- 2025
69th Legislature 2025 HB0339.3
- 1 - Authorized Print Version – HB 339
1 HOUSE BILL NO. 339
2 INTRODUCED BY M. ROMANO, J. REAVIS, B. EDWARDS, J. ISALY, M. LEE, P. STRAND, T. CROWE, P.
3 ELVERUM, S. FYANT, J. WEBER, J. SOOKTIS, A. GRIFFITH, D. POWERS, M. CUNNINGHAM, S.
4 ROSENZWEIG, E. MATTHEWS, M. FOX, D. BAUM, M. CAFERRO, B. CARTER, J. COHENOUR, T. FRANCE,
5 S. HOWELL, J. KARLEN, C. KEOGH, E. STAFMAN, K. SULLIVAN, M. THANE, P. TUSS, S. DEMAROIS, D.
6 JOY, C. FITZPATRICK, J. LYNCH
7
8 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING SCHOOL FUNDING LAWS TO PROVIDE THAT 6TH
9 GRADERS IN DISTRICTS WITH ACCREDITED MIDDLE SCHOOLS SCHOOL OR JUNIOR HIGH
10 PROGRAMS ARE FUNDED AT THE MIDPOINT BETWEEN THE ELEMENTARY ANB RATES AND THE
11 HIGH SCHOOL ANB RATES ALONG WITH 7TH AND 8TH GRADERS; PROVIDING ADDITIONAL FUNDING
12 FOR EXPANDING CAREER AND TECHNICAL EDUCATION IN THE MIDDLE SCHOOL OR AND JUNIOR
13 HIGH PROGRAMS; AMENDING SECTIONS 20-9-306 AND 20-9-311, MCA; AND PROVIDING AN
14 IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE.”
15
16 WHEREAS, nearly all Montana school districts have embraced the middle school OR THE JUNIOR
17 model and 98% of Montana 6th graders attend a AN ACCREDITED middle school OR JUNIOR HIGH SCHOOL;
18 and
19 WHEREAS, currently 6th graders in a middle school are funded at the lower elementary per-ANB rate,
20 while their 7th and 8th grade schoolmates are funded at the high school ANB rates; and
21 WHEREAS, there is no educationally relevant justification for this disparity in funding; and
22 WHEREAS, if 6th graders were funded on par with 7th and 8th graders AT A HIGHER PER-ANB RATE,
23 middle schools would be able to offer more robust program offerings as required in the accreditation standards
24 for middle schools, including EXPANDED ACCESS TO career and technical education courses and pathways.
25
26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
27
28 Section 20-9-306, MCA, is amended to read: - 2025
69th Legislature 2025 HB0339.3
- 2 - Authorized Print Version – HB 339
1 "20-9-306. Definitions. As used in this title, unless the context clearly indicates otherwise, the
2 following definitions apply:
3 (1) "BASE" means base amount for school equity.
4 (2) "BASE aid" means:
5 (a) direct state aid for 44.7% of the basic entitlement and 44.7% of the total per-ANB entitlement
6 for the general fund budget of a district;
7 (b) guaranteed tax base aid for an eligible district for any amount up to 35.3% of the basic
8 entitlement, up to 35.3% of the total per-ANB entitlement budgeted in the general fund budget of a district, and
9 40% of the special education allowable cost payment;
10 (c) the total quality educator payment;
11 (d) the total at-risk student payment;
12 (e) the total Indian education for all payment;
13 (f) the total American Indian achievement gap payment;
14 (g) the total data-for-achievement payment; and
15 (h) the special education allowable cost payment.
16 (3) "BASE budget" means the minimum general fund budget of a district, which includes 80% of
17 the basic entitlement, 80% of the total per-ANB entitlement, 100% of the total quality educator payment, 100%
18 of the total at-risk student payment, 100% of the total Indian education for all payment, 100% of the total
19 American Indian achievement gap payment, 100% of the total data-for-achievement payment, and 140% of the
20 special education allowable cost payment.
21 (4) "BASE budget levy" means the district levy in support of the BASE budget of a district, which
22 may be supplemented by guaranteed tax base aid if the district is eligible under the provisions of 20-9-366
23 through 20-9-369.
