House bill 515 would unify school facility funds, add $75 million one-time transfer to top out trust

Representative Linda Rekston (R-13) presented House Bill 515 to the House Education Committee as a one-time funding and formula change intended to expand state support for school major maintenance and technology. "This is 1 time only funding," Rekston said. "It's different than what we heard today about ongoing appropriations."

The bill would unify two existing state special revenue funds used for school facilities and school major maintenance, prioritize a $1,000,000 payment for technology, and increase the formula's per-district base. Rekston said the bill increases the fixed amount to $40,000 per district and raises the per A-and-B pupil multiplier to $115, which the sponsor said focuses some additional assistance toward smaller rural districts.

Rekston and Pat McCracken, a research analyst in the Legislative Services Division, said the bill proposes a one-time $75,000,000 transfer from the general fund to the school facilities subtrust to fill the trust to a $300,000,000 cap. McCracken described the existing major maintenance mechanism as a locally-levied permissive mill that generates state matching funds; the proposed multiplier change would expand the state's share while keeping local effort roughly constant.

Proponents included the Montana Quality Education Coalition, MFPE, the Montana School Boards Association, local trustees and superintendents, and local advocates. Doug Rycic, executive director of the Montana Quality Education Coalition, said the bill "represents a significant step forward in ensuring that Montana schools have the necessary resources to maintain and enhance the infrastructure." Kim Popham, a teacher and sponsor ally, and several local trustees described deferred maintenance projects in their districts and urged passage.

Sponsoring lawmakers and staff emphasized that the $75 million would be a one-time transfer and that any funds left unspent in the biennium would revert to the general fund. Several members asked technical questions about how the increased funds would be distributed and whether districts must spend deposits in the year received; staff said major maintenance funds can be accrued across years for larger projects.

No formal committee action or vote was taken during the hearing. Committee members asked staff to provide additional technical clarifications and said amendments were expected to address reallocation of unclaimed amounts.