Clarify laws related to k-12 school districts

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69th Legislature 2025 SB 34
- 1 - Authorized Print Version – SB 34
ENROLLED BILL
AN ACT GENERALLY REVISING LAWS RELATED TO K-12 SCHOOL DISTRICTS; REMOVING OBSOLETE
LANGUAGE REGARDING TUITION CALCULATIONS; CLARIFYING THE BUDGET LIMIT CALCULATIONS
FOR A NEW K-12 SCHOOL DISTRICT; AMENDING SECTIONS 20-6-702 AND 20-6-703, MCA; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 20-6-702, MCA, is amended to read:
"20-6-702. Funding for K-12 school districts. (1) Notwithstanding the provisions of subsections (2)
through (6), a K-12 school district formed under the provisions of 20-6-701 is subject to the provisions of law for
high school districts.
(2) The number of elected trustees of the K-12 school district must be based on the classification
of the attached elementary district under the provisions of 20-3-341 and 20-3-351.
(3) Calculations for the following must be made separately for the elementary school program and
the high school program of a K-12 school district:
(a) the calculation of ANB for purposes of determining the total per-ANB entitlements must be in
accordance with the provisions of 20-9-311;
(b) the basic county tax for elementary equalization and revenue for the elementary BASE funding
program for the district must be determined in accordance with the provisions of 20-9-331, and the basic county
tax for high school equalization and revenue for the high school BASE funding program for the district must be
determined in accordance with 20-9-333;
(c) the guaranteed tax base aid for BASE funding program purposes for a K-12 school district must
be calculated separately, using each district's guaranteed tax base ratio, as defined in 20-9-366. The BASE
budget levy to be levied for the K-12 school district must be prorated based on the ratio of the BASE funding
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69th Legislature 2025 SB 34
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ENROLLED BILL
program amounts for elementary school programs to the BASE funding program amounts for high school
programs.
(d) the levy authority limits under 20-9-502(3) and the corresponding state school major
maintenance aid under 20-9-525(3) for a K-12 school district must be calculated separately for the K-12 school
district's elementary and high school programs in the same manner as those limits and aid would be calculated
if the K-12 school district consisted of a separate elementary and high school district.
(4) The retirement obligation and eligibility for retirement guaranteed tax base aid for a K-12 school
district must be calculated and funded as a high school district retirement obligation under the provisions of 20-
9-501.
(5) For the purposes of budgeting for a K-12 school district, the trustees shall adopt a single fund
for any of the budgeted or nonbudgeted funds described in 20-9-201 for the costs of operating all grades and
programs of the district.
(6) Tuition for attendance in the K-12 school district must be determined separately for high school
pupils and for elementary pupils under the provisions of 20-5-320 through 20-5-324, except that the actual
expenditures used for calculations in 20-5-323 must be based on an amount prorated between the elementary
and high school programs in the appropriate funds of each district in the year prior to the attachment of the
districts."
Section 2. Section 20-6-703, MCA, is amended to read:
"20-6-703. Transitions after formation of K-12 school district. (1) When an attachment order for a
K-12 school district becomes effective on July 1 under the provisions of 20-6-701:
(a) the county superintendent shall order the trustees to execute all necessary and appropriate
deeds, bills of sale, or other instruments for the conveyance of title to all real and personal property of the
elementary district to the high school district;
(b) the trustees of the elementary district shall entrust the minutes of the board of trustees, the
elementary district documents, and other records to the high school district to which it is attached; and
(c) the county treasurer shall transfer all end-of-the-year warrants and fund balances of the
attached elementary district to the similar funds established for the K-12 school district in the high school
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69th Legislature 2025 SB 34
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ENROLLED BILL
district.
(2) All taxes levied by and revenue due from a previous school fiscal year to an elementary district
attached to a high school district must be payable to the appropriate fund of the high school district.
(3) The previous year's general fund budget amounts for the elementary district and the high
school district that form a K-12 school district must be combined used to determine the budget limitation for the
ensuing school fiscal year pursuant to the calculations described in 20-9-308(1)(b)."
Section 3. Effective date. [This act] is effective July 1, 2025.
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I hereby certify that the within bill,
SB 34, originated in the Senate.
___________________________________________
Secretary of the Senate
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
SENATE BILL NO. 34
INTRODUCED BY D. EMRICH
BY REQUEST OF THE EDUCATION INTERIM COMMITTEE
AN ACT GENERALLY REVISING LAWS RELATED TO K-12 SCHOOL DISTRICTS; REMOVING OBSOLETE
LANGUAGE REGARDING TUITION CALCULATIONS; CLARIFYING THE BUDGET LIMIT CALCULATIONS
FOR A NEW K-12 SCHOOL DISTRICT; AMENDING SECTIONS 20-6-702 AND 20-6-703, MCA; AND
PROVIDING AN EFFECTIVE DATE.