HB 209 Exposed: A Costly, Unconstitutional, and Discriminatory Scheme

Dear Committee: 

I write to express my strong opposition to House Bill 209, which proposes a tax credit for nonpublic school education expenses. This bill undermines Montana’s public education system, violates the Montana Constitution, and creates a discriminatory and inequitable policy that disproportionately benefits wealthier families while reducing essential public resources for the vast majority of Montana students.

1. HB 209 Violates the Montana Constitution

The Montana Constitution (Article X, Section 1) mandates that the state “establish and maintain a system of free, quality public elementary and secondary schools” and prohibits direct or indirect state aid to private religious or sectarian schools (Article X, Section 6).

 HB 209 circumvents this by using tax credits as a backdoor mechanism to funnel public funds toward nonpublic education, which is contrary to both the letter and spirit of our Constitution.

Additionally, the Montana Supreme Court has previously struck down similar tax-credit schemes (Espinoza v. Montana Department of Revenue, 2020), reinforcing that state funds must not subsidize private education at the expense of public schools.

2. Financially Irresponsible and Harmful to Public Schools

HB 209 is fiscally irresponsible, as it drains millions of dollars from the General Fund, which is a primary source of public school funding. According to the fiscal impact report:

• The bill will reduce state revenue by over $31 million annually, increasing to $33.69 million by FY 2029.

• These funds would otherwise support public schools that serve 90% of Montana’s children, including those in rural areas where private options are nonexistent.

• Additional state expenditures will be required to administer the tax credit, adding further burden to taxpayers.

At a time when Montana public schools struggle with underfunding, teacher shortages, and rising costs, this bill diverts critical resources away from the schools that need them most.

3. Discriminatory and Inequitable Impact

HB 209 is inherently discriminatory in multiple ways:

• Favors Wealthier Families: The tax credit is nonrefundable, meaning only families with high enough tax liabilities benefit—leaving low-income families behind.

• Excludes Rural Students: Over 90% of Montana students lack access to private school alternatives, meaning this tax break will not benefit them. Instead, it exacerbates rural-urban education disparities.

• Harms Students with Disabilities: Private schools are not required to follow federal disability protections (IDEA, Section 504), leading to exclusion and inequitable treatment.

Furthermore, research has shown that private school voucher programs have led to school re-segregation, weakened educational accountability, and lower student performance in key subjects like math. 

4. Contrary to the Will of Montana Voters

Montana voters have repeatedly rejected attempts to defund public education and privatize schooling. Public schools remain the backbone of community strength, equal opportunity, and workforce development. HB 209 is an unpopular and unjustified policy that serves special interests over Montana families.

Instead of diverting funds to unregulated private education, legislators should focus on fully funding public schools, supporting teacher retention, and ensuring that every Montana child receives a strong, constitutionally protected public education.

Conclusion: Reject HB 209

HB 209 is an unconstitutional, fiscally reckless, and discriminatory bill that undermines public education, disproportionately benefits wealthier families, and violates Montana’s constitutional mandate to maintain a strong public school system.

I urge you to vote NO on HB 209 and protect Montana’s commitment to high-quality public education for all students.

Thank you for your time and consideration.

ADDENDUM

As citizens committed to fair governance and responsible policymaking, it is essential to question the origins of HB 209 and demand full transparency regarding its funding and advocacy sources.

While this bill is presented as an opportunity for educational choice, who truly benefits from HB 209? Is it the students and families of Montana—or out-of-state interests and private entities seeking to profit from taxpayer subsidies?

HB 209 follows a national trend of legislation designed to weaken public education in favor of privatization schemes. Similar tax credit and voucher-style programs have been pushed in multiple states by corporate-backed organizations, special interest groups, and dark money networks that:

• Aim to divert public funds away from public education under the guise of "school choice."

• Have historically lobbied for reduced public school funding, making it harder for communities to sustain quality public education.

• Often have religious or ideological motivations, aiming to redirect tax dollars into sectarian institutions, potentially violating Montana’s constitutional protections against state funding of religious education.

We must demand full disclosure regarding:

1. Who drafted HB 209?(sponsored by Greg Overstreet)

2.  Was it written with input from Montanans, or was it crafted by national special interest groups such as the American Legislative Exchange Council (ALEC), which has promoted similar legislation in other states?

3. Who is financing the push for this bill? Are there lobbyists, private school associations, or corporate donors influencing this legislation behind the scenes?

4. Who stands to profit? Will HB 209 primarily benefit local families, or is this part of a broader effort to funnel taxpayer dollars into private institutions with little accountability?

Demanding Transparency

If HB 209 is truly about helping Montana students, then legislators should have no issue disclosing all financial and lobbying influences behind this bill. We call for:

• Publicly available records of all lobbying activities related to HB 209.

• Disclosure of campaign contributions and financial ties between bill sponsors and organizations pushing for school privatization.

• A full financial impact study, detailing not only projected state revenue losses but also who will benefit financially from the implementation of HB 209.

The People Deserve Answers

Montanans value honesty, transparency, and responsible governance. If HB 209 is truly for the people, let the public see the full picture. Until these questions are answered, HB 209 should be viewed with suspicion as a potentially corrupt and damaging policy that prioritizes special interests over Montana’s public education system.

We call on legislators to reject HB 209 until full transparency is provided regarding who is behind this bill, who benefits from it, and who will bear the cost.