of the total data-for-achievement payment, 100% of the total
  future ready payment; and 140% of the special education allowable cost payment.
          (4)      "BASE budget levy" means the district levy in support of the BASE budget of a district, which
  may be supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366
  through 20-9-369.
          (5)      "BASE funding program" means the state program for the equitable distribution of the state's
  share of the cost of Montana's basic system of public elementary schools and high schools, through county
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                                                   Unofficial Draft Copy
****                                              As of: 11/20/2024, 04:43:54
69th Legislature 2025                             Drafter: Pad McCracken, ****                                  LC 0262
  equalization aid as provided in 20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343, in
  support of the general fund BASE budgets of districts and special education allowable cost payments as
  provided in 20-9-321.
          (6)      "Basic entitlement" means:
          (a)      for each high school district:
          (i)      $343,483 for fiscal year 2024 and $353,787 for each succeeding fiscal year for school districts
  with an ANB of 800 or fewer; and
          (ii)     $343,483 for fiscal year 2024 and $353,787 for each succeeding fiscal year for school districts
  with an ANB of more than 800, plus $17,175 for fiscal year 2024 and $17,690 for ea