All Roll Calls
Yes: 354 • 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)
Became Law
Schools and EducationSchool FinanceTeachersAppropriationsRule MakingLabor and EmploymentUniversity System
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 4 benefits, 1 costs, 5 mixed.
Higher teacher pay goals and counts
The law raises the teacher base‑pay goal to at least 11 times the quality‑educator payment, or 62% of average teacher pay in FY2026, 64% in FY2027, 66% in FY2028, 68% in FY2029, and 70% in FY2030 and later. To get the next‑year incentive, districts must submit required pay‑goal data by December 1 and report early‑career teacher counts. Emergency‑authorized teachers count for payments starting FY2026; eligible district clerks count starting FY2027, but only if their job duties include the listed functions. Starting July 1, 2027, a jointly employed qualifying educator counts as 1.0 FTE in each district if each employs at least 0.33 FTE.
Charter funding parity and no tuition
Public charter school districts get funding set by formula: 80% of the basic entitlement, 80% of per‑ANB entitlement, 100% of quality‑educator and other targeted payments, and 140% of the special‑education allowable cost payment. A charter run by a local board is a separate budget unit and earns its own basic entitlement when ANB is over 70 (elementary), 20 (middle), or 40 (high school). Charters cannot charge tuition or fees. A charter district is responsible for its own debts and does not assume the host district’s debt.
More aid for dual‑credit costs
Districts get advanced opportunity aid equal to a share of last year’s quality‑educator payment: 4.5% for elementary, 30% for high‑school, and 18% for K‑12 districts. The board qualifies districts by January 31, and the state pays by October 1 into the district flexibility fund. At least 75% must cover student costs like dual‑credit tuition, exams, credentials, work‑based learning, and enrichment. Districts may match up to 25% from adult education for the same uses. The law adds $100,000 each year starting July 1, 2025 for this aid.
Future Ready credits and CTE list
Beginning in FY 2027–28, districts receive incentive payments when graduates earn postsecondary or CTE‑equivalent credits: 15+, 30+, or an associate‑degree level. Each year by December 1, the labor department sets a rule‑based list of industry credentials and work‑based learning that count, with credit values in 3‑credit steps. Only high‑school or K‑12 districts can propose additions, and new items are posted online.
Steadier state aid and school data
The state pays BASE aid on a set schedule: 10% monthly August–November and January–April; half of guaranteed tax base aid in December (after a final budget); the rest in May; remaining payments in June. The guaranteed tax base multiplier is 254% in FY2024 and 259% in FY2025 and later, with possible increases up to 262% through FY2031 if state revenue meets the trigger. A public, interactive dashboard will show school funding trends, state vs. local shares, equity measures, and salary comparisons.
More support for Indian language programs
Districts running Indian language immersion get larger payments. For each American Indian student, they receive twice the American Indian achievement gap payment; for each non‑Indian participant, twice the Indian education for all payment. Full‑time language and culture specialists also generate a quality‑educator payment. If the district raises its American Indian graduation rate by 5 percentage points or more, the per‑student multiplier increases to 3. If state funding is short, payments are prorated.
Paying for K–12 expansion and transition
After voters approve expansion and certification is issued, trustees have 2 years to ask voters for a transition levy and a building bond. For bond limits and facility reimbursements before actual high‑school ANB exists, use estimated high‑school ANB = elementary ANB ÷ 9 × 4. Existing high‑school debt stays with its original territory; elementary debt becomes K‑12 debt, and new bonds are secured by the high‑school territory at issue. Until all high‑school grades are offered (up to 6 years), the old high‑school district teaches those students; the K‑12 district transports them and pays tuition equal to 20% of the per‑ANB maximum rate per student, half due by Dec 31 and the rest by June 15.
Rules to become a K–12 district
An elementary district can expand only if its ANB is at least 1,000. Trustees may bring an expansion resolution only once in any 5 years. If voters approve the bond, a new high school district is created on July 1 and the elementary district attaches to form a K–12 district; the bond cannot be issued until the new district exists. Before enrolling a new high school grade, inaugural ANB is capped at the highest elementary ANB in the past 3 years ÷ 9 × the number of new grades, and initial quality‑educator counts are capped at one per 10 students. Tenured, certified staff from the former high school district get hiring preference for open jobs they are qualified to fill.
Temporary funding for transformational learning
Qualified districts get four years of extra funding and flexibility for approved transformational learning plans. Each year, the payment equals 50% of the prior‑year quality‑educator payment times the program’s reported FTE, paid to the flexibility fund by October 1 and spent within two years. A district may not receive more than 25% of total payments and must meet annual reporting. While qualified, trustees may levy a permissive property tax up to 100% of the aid received, and must follow the transparency rules in 20‑9‑116.
Notice rule for large cash withdrawals
District clerks must give the county treasurer at least 30 hours’ notice before any cash demand over $50,000 for payrolls, claims, or electronic transfers. If they do not, the district pays a fee equal to the charges demanded by the investment manager for the improper withdrawal.
Sponsors & Cosponsors
Sponsor
Llew Jones
Republican • House
Cosponsors
Bruce "Butch" Gillespie
Republican • Senate
John Fuller
Republican • Senate
Roll Call Votes
House vote • 4/22/2025
Do Concur
Yes: 43 • No: 7
House 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: 90 • 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 Concurred
4/22/2025SenateCommittee Report--Bill Concurred
4/18/2025SenateCommittee Executive Action--Bill Concurred
4/18/2025SenateHearing
4/17/2025SenateRereferred to Committee
4/15/2025Senate2nd Reading Concurred
4/15/2025SenateCommittee Report--Bill Concurred
4/3/2025SenateCommittee Executive Action--Bill Concurred
4/3/2025SenateHearing
3/17/2025SenateReferred to Committee
3/3/2025SenateFirst Reading
2/25/2025SenateTransmitted to Senate
2/24/2025House3rd Reading Passed
2/22/2025House2nd Reading Passed
2/21/2025HouseCommittee Report--Bill Passed as Amended
2/18/2025HouseCommittee Executive Action--Bill Passed as Amended
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