Lawmakers Hear STARS Act to Boost Starting Teacher Pay, Link Funding to Dual-Credit and CTE Outcomes

Representative Lou Jones (House District 18) introduced House Bill 252 on behalf of the STARS Act, a roughly $50 million incentive package designed to raise beginning teacher pay, compress salary scales and reward districts that expand dual-credit or stackable career and technical education credentials.

The bill would require districts seeking the new incentive dollars to meet specific thresholds in a matrix Jones described repeatedly as “Mendoza lines,” including a requirement that beginning teacher pay be set at a formulaic floor that equates to $41,006.15 for fiscal year 2026. Jones told the committee the measure is built to ensure money reaches classrooms and to avoid funding shortfalls that later fail to count toward state funding obligations.

Supporters from across the education sector endorsed the bill in committee. Susie Hedalen, superintendent for the Office of Public Instruction, said HB252 is “a crucial step in strengthening our public education system” and urged a due pass. Lance Melton, executive director of the Montana School Boards Association, told the committee MSBA staff have engaged with districts and expect the package to help fill teacher vacancies; he added the association has been in contact with roughly 250 of the state’s ~300 school systems about implementing commitments if the bill passes.

Why it matters: Lawmakers and witnesses framed HB252 as a combination of teacher-pay reform and student-opportunity incentives. In addition to raising the bottom of local pay scales, the bill channels additional payments to districts that increase student completion of dual-credit coursework or industry credentials. Sponsors say that structure both helps recruit and retain teachers and prepares students for postsecondary pathways.

Key details and implementation questions: Jones and Department of Labor staff said the bill hinges on performance-based thresholds: districts must self-certify by an administrative deadline (discussed in committee as the December 1 timeline for credential reporting and, separately, a written commitment deadline tied to the bill’s rollout). Department of Labor Commissioner Sarah Swanson described an aggressive but achievable schedule to publish a statewide credential database by December 1 and to do stakeholder outreach in advance.

Committee members pressed technical and fiscal questions. Senators asked how the program will be measured and whether schools could receive funding first and fail to raise pay later; Jones said the design allows a one-year cure period but that schools must meet the Mendoza lines to receive or retain funding. Nancy Hall from the budget office explained that certain fiscal estimates — including an illustrative statewide property-tax increase tied to locally voted levies for housing stipends — reflect statewide impacts and that some local increases would depend on voter-approved levies.

Opponents: No opponents appeared in the room or online during the hearing; several public-education organizations, local trustees and teacher representatives testified in support, while MFPE and rural-education groups urged caution about potential fiscal cliffs for small districts.

Next steps: The hearing concluded without a committee roll-call vote on HB252. Sponsors asked for a do pass; implementation will depend on subsequent floor action, rulemaking work by OPI and the Department of Labor, and local collective-bargaining agreements necessary to adjust local salary schedules.

Representative Jones’s closing plea framed STARS as an incentive package: “If you want the money, fix the pay issue,” he said, urging members to move the bill forward.