Bill

Bill > HB265


MT HB265

Provide Over-BASE levy authority consistent with inflation adopted by the legislature


summary

Introduced
01/21/2025
In Committee
01/21/2025
Crossed Over
Passed
Dead
05/20/2025

Introduced Session

2025 Regular Session

Bill Summary

AN ACT ENTITLED: “AN ACT REVISING SCHOOL FUNDING LAWS RELATED TO THE ALLOWABLE INCREASE IN A SCHOOL DISTRICT’S GENERAL FUND BUDGET TO IMPROVE ALIGNMENT WITH THE DEFINITION OF "BASIC SYSTEM OF FREE QUALITY PUBLIC ELEMENTARY AND SECONDARY SCHOOLS" PROVIDED IN SECTION 20-9-309, MCA, BY ENSURING THAT THE GENERAL FUND FUNDING FORMULA IS SELF-EXECUTING AND INCLUDES A MECHANISM FOR ACCURATE ANNUAL INFLATIONARY ADJUSTMENTS; AUTHORIZING A SCHOOL BOARD TO INCREASE A PREVIOUSLY VOTER-APPROVED OVER-BASE LEVY BY THE SCHOOL FUNDING INFLATIONARY ADJUSTMENTS PROVIDED BY THE LEGISLATURE; AMING SECTIONS 20-9-308 AND 20-9-353, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE.”

AI Summary

This bill modifies Montana school funding laws to provide more flexibility for school districts in adjusting their over-BASE budget levies. Specifically, the bill allows school boards to increase a previously voter-approved over-BASE levy by the same inflationary adjustment provided by the legislature for basic and per-ANB (Average Number Belonging) entitlement amounts without requiring a new voter election. If the proposed increase exceeds the inflationary adjustment, school districts would still need to seek voter approval. The bill aims to improve the efficiency of school budget management by enabling trustees to adjust levies in line with inflation while maintaining fiscal constraints. Key changes include allowing automatic levy increases tied to legislative inflationary adjustments and removing some previous restrictions on levy modifications. The provisions will apply to school fiscal years beginning on or after July 1, 2025, and are designed to provide school districts with more responsive budgeting tools without increasing overall property tax burdens. The legislation is intended to align school funding more closely with the state's definition of a "basic system of free quality public elementary and secondary schools" by creating a more self-executing and adaptable funding formula.

Committee Categories

Education

Sponsors (1)

Last Action

(H) Died in Process (on 05/20/2025)

bill text


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