Bill would let Legislature exceed 3% inflation cap when setting school funding

Senator Laura Smith opened the hearing on Senate Bill 258, saying the bill recognizes the Legislature’s authority to provide inflationary adjustments beyond a statutory 3% cap and would give lawmakers a method to calculate an inflation factor when setting school funding.

"What it does is it takes a look at that 3% cap and recognizes the legislature is able to exercise its own discretion and lawmaking authority to provide, by law, inflationary adjustments other than those calculated in this section and in excess of 3%." Smith said she introduced the bill after seeing cuts in local districts, citing Helena’s $6.5 million reduction.

Proponents including the Montana Quality Education Coalition and MFPE said SB258 clarifies legislative authority, could make funding more responsive to inflation and provides a systematic approach to calculating adjustments. Doug Reisig told the committee SB258 "aims to ensure that school funding can be more responsive to the economic changes and legislative priorities." MFPE’s Kim Popham asked for a due pass.

McCall Flynn, executive director of the Board of Public Education, answered committee questions by saying the bill makes clear the 3% figure is OPI's recommendation area but that the Legislature is empowered to increase funding beyond that level if it chooses — which could put local school boards in a position to receive more funding.

The hearing closed without a committee vote; senators and proponents discussed fiscal implications for districts but the committee left executive action for later.