The bill seeks to reform school funding laws in Montana by introducing a countywide levy supported by guaranteed tax base aid, which will replace the existing school district base levy. This change aims to enhance funding equalization, better support school district base budgets, and reduce required tuition payments. The bill also revises the use of non-levy revenue in relation to school district budgets and shifts from district guaranteed tax base aid to county guaranteed tax base aid. Additionally, it outlines new responsibilities for trustees, district clerks, county superintendents, and county treasurers in managing the countywide levy, while amending several sections of the Montana Code Annotated (MCA) to reflect these changes.

Key amendments include the deletion of provisions related to the previous tax structure, such as the base budget levy and the ability for school districts to waive protested taxes. The bill introduces new requirements for annual reports from county superintendents regarding revenue used to establish levy requirements. It also modifies the tuition payment structure, reducing the maximum percentage of tuition paid by the district of residence, and clarifies the calculation of transportation costs. Furthermore, the bill establishes new guidelines for the financial management of school district funds, including investment requirements and penalties for non-compliance, while ensuring that the distribution of guaranteed tax base aid is based on county rather than individual district budgets. Overall, the bill aims to create a more equitable and efficient school funding system in Montana.

Statutes affected:
LC Text: 7-15-4291, 15-1-402, 20-3-209, 20-3-324, 20-5-323, 20-5-324, 20-6-702, 20-9-101, 20-9-104, 20-9-131, 20-9-141, 20-9-212, 20-9-235, 20-9-306, 20-9-308, 20-9-310, 20-9-336, 20-9-366, 20-9-367, 20-9-368, 20-9-369, 20-9-515