Montana bill would consolidate school facilities funding, add $75 million to trust fund

House lawmakers heard testimony on House Bill 515 on funding for school facilities, with the sponsor saying the proposal would streamline multiple state funding streams into one “unified fund” and boost aid aimed at small rural districts.

Representative Linda Reksten, the bill sponsor, told the committee she introduced the measure to help districts “maintain facilities without less funds” and described changes that would consolidate major maintenance aid, debt service and a technology account under 20-9-516. "This is my third school facilities bill," Reksten said, adding the measure is included in the governor’s budget.

Supporters and the bill sponsor said the bill seeks to prioritize technology spending first, then major maintenance — roofs, boilers and similar projects — and to allow districts to “bank” funds for future use. The bill would transfer $75 million from the general fund surplus into the coal severance tax facilities trust fund to raise the trust toward a $300 million cap and rely on interest earnings for ongoing payments.

Lance Melton of the Montana School Boards Association, speaking for a coalition of school groups, described technical corrections and distribution mechanics in the draft amendment that would redistribute any residual funds pro rata to districts that claimed their share. Melton also discussed formula changes in the bill, including raising the flat district amount and changing the per-A-and-B (average number of students) amount so smaller districts receive more state aid.

Amanda Curtis, president of the union representing public school employees, said school staff often see maintenance problems firsthand and urged passage.

Committee members asked how a district would access funds for an immediate need such as a leaking roof. Reksten and Melton said districts would apply through the Office of Public Instruction and that funds could be used to service debt where the Board of Investments is involved. Melton said the bill increases the GTB multiplier (the state’s relative share) to direct more state aid toward districts with low tax wealth.

Committee testimony referenced historic funding changes, prior legislation including Senate Bill 307, and the state constitutional obligation to assist school districts. Proponents argued the proposal expands the major maintenance program and adds $12 million in statewide annual aid in the draft language discussed at the hearing.

The hearing closed with the sponsor urging the committee to pass the bill and with staff and proponents noting a small number of technical fixes remain.

The committee did not take a vote on HB 515 during the hearing.