§ 20-9-306 — Definitions

20-9-306 . (Temporary) Definitions. As used in this title, unless the context clearly indicates otherwise, the following definitions apply:
(1) "BASE" means base amount for school equity.
(2) "BASE aid" means:
(a) direct state aid for 44.7% of the basic entitlement and 44.7% of the total per-ANB entitlement for the general fund budget of a district;
(b) subject to adjustment under 20-9-336 , guaranteed tax base aid for an eligible district for any amount up to 35.3% of the basic entitlement, up to 35.3% of the total per-ANB entitlement budgeted in the general fund budget of a district, and 40% of the special education allowable cost payment;
(c) the total quality educator and qualified staff payment;
(d) the total at-risk student payment;
(e) the total Indian education for all payment;
(f) the total American Indian achievement gap payment;
(g) the total data-for-achievement payment;
(h) the total future ready payment; and
(i) the special education allowable cost payment.
(3) "BASE budget" means the minimum general fund budget of a district, which includes:
(a) subject to adjustment under 20-9-336 , 80% of the basic entitlement and 80% of the total per-ANB entitlement;
(b) 100% of the following payments:
(i) the total quality educator and qualified staff payment;
(ii) the total at-risk student payment;
(iii) the total Indian education for all payment;
(iv) the total American Indian achievement gap payment;
(v) the total data-for-achievement payment; and
(vi) the total future ready payment; and
(c) 140% of the special education allowable cost payment.
(4) "BASE budget levy" means the district levy in support of the BASE budget of a district, which may be supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366 through 20-9-369 .
(5) "BASE funding program" means the state program for the equitable distribution of the state's share of the cost of Montana's basic system of public elementary schools and high schools, through county equalization aid as provided in 20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343 , in support of the general fund BASE budgets of districts and special education allowable cost payments as provided in 20-9-321 .
(6) "Basic entitlement" means:
(a) for each high school district:
(i) $364,401 for fiscal year 2026 and $375,333 for each succeeding fiscal year for school districts with an ANB of 800 or fewer; and
(ii) $364,401 for fiscal year 2026 and $375,333 for each succeeding fiscal year for school districts with an ANB of more than 800, plus $18,221 for fiscal year 2026 and $18,768 for each succeeding fiscal year for each additional 80 ANB over 800;
(b) for each elementary school district or K-12 district elementary program without an approved and accredited junior high school, 7th and 8th grade program, or middle school:
(i) $60,732 for fiscal year 2026 and $62,554 for each succeeding fiscal year for school districts or K-12 district elementary programs with an ANB of 250 or fewer; and
(ii) $60,732 for fiscal year 2026 and $62,554 for each succeeding fiscal year for school districts or K-12 district elementary programs with an ANB of more than 250, plus $3,037 for fiscal year 2026 and $3,128 for each succeeding fiscal year for each additional 25 ANB over 250;
(c) for each elementary school district or K-12 district elementary program with an approved and accredited junior high school, 7th and 8th grade program, or middle school:
(i) for the district's kindergarten through grade 6 elementary program:
(A) $60,732 for fiscal year 2026 and $62,554 for each succeeding fiscal year for school districts or K-12 district elementary programs with an ANB of 250 or fewer; and
(B) $60,732 for fiscal year 2026 and $62,554 for each succeeding fiscal year for school districts or K-12 district elementary programs with an ANB of more than 250, plus $3,037 for fiscal year 2026 and $3,128 for each succeeding fiscal year for each additional 25 ANB over 250; and
(ii) for the district's approved and accredited junior high school, 7th and 8th grade programs, or middle school:
(A) $121,466 for fiscal year 2026 and $125,110 for each succeeding fiscal year for school districts or K-12 district elementary programs with combined grades 7 and 8 with an ANB of 450 or fewer; and
(B) $121,466 for fiscal year 2026 and $125,110 for each succeeding fiscal year for school districts or K-12 district elementary programs with combined grades 7 and 8 with an ANB of more than 450, plus $6,073 for fiscal year 2026 and $6,255 for each succeeding fiscal year for each additional 45 ANB over 450.
(7) "Budget unit" means the unit for which the ANB of a district is calculated separately pursuant to 20-9-311 .
(8) "Direct state aid" means 44.7% of the basic entitlement and 44.7% of the total per-ANB entitlement for the general fund budget of a district and funded with state and county equalization aid.
(9) (a) "Maximum general fund budget" means, except as provided in subsection (9)(b), a district's general fund budget amount calculated from the basic entitlement for the district, the total per-ANB entitlement for the district, the total quality educator and qualified staff payment, the total at-risk student payment, the total Indian education for all payment, the total American Indian achievement gap payment, the total data-for-achievement payment, the total future ready payment, and the greater of the district's special education allowable cost payment multiplied by:
(i) 175%; or
(ii) the ratio, expressed as a percentage, of the district's special education allowable cost expenditures to the district's special education allowable cost payment for the fiscal year that is 2 years previous, with a maximum allowable ratio of 200%.