24 (5) "BASE funding program" means the state program for the equitable distribution of the state's
25 share of the cost of Montana's basic system of public elementary schools and high schools, through county
26 equalization aid as provided in 20-9-331 and 20-9-333 and state equalization aid as provided in 20-9-343, in
27 support of the BASE budgets of districts and special education allowable cost payments as provided in 20-9-
28 321. - 2025
69th Legislature 2025 HB0339.3
- 3 - Authorized Print Version – HB 339
1 (6) "Basic entitlement" means:
2 (a) for each high school district:
3 (i) $343,483 for fiscal year 2024 and $353,787 for each succeeding fiscal year for school districts
4 with an ANB of 800 or fewer; and
5 (ii) $343,483 for fiscal year 2024 and $353,787 for each succeeding fiscal year for school districts
6 with an ANB of more than 800, plus $17,175 for fiscal year 2024 and $17,690 for each succeeding fiscal year
7 for each additional 80 ANB over 800;
8 (b) for each elementary school district or K-12 district elementary program without an approved
9 and accredited MIDDLE SCHOOL OR junior high school , 7th and 8th grade program, or middle school:
10 (i) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
11 K-12 district elementary programs with an ANB of 250 or fewer; and
12 (ii) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
13 K-12 district elementary programs with an ANB of more than 250, plus $2,863 for fiscal year 2024 and $2,949
14 for each succeeding fiscal year for each additional 25 ANB over 250; AND
15 (c) for each elementary school district or K-12 district elementary program with an approved and
16 accredited MIDDLE SCHOOL OR junior high school, or 7th and 8th grade program, or middle school:
17 (i) for the district's kindergarten through grade 6 5 elementary program:
18 (A) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
19 K-12 district elementary programs with an ANB of 250 or fewer; and
20 (B) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
21 K-12 district elementary programs with an ANB of more than 250, plus $2,863 for fiscal year 2024 and $2,949
22 for each succeeding fiscal year for each additional 25 ANB over 250; and
23 (ii) for the district's approved and accredited PROGRAM, or 7th
24 and 8th grade programs, or middle school:
25 (A) $114,493 for fiscal year 2024 and $117,928 for each succeeding fiscal year for school districts
26 or K-12 district elementary programs with combined grades 7 and 6 THROUGH 8 with an ANB of 450 or fewer;
27 and
28 (B) $114,493 for fiscal year 2024 and $117,928 for each succeeding fiscal year for school districts - 2025
69th Legislature 2025 HB0339.3
- 4 - Authorized Print Version – HB 339
1 or K-12 district elementary programs with combined grades 7 and 6 THROUGH 8 with an ANB of more than 450,
2 plus $5,724 for fiscal year 2024 and $5,896 for each succeeding fiscal year for each additional 45 ANB over
3 450; and
4 (d) for each elementary school district or K-12 district elementary program with an approved and
5 accredited middle school program:
6 (i) for the district's kindergarten through grade 5 elementary program:
7 (A) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
8 K-12 district elementary programs with an ANB of 250 or fewer; and
9 (B) $57,246 for fiscal year 2024 and $58,963 for each succeeding fiscal year for school districts or
10 K-12 district elementary programs with an ANB of more than 250, plus $2,863 for fiscal year 2024 and $2,949
11 for each succeeding fiscal year for each additional 25 ANB over 250; and
12 (ii) for the district's approved and accredited middle school program:
13 (A) $114,493 for fiscal year 2024 and $117,928 for each succeeding fiscal year for school districts
14 or K-12 district elementary programs with combined grades 6, 7, and 8 with an ANB of 450 or fewer; and
15 (B) $114,493 for fiscal year 2024 and $117,928 for each succeeding fiscal year for school districts
16 or K-12 district elementary programs with combined grades 6, 7, and 8 with an ANB of more than 450, plus
17 $5,724 for fiscal year 2024 and $5,896 for each succeeding fiscal year for each additional 45 ANB over 450.
18 (7) "Budget unit" means the unit for which the ANB of a district is calculated separately pursuant to
19 20-9-311.
20 (8) "Direct state aid" means 44.7% of the basic entitlement and 44.7% of the total per-ANB
21 entitlement for the general fund budget of a district and funded with state and county equalization aid.
