Coalition offers $1.7 billion "quality assurance" rewrite of Montana school funding formula

A coalition representing school business officials, districts, rural education associations and other K–12 groups presented a comprehensive funding redesign to the School Funding Interim Commission.

The "quality assurance" (QA) proposal would replace the current base/max mechanics with a single statewide funding line intended to reflect the full educational cost of serving students. Key elements presented were: removing the decrement (so the first and last pupil are funded at the same per‑pupil rate), establishing basic school entitlements (a per‑school allotment for elementary, middle and high school facilities and incremental entitlements by tiers of enrollment), a consolidated set of targeted weights for at‑risk students, American Indian education and special education, and a focused "quality educator" payment of $15,000 per position (raised to $30,000 if a district meets STARS Act workforce criteria), designed to support a $45,000 starting teacher salary when combined with other formula components.

Panelists said the package would be a phased, state‑led investment of roughly $1.7 billion in guaranteed quality funding, about $190–263 million more than recent year maximums depending on baseline; they proposed keeping certain local levies (technology, school safety) and continuing a GTB equalization mechanism to protect districts with low tax capacity. The coalition argued the proposal would be simple, equitable and adequate: it reduces disparities between elementary and high‑school funding, substantially increases targeted support for disadvantaged students, and aims to stabilize compensation across districts.

Commissioners raised questions about the distributional effects, how local levies and GTB would interact with a QA line, and whether the proposal should be phased in to avoid abrupt local tax shifts; several asked coalition representatives to present the plan as side‑by‑side comparisons with current law and to provide analysis of equity impacts.

Coalition presenters said they would provide graphical side‑by‑side comparisons and equity analyses and work with staff on draft statutory language and phase‑in options for the commission to review in June and July.