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Committee hears support for inflationary adjustments to K-12 funding formula
Summary
A Senate Finance & Claims hearing on House Bill 15 focused on a fiscal-note–driven proposal to apply 3% inflation adjustments to key components of Montana's K-12 funding formula; proponents from school groups and the Office of Public Instruction urged prompt action.
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Representative David Beatty, sponsor of House Bill 15, told the Senate Finance and Claims Committee that the bill's fiscal note applies a 3% inflation adjustment to parts of the K-12 funding formula for 2026 and 2027. "The rate, inflation rate for both 2026 and 2027 are at 3%," Beatty said in opening remarks.
The bill drew unanimous support from education stakeholders at the hearing as proponents limited their testimony to the fiscal note. Doug Reisig, executive director of the Montana Quality Education Coalition, said the adjustments "ensure that schools have the financial resources to meet these demands," and pointed to fiscal-note sections that increase base funding and targeted payments such as the quality educator payment and at-risk student payment. Rob Watson, executive director of School Administrators of Montana, highlighted assumption 3 of the fiscal note and asked the committee to include targeted components such as Indian education payments and at-risk payments in the inflation adjustments.
Katie Bloodgood, legislative liaison for the Office of Public Instruction, said the bill is "simple but essential" and emphasized the need for timely budget sheets for districts preparing budgets. Julia Patton of the Legislative Fiscal Division appeared as an informational witness to answer funding questions; Nancy Hall from the Governor's Budget Office confirmed that the executive branch would pick up relevant agency appropriations through the budget process.
Committee members asked whether the funding is already contained in HB2; Patton said the primary appropriation for OPI is in HB2 but she would check for other agencies. Beatty closed by urging prompt action so OPI can distribute budget guidance. The committee later listed House Bill 15 for concurrence in the executive action portion of the hearing record.