22 (9) "Maximum general fund budget" means a district's general fund budget amount calculated from
23 the basic entitlement for the district, the total per-ANB entitlement for the district, the total quality educator
24 payment, the total at-risk student payment, the total Indian education for all payment, the total American Indian
25 achievement gap payment, the total data-for-achievement payment, and the greater of the district's special
26 education allowable cost payment multiplied by:
27 (a) 175%; or
28 (b) the ratio, expressed as a percentage, of the district's special education allowable cost - 2025
69th Legislature 2025 HB0339.3
- 5 - Authorized Print Version – HB 339
1 expenditures to the district's special education allowable cost payment for the fiscal year that is 2 years
2 previous, with a maximum allowable ratio of 200%.
3 (10) "Over-BASE budget levy" means the district levy in support of any general fund amount
4 budgeted that is above the BASE budget and within the general fund budget limits established in 20-9-308 and
5 calculated as provided in 20-9-141.
6 (11) "Total American Indian achievement gap payment" means the payment resulting from
7 multiplying $235 for fiscal year 2024 and $242 for each succeeding fiscal year times the number of American
8 Indian students enrolled in the district as provided in 20-9-330.
9 (12) "Total at-risk student payment" means the payment resulting from the distribution of any funds
10 appropriated for the purposes of 20-9-328.
11 (13) "Total data-for-achievement payment" means the payment provided in 20-9-325 resulting from
12 multiplying $22.89 for fiscal year 2024 and $23.58 for each succeeding fiscal year by the district's ANB
13 calculated in accordance with 20-9-311.
14 (14) "Total Indian education for all payment" means the payment resulting from multiplying $23.91
15 for fiscal year 2024 and $24.63 for each succeeding fiscal year times the ANB of the district or $100 for each
16 district, whichever is greater, as provided for in 20-9-329.
17 (15) "Total per-ANB entitlement" means the district entitlement resulting from the following
18 calculations and using either the current year ANB or the 3-year ANB provided for in 20-9-311:
19 (a) for a high school district or a K-12 district high school program, a maximum rate of $7,840 for
20 fiscal year 2024 and $8,075 for each succeeding fiscal year for the first ANB, decreased at the rate of 50 cents
21 per ANB for each additional ANB of the district up through 800 ANB, with each ANB in excess of 800 receiving
22 the same amount of entitlement as the 800th ANB;
23 (b) for an elementary school district or a K-12 district elementary program without an approved and
24 accredited MIDDLE SCHOOL OR junior high school , 7th and 8th grade program, or middle school, a
25 maximum rate of $6,123 for fiscal year 2024 and $6,307 for each succeeding fiscal year for the first ANB,
26 decreased at the rate of 20 cents per ANB for each additional ANB of the district up through 1,000 ANB, with
27 each ANB in excess of 1,000 receiving the same amount of entitlement as the 1,000th ANB; and AND
28 (c) for an elementary school district or a K-12 district elementary program with an approved and - 2025
69th Legislature 2025 HB0339.3
- 6 - Authorized Print Version – HB 339
1 accredited MIDDLE SCHOOL OR junior high school PROGRAM,, or 7th and 8th grade program or middle school, the
2 sum of:
3 (i) a maximum rate of $6,123 for fiscal year 2024 and $6,307 for each succeeding fiscal year for
4 the first ANB for kindergarten through grade 65, decreased at the rate of 20 cents per ANB for each additional
5 ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the
6 1,000th ANB; and
7
8 (ii)$ 7,405 FOR FISCAL YEAR 2024$7, 629 FOR EACH SUCCEEDING FISCAL
9ANB6, DECREASED AT THE RATE OF 35 CENTS PER ANB FOR EACH ADDITIONAL ANB
106 UP THROUGH 400 ANB, WITH EACH ANB400 RECEIVING THE SAME AMOUNT OF
11400TH ANB; AND
12 (III) (II) a maximum rate of $7,840 for fiscal year 2024 and $8,075 for each succeeding fiscal year for
13 the first ANB for grades 7 and 6 8, decreased at the rate of 50 cents per ANB for each additional ANB
14 for grades 7 and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of
15 entitlement as the 800th ANB; and
16 (d) for an elementary school district or a K-12 district elementary program with an approved and
17 accredited middle school, the sum of:
18 (i) a maximum rate of $6,123 for fiscal year 2024 and $6,307 for each succeeding fiscal year for
19 the first ANB for kindergarten through grade 5, decreased at the rate of 20 cents per ANB for each additional
20 ANB up through 1,000 ANB, with each ANB in excess of 1,000 receiving the same amount of entitlement as the
21 1,000th ANB; and
22 (ii) a maximum rate of $7,840 for fiscal year 2024 and $8,075 for each succeeding fiscal year for
23 the first ANB for grades 6, 7, and 8, decreased at the rate of 50 cents per ANB for each additional ANB for
24 grades 6, 7, and 8 up through 800 ANB, with each ANB in excess of 800 receiving the same amount of
25 entitlement as the 800th ANB.
