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- 2025
69th Legislature 2025 HB 266
- 1 - Authorized Print Version – HB 266
ENROLLED BILL
AN ACT ANALYZING THE ANNUAL INFLATION-RELATED ADJUSTMENTS TO K-12 BASE AID TO
IMPROVE ALIGNMENT WITH THE DEFINITION OF "BASIC SYSTEM OF FREE QUALITY PUBLIC
ELEMENTARY AND SECONDARY SCHOOLS" PROVIDED IN SECTION 20-9-309, MCA; ENSURING THAT
THE GENERAL FUND FUNDING FORMULA IS SELF-EXECUTING AND INCLUDES A PROCESS FOR
ENSURING ACCESS TO INFORMATION REGARDING EDUCATIONALLY RELEVANT AND ACCURATE
ANNUAL INFLATIONARY ADJUSTMENTS; ESTABLISHING REPORTING REQUIREMENTS; AMENDING
SECTION 20-9-326, MCA; AND PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 20-9-326, MCA, is amended to read:
"20-9-326. Annual inflation-related adjustments to basic entitlements and per-ANB entitlements
-- reporting. (1) In preparing and submitting an agency budget pursuant to 17-7-111 and 17-7-112, the
superintendent of public instruction shall determine the inflation factor for the basic and per-ANB entitlements,
the data-for-achievement payment, the per-ANB amount used to calculate the total special education allocation
in 20-9-306, and the general fund payments in 20-9-327 through 20-9-330 in each fiscal year of the ensuing
biennium. The inflation factor is calculated as follows:
(a) for the first year of the biennium, divide the consumer price index for July 1 of the prior calendar
year by the consumer price index for July 1 of the calendar year 3 years prior to the prior calendar year and
raise the resulting ratio to the power of one-third; and
(b) for the second year of the biennium, divide the consumer price index for July 1 of the current
calendar year by the consumer price index for July 1 of the calendar year 3 years prior to the current calendar
year and raise the resulting ratio to the power of one-third.
(2) (a) The present law base for the entitlements referenced in subsection (1) of this section,
- 2025
69th Legislature 2025 HB 266
- 2 - Authorized Print Version – HB 266
ENROLLED BILL
calculated under Title 17, chapter 7, part 1, must consist of any enrollment increases or decreases plus the
inflation factor calculated pursuant to this section, not to exceed 3% in each year, applied to both years of the
biennium ,.
(b) This subsection (2) does not limit the superintendent or the governor from recommending, or
limit the legislature from adopting, inflationary adjustments other than those calculated in this section.
(3) Beginning in fiscal year 2026 and then every even-numbered fiscal year thereafter, the
superintendent of public instruction shall provide a report no later than September 1 to the education interim
budget committee and the education interim committee and no later than December 31 to the legislative finance
committee, in accordance with 5-11-210, regarding the educational relevance in the implementation of this
section. The report must include:
(a) the increase in funding over the prior year on a per-ANB basis for the BASE aid elements
represented in 20-9-306(2)(a) and (2)(c) through (2)(h) budgeted to be provided to school districts in the current
fiscal year and provided to school districts in the preceding 5 fiscal years, which must be reported in both dollar
and percentage amounts, with the six percentages rounded to the nearest one hundredth;
(b) the percentage change from July of the preceding year to July of the applicable year in the
consumer price index for the current year and the preceding 5 years, with the six percentages rounded to the
nearest one hundredth; and
(c) a cumulative numerical comparison of the difference between the percentages reported in
subsections (3)(a) and (3)(b), rounded to the nearest one hundredth..
(3)(4) For the purposes of this section, "consumer price index" means the consumer price index, U.S.
city average, all urban consumers, for all items, using the 1982-84 base of 100, as published by the bureau of
labor statistics of the U.S. department of labor."
Section 2. Coordination instruction. If both Senate Bill No. 258 and [this act] are passed and
approved, then Senate Bill No. 258 is void.
Section 3. Effective date. [This act] is effective July 1, 2025.
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I hereby certify that the within bill,
HB 266, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 266
INTRODUCED BY L. MUSZKIEWICZ, J. ISALY, P. STRAND, P. ELVERUM, M. ROMANO, M. THANE
AN ACT ANALYZING ANNUAL INFLATION-RELATED ADJUSTMENTS TO K-12 BASE AID TO IMPROVE
ALIGNMENT WITH THE DEFINITION OF "BASIC SYSTEM OF FREE QUALITY PUBLIC ELEMENTARY AND
SECONDARY SCHOOLS" PROVIDED IN SECTION 20-9-309, MCA; ENSURING THAT THE GENERAL FUND
FUNDING FORMULA IS SELF-EXECUTING AND INCLUDES A PROCESS FOR ENSURING ACCESS TO
INFORMATION REGARDING EDUCATIONALLY RELEVANT AND ACCURATE ANNUAL INFLATIONARY
ADJUSTMENTS; ESTABLISHING REPORTING REQUIREMENTS; AMENDING SECTION 20-9-326, MCA;
AND PROVIDING AN EFFECTIVE DATE.