MontanaHB 2869th Legislature, Regular Session (2025)HouseWALLET

Clarify timelines and opening procedures for public charter schools

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Charter funding and first-year rules

For charters run by a local board, the school is its own budget unit. A separate basic entitlement is paid only if ANB is over 70 (elementary), 20 (middle), or 40 (high). In year one, per‑ANB payments are not available; first‑year eligibility can use planned enrollment converted to ANB, but any overpayment is clawed back if October counts are lower. In years two and three, the three‑year average ANB equals the current year ANB. For charter school districts, the state pays 80% of basic and per‑ANB entitlements, 100% of quality educator, at‑risk, Indian education, American Indian achievement gap, and data‑for‑achievement payments, and 140% of special education allowable costs; this total is both the minimum and maximum state funding. Charter districts must also meet the same 70/20/40 basic‑entitlement thresholds, and first‑year payments based on planned enrollment are clawed back if October counts fall short. The Legislature states its intent that per‑pupil operational funding be equitable with the located district. These rules apply to schools starting on or after July 1, 2025.

Money handling rules for charter schools

For charters not run by a local board, the county treasurer keeps the charter’s money in separate funds. Each charter’s governing board must file a yearly financial report. A charter district can borrow money but is responsible only for its own debt, not the local district’s existing debt. Charter boards may accept private donations if conditions follow the law and the charter contract. Unspent money stays in the charter’s accounts for later years. These rules apply to charters starting on or after July 1, 2025.

No charter tuition; nonresident funding same

Charter school districts cannot charge students tuition or fees. If a student lives outside the district, funding follows the same out‑of‑district rules used for other nonresident students. These rules apply to charters starting on or after July 1, 2025.

Stronger performance checks and renewal timelines

Charter contracts must track key results like student growth, gaps, attendance, re-enrollment, finances, and board stewardship. By June 30, the Board issues a performance report and renewal guide; schools have 90 business days to respond. Renewal applications are due by February 1, and the Board rules within 30 business days. Renewal terms are generally five years, but the Board may change the length and require improvements. By December 1 each year, the Board posts a statewide charter report comparing results and noting funding needs and suggested changes. These rules apply to charters starting in school years beginning on or after July 1, 2025.

Faster, clearer steps to open charters

The state sets a regular timeline to apply for charters. The Board issues an RFP by June 1 each year. Proposals must include detailed plans on mission, budgets, staffing, special education, English learners, and facilities. If a proposal is incomplete, the Board returns it with no action. Reviews use written evaluations, interviews, and a public forum, and decisions come within 90 business days. After approval, the Board and school must sign a contract within 45 business days. Initial charters last five operating years. A school may delay opening one year; longer delays need Board approval. If a charter is not run by the local board, approval creates a separate charter school district with campus-only boundaries. These rules apply to charters approved to start in school years beginning on or after July 1, 2025.

Sponsors & Cosponsors

Sponsor

David Bedey
Republican • House

Cosponsors

Daniel Emrich
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 215 • No: 80

House vote • 3/21/2025

Do Concur

Yes: 42 • No: 8

House vote • 2/19/2025

Do Concur

Yes: 27 • No: 21

House vote • 1/17/2025

Do Pass

Yes: 73 • No: 25

House vote • 1/16/2025