2001 Montana Legislature

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SENATE BILL NO. 444

INTRODUCED BY E. BUTCHER



A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING FOR PORTABILITY IN TEACHER EMPLOYMENT; REQUIRING A SCHOOL DISTRICT TO PROVIDE A TEACHER WITH FULL CREDIT FOR STEPS AND LANES EARNED DURING THE TEACHER'S TEACHING EXPERIENCE WHEREVER THE TEACHER IS EMPLOYED; REQUIRING THAT THE DISTRICT FUND EACH TEACHER'S OR SPECIALIST'S BASE SALARY, WHICH MAY BE NO MORE THAN 10 PERCENT BELOW THE STATEWIDE BASE SALARY AVERAGE OF ALL CERTIFIED TEACHERS AND SPECIALISTS; AUTHORIZING A DISTRICT TO PAY AN ADDITIONAL SALARY HIGHER THAN THE TOP STEP AND LANE PAID BY THE STATE; REQUIRING A COUNTY SUPERINTENDENT TO PROVIDE THE OFFICE OF PUBLIC INSTRUCTION WITH INFORMATION ON DISTRICTS' COSTS FOR BASE SALARY AND STEPS AND LANES; REQUIRING THE OFFICE OF PUBLIC INSTRUCTION TO DISTRIBUTE A BLOCK GRANT TO PAY A DISTRICT'S COSTS FOR STEPS AND LANES; PROHIBITING THE STATE FROM PAYING FOR STEPS AND LANES THAT ARE MORE THAN TWO TIMES THE DISTRICT'S BASE SALARY; DEFINING "STEPS AND LANES"; AUTHORIZING THE WITHHOLDING OF THE BLOCK GRANT PAYMENT FOR A DISTRICT THAT FAILS TO PROVIDE REQUIRED SALARY INFORMATION; AMENDING SECTIONS 20-3-106, 20-3-205, 20-9-141, AND 20-9-306, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE."



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:



     NEW SECTION.  Section 1.  Payment of base salary -- submission of salary information -- failure to provide information. (1) A school district shall:

     (a) credit each teacher or specialist for teaching experience earned while employed by the district or earned while teaching in another school district; and

     (b) except as provided in subsection (2), pay each teacher or specialist a minium base salary, which may not be more than 10% below the statewide base salary average of all certified teachers and specialists employed by Montana public school districts.

     (2) The board of trustees of a school district may pay each certified teacher and specialist an additional salary that is more than the top step and lane paid by the state under the provisions of [section 2].

     (3) The county superintendent shall prepare and forward to the office of public instruction:

     (a) the base salary for teachers and specialists for each school district in the county by June 1 of each year; and

     (b) the total anticipated salary costs for each district identified by total costs for base salaries and total costs for steps and lanes by August 1 of each year.

     (4) A school district that fails to provide the information by June 1, as required by this section, is not eligible to receive the block grant distribution provided for in [section 2].



     NEW SECTION.  Section 2.  Block grant for payment for steps and lanes portion of salaries. (1) From the salary information submitted pursuant to [section 1], the office of public instruction shall distribute a block grant to each school district in an amount necessary to pay for the district's costs attributed to the steps and lanes portion of teachers' and specialists' salaries that are paid from the district's general fund budget. The state may not pay for steps and lanes that are more than two times the school district's base salary.

     (2) By September 1 each year, the office of public instruction shall notify each school district of its actual prorated direct state aid entitlement and the amount to be received in a block grant to pay for the cost for the steps and lanes portion of salaries.     

     (3) A school district receiving a block grant shall deposit the funds into its general fund budget.

     (4)  As used in [sections 1 and 2], 20-3-106, 20-3-205, and 20-9-141, "steps and lanes" means the annual incremental adjustments made in an employee's rate of pay for additional experience related to teaching and professional service or for continuing education, professional development activities, or completion of additional university or college credits following a baccalaureate degree.



     Section 3.  Section 20-3-106, MCA, is amended to read:

     "20-3-106.  Supervision of schools -- powers and duties. The superintendent of public instruction has the general supervision of the public schools and districts of the state and shall perform the following duties or acts in implementing and enforcing the provisions of this title:

     (1)  resolve any controversy resulting from the proration of costs by a joint board of trustees under the provisions of 20-3-362;

     (2)  issue, renew, or deny teacher certification and emergency authorizations of employment;

     (3)  negotiate reciprocal tuition agreements with other states in accordance with the provisions of 20-5-314;

     (4)  approve or disapprove the opening or reopening of a school in accordance with the provisions of 20-6-502, 20-6-503, 20-6-504, or 20-6-505;

     (5)  approve or disapprove school isolation within the limitations prescribed by 20-9-302;