26 (16) "Total quality educator payment" means the payment resulting from multiplying $3,566 for fiscal
27 year 2024 and $3,673 for each succeeding fiscal year by the sum of:
28 (a) the number of full-time equivalent educators as provided in 20-9-327; and - 2025
69th Legislature 2025 HB0339.3
- 7 - Authorized Print Version – HB 339
1 (b) as provided in 20-9-324, for a school district meeting the legislative goal for competitive base
2 pay of teachers, the number of full-time equivalent teachers that were in the first 3 years of the teacher's
3 teaching career in the previous year.
4 (17) "Total special education allocation" means the state payment distributed pursuant to 20-9-321
5 that is the greater of the amount resulting from multiplying $293.74 for fiscal year 2024 and $302.55 for each
6 succeeding fiscal year by the statewide current year ANB or the amount of the previous year's total special
7 education allocation."
8
9 Section 20-9-311, MCA, is amended to read:
10 "20-9-311. Calculation of average number belonging (ANB) -- 3-year averaging. (1) Average
11 number belonging (ANB) must be computed for each budget unit as follows:
12 (a) compute an average enrollment by adding a count of regularly enrolled pupils who were
13 enrolled as of the first Monday in October of the prior school fiscal year to a count of regularly enrolled pupils on
14 the first Monday in February of the prior school fiscal year or the next school day if those dates do not fall on a
15 school day, and divide the sum by two; and
16 (b) multiply the average enrollment calculated in subsection (1)(a) by the sum of 180 and the
17 approved pupil-instruction-related days for the current school fiscal year and divide by 180.
18 (2) For the purpose of calculating ANB under subsection (1), up to 7 approved pupil-instruction-
19 related days may be included in the calculation.
20 (3) When a school district has approval to operate less than the minimum aggregate hours under
21 20-9-806, the total ANB must be calculated in accordance with the provisions of 20-9-805.
22 (4) (a) Except as provided in subsection (4)(d), for the purpose of calculating ANB, enrollment in
23 an education program:
24 (i) from 180 to 359 aggregate hours of pupil instruction per school year is counted as one-quarter-
25 time enrollment;
26 (ii) from 360 to 539 aggregate hours of pupil instruction per school year is counted as half-time
27 enrollment;
28 (iii) from 540 to 719 aggregate hours of pupil instruction per school year is counted as three- - 2025
69th Legislature 2025 HB0339.3
- 8 - Authorized Print Version – HB 339
1 quarter-time enrollment; and
2 (iv) 720 or more aggregate hours of pupil instruction per school year is counted as full-time
3 enrollment.
4 (b) Except as provided in subsection (4)(d), enrollment in a program intended to provide fewer than
5 180 aggregate hours of pupil instruction per school year may not be included for purposes of ANB.
6 (c) Enrollment in a self-paced program or course may be converted to an hourly equivalent based
7 on the hours necessary and appropriate to provide the course within a regular classroom schedule.
8 (d) A school district may include in its calculation of ANB a pupil who is enrolled in a program
9 providing fewer than the required aggregate hours of pupil instruction required under subsection (4)(a) or (4)(b)
10 if the pupil has demonstrated proficiency in the content ordinarily covered by the instruction as determined by
11 the school board using district assessments. The ANB of a pupil under this subsection (4)(d) must be converted
12 to an hourly equivalent based on the hours of instruction ordinarily provided for the content over which the
13 student has demonstrated proficiency.
