MontanaSB 3769th Legislature, Regular Session (2025)Senate

Clarify calculations for significant enrollment increases

Sponsored By: Daniel Emrich (Republican)

Signed by Governor

Education - K-12Education - School Finance

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Bill Overview

Analyzed Economic Effects

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

Extra aid for fast-growing schools

The law gives extra general fund aid when a budget unit’s enrollment jumps. A unit qualifies when its current October ANB is at least 110% of its budget‑limit ANB from three years earlier. By December 1, the superintendent sets a payment equal to: 80% of the per‑ANB entitlement using October enrollment minus the “absorption factor,” minus 80% of the regular per‑ANB entitlement. The absorption factor equals 5 ANB plus 3% of the unit’s budget‑limit ANB, rounded. The superintendent notifies districts by December 15. Trustees must accept the full or a partial amount by their next meeting, no later than March 1, adopt a general fund budget amendment, and send a copy. The state then pays it with the remaining direct state aid for that year. Districts must use the money for costs from the enrollment increase.

Extra state help for school busing

The law creates a way to get more state transportation reimbursement. After adopting a final transportation fund budget amendment, trustees apply to the Superintendent of Public Instruction. The superintendent sets application rules, approves or denies each request, and sets the added amount if approved. The superintendent tells the district the decision and pays approved aid with the next regular state aid payment.

When these school funding rules start

The law takes effect July 1, 2025. The changes apply to school fiscal years that begin on or after July 1, 2025. Districts with fiscal years starting on or after that date follow the new rules.

Sponsors & Cosponsors

Sponsor

Daniel Emrich
Republican • Senate

Cosponsors

Melissa Romano
Democrat • House

Roll Call Votes

All Roll Calls

Yes: 299 • No: 0

House vote • 3/31/2025

Do Concur

Yes: 99 • No: 0

House vote • 3/29/2025

Do Concur

Yes: 100 • No: 0

Senate vote • 1/21/2025

Do Pass

Yes: 50 • No: 0

Senate vote • 1/20/2025