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MontanaHB 15669th Legislature, Regular Session (2025)HouseWALLET

Revise education funding laws by replacing school district BASE levies with countywide BASE levies

Sponsored By: David Bedey (Republican)

Signed by Governor

Education - K-12CountiesTaxation--PropertyEducation - School Finance

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 0 benefits, 0 costs, 7 mixed.

County tax-base aid formulas change

The law moves tax-base aid math to the county level. A county’s ratio equals last year’s county taxable value divided by the sum of district budget areas; eligible counties get aid when their ratio is below the statewide ratio. BASE aid equals 44.7% of basic and per‑ANB entitlements; the BASE budget counts 80% of those entitlements, 100% of listed payments, and 140% of special education payments. Mill values per ANB use last year’s statewide taxable value with set factors: 140% for facilities and 189% for retirement. Aid per mill is set by a formula using the county budget area, statewide ratio, and county taxable value; the state shares preliminary ratios by March 1 and final ratios by May 1 each year.

Countywide school levies replace district levies

Starting July 1, 2026, countywide levies fund the BASE part of school budgets. County superintendents compute each district’s BASE need and the county’s mills. Mills equal (county BASE need minus last year’s fund balance) divided by (GTB aid per mill plus taxable value ÷ 1,000). County commissioners set the levies. Treasurers must keep separate accounts and invest county levy money within 3 working days. School boards must adopt final budgets by August 25, before the county sets levies.

Forecast checks to smooth school taxes

Each December, the state forecasts levy account revenue as taxable value ÷ 1,000 times the mills. If the forecast differs from last year’s by $2,000,000 or more, multipliers change. Cuts lower aid by 85% on GTB and 15% on retirement; increases raise multipliers in order with caps (retirement up to 305%, major maintenance up to 365%, facility up to 300%). For fiscal year 2027, statewide GTB equals FY2026 BASE budgets × 1.03. The HB 483 amendment to 20‑9‑366 ends June 30, 2026.

Lower home-district tuition payments

When a child attends school outside the home district, the home district now pays at most 20% of the tuition per‑ANB amount. The district of attendance must credit tuition to its general fund and transportation to its transportation fund. The old rule requiring tuition receipts to first cut the BASE levy is removed, except for some special education or high‑cost programs.

Oil and gas school revenue limits

If a district’s oil and gas tax receipts fall below 50% of last year, it may transfer money from any budgeted fund to the general fund up to the shortfall. Districts with big enrollment growth may keep an extra $45,000 for each added ANB in the next year. For nonoperating districts, oil and gas retention is capped at 130% of the last operating‑year maximum budget. The law also removes the old automatic mill increase tied to using less than 12.5% of prior‑year oil and gas for BASE.

Rules for using extra school funds

Interest on a district’s general fund and leftover litigation reserves must reduce the BASE funding need. If general fund money exceeds the over‑BASE levy, trustees must move the extra to other funds to lower property taxes. Excess operating reserves may only cut the over‑BASE levy, not the BASE requirement. Urban renewal money sent to a district’s general fund must lower next year’s over‑BASE levy or be held as reserve; it cannot lower the BASE requirement.

New handling of protested property taxes

On July 1, 2026, the state repeals the old statute that covered exclusions for protested property and refunds. When certain state‑levied property taxes are paid under protest, the revenue is split: half of the university portion goes to the university fund, then the rest is divided between the state general fund and a special revenue fund. These changes update how protested payments move through state accounts.

Sponsors & Cosponsors

Sponsor

  • David Bedey

    Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 448 • No: 47

House vote • 4/11/2025

Do Concur

Yes: 96 • No: 1

House vote • 4/11/2025

Do Concur

Yes: 100 • No: 0

Senate vote • 4/4/2025

Do Concur

Yes: 46 • No: 3

Senate vote • 4/3/2025

Do Concur

Yes: 45 • No: 4

House vote • 2/4/2025

Do Pass

Yes: 81 • No: 19

House vote • 2/3/2025

Do Pass

Yes: 80 • No: 20

Actions Timeline

  1. Chapter Number Assigned

    5/8/2025House

  2. Signed by Governor

    5/5/2025House

  3. Transmitted to Governor

    4/25/2025House

  4. Signed by President

    4/25/2025Senate

  5. Signed by Speaker

    4/23/2025House

  6. Returned from Enrolling

    4/14/2025House

  7. Sent to Enrolling

    4/11/2025House

  8. 3rd Reading Senate Amendments

    4/11/2025House

  9. Revised Fiscal Note Printed

    4/11/2025House

  10. 2nd Reading Senate Amendments

    4/11/2025House

  11. Revised Fiscal Note Signed

    4/11/2025House

  12. Revised Fiscal Note Received

    4/11/2025House

  13. Revised Fiscal Note Requested

    4/7/2025House

  14. Returned to House with Amendments

    4/4/2025Senate

  15. 3rd Reading

    4/4/2025Senate

  16. 2nd Reading

    4/3/2025Senate

  17. Committee Report

    4/2/2025Senate

  18. Committee Executive Action

    4/1/2025Senate

  19. Hearing

    3/19/2025Senate

  20. Hearing Canceled

    3/17/2025Senate

  21. Referred to Committee

    2/18/2025Senate

  22. 1st Reading

    2/5/2025Senate

  23. Transmitted to Senate

    2/4/2025House

  24. 3rd Reading

    2/4/2025House

  25. Revised Fiscal Note Printed

    2/4/2025House

Bill Text

  • Enrolled

    4/15/2025

    PDF

  • As Amended (Version 3)

    4/2/2025

    PDF

  • As Amended (Version 2)

    1/28/2025

    PDF

  • Introduced

    1/9/2025

    PDF

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