14 (e) (i) Except as provided in subsection (4)(e)(ii), a pupil in kindergarten through grade 12 who is
15 concurrently enrolled in more than one public school, program, or district may not be counted as more than one
16 full-time pupil for ANB purposes. When a pupil is concurrently enrolled in more than one district, any fractional
17 enrollment under subsection (4)(a) must be attributed first to a pupil's nonresident district.
18 (ii) A pupil who participates in a jumpstart program under Title 20, chapter 7, part 18, may be
19 counted as up to 1 1/4 enrollment for ANB purposes. A district shall add one-quarter enrollment for a pupil who
20 participated in an early literacy jumpstart program to the pupil's regular enrollment count under this subsection
21 (4) in both the October and February enrollment counts following the student's participation in the jumpstart
22 program.
23 (5) For a district that is transitioning from a half-time to a full-time kindergarten program, the state
24 superintendent shall count kindergarten enrollment in the previous year as full-time enrollment for the purpose
25 of calculating ANB for the elementary programs offering full-time kindergarten in the current year. For the
26 purposes of calculating the 3-year ANB, the superintendent of public instruction shall count the kindergarten
27 enrollment as one-half enrollment and then add the additional kindergarten ANB to the 3-year average ANB for
28 districts offering full-time kindergarten. - 2025
69th Legislature 2025 HB0339.3
- 9 - Authorized Print Version – HB 339
1 (6) When a pupil has been absent, with or without excuse, for more than 10 consecutive school
2 days, the pupil may not be included in the enrollment count used in the calculation of the ANB unless the pupil
3 resumes attendance prior to the day of the enrollment count.
4 (7) (a) The enrollment of preschool pupils, as provided in 20-7-117, may not be included in the
5 ANB calculations.
6 (b) Except as provided in subsection (7)(c), a pupil who has reached 19 years of age by
7 September 10 of the school year may not be included in the ANB calculations.
8 (c) A pupil with disabilities who is over 19 years of age and has not yet reached 21 years of age by
9 September 10 of the school year and who is receiving special education services from a school district pursuant
10 to 20-7-411(4)(a) may be included in the ANB calculations if:
11 (i) the student has not graduated;
12 (ii) the student is eligible for special education services and is likely to be eligible for adult services
13 for individuals with developmental disabilities due to the significance of the student's disability; and
14 (iii) the student's individualized education program has identified transition goals that focus on
15 preparation for living and working in the community following high school graduation since age 16 or the
16 student's disability has increased in significance after age 16.
17 (d) A school district providing special education services pursuant to subsection (7)(c) is
18 encouraged to collaborate with agencies and programs that serve adults with developmental disabilities in
19 meeting the goals of a student's transition plan.
20 (8) The average number belonging of the regularly enrolled pupils for the public schools of a
21 district must be based on the aggregate of all the regularly enrolled pupils attending the schools of the district,
22 except that:
23 (a) the ANB is calculated as a separate budget unit when:
24 (i) a school of the district is located more than 20 miles beyond the incorporated limits of a city or
25 town located in the district and at least 20 miles from any other school of the district, the number of regularly
26 enrolled pupils of the school must be calculated as a separate budget unit for ANB purposes and the district
27 must receive a basic entitlement for the school calculated separately from the other schools of the district;
28 (ii) a school of the district is located more than 20 miles from any other school of the district and - 2025
69th Legislature 2025 HB0339.3
- 10 - Authorized Print Version – HB 339
1 incorporated territory is not involved in the district, the number of regularly enrolled pupils of the school must be
2 calculated separately for ANB purposes and the district must receive a basic entitlement for the school
3 calculated separately from the other schools of the district;
4 (iii) the superintendent of public instruction approves an application not to aggregate when
5 geographic barriers exist affecting transportation, such as poor roads, mountains, rivers, or other obstacles to
6 travel, that would result in an unusual hardship to the pupils of the school if they were transported to another
7 school, the number of regularly enrolled pupils of the school must be calculated separately for ANB purposes
8 and the district must receive a basic entitlement for the school calculated separately from the other schools of
9 the district; or
10 (iv) two or more districts consolidate or annex under the provisions of 20-6-422 or 20-6-423, the
11 ANB and the basic entitlements of the component districts must be calculated separately for a period of 3 years
12 following the consolidation or annexation. Each district shall retain a percentage of its basic entitlement for 3
13 additional years as follows:
14 (A) 75% of the basic entitlement for the fourth year;
15 (B) 50% of the basic entitlement for the fifth year; and
16 (C) 25% of the basic entitlement for the sixth year.