(b) (i) For a district that meets the legislative goal for base teacher pay under 20-9-324 and has territory within a county in which the median market value for residential properties is greater than 105% of the median county market value for residential properties in the state, the maximum general fund budget is calculated by multiplying the amount calculated in subsection (9)(a) by the percentage by which the county median market value exceeds the median county market value for residential properties in the state divided by 60 and rounded to the nearest hundredth of a percent.
(ii) The department of revenue shall calculate the median market values in subsection (9)(b)(i), excluding properties with a market value of $50,000 or less, in odd-numbered calendar years and report this information to the office of public instruction no later than December 1. The values reported must apply to the calculations in subsection (9)(b)(i) and the maximum general fund budgets of districts calculated under this subsection (9) in the 2 school fiscal years beginning the following July 1.
(iii) A district adopting a higher general fund budget under this subsection (9)(b) shall expend the additional budget authority under this subsection (9)(b) on:
(A) housing stipends for employees;
(B) construction or purchase of district-owned housing provided for employees;
(C) rental assistance, including subsidies or discounts on rents on housing for employees;
(D) down-payment assistance, including district provided funds to assist employees with the initial down payment on a primary residence;
(E) shared ownership of housing by the district and employee with an option for the employee to buy out the district's interest over time;
(F) district guaranteed or subsidized housing loans, including payment of discount points on housing loans secured by an employee;
(G) relocation assistance; or
(H) any other financial assistance to employees authorized by the Internal Revenue Code, the purpose of which is to improve employee access to affordable housing.
(10) "Over-BASE budget levy" means the district levy in support of any general fund amount budgeted that is above the BASE budget and within the general fund budget limits established in 20-9-308 and calculated as provided in 20-9-141 .
(11) "State's share" means the state funding distributed to school districts in an equitable manner by the state to support the basic elementary and secondary school system as provided in Article X, section 1(3), of the Montana constitution, including:
(a) BASE aid for the school district general fund;
(b) retirement guaranteed tax base aid to the counties to support the countywide school retirement funds that is then distributed to school districts to support employer contributions to the retirement systems;
(c) major maintenance aid for the school district building reserve fund;
(d) transportation reimbursements for the school district transportation fund;
(e) debt service assistance for the school district debt service fund;
(f) technology funding for the school district technology acquisition and depreciation fund;
(g) career and technical education funding for the school district miscellaneous programs fund;
(h) advanced opportunity aid for the school district flexibility fund to help develop the full educational potential of each student;
(i) gifted and talented funding for the school district miscellaneous programs fund; and
(j) any other state funding provided by the legislature to support the basic elementary and secondary school system.
(12) "Total American Indian achievement gap payment" means the payment resulting from multiplying $249 for fiscal year 2026 and $256 for each succeeding fiscal year times the number of American Indian students enrolled in the district as provided in 20-9-330 .
(13) "Total at-risk student payment" means the payment resulting from the distribution of any funds appropriated for the purposes of 20-9-328 .
(14) "Total data-for-achievement payment" means the payment provided in 20-9-325 resulting from multiplying $24.29 for fiscal year 2026 and $25.02 for each succeeding fiscal year by the district's ANB calculated in accordance with 20-9-311 .
(15) "Total future ready payment" means the payment provided in 20-9-381 resulting from adding:
(a) (i) for a high school district or K-12 school district, the product of 10% of the high school maximum per-ANB payment under this section for every graduate of the district in the school year 2 years prior who achieved the future ready level 1 goal as provided in 20-9-381 ; and
(ii) for an elementary school district or K-12 school district, the product of 10% of the elementary school maximum per-ANB payment under this section for every graduate counted under subsection (15)(a)(i) who was included in the district's spring enrollment count in the graduate's 8th grade year.
(b) (i) for a high school district or K-12 school district, the product of 20% of the high school maximum per-ANB payment under this section for every graduate of the district in the school year 2 years prior who achieved the future ready level 2 goal as provided in 20-9-381 ; and
(ii) for an elementary school district or K-12 school district, the product of 20% of the elementary school maximum per-ANB payment under this section for every graduate counted under subsection (15)(b)(i) who was included in the district's spring enrollment count in the graduate's 8th grade year.
(c) (i) for a high school district or K-12 school district, the product of 30% of the high school maximum per-ANB payment under this section for every graduate of the district in the school year 2 years prior who achieved the future ready level 3 goal as provided in 20-9-381 ; and
(ii) for an elementary school district or K-12 school district, the product of 30% of the elementary school maximum per-ANB payment under this section for every graduate counted under subsection (15)(c)(i) who was included in the district's spring enrollment count in the graduate's 8th grade year.
