All Roll Calls
Yes: 356 • No: 41
MontanaHB 25269th Legislature, Regular Session (2025)HouseWALLET
Create the student and teacher advancement for results and success act (STARS)
Sponsored By: Llew Jones (Republican)
Signed by Governor
Education - K-12Education - School FinanceEducation - TeachersAppropriationsRule MakingLabor and EmploymentEducation - Post-Secondary
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
17 provisions identified: 10 benefits, 2 costs, 5 mixed.
Advanced opportunities cut student and family costs
Qualified school districts receive advanced opportunity aid by October 1 each year, paid into the district flexibility fund. At least 75% of that money must go to lower pupil and family costs, like dual credit tuition, exam fees, workers’ comp for work‑based learning, credential fees, and enrichment costs. Districts may add a local match from their adult education budget up to 25% of the aid. The state includes this aid in the K‑12 base budget, and any shortfalls are handled like other base aid gaps. The law also adds $100,000 each fiscal year starting July 1, 2025, on top of regular funding for this aid.
More funding for Indian language immersion
Districts that run Indian language immersion programs get extra state payments. For each American Indian student, the district gets twice the American Indian achievement gap payment, or three times if the district’s American Indian graduation rate rose by at least 5 percentage points from last year as measured by the Office of Public Instruction. For each non‑Indian student in the program, the district gets twice the Indian Education for All payment. Each full‑time language and culture specialist also earns a quality educator payment.
Clearer K-12 funding and public dashboard
The law clarifies what counts as the state’s share of K‑12 funding, including items like BASE aid, retirement tax base aid, major maintenance, transportation, debt service help, technology, CTE, advanced opportunities, and gifted and talented funding. It also sets amounts for key payments. For FY2024, the American Indian achievement gap payment is $235 per eligible student and $242 each year after. Data‑for‑achievement is $22.89 per ANB in FY2024 and $23.58 each year after. The special education allocation is the larger of $293.74 per statewide ANB in FY2024 ($302.55 each year after) or last year’s total allocation. Payments to certain entities are routed by the named agencies, with conditions for special education cooperatives. A public, interactive school funding dashboard must show current data, state vs. property tax shares, equity measures, and salary comparisons.
Quality educator payments expanded and scheduled
The law sets the per‑FTE teacher and staff payment at $3,566 for FY2024 and $3,673 each year after. A school that meets the teacher base‑pay goal counts each qualifying FTE twice for this payment and keeps that status unless it fails for two straight years. The state now pays this money on the BASE aid schedule, improving timing and predictability. More organizations qualify, including school districts, special education cooperatives, the Montana School for the Deaf and Blind, correctional facilities, and the Montana Youth Challenge Program.
Teacher pay goals and enhanced payments
The law sets a rising floor for base teacher pay tied to the prior‑year average. The minimum is at least 62% in FY2026, 64% in FY2027, 66% in FY2028, 68% in FY2029, and 70% in FY2030 and after. Entities that meet the competitive base pay goal qualify for an enhanced payment for all their quality educators and qualified staff. For FY2026 only, an entity that commits to a base salary at least 11 times the FY2026 per‑educator payment and at least 62% of its FY2025 average salary can receive adjusted budget limits and payments. To get the incentive for the next year, entities must submit verification data by December 1.
K-12 expansion only for 1,000+ students
An elementary district may expand into a K‑12 district only if its ANB is at least 1,000. The rule applies only if the district is not in a unified system and not on a joint board with a high school district. If ANB is below 1,000, expansion is not allowed.
Rules when elementary districts add high school
After voters approve expansion, trustees have two years to propose a transition levy and a bond. For bond limits and facilities estimates, the initial high school ANB is (elementary ANB ÷ 9) × 4. A voter‑approved bond becomes a bond of the new K‑12 district and is issued after the district is created. On July 1 after bond approval, the county creates a high school district and attaches it to the elementary district to form a K‑12 district. Until the K‑12 enrolls all high school grades (no more than six years), the prior high school district teaches the remaining grades and the K‑12 district provides transportation. The K‑12 district must pay the high school district 20% of the per‑ANB maximum rate per student, half due by December 31 and half by June 15, and must run a tuition fund and levy if needed. Before first‑year enrollment in new grades, budgets use estimated ANB caps and limit quality educators to estimated ANB ÷ 10. Existing bonded debt is allocated by territory and timing set in law. Tenured certified staff from the original high school district get hiring preference for vacancies. Trustees of eligible elementary districts may place an expansion resolution only once every five years.
Transformational learning aid and local levies
The law gives approved school districts a four‑year block of funding for transformational learning. Payments equal 50% of the prior‑year per‑FTE quality payment times the district’s FTE and arrive by October 1. Districts must spend the money on their approved plan within two years, and no single district can get over 25% of total program funds. If annual funds run out, new applications are put in a lottery and kept in order with yearly updates. Trustees may also levy a permissive property tax up to the full amount of these aid dollars, with required public notice. Districts can shift most local or state funds into the flexibility fund to carry out the plan, but must return unspent transfers after two school years and may not raise a nonvoted levy to replace them. This program runs through June 30, 2027.
New teacher pay benchmarks and funding math
To meet the legislative goal, a district’s teacher base pay must be at least 11 times the per‑educator payment set in law. Teacher average pay now excludes bonuses, stipends, and extended duty contracts. Teacher base pay means the lowest salary for a full‑time beginning teacher in the current year, also excluding bonuses, stipends, and extended duty pay. For school finance, the state now subtracts the total quality educator payment from a district’s BASE budget when figuring guaranteed tax base aid. These rules shape eligibility for enhanced payments and can shift local versus state funding shares.
