Committee told 1-2-3 student-support program needs $1.8 million; decision package planned

OCHE officials asked the Joint Appropriations Subcommittee on Education to consider a decision package to fully fund the 1-2-3 student-support program at roughly $1.8 million per year for the Montana University System (MUS), with additional costs if community colleges and tribal colleges are added.

Deputy commissioners and budget staff explained that the $1.8 million figure covers reimbursement to campuses under the program’s current structure and that roughly $325,000 in federal gear-up funds are already available to offset part of that amount. "If you add all that up that's the proposal is the 1.8 for the MUS and then the 2 add ons for community college or tribal colleges," OCHE said during the hearing. The $1.8 million estimate is for MUS students; costs increase if community and tribal colleges are included.

Committee members asked for the calculations behind the estimate. OCHE said it had provided charts in earlier handouts showing the derivation and that the office would supply additional detail for decision-package development. Representative Matthews asked whether funding 1-2-3 had previously displaced other programs; the commissioner’s office acknowledged trade-offs and said it often relies on surrendered performance-funding dollars, GSL funds and other sources to stretch available dollars.

The committee directed staff to prepare a decision package for the MUS portion of 1-2-3 and suggested separate decision packages if members want to expand the program to community colleges and tribal colleges.

OCHE noted participation has grown and that projections show continued increases, driven in part by expanded dual-enrollment and CTE pathways. The office said it will return with a decision package and more granular cost estimates ahead of executive action.