MontanaHB 25169th Legislature, Regular Session (2025)HouseWALLET

Generally revise laws related to public charter schools

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 0 costs, 5 mixed.

No tuition and special ed support

Beginning July 1, 2025, public charter school districts cannot charge tuition or fees. Usual out‑of‑district attendance rules do not apply to these districts. For children with disabilities, the resident school district must help pay required education costs when the child attends a charter district. This makes access more affordable and clarifies who pays for services.

New charter districts and funding rules

Beginning July 1, 2025, Montana recognizes public charter school districts that are not taxing entities. State aid is set by rate: 80% of basic entitlement, 80% of per‑ANB, 100% of quality educator, at‑risk, Indian education, American Indian achievement gap, and data‑for‑achievement, and 140% of special education allowable cost. A charter district gets a basic entitlement only if ANB is over 70 (elementary), 20 (middle), or 40 (high). If a charter is run by a local board and passes those ANB levels, it is a separate budget unit with its own basic entitlement. Families do not face new local taxes from these districts.

Stricter approval and cost guardrails

Beginning July 1, 2025, the statewide Board of Public Education is the only body that can approve charter contracts. Each year by June 1, the Board issues an RFP and relies on state fiscal analyses. Approvals must favor personalized and proficiency‑based learning, weigh community support and projected enrollment, and proceed only when expected student gains outweigh added taxpayer costs. The Board must cap total added state basic‑entitlement costs at the amount the Legislature funds. In third‑class districts, only the local board may apply to start a charter.

Charter money management and donations

Beginning July 1, 2025, county treasurers keep charter school money in separate accounts, and each charter reports finances every year. Charter boards can seek and use gifts, keep unspent funds for future years, and receive donations through Montana’s innovative education tax credit program. Charter districts can borrow money but must repay their own debts and do not take on a resident district’s past debt. These steps add transparency and more ways to fund programs.

Charter staff not bound by district contracts

Beginning July 1, 2025, charter school employees cannot be forced into an existing district collective bargaining agreement. The law protects workers’ rights to organize and bans discrimination. Pay and work terms are set by the charter employer, not a district union contract.

Contracting and wages for charter vendors

Beginning July 1, 2025, charter schools must use competitive bidding for any purchase or contract over $80,000. Their contracts and leases are exempt from prevailing wage rules. Vendors may face lower wage costs and more bid chances, while workers on those jobs may have weaker wage protections.

Charter authority clarified, waivers ended

Beginning July 1, 2025, the law defines what counts as a public charter school district and clarifies which state bodies oversee it. The Board can no longer waive state law in charter contracts. This tightens compliance and makes the scope of charter powers clearer.

Sponsors & Cosponsors

Sponsor

David Bedey
Republican • House

Cosponsors

Jacinda Morigeau
Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 267 • No: 30

Senate vote • 4/10/2025

Do Concur

Yes: 47 • No: 1

Senate vote • 4/8/2025

Do Concur

Yes: 48 • No: 2

House vote • 2/11/2025

Do Pass

Yes: 85 • No: 14

House vote • 2/10/2025