(16) "Total Indian education for all payment" means the payment resulting from multiplying $25.37 for fiscal year 2026 and $26.13 for each succeeding fiscal year times the ANB of the district or $100 for each district, whichever is greater, as provided for in 20-9-329 .
(17) "Total per-ANB entitlement" means the district entitlement resulting from the following calculations and using either the current year ANB or the 3-year ANB provided for in 20-9-311 :
(a) for a high school district or a K-12 district high school program, a maximum rate of $8,317 for fiscal year 2026 and $8,567 for each succeeding fiscal year for the first ANB, decreased at the rate of 50 cents per ANB for each additional ANB of the district up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB;
(b) for an elementary school district or a K-12 district elementary program without an approved and accredited junior high school, 7th and 8th grade program, or middle school, a maximum rate of $6,496 for fiscal year 2026 and $6,691 for each succeeding fiscal year for the first ANB, decreased at the rate of 20 cents per ANB for each additional ANB of the district up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(c) for an elementary school district or a K-12 district elementary program with an approved and accredited junior high school, 7th and 8th grade program, or middle school, the sum of:
(i) a maximum rate of $6,496 for fiscal year 2026 and $6,691 for each succeeding fiscal year for the first ANB for kindergarten through grade 6, decreased at the rate of 20 cents per ANB for each additional ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and
(ii) a maximum rate of $8,317 for fiscal year 2026 and $8,567 for each succeeding fiscal year for the first ANB for grades 7 and 8, decreased at the rate of 50 cents per ANB for each additional ANB for grades 7 and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of entitlement as the 800th ANB.
(18) (a) "Total quality educator and qualified staff payment" means the payment resulting from multiplying $3,783 for fiscal year 2026 and $3,896 for each succeeding fiscal year by the number of full-time equivalent quality educators and qualified staff as provided in 20-9-327 , or as provided in 20-9-324 , for an educational entity meeting the legislative goal for competitive base pay of teachers, by two times the number of full-time equivalent quality educators and qualified staff as provided in 20-9-327 .
(b) If an educational entity qualifies for enhanced quality educator and qualified staff payments under 20-9-324 in a fiscal year, the entity retains that qualification in subsequent years unless the district fails to qualify for 2 consecutive years. After 2 consecutive years of failure to qualify, an educational entity must reestablish eligibility before the enhanced quality educator and qualified staff payments under 20-9-324 resume for the educational entity.
(c) For a school district qualifying for the shared resource incentive under 20-9-383 , the district must receive additions to the total quality educator and qualified staff payment as described in 20-9-383 .
(d) The total quality educator and qualified staff payment for a district meeting the legislative goal for countywide resource sharing under 20-3-363 must have its total quality educator and qualified staff payment under subsection (18)(a) of this section increased by 50% as described in 20-3-363 .
(19) "Total special education allocation" means the state payment distributed pursuant to 20-9-321 that is the greater of the amount resulting from multiplying $311.63 for fiscal year 2026 and $320.98 for each succeeding fiscal year by the statewide current year ANB or the amount of the previous year's total special education allocation.

Legislative History

En. Sec. 1, Ch. 633, L. 1993; amd. Sec. 1, Ch. 38, Sp. L. November 1993; amd. Secs. 1, 2, Ch. 437, L. 1997; amd. Sec. 1, Ch. 211, L. 1999; amd. Sec. 8, Ch. 11, Sp. L. May 2000; amd. Secs. 1, 2, Ch. 231, L. 2001; amd. Secs. 1, 2, Ch. 556, L. 2001; amd. Secs. 2, 3, Ch. 550, L. 2003; amd. Secs. 10, 11, Ch. 462, L. 2005; amd. Sec. 7, Ch. 4, Sp. L. December 2005; amd. Sec. 12, Ch. 1, Sp. L. May 2007; amd. Sec. 14, Ch. 486, L. 2009; amd. Sec. 26, Ch. 418, L. 2011; amd. Sec. 6, Ch. 400, L. 2013; amd. Sec. 1, Ch. 8, L. 2015; amd. Sec. 1, Ch. 60, L. 2015; amd. Sec. 1, Ch. 47, L. 2017; amd. Sec. 12, Ch. 275, L. 2017; amd. Sec. 5, Ch. 336, L. 2017; amd. Sec. 1, Ch. 24, L. 2019; amd. Sec. 1, Ch. 23, L. 2021; amd. Sec. 2, Ch. 60, L. 2021; amd. Sec. 1, Ch. 470, L. 2021; amd. Sec. 1, Ch. 31, L. 2023; amd. Sec. 6, Ch. 640, L. 2023; amd. Sec. 1, Ch. 38, L. 2025; amd. Sec. 27, Ch. 424, L. 2025; amd. Sec. 9, Ch. 482, L. 2025; amd. Sec. 2, Ch. 492, L. 2025; amd. Sec. 2, Ch. 658, L. 2025; amd. Sec. 8, Ch. 739, L. 2025.