MontanaSB 3469th Legislature, Regular Session (2025)SenateWALLET

Clarify laws related to k-12 school districts

Sponsored By: Daniel Emrich (Republican)

Became Law

Schools and EducationSchool Finance

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

New funding and levy rules for K-12

Beginning July 1, 2025, the state calculates funding for K-12 districts separately for elementary and high school programs. This includes ANB entitlements, basic county taxes and BASE revenue, guaranteed tax base aid, levy limits, and major maintenance aid. The BASE budget levy is prorated between the two programs. Retirement costs and guaranteed tax base aid are calculated under high school district rules. The next year’s budget limit uses the combined prior-year general fund budgets of the former elementary and high school districts. These changes can raise or lower state aid and local property tax levies.

Separate tuition for elementary and high school

Beginning July 1, 2025, districts set tuition separately for elementary and high school pupils. The district prorates prior-year actual expenses between programs to compute tuition. Families who pay tuition for nonresident or tuitioned students may see amounts change.

K-12 districts follow high school rules

Starting July 1, 2025, K-12 districts formed under state law follow the statutes for high school districts. The number of elected trustees is set by the attached elementary district’s classification. Trustees must use a single fund to pay for operating all grades and programs. Families and staff may see changes in how boards are set and budgets are shown.

Transfers when elementary joins high school district

When an attachment order takes effect on July 1, the county superintendent orders transfer of all elementary property to the high school district. Elementary trustees must deliver minutes and records to the high school district. The county treasurer moves end-of-year warrants and fund balances to matching K-12 funds. Taxes and revenue due from prior years for the former elementary district are paid to the high school district’s funds.

Sponsors & Cosponsors

Sponsor

Daniel Emrich
Republican • Senate

Cosponsors

Jamie Isaly
Democrat • House

Roll Call Votes

All Roll Calls

Yes: 295 • No: 1

Senate vote • 3/28/2025

Do Concur

Yes: 99 • No: 0

Senate vote • 3/27/2025

Do Concur

Yes: 98 • No: 0

Senate vote • 1/21/2025

Do Pass

Yes: 48 • No: 1

Senate vote • 1/20/2025