Support HB265

HB 265 Support- Written 2.5.25

Chairperson and Members of the Committee,

I am writing to express my strong support for House Bill 265, which seeks to ensure that Montana’s public schools receive the funding they need by implementing a self-adjusting mechanism for inflationary increases. This bill is a necessary step toward providing a stable, sustainable, and equitable funding structure for our schools, ensuring that Montana’s students receive a quality education regardless of economic fluctuations.

The Need for HB 265

Under current law, school funding increases for inflation are capped at 3%. However, in recent years, inflation has often exceeded this threshold, leaving schools underfunded and unable to keep up with rising costs. This shortfall impacts students, educators, and school systems in multiple negative ways, including:

• Insufficient resources – Schools struggle to afford essential materials, up-to-date technology, and necessary supplies for students and teachers.

• Staffing shortages – Budget constraints force schools to freeze hiring, reduce staff, or offer lower salaries, making it difficult to attract and retain qualified educators.

• Cuts to programs – Limited funding results in reductions or eliminations of vital programs, including special education services, extracurricular activities, and academic support programs that help students succeed.

• Deteriorating facilities – Inadequate funding delays necessary repairs and improvements to school buildings, affecting the learning environment and student safety.

By allowing the general fund budget formula to automatically adjust for inflation beyond the current 3% cap, HB 265 provides a forward-thinking and fiscally responsible solution to prevent these issues from worsening.

Benefits of HB 265

1.    Ensures School Budget Stability – By aligning school funding with actual inflation rates, HB 265 prevents the financial unpredictability that currently forces districts to cut essential services.

2.   Supports Quality Education – Schools will have the necessary funds to maintain small class sizes, up-to-date learning materials, and student support programs.

3.   Protects Educator Retention and Recruitment – Competitive salaries and adequate staffing levels help ensure Montana’s students have access to highly qualified teachers and staff.

4.   Prevents Over-Reliance on Local Taxpayers – Without an inflation-adjusted funding formula, school districts must increasingly rely on local property tax levies to cover budget shortfalls, disproportionately impacting communities with lower tax bases.

5.    Fosters Long-Term Planning – Schools will have a predictable funding structure, enabling more effective long-term financial planning and investment in education.

Constitutional and Legislative Alignment

Montana’s Constitution guarantees a system of free quality public elementary and secondary schools. HB 265 aligns with this mandate by ensuring that schools are adequately funded to provide an education that meets the state’s legal and moral obligations. Furthermore, it upholds the principle of equitable education by preventing disparities caused by inflation-driven budget shortfalls.

Additionally, the Montana Constitution protects the education system from third-party bad actors who seek to undermine democracy by defunding or destabilizing public education. The constitutional commitment to a well-funded and equitable education system serves as a safeguard against efforts to erode civic knowledge and engagement, ensuring that future generations are well-informed participants in our democracy.

Conclusion

Montana’s students deserve access to fully funded, high-quality public education. HB 265 represents a common-sense and responsible approach to achieving this goal. I urge you to support this legislation to ensure that our schools have the financial resources needed to provide the best possible education for our children, now and in the future.