Housing help for school staff in costly counties
If a district meets the base teacher pay goal and sits in a county where the median home value is over 105% of the statewide median, its general fund budget limit increases by a factor based on how much the county median exceeds the statewide median divided by 60. The Department of Revenue calculates the medians in odd‑numbered years (excluding properties at $50,000 or less) and reports by December 1 for the next two school years. Districts must spend the added budget authority on staff housing help, like stipends, district‑owned housing, rental or down‑payment aid, shared‑ownership help, subsidized or guaranteed housing loans, relocation help, or other allowed assistance.
Advanced opportunity aid set by formula
The state sets advanced opportunity aid as a share of last year’s total quality educator payment after required adjustments. The shares are 4.5% for elementary districts, 30% for high school districts, and 18% for K‑12 districts. This formula creates predictable aid that supports course fees, exams, and career training costs.
Future Ready payments for student credits
Districts get payments based on how many graduates reach set goals while in high school. Level 1 is 15 or more postsecondary or CTE‑equivalent credits, level 2 is 30 or more, and level 3 is an associate degree. Payments equal 10%, 20%, or 30% of the per‑ANB maximum for each qualifying graduate, counted on a two‑year delay. Each year by December 1, higher education lists which courses earn transcripted college credit, and labor and industry lists approved industry credentials and work‑based learning with credit values. The first payments are made in fiscal year 2028 based on students who graduated in school year 2026.
Higher school budget room for housing
For FY2026, the law raises maximum general fund budget limits tied to housing costs. The Department of Revenue must send housing cost data to the Office of Public Instruction within 10 days of the law taking effect. The superintendent must tell districts about any budget limit increase by June 1, 2025.
Transformational learning funds built into base
The state adds transformational learning aid to the K‑12 present‑law base. The amount equals 50% of the quality educator payment times 10% of statewide full‑time educators from the prior year. This inclusion ends on June 30, 2027.
Future Ready payments delayed to 2028
School districts do not receive Future Ready incentive payments until fiscal year 2028. The first planned distributions move from FY2027 to FY2028. Districts must wait one more year for this funding.
More staff count for school payments
More positions now count toward school staffing payments. Licensed professionals, emergency‑authorized staff (up to three years), and eligible district clerks are included. Emergency‑authorized teachers count starting with FY2026 payments. Eligible district clerks count starting with FY2027, and to get the clerk payment their job description must include duties like advising trustees, serving on the admin team, recordkeeping, accounting and audit liaison, and serving as election administrator unless the county does it. A full‑time equivalent teacher means a full‑year, contracted role that includes prep, instruction, mentoring, and listed duties. Each district gets a one‑time +1.0 FTE added to its count for FY2026. Starting in FY2027, when districts share a qualifying staff member at least 0.33 FTE each, that person counts as 1.0 FTE in each district’s payment math. Clerks must give the county treasurer 30 hours’ notice before cash demands over $50,000 or the district pays any investment withdrawal fees.
Indian language immersion funding rules
Districts may use state immersion payments as match to bring in federal or private funds for the program. If the yearly appropriation is not enough, the Office of Public Instruction prorates immersion payments, so recipients get less that year.
Sponsors & Cosponsors
Sponsor
Llew Jones
Republican • House
Cosponsors
Bruce "Butch" Gillespie
Republican • Senate
John Fuller
Republican • Senate
Roll Call Votes
Senate vote • 4/22/2025
Do Concur
Yes: 43 • No: 7
Senate vote • 4/15/2025
Do Concur
Yes: 40 • No: 10
House vote • 2/22/2025
Do Pass
Yes: 88 • No: 9
House vote • 2/21/2025
Do Pass
Yes: 92 • No: 8
House vote • 2/10/2025
Do Pass
Yes: 93 • No: 7
Actions Timeline
Chapter Number Assigned
5/13/2025HouseSigned by Governor
5/8/2025HouseTransmitted to Governor
5/5/2025HouseSigned by President
5/2/2025SenateSigned by Speaker
5/1/2025HouseReturned from Enrolling
4/27/2025HouseSent to Enrolling
4/22/2025House3rd Reading
4/22/2025SenateCommittee Report
4/18/2025SenateCommittee Executive Action
4/18/2025SenateHearing
4/17/2025SenateRereferred to Committee
4/15/2025Senate2nd Reading
4/15/2025SenateCommittee Report
4/3/2025SenateCommittee Executive Action
4/3/2025SenateHearing
3/17/2025SenateReferred to Committee
3/3/2025Senate1st Reading
2/25/2025SenateTransmitted to Senate
2/24/2025House3rd Reading
2/22/2025House2nd Reading
2/21/2025HouseCommittee Report
2/18/2025HouseCommittee Executive Action
2/17/2025HouseRevised Fiscal Note Printed
2/10/2025HouseHearing
2/10/2025House
Bill Text
Enrolled
4/23/2025
As Amended (Version 3)
2/18/2025
As Amended (Version 2)
2/6/2025
Introduced
1/17/2025
Related Bills
SB 437, Revise definition of sex in Montana law
HB 831, Increase elderly homeowner and renter income tax credit
HB 628, Revise early literacy targeted intervention laws
SB 410, Provide for Montana genomic security act
SB 422, Generally revise laws relating to insurance coverage relating to cancer
SB 424, Revising the disabled veteran property tax assistance program