House Bill No. 47

Introduced By ellis

By Request of the Governor

A Bill for an Act entitled: "An Act Increasing ~~by 3.5 Percent~~ the Basic Entitlement and the Per-ANB Entitlement For
Public Schools __IN FISCAL YEAR 1998 AND FISCAL YEAR 1999__; __APPROPRIATING FUNDS FOR DIRECT STATE
AID AND GUARANTEED TAX BASE AID;__ Amending Section 20-9-306, MCA; and providing ~~a delayed~~ effective ~~date
and an~~ __DATES,__ applicability ~~date~~ __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) ~~$191,000~~ __$197,690____$200,000__ for each high school district;

(b) ~~$17,190~~ __$17,790____$18,000__ 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) ~~$17,190~~ __$17,790____$18,000__ times the ratio of the ANB for kindergarten through grade 6 to the total ANB of kindergarten
through grade 8; plus

(ii) ~~$191,000~~ __$197,690____$200,000__ 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 ~~$4,680~~ __$4,843____$4,726__ 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 ~~$3,343~~ __$3,459____$3,376__ 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 ~~$3,343~~ __$3,459____$3,376__ 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 ~~$4,680~~ __$4,843____$4,726__ 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) ~~$191,000~~ __$200,000__ for each high school district;

(b) ~~$17,190~~ __$18,000__ 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) ~~$17,190~~ __$18,000__ times the ratio of the ANB for kindergarten through grade 6 to the total ANB of kindergarten through
grade 8; plus

(ii) ~~$191,000~~ __$200,000__ 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 ~~$4,680~~ __$4,773__ 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 ~~$3,343~~ __$3,410__ 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 ~~$3,343~~ __$3,410__ 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 ~~$4,680~~ __$4,773__ 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 3. APPROPRIATION. THERE IS APPROPRIATED FROM THE GENERAL FUND
$13,929,000 FOR THE BIENNIUM ENDING JUNE 30, 1999, FOR DIRECT STATE AID AND GUARANTEED TAX
BASE AID.__

__NEW SECTION.__ **Section 4. Effective date DATES -- applicability.**

__(2) [SECTION 2] IS EFFECTIVE JULY 1, 1998, AND APPLIES TO SCHOOL BUDGETS FOR SCHOOL FISCAL
YEARS BEGINNING ON OR AFTER JULY 1, 1998.__

__NEW SECTION. SECTION 5. TERMINATION. [SECTION 1] TERMINATES JUNE 30, 1998.__

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