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Bill to force biennial inflation reconciliation reporting for school funding wins support from districts and unions
Summary
House Bill 266 would require OPI to report every two years comparing district inflation experienced to legislative funding increases, using CPI methodology and a 3% cap; proponents said the data will help close a persistent funding gap, while senators pressed on statutory overlaps and TRS implications.
Representative Luke Muszkiewicz introduced House Bill 266 as a reporting measure aimed at documenting whether an "inflation gap" exists between school-district costs and legislative funding. The bill would require the Office of Public Instruction to produce a report every two years to interim education and financial committees detailing inflation experienced by districts compared with increases in legislative funding over the prior six years.
Sponsor said the mechanism clarifies the superintendent and governor may recommend additional amounts to the legislature but that the legislature retains final authority to adopt inflationary adjustments. Proponents — including the Montana Quality Education Coalition, the Montana Federation of Public Employees, Montanans Organized for Education, school trustees and the Montana School Boards Association — urged support, arguing CPI-based reconciliation will provide predictable information for budgeting and reduce repeated emergency interventions.
OPI's Paul Taylor, appearing as an informational witness, said the bill is primarily about reporting and comparison; he noted the current funding model is based on a year in arrears and the bill would bring more current CPI context for interim committees. Testimony reiterated that the bill caps annual adjustments at 3% but does not strip the legislature of its authority to adopt other changes. Sponsors and proponents described the bill as having a zero fiscal note after prior house amendments struck mechanisms that created a fiscal impact.
The hearing closed with the sponsor offering to work with senators on coordinating similar bills. Next steps include committee consideration and any amendments to reconcile overlapping language in related measures.
