House Bill No. introduced by L. Muszkiewicz and others 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 proposes that the general fund funding formula be self-executing and include 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 they reduce other nonvoted property tax levies by an equivalent amount. 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 that any excess over-base budget levy requiring voter approval must be calculated based on the inflationary adjustments for the basic and per-ANB entitlements. The act is set to take effect upon passage and will apply to school 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: 20-9-308, 20-9-353