Lawmakers hear plan to form school funding commission early, add working group and funding

Representative David Beatty opened the hearing on House Bill 153 by saying the bill will set the stage for the decennial study of the public school funding formula required by MCA 20-9-309 and would change commission membership and timing to help the commission start work earlier in the interim.

"First of all, the membership on the commission is redefined to ensure that all constitutional entities related to public education are at the table," Beatty said. He also proposed moving the commission's organizational date to April 1 of the session year so the commission and staff could organize before the interim began.

The bill would also create an "Innovation and Excellence in Education" working group as a sub-group of the commission, and it includes an appropriation intended to support administrative work and the working group's startup. Beatty told the panel that the executive budget included a larger sum for the study and he added $10,000 in the bill as a supplemental appropriation.

Proponents included Lance Melton of the Montana School Boards Association, who said the bill is consistent with court guidance and the state's obligation to define the "basic system of free quality schools." "I strongly support this process," Melton said, urging the legislature to ensure adequate outside expertise and funding for a comprehensive study.

Dylan Klapmeier, Governor Greg Gianforte's education and workforce policy advisor, said the governor supports HB 153 and praised its focus on collaboration between constitutional education officers, the executive branch and the legislature.

Several public witnesses and local trustees supported the bill and urged robust stakeholder engagement and adequate funding for outside expertise. Gary Lussin, a Bozeman school trustee, offered survey and meeting work he has done and said the commission would benefit from facilitated stakeholder meetings.

Opponents said HB 153 gives too much influence to executive-branch officeholders and unelected designees. Dee Brown, a retired teacher and member of state boards, argued the bill would allow executive designees to have a larger role than taxpayers' elected representatives. Chip Lindenlaub said the proposal "transfers power in the decennial school funding interim committee from the legislative to the executive branch," and argued the innovation working group should include people outside the education establishment.

Committee members asked about appointment mechanics and appropriations. Beatty said the commission would make recommendations only; appropriation and any funding changes would still require legislative action. He also signaled openness to changes in who the legislature designates to serve among the 12 legislative seats and to an amendment to let the commission choose its permanent chair at a later organizational meeting while designating an interim chair to begin work with staff.

The hearing record shows proponents and opponents exchanged detail on membership, staffing and budgeting; no formal action or vote was taken in the hearing. Committee staff indicated a fiscal presentation would be provided at a later date and members requested additional detail on membership appointment mechanics and the working group's scope.