     (6)  generally supervise the school budgeting procedures prescribed by law in accordance with the provisions of 20-9-102 and prescribe the school budget format in accordance with the provisions of 20-9-103 and 20-9-506;

     (7)  establish a system of communication for calculating joint district revenue in accordance with the provisions of 20-9-151;

     (8)  approve or disapprove the adoption of a district's budget amendment resolution under the conditions prescribed in 20-9-163 and adopt rules for an application for additional direct state aid for a budget amendment in accordance with the approval and disbursement provisions of 20-9-166;

     (9)  generally supervise the school financial administration provisions as prescribed by 20-9-201(2);

     (10) prescribe and furnish the annual report forms to enable the districts to report to the county superintendent in accordance with the provisions of 20-9-213(6) and the annual report forms to enable the county superintendents to report to the superintendent of public instruction in accordance with the provisions of 20-3-209;

     (11) approve, disapprove, or adjust an increase of the average number belonging (ANB) in accordance with the provisions of 20-9-313 and 20-9-314;

     (12) distribute BASE aid and special education allowable cost payments in support of the BASE funding program in accordance with the provisions of 20-9-331, 20-9-333, 20-9-342, 20-9-346, 20-9-347, and 20-9-366 through 20-9-369;

     (13) provide for the uniform and equal provision of transportation by performing the duties prescribed by the provisions of 20-10-112;

     (14) request, accept, deposit, and expend federal money in accordance with the provisions of 20-9-603;

     (15) authorize the use of federal money for the support of an interlocal cooperative agreement in accordance with the provisions of 20-9-703 and 20-9-704;

     (16) prescribe the form and contents of and approve or disapprove interstate contracts in accordance with the provisions of 20-9-705;

     (17) approve or disapprove the conduct of school on a Saturday in accordance with the provisions of 20-1-303;

     (18) recommend standards of accreditation for all schools to the board of public education and evaluate compliance with the standards and recommend accreditation status of every school to the board of public education in accordance with the provisions of 20-7-101 and 20-7-102;

     (19) collect and maintain a file of curriculum guides and assist schools with instructional programs in accordance with the provisions of 20-7-113 and 20-7-114;

     (20) establish and maintain a library of visual, aural, and other educational media in accordance with the provisions of 20-7-201;

     (21) license textbook dealers and initiate prosecution of textbook dealers violating the law in accordance with the provisions of the textbooks part of this title;

     (22) as the governing agent and executive officer of the state of Montana for K-12 vocational education, adopt the policies prescribed by and in accordance with the provisions of 20-7-301;

     (23) supervise and coordinate the conduct of special education in the state in accordance with the provisions of 20-7-403;

     (24) administer the traffic education program in accordance with the provisions of 20-7-502;

     (25) administer the school food services program in accordance with the provisions of 20-10-201 through 20-10-203;

     (26) review school building plans and specifications in accordance with the provisions of 20-6-622;

     (27) prescribe the method of identification and signals to be used by school safety patrols in accordance with the provisions of 20-1-408;

     (28) provide schools with information and technical assistance for compliance with the student assessment rules provided for in 20-2-121 and collect and summarize the results of the student assessment for the board of public education and the legislature;

     (29) upon request and in compliance with confidentiality requirements of state and federal law, disclose to interested parties all school district student assessment data for a test required by the board of public education;

     (30) administer the distribution of guaranteed tax base aid in accordance with 20-9-366 through 20-9-369; and

     (31) distribute to each school district a block grant to pay for the salary portion for steps and lanes; and

     (31)(32) perform any other duty prescribed from time to time by this title, any other act of the legislature, or the policies of the board of public education."



     Section 4.  Section 20-3-205, MCA, is amended to read:

     "20-3-205.  Powers and duties. The county superintendent has general supervision of the schools of the county within the limitations prescribed by this title and shall perform the following duties or acts:

     (1)  determine, establish, and reestablish trustee nominating districts in accordance with the provisions of 20-3-352, 20-3-353, and 20-3-354;

     (2)  administer and file the oaths of members of the boards of trustees of the districts in the county in accordance with the provisions of 20-3-307;

     (3)  register the teacher or specialist certificates or emergency authorization of employment of any person employed in the county as a teacher, specialist, principal, or district superintendent in accordance with the provisions of 20-4-202;

     (4)  act on each tuition and transportation obligation submitted in accordance with the provisions of 20-5-323 and 20-5-324;

     (5)  file a copy of the audit report for a district in accordance with the provisions of 20-9-203;

     (6)  classify districts in accordance with the provisions of 20-6-201 and 20-6-301;

     (7)  keep a transcript and reconcile the district boundaries of the county in accordance with the provisions of 20-6-103;

