The bill aims to revise the annual inflation-related adjustments to K-12 base aid in Montana, ensuring better alignment with the definition of a "basic system of free quality public elementary and secondary schools." It amends Section 20-9-326 of the Montana Code Annotated (MCA) to establish a self-executing general fund funding formula that includes a mechanism for accurate annual inflationary adjustments. Key changes include the introduction of an inflation reconciliation factor to be calculated every four years, starting in fiscal year 2026, and the requirement for the superintendent of public instruction to report on funding increases and consumer price index changes to the education interim budget committee.

Additionally, the bill specifies that the present law base for entitlements will consist of enrollment changes and the calculated inflation factor, capped at 3% per year, along with the new reconciliation factor in the second year of the biennium. It also clarifies that the superintendent and the legislature are not limited in recommending or adopting other inflationary adjustments. The effective date for the bill is set for July 1, 2025.

Statutes affected:
LC Text: 20-9-326
HB0266_1: 20-9-326
HB0266_1(1): 20-9-326