Legislature leaves school funding up in the air

School funding hangs in the balance as the Montana Senate works toward passing the state’s general fund budget.

A Senate panel added about $50 million in the state budget last week to make up for cuts that occurred in the house, and the loss of House Bill 3.

House Bill 3 is the supplemental appropriations bill, which contained about $31 million to cover state budget overruns in the current fiscal year. About $9.4 million was slated for public schools. The bill is routinely passed by the Legislature, but last month it was killed in the house.

About $25 million of the funds added to HB2 by the panel are to cover the loss of monies that were in HB3.

Without the appropriations added to House Bill 2, the death of House Bill 3 would force schools around the state to make cuts in the next three months.

After House Bill 3 was killed, furlough notices were sent to schools informing them that they could have budget shortfalls.

Though the state aid for schools in HB3 was slightly less than 1 percent of schools general fund budgets, Bigfork schools would have lost almost $50,000.

However, Bigfork administrators feel confident the Senate will correct the problem with HB 2. The full Senate is set to debate and vote on HB2 late this week.

Even without losing the supplemental funding bill, legislative years always present some uncertainty for schools in creating their budgets.

“It’s a real thoughtful process,” Bigfork superintendent Matt Jensen said. “It takes months to develop.”

Bigfork School district begins working on a preliminary budget in December, and even in non-legislative years they don’t have solid numbers until the spring.

In December the administration meets to discuss what the needs appear to be for the next school year in regards to staffing — which is the largest expense, and also one of the areas where schools cut when there are budget shortfalls.

In March the Office of Public Instruction releases a preliminary budget to schools. OPI bases the amount of funds allotted to each school on enrollment, which they count three times in a school year before March.

Every two years the school also negotiates with the teachers union regarding contracts before finalizing the budget.

Last year the school had about $3.46 million for the elementary and middle school and $2.2 million for the high school general fund.

Some of the funding schools get is also designated for specific things that schools are required to have, such as transportation for students to and from school, special education and title one programs.

Though there are funds specifically for those areas, Jensen said it is rarely enough to cover all of the costs associated with those programs.

“There’s never enough,” Jensen said. “From there you find out what you’re cutting. Usually when you have to make cuts, it’s staff.” 

After the costs of staffing, operations costs are the next large chunk of the general fund.

“We have pretty major utilities for a campus our size,” Bigfork school district business manager Lacey Porrovecchio said.

Keeping technology needed for instruction up to date is also a significant cost.

If the school is left with any extra funds at the end of a year that is when they can look at taking care of deferred maintenance or other items that were neglected. Saved up leftover general funds is how Bigfork Schools has taken care of some major maintenance items over the last few years.

The school district can also ask the community for a levy each year to help supplement the general fund. However, Jensen said it’s been years since the school has asked for a levy.

“The board doesn’t feel it’s appropriate to go ask for that money unless we actually need it,” he said. “Even with the unknowns of the legislature, we don’t feel we’ll need a levy.”

A levy is different from a bond. A levy supplements the general fund that is used to operate the school through a tax that does not go up with inflation. A bond is used for cost associated with construction and renovation. The district sells bonds to investors, uses that money then pays it back to investors over the course of 20 to 30 years.

Bigfork School district is considering asking for a bond to renovate the high school facilities.