     (8)  fulfill all responsibilities assigned under the provisions of this title regulating the organization, alteration, or abandonment of districts;

     (9)  act on any unification proposition and, if approved, establish additional trustee nominating districts in accordance with 20-6-312 and 20-6-313;

     (10) estimate the average number belonging (ANB) of an opening school in accordance with the provisions of 20-6-502, 20-6-503, 20-6-504, or 20-6-506;

     (11) process and, when required, act on school isolation applications in accordance with the provisions of 20-9-302;

     (12) complete the budgets, compute the budgeted revenue and tax levies, file final budgets and budget amendments, and fulfill other responsibilities assigned under the provisions of this title regulating school budgeting systems;

     (13) submit an annual financial report to the superintendent of public instruction in accordance with the provisions of 20-9-211;

     (14) monthly, unless otherwise provided by law, order the county treasurer to apportion state money, county school money, and any other school money subject to apportionment in accordance with the provisions of 20-9-212, 20-9-335, 20-9-347, 20-10-145, or 20-10-146;

     (15) act on any request to transfer average number belonging (ANB) in accordance with the provisions of 20-9-313(3);

     (16) calculate the estimated budgeted general fund sources of revenue in accordance with the general fund revenue provisions of the general fund part of this title;

     (17) compute the revenue and, subject to 15-10-420, compute the district and county levy requirements for each fund included in each district's final budget and report the computations to the board of county commissioners in accordance with the provisions of the general fund, transportation, bonds, and other school funds parts of this title;

     (18) file and forward bus driver certifications, transportation contracts, and state transportation reimbursement claims in accordance with the provisions of 20-10-103, 20-10-143, or 20-10-145;

     (19) for districts that do not employ a district superintendent or principal, recommend library book and textbook selections in accordance with the provisions of 20-7-204 or 20-7-602;

     (20) notify the superintendent of public instruction of a textbook dealer's activities when required under the provisions of 20-7-605 and otherwise comply with the textbook dealer provisions of this title;

     (21) act on district requests to allocate federal money for indigent children for school food services in accordance with the provisions of 20-10-205;

     (22) perform any other duty prescribed from time to time by this title, any other act of the legislature, the policies of the board of public education, the policies of the board of regents relating to community college districts, or the rules of the superintendent of public instruction;

     (23) administer the oath of office to trustees without the receipt of pay for administering the oath;

     (24) keep a record of official acts, preserve all reports submitted to the superintendent under the provisions of this title, preserve all books and instructional equipment or supplies, keep all documents applicable to the administration of the office, and surrender all records, books, supplies, and equipment to the next superintendent;

     (25) within 90 days after the close of the school fiscal year, publish an annual report in the county newspaper stating the following financial information for the school fiscal year just ended for each district of the county:

     (a)  the total of the cash balances of all funds maintained by the district at the beginning of the year;

     (b)  the total receipts that were realized in each fund maintained by the district;

     (c)  the total expenditures that were made from each fund maintained by the district; and

     (d)  the total of the cash balances of all funds maintained by the district at the end of the school fiscal year; and

     (26) by June 1 of each year, submit to the office of public instruction the base salary information and, by August 1 of each year, submit the total anticipated cost to each district for steps and lanes; and

     (26)(27) hold meetings for the members of the trustees from time to time at which matters for the good of the districts must be discussed."



     Section 5.  Section 20-9-141, MCA, is amended to read:

     "20-9-141.  Computation of general fund net levy requirement by county superintendent. (1) The county superintendent shall compute the levy requirement for each district's general fund on the basis of the following procedure:

     (a)  Determine the funding required for the district's final general fund budget less the sum of direct state aid and the special education allowable cost payment for the district by totaling:

     (i)  the district's nonisolated school BASE budget requirement to be met by a district levy as provided in 20-9-303; and

     (ii) any general fund budget amount adopted by the trustees of the district under the provisions of 20-9-308 and 20-9-353, including any additional funding for a general fund budget that exceeds the maximum general fund budget.

     (b)  Determine the money available for the reduction of the property tax on the district for the general fund by totaling:

     (i)  the general fund balance reappropriated, as established under the provisions of 20-9-104;

     (ii) 98% of actual amounts received in fiscal year 1999 for light vehicle taxes under 61-3-504;

     (iii) amounts received in the last fiscal year for which revenue reporting was required for each of the following:

     (A)  revenue from taxes and fees imposed under 23-2-517, 23-2-803, 61-3-521, 61-3-527, 61-3-529, 61-3-560 through 61-3-562, 61-3-570, and 67-3-204;

     (B)  interest earned by the investment of general fund cash in accordance with the provisions of 20-9-213(4); and

     (C)  any other revenue received during the school fiscal year that may be used to finance the general fund, excluding any guaranteed tax base aid;

