Montana Kids Need a Boost: School Funding Interim Committee passes 10 policy solutions to improve Montana’s statewide public education system

What is the School Funding Interim Commission?

The School Funding Interim Commission has concluded its work for the 2025-2026 interim. The commission meets each decade to ensure that Montana’s constitutional obligation to “develop the full educational potential of each person” is met. This commission spent many months hearing from national experts, community members, school representatives across the state, and other Montanans invested in the future of public schools for generations to come.

The commission recognized that current funding is inadequate and that the 2027 Legislature should act to bring Montana’s school funding in line with the constitutional obligation. The commission recognized the unique challenges faced by communities across Montana in providing the quality education children deserve. The commission contracted out a study on the adequacy of Montana’s current school funding system, which found that Montana’s public K-12 schools were not receiving adequate funding and recommended that Montana invest around $300 million annually to reach an adequate level.

What did the Commission ultimately recommend?

The Commission approved 10 legislative proposals to increase funding for Montana public K-12 schools. Here are the basics on what they will be moving forward in the 2027 legislature.

• The current inflationary mechanism has left schools unable to keep up with rising costs. Thus, the commission recommends removing the 3 percent inflationary cap on the state, which basically establishes a budgetary starting point for the legislature in setting the state components of the school funding formula;

• The cost of special education programming is increasing and there is more need for this type of programming. The commission recommends increasing special education funding in a couple of ways. First, increasing the state contribution for special education and, second, establishing a high-cost pool for districts with high special education needs;

• Districts across the state experience a wide variety of facility needs and require consistent, targeted, and flexible infrastructure funding. The commission recommends increasing state funding for major maintenance for school facilities;

• Montana’s funding for at-risk students is the lowest in the nation. The commission recommends increasing state funding for at-risk students. At-risk students are federally defined and are estimated in the aggregate using data on families accessing Medicaid and food support programs;

• Montana is the only state without state funding for English language learners. The commission recommends creating a new funding component for schools to support English language learners;

• Sixth graders are currently funded at a lower level than 7th- and 8th-graders, despite attending middle school. The commission recommends funding 6th-grade students attending a middle school at the same rate as other middle and high school students;

• State support for Indian Education for All is currently insufficient for small schools, with a $100 district minimum. The commission recommends increasing the district minimum amount from $100 to $1,000;

• High-performing schools need access to quality educational material. The commission recommends creating a state program to support schools’ access to high-quality instructional materials and teacher professional development; and

• Ensuring continued success for all Montana students through the school funding formula is far from complete. The commission recommends that they meet again in the 2027 interim to consider more changes to the current funding formula.

What was left out?

The only proposal omitted from the commission’s recommendations was an increase in state funding to address the American Indian Achievement Gap (AIAG). Commission members suggested that a proposed increase to the American Indian Achievement Gap payment is unnecessary because at-risk student funding could absorb the same need. Eligibility for the achievement gap payment is based on American Indian enrollment; eligibility for at-risk funding is based on economic need indicators. To target a reduction in the achievement gap experienced by American Indian students, the proposed legislation should include a mechanism to route dollars specifically to American Indian students (as the AIAG payment is designed to do).

What happens now?

The commission is putting forward the above recommendations as bill drafts for the 2027 Legislature to consider. In total, these important policy changes would boost critical state investment in our public schools by nearly $300 million each year. Given the Commission’s recognition of inadequate state funding and input from school districts and stakeholders across the state that Montana schools need investment, Governor Gianforte and the 2027 Legislature should prioritize these proposals to ensure future generations of Montana children receive the education they need to succeed.

Public investments benefit us all.  Schools are foundational to growing strong communities. Montana’s ability to make these critical investments rests on adequate state revenue into the future, and adequate funding is foundational to community well-being. Continuing cuts to income taxes for the wealthy does not help the everyday Montanan and will undercut Montana’s ability to fund schools. School funding investments must be a priority in the 2027 session, ahead of continued income tax cuts for the wealthiest.