17 (b) when a junior high school has been approved and accredited as a junior high school, all of the
18 regularly enrolled pupils of the junior high school must be considered as high school district pupils for ANB
19 purposes;
20 (c)(B) when a middle school has been approved and accredited, all pupils below the 7th 6th grade
21 must be considered elementary school pupils for ANB purposes, THE 6TH GRADE PUPILS MUST BE CONSIDERED
22 6ANB, and the 6th,7th, and 6 8th grade pupils must be considered
23 high school pupils for ANB purposes; or
24 (d)() when a school has been designated as nonaccredited by the board of public education
25 because of failure to meet the board of public education's assurance and performance standards, the regularly
26 enrolled pupils attending the nonaccredited school are not eligible for average number belonging calculation
27 purposes, nor will an average number belonging for the nonaccredited school be used in determining the BASE
28 funding program for the district. - 2025
69th Legislature 2025 HB0339.3
- 11 - Authorized Print Version – HB 339
1 (9) The district shall provide the superintendent of public instruction with semiannual reports of
2 school attendance, absence, and enrollment for regularly enrolled students, using a format determined by the
3 superintendent.
4 (10) (a) Except as provided in subsections (10)(b) and (10)(c), enrollment in a basic education
5 program provided by the district through any combination of in-person or remote instruction may be included for
6 ANB purposes only if the pupil is offered access to the complete range of educational services for the basic
7 education program required by the accreditation standards adopted by the board of public education.
8 (b) Access to school programs and services for a student placed by the trustees in a private
9 program for special education may be limited to the programs and services specified in an approved individual
10 education plan supervised by the district.
11 (c) Access to school programs and services for a student who is incarcerated in a facility, other
12 than a youth detention center, may be limited to the programs and services provided by the district at district
13 expense under an agreement with the incarcerating facility.
14 (d) This subsection (10) may not be construed to require a school district to offer access to
15 activities governed by an organization having jurisdiction over interscholastic activities, contests, and
16 tournaments to a pupil who is not otherwise eligible under the rules of the organization.
17 (11) A district may include only, for ANB purposes, an enrolled pupil who is otherwise eligible under
18 this title and who is:
19 (a) a resident of the district or a nonresident student admitted by trustees under a student
20 attendance agreement and who is attending a school or an offsite instructional setting of the district;
21 (b) unable to attend school due to a medical reason certified by a medical doctor and receiving
22 individualized educational services supervised by the district, at district expense, at a home or facility that does
23 not offer an educational program;
24 (c) unable to attend school due to the student's incarceration in a facility, other than a youth
25 detention center, and who is receiving individualized educational services supervised by the district, at district
26 expense, at a home or facility that does not offer an educational program;
27 (d) receiving special education and related services, other than day treatment, under a placement
28 by the trustees at a private nonsectarian school or private program if the pupil's services are provided at the - 2025
69th Legislature 2025 HB0339.3
- 12 - Authorized Print Version – HB 339
1 district's expense under an approved individual education plan supervised by the district;
2 (e) participating in the running start program at district expense under 20-9-706;
3 (f) receiving educational services, provided by the district, using appropriately licensed district staff
4 at a private residential program or private residential facility licensed by the department of public health and
5 human services;
6 (g) enrolled in an educational program or course provided at district expense using remote delivery
7 methods, including but not limited to tutoring, distance learning programs, online programs, and technology
8 delivered learning programs. The pupil:
9 (i) must meet the residency requirements for that district as provided in 1-1-215;
10 (ii) shall live in the district and must be eligible for educational services under the Individuals With
11 Disabilities Education Act or under 29 U.S.C. 794; or
12 (iii) must be enrolled in the educational program or course under a mandatory attendance
13 agreement as provided in 20-5-321; or
14 (iv) must be receiving remote instruction under 20-7-118(1)(c).
