The Basics of Montana’s School Funding Formula and Why it Matters

School funding in Montana can be a little confusing, but it’s really important for making sure that every student gets a good education. In this post, we’re going to explain how schools in Montana get their money, and why it’s so important for every community, big or small, to have fair funding for schools.

A Big Change in the 1980s

Back in the late 1980s, Montana lawmakers made big changes to the way schools were funded. Before that, some schools in Montana had a lot of money to work with, while others were really struggling because they didn’t have enough funds. The state is big, and schools come in all sizes, so the question became: How do we make school funding fair for everyone, no matter where they live?

The Average Cost per Student

One of the ways Montana solved this problem was by figuring out how much money it costs to educate a student. This is called the average cost per student. The cost is different for elementary schools and high schools because high schools are more expensive to run. Once they figured out the average cost, lawmakers decided that every school district in Montana could only spend that amount of money per student – no more and no less. This is called the cap.

The Base Budget and Local Taxes

Each school district in Montana is required to spend 80% of the cap. This is called the base budget. But there’s a catch: if a community wants to spend more money than the base budget, it can – but the people in the community have to vote on it. This extra 20% is up to the community to decide how much of it they want to pay through local mill levies.

A mill levy is a local tax that people in the community pay to help fund their schools. Every year, voters decide how much of that extra 20% they are willing to contribute. If they decide not to vote for the mill levy, the school district doesn’t get the extra money, and funding falls below the cap.

Why Do We Keep Voting on School Funding?

It might seem like there are a lot of votes on school funding, especially in places like Great Falls. That’s because, as the cost of education goes up, the cap also goes up. Every time it goes up, the local community has to vote again on how much extra they are willing to pay. These votes are really important because they determine how much money schools will have to spend on things like teachers, supplies, and other resources.

Why Does This Matter?

You might think that being “average” isn’t all that great, but in Montana’s school funding system, being average is actually an A+! By making sure that every school district gets the same amount of money per student (with a little extra that the community can choose to add), the state is trying to make school funding as fair as possible. This helps ensure that no matter where you live in Montana, your school can provide a good education to all students.

So, when you hear about votes for school funding or mill levies in your community, remember that it’s all about making sure your school has the money it needs to help students succeed. It’s one way Montana works to make sure every student has the chance to do their best – no matter where they live.