House Bill No. [insert bill number] aims to revise school funding laws to enhance the alignment of school district general fund budgets with the definition of a "basic system of free quality public elementary and secondary schools." The bill introduces a self-executing general fund funding formula that includes a mechanism for annual inflationary adjustments. It also authorizes school boards to increase previously voter-approved over-base levies in accordance with these inflationary adjustments. The bill amends Sections 20-9-308 and 20-9-353 of the Montana Code Annotated (MCA) to facilitate these changes.

Key amendments include the removal of the requirement for school trustees to submit a proposition to voters for adopting an over-base budget that exceeds the established limits, provided that the increase is offset by a reduction in other nonvoted property tax levies. Additionally, the bill allows for an over-base budget levy amount to be adopted without a vote, as long as it does not exceed the inflation-adjusted limits set by the legislature. The bill also establishes an immediate effective date upon passage and specifies that it applies to school budgeting and elections for fiscal years beginning on or after July 1, 2025.

Statutes affected:
LC Text: 20-9-308, 20-9-353
HB0265_1(1): 20-9-308, 20-9-353
HB0265_1(2): 20-9-308, 20-9-353
HB0265_1(3): 20-9-308, 20-9-353
HB0265_1(4): 20-9-308, 20-9-353
HB0265_1(5): 20-9-308, 20-9-353
HB0265_1: 20-9-308, 20-9-353