All Roll Calls
Yes: 444 • No: 47
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)
Became Law
Schools and EducationCountiesTaxation--PropertySchool Finance
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 2 benefits, 0 costs, 5 mixed.
School basic funding amounts set
The law sets basic entitlement amounts used to fund districts. High school districts get $343,483 in FY2024 and $353,787 each year after, plus $17,175 (FY2024) or $17,690 per 80 ANB over 800. Elementary districts get $57,246 in FY2024 and $58,963 each year after, plus $2,863 (FY2024) or $2,949 per 25 ANB over 250. These amounts apply in FY2024 and each year after.
Countywide school budget levy begins
Beginning July 1, 2026, counties set one elementary and one high school levy to fund each district’s BASE budget. Any BASE need not covered by state aid, fund balance, or nonlevy revenue is raised with this countywide levy. Mills = remaining need ÷ (certified aid per mill + taxable value/1,000). For joint districts, each county pays by its share of students (ANB). Trustees must meet by Aug 20, adopt the final budget and levies by Aug 25, and deliver it within 3 days.
New rules for out of district tuition
The cap on a home district’s payment for out‑of‑district tuition is now 20% of the tuition per‑ANB amount (down from 35.3%). Trustees must report student and tuition details by June 30 to get state reimbursement. The home district must pay at least half by Dec 31 of the next school year and the rest by June 15. A district may levy to pay full special education FAPE costs after subtracting listed state, federal, and local payments.
State aid lowers school mills
The state gives Guaranteed Tax Base Aid (GTBA) when a county’s tax base per student is below the state level. County levies can support up to 35.3% of basic and total per‑ANB entitlements and up to 40% of special education in the BASE levy. Aid per mill and retirement aid are set by formulas, and must be used for the fund that earned it. Deadlines: taxable values due Dec 1; preliminary GTBA ratios by Mar 1; final by May 1. Statewide multipliers are 254% (FY2024) and 259% (FY2025), with a cap of 262%. For FY2027, the multiplier must make statewide BASE distributions equal FY2026 × 1.03. Each December, if the forecast shifts by $2,000,000 or more, multipliers adjust (85% of cuts to GTBA, 15% to retirement; increases are restored in a set order up to caps). If House Bill 483 is also law, the forecast start and details change beginning in FY2027.
More school funds cut property taxes
All interest a district earns on its general fund deposits must reduce the BASE levy need. Any urban renewal money sent to a school must lower next year’s property taxes or be set aside as a general fund operating reserve. Districts may create a litigation reserve only for active cases; leftover money must return to the general fund and lower the BASE levy need. County treasurers must keep separate accounts for these countywide school funds, invest receipts within 3 working days, and give itemized monthly reports.
New rules for protested property taxes
To be eligible for a refund, you must pay property taxes under written protest when due. County or city treasurers must hold protested payments in a special protest fund until the case is decided. The law repeals the prior protested property statute (15‑1‑409) on July 1, 2026. It also sets how the state splits certain centrally assessed and protested tax remittances: 50% to the university system special fund and 50% to a centrally assessed special fund for university‑levied mills; the rest 50% to the state general fund and 50% to the centrally assessed special fund. If a district waived protested taxes that year, remaining funds go 50% to the state general fund and 50% to a school protest fund.
School finance changes start July 2026
The law takes effect July 1, 2026. Countywide school levies first apply to the fiscal year that begins July 1, 2026 (FY2027).
Sponsors & Cosponsors
Sponsor
David Bedey
Republican • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/11/2025
Do Concur
Yes: 99 • No: 0
House vote • 4/11/2025
Do Concur
Yes: 96 • No: 1
House vote • 4/4/2025
Do Concur
Yes: 46 • No: 3
House vote • 4/3/2025
Do Concur
Yes: 43 • No: 4
House vote • 2/4/2025
Do Pass
Yes: 81 • No: 19
House vote • 2/3/2025
Do Pass
Yes: 79 • No: 20
Actions Timeline
Chapter Number Assigned
5/8/2025HouseSigned by Governor
5/5/2025HouseTransmitted to Governor
4/25/2025HouseSigned by President
4/25/2025SenateSigned by Speaker
4/23/2025HouseReturned from Enrolling
4/14/2025HouseSent to Enrolling
4/11/2025House3rd Reading Passed as Amended by Senate
4/11/2025HouseRevised Fiscal Note Printed
4/11/2025House2nd Reading Senate Amendments Concurred
4/11/2025HouseRevised Fiscal Note Signed
4/11/2025HouseRevised Fiscal Note Received
4/11/2025HouseRevised Fiscal Note Requested
4/7/2025HouseReturned to House with Amendments
4/4/2025Senate3rd Reading Concurred
4/4/2025Senate2nd Reading Concurred
4/3/2025SenateCommittee Report--Bill Concurred as Amended
4/2/2025SenateCommittee Executive Action--Bill Concurred as Amended
4/1/2025SenateHearing
3/19/2025SenateHearing Canceled
3/17/2025SenateReferred to Committee
2/18/2025SenateFirst Reading
2/5/2025SenateTransmitted to Senate
2/4/2025House3rd Reading Passed
2/4/2025HouseRevised Fiscal Note Printed
2/4/2025House
Bill Text
Enrolled
4/15/2025
As Amended (Version 3)
4/2/2025
As Amended (Version 2)
1/28/2025
Introduced
1/9/2025