     (iv) anticipated tuition payments for out-of-district pupils under the provisions of 20-5-321 through 20-5-323, except the amount of tuition received for a pupil who is a child with a disability in excess of the amount received for a pupil without disabilities, as calculated under 20-5-323(2);

     (v)  anticipated oil and natural gas production taxes;

     (vi) pursuant to subsection (4), anticipated revenue from coal gross proceeds under 15-23-703 and property tax reimbursements under 15-1-111, 15-1-112, and section 167, Chapter 584, Laws of 1999; and

     (vii) anticipated revenue from corporation license taxes collected from financial institutions under the provisions of 15-31-702; and

     (viii) anticipated block grant revenue received under [section 2] for payment for the steps and lanes portion of salaries.

     (c)  Notwithstanding the provisions of subsection (2), subtract the money available to reduce the property tax required to finance the general fund that has been determined in subsection (1)(b) from any general fund budget amount adopted by the trustees of the district, up to the BASE budget amount, to determine the general fund BASE budget levy requirement.

     (d)  Subtract any amount remaining after the determination in subsection (1)(c) from any additional funding requirement to be met by an over-BASE budget amount, a district levy as provided in 20-9-303, and any additional financing as provided in 20-9-353 to determine any additional general fund levy requirements.

     (2)  The county superintendent shall calculate the number of mills to be levied on the taxable property in the district to finance the general fund levy requirement for any amount that does not exceed the BASE budget amount for the district by dividing the amount determined in subsection (1)(c) by the sum of:

     (a)  the amount of guaranteed tax base aid that the district will receive for each mill levied, as certified by the superintendent of public instruction; and

     (b)  the current total taxable valuation of the district, as certified by the department of revenue under 15-10-202, divided by 1,000.

     (3)  The net general fund levy requirement determined in subsections (1)(c) and (1)(d) must be reported to the county commissioners on the fourth Monday of August by the county superintendent as the general fund net levy requirement for the district, and a levy must be set by the county commissioners in accordance with 20-9-142.

     (4)  For each school district, the department of revenue shall calculate and report to the county superintendent the amount of revenue anticipated for the ensuing fiscal year from revenue from coal gross proceeds under 15-23-703 and property tax reimbursements under 15-1-111, 15-1-112, and section 167, Chapter 584, Laws of 1999."



     Section 6.  Section 20-9-306, MCA, is amended to read:

     "20-9-306.  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; and

     (b)  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 up to 40% of the special education allowable cost payment.

     (3)  "BASE budget" means the minimum general fund budget of a district, which includes 80% of the basic entitlement, 80% of the total per-ANB entitlement, and up to 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 BASE budgets of districts and special education allowable cost payments as provided in 20-9-321.

     (6)  "Basic entitlement" means:

     (a)  $206,000 for each high school district;

     (b)  $18,540 for each elementary school district or K-12 district elementary program without an approved and accredited junior high school or middle school; and

     (c)  the prorated entitlement for each elementary school district or K-12 district elementary program with an approved and accredited junior high school or middle school, calculated as follows:

     (i)  $18,540 times the ratio of the ANB for kindergarten through grade 6 to the total ANB of kindergarten through grade 8; plus

     (ii) $206,000 times the ratio of the ANB for grades 7 and 8 to the total ANB of kindergarten through grade 8.

     (7)  "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 prorated after distribution of the block grant pursuant to [section 2].

     (8)  "Maximum general fund budget" means a district's general fund budget amount calculated from the basic entitlement for the district, the total per-ANB entitlement for the district, and up to 153% of special education allowable cost payments.

     (9)  "Over-BASE budget levy" means the district levy in support of any general fund amount budgeted that is above the BASE budget and below the maximum general fund budget for a district.

     (10) "Total per-ANB entitlement" means the district entitlement resulting from the following calculations:

     (a)  for a high school district or a K-12 district high school program, a maximum rate of $5,015 for the first ANB is 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 or middle school, a maximum rate of $3,763 for the first ANB is 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 or middle school, the sum of:

     (i)  a maximum rate of $3,763 for the first ANB for kindergarten through grade 6 is 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 $5,015 for the first ANB for grades 7 and 8 is 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."



     NEW SECTION.  Section 7.  Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 20, chapter 9, part 1, and the provisions of Title 20, chapter 9, part 1, apply to [section 1].

     (2) [Section 2] is intended to be codified as an integral part of Title 20, chapter 9, part 3, and the provisions of Title 20, chapter 9, part 3, apply to [section 2].



     NEW SECTION.  Section 8.  Effective date -- applicability. [This act] is effective on passage and approval and applies to school fiscal years beginning on or after July 1, 2001.

- END -




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