HOUSE BILL NO. 133

INTRODUCED BY R. BUZZAS, B. BARNHART, S. BARTLETT, G. BECK, C. CHRISTIAENS, P. CLARK, V. COCCHIARELLA, T. DELL, S. DOHERTY, D. ECK, B. EGGERS, J. ELLINGSON, R. ERICKSON, D. EWER, T. FACEY, E. FRANKLIN, G. GOLIE, M. GUGGENHEIM, G. GUTSCHE, T. HAGENER, M. HALLIGAN, H. HARPER, G. JERGESON, C. JUNEAU, S. KITZENBERG, B. KRENZLER, M. LINDEEN, D. MAHLUM, J. MANGAN, G. MATTHEWS, L. MCCULLOCH, L. NELSON, R. PECK, J. QUILICI, S. ROSE, G. ROUSH, B. RYAN, S. STANG, E. SWANSON, J. TESTER, C. TUSS, M. WATERMAN, C. WILLIAMS, D. WYATT, D. HARRINGTON, T. SCHMIDT

BY REQUEST OF THE OFFICE OF PUBLIC INSTRUCTION

A BILL FOR AN ACT ENTITLED: "AN ACT INCREASING THE TOTAL PER-ANB AND THE BASIC
ENTITLEMENT FOR PUBLIC SCHOOLS IN FISCAL YEARS 2000 AND 2001; INCREASING THE TOTAL
PER-ANB ENTITLEMENT FOR AN ELEMENTARY SCHOOL DISTRICT OR A K-12 DISTRICT ELEMENTARY
PROGRAM TO ~~$3,546~~ __$3,461__ FOR SCHOOL FISCAL YEAR 2000 AND TO ~~$3,688~~ __$3,513__ FOR SCHOOL FISCAL
YEAR 2001; INCREASING THE TOTAL PER-ANB ENTITLEMENT FOR A HIGH SCHOOL DISTRICT OR A K-12
DISTRICT HIGH SCHOOL PROGRAM TO ~~$4,868~~ __$4,821__ FOR SCHOOL FISCAL YEAR 2000 AND TO ~~$4,966~~ __$4,869__
FOR SCHOOL FISCAL YEAR 2001; INCREASING THE BASIC ENTITLEMENT FOR EACH ELEMENTARY
DISTRICT OR K-12 DISTRICT ELEMENTARY PROGRAM TO ~~$21,500~~ __$25,000__ FOR SCHOOL FISCAL YEAR 2000
AND ~~TO $25,000~~ FOR SCHOOL FISCAL YEAR 2001; INCREASING THE BASIC ENTITLEMENT FOR EACH HIGH
SCHOOL DISTRICT OR K-12 DISTRICT HIGH SCHOOL PROGRAM TO ~~$204,000~~ __$202,000__ FOR SCHOOL FISCAL
YEAR 2000 AND TO ~~$208,080~~ __$204,020__ FOR SCHOOL FISCAL YEAR 2001; __APPROPRIATING $13 MILLION FOR
FISCAL YEAR 2000 FOR SCHOOL BUILDING MAINTENANCE, CONSTRUCTION, AND RECONSTRUCTION,
TECHNOLOGY ACQUISITION, TEXTBOOKS, CLASSROOM SUPPLIES, AND LIBRARY MATERIALS;__
AMENDING ~~SECTION~~ __SECTIONS__ 20-9-306 __AND 20-9-375__, MCA; AND PROVIDING EFFECTIVE DATES,
APPLICABILITY DATES, AND A TERMINATION DATE."

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

**Section 1.** 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 40% of the basic entitlement and 40% 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 40% of the basic entitlement, up to 40% 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) ~~$200,000~~ __$204,000____$202,000__ for each high school district;

(b) ~~$18,000~~ __$21,500____$25,000__ 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) ~~$18,000~~ __$21,500____$25,000__ times the ratio of the ANB for kindergarten through grade 6 to the total ANB of
kindergarten through grade 8; plus

(ii) ~~$200,000~~ __$204,000____$202,000__ 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 40% of the basic entitlement and 40% of the total per-ANB entitlement for the general fund budget of a district and funded with state and county equalization aid.

(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 ~~$4,773~~ __$4,868____$4,821__ 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 ~~$3,410~~ __$3,546____$3,461__ 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 ~~$3,410~~ __$3,546____$3,461__ 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 ~~$4,773~~ __$4,868____$4,821__ 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."

**Section 2.** 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 40% of the basic entitlement and 40% 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 40% of the basic entitlement, up to 40% 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) ~~$200,000~~ __$208,080____$204,020__ for each high school district;

(b) ~~$18,000~~ __$25,000__ 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) ~~$18,000~~ __$25,000__ times the ratio of the ANB for kindergarten through grade 6 to the total ANB of kindergarten
through grade 8; plus

(ii) ~~$200,000~~ __$208,080____$204,020__ 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 40% of the basic entitlement and 40% of the total per-ANB entitlement for the general fund budget of a district and funded with state and county equalization aid.

(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 ~~$4,773~~ __$4,966____$4,869__ 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 ~~$3,410~~ __$3,688____$3,513__ 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 ~~$3,410~~ __$3,688____$3,513__ 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 ~~$4,773~~ __$4,966____$4,869__ 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."

__SECTION 3.____ SECTION 20-9-375, MCA, IS AMENDED TO READ:__

**"20-9-375. Aid for building maintenance, construction, and reconstruction, technology acquisition, textbooks,
classroom supplies, or library materials** (1)

(2) The district may deposit ~~the~~ __all or a portion of the__ funds received under ~~this section~~ __subsection (1)__ in the
miscellaneous programs fund authorized in 20-9-507__, the building fund authorized in 20-9-508,__ or the technology
acquisition fund authorized in 20-9-533.

__(3)__ ~~Any portion of the funds~~ __Funds__ deposited in the miscellaneous programs fund ~~must be restricted~~ __may be used only__
for __building maintenance, construction, or reconstruction, technology acquisition,__ textbooks, __classroom supplies, or__ library
materials~~, and building maintenance~~.

__ (4) Funds deposited in the building fund must be used consistent with the requirements of 20-9-508.__

__(5)__ ~~Any portion of the funds~~ __Funds__ deposited in the technology acquisition fund must be used consistent with the
requirements of 20-9-533."

__NEW SECTION. SECTION 4. APPROPRIATION. THERE IS APPROPRIATED FROM THE GENERAL FUND
TO THE OFFICE OF PUBLIC INSTRUCTION, $13 MILLION FOR THE SCHOOL FISCAL YEAR BEGINNING JULY
1, 1999, FOR THE PURPOSES PROVIDED FOR IN [SECTION 3].__

__NEW SECTION.__ **Section 5. Effective dates -- applicability.** (1) Except as provided in subsection (2), [this act] is
effective on July 1, 1999, and applies to school budgets for the school fiscal year beginning July 1,1999.

(2) [Section 2] is effective July 1, 2000, and applies to school budgets for school fiscal years beginning on or after July 1, 2000.

__NEW SECTION.__ **Section 6. Termination.** [~~Section~~ __SECTIONS__ 1 __AND 3__] ~~terminates~~ __TERMINATE__ June 30, 2000.

- END -

**Latest Version of HB 133*** (HB0133.02)*

Processed for the Web on February 11, 1999 (4:57PM)

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