15 (h) a resident of the district attending the Montana youth challenge program or a Montana job
16 corps program under an interlocal agreement with the district under 20-9-707.
17 (12) A district shall, for ANB purposes, calculate the enrollment of an eligible Montana youth
18 challenge program participant as half-time enrollment.
19 (13) (a) A district may, for ANB purposes, include in the October and February enrollment counts an
20 individual who is otherwise eligible under this title and who during the prior school year:
21 (i) resided in the district;
22 (ii) was not enrolled in the district or was not enrolled full time; and
23 (iii) completed an extracurricular activity with a duration of at least 6 weeks.
24 (b) (i) Except as provided in subsection (13)(b)(ii), each completed extracurricular activity under
25 subsection (13)(a) may be counted as one-sixteenth enrollment for the individual, but under this subsection (13)
26 the individual may not be counted as more than one full-time enrollment for ANB purposes.
27 (ii) Each completed extracurricular activity lasting longer than 18 weeks may be counted as one-
28 eighth enrollment. - 2025
69th Legislature 2025 HB0339.3
- 13 - Authorized Print Version – HB 339
1 (c) For the purposes of this section, "extracurricular activity" means:
2 (i) a sport or activity sanctioned by an organization having jurisdiction over interscholastic
3 activities, contests, and tournaments;
4 (ii) an approved career and technical student organization, pursuant to 20-7-306; or
5 (iii) a school theater production.
6 (14) (a) For an elementary or high school district that has been in existence for 3 years or more, the
7 district's maximum general fund budget and BASE budget for the ensuing school fiscal year must be calculated
8 using the current year ANB for all budget units or the 3-year average ANB for all budget units, whichever
9 generates the greatest maximum general fund budget.
10 (b) For a K-12 district that has been in existence for 3 years or more, the district's maximum
11 general fund budget and BASE budget for the ensuing school fiscal year must be calculated separately for the
12 elementary and high school programs pursuant to subsection (14)(a) and then combined.
13 (15) The term "3-year ANB" means an average ANB over the most recent 3-year period, calculated
14 by:
15 (a) adding the ANB for the budget unit for the ensuing school fiscal year to the ANB for each of the
16 previous 2 school fiscal years; and
17 (b) dividing the sum calculated under subsection (15)(a) by three."
18
19 NEW SECTION. SECTION 3. USE OF ENHANCED FUNDING IN ACCREDITED MIDDLE SCHOOL AND JUNIOR
20. A SCHOOL DISTRICT THAT OPERATES AN ACCREDITED MIDDLE SCHOOL OR JUNIOR HIGH
21$100 MULTIPLIED BY THE NUMBER OF ANB IN THE DISTRICT'
22
23-ANB6 AT THE GRADE 6 LEVEL AND GRADES 7 AND 8 AT THE HIGH SCHOOL LEVEL
2468 6
258. EXPANDED CAREER AND TECHNICAL EDUCATION OPPORTUNITIES MUST INCLUDE BUT ARE NOT LIMITED TO
26-APPROPRIATE,-BASED LEARNING CONSISTENT WITH 20-7-1510 AND DEVELOPMENT OF AN
27.THE DISTRICT'S PROVISION OF EXPANDED OPPORTUNITIES MUST ALIGN WITH THE
28'20-7-1503. - 2025
69th Legislature 2025 HB0339.3
- 14 - Authorized Print Version – HB 339
1
2
3 NEW SECTION. Section 4. Effective date .. [This act] is effective on passage and approval ..
4
5 NEW SECTION. SECTION 4. CODIFICATION INSTRUCTION. [SECTION 3] IS INTENDED TO BE CODIFIED AS AN
6T20, CHAPTER 9, PART 3, AND THE PROVISIONS OF TITLE 20, CHAPTER 9, PART 3, APPLY TO
7 [SECTION 3].
8
9 NEW SECTION. Section 5. Applicability. [This act] applies to the school budgeting process
10 applicable to school fiscal years beginning July 1, 2025 2026.
11 - END -