School Finance Compass January 2024

Upcoming Due Dates

State School Payments

The FY2025 December State School payments are posted at the following link: State School Payments. 

The FY2025 January State School Payments are scheduled for distribution on January 28, 2024. The January payments will include Direct State Aid, Significant Enrollment Increase, Quality Educator Component, At Risk Component, Indian Education for All, Student Achievement Gap, Data for Achievement and Special Education.

If you have questions, please contact Cori Opie at (406) 444-3533.

State School Entitlements

The State School Funding Entitlement Reports for FY2025 are posted at the following link: State School Payments>Entitlements.

If you have questions, please contact Cori Opie at (406) 444-3533.

Expansion for Detailed Expenditures

January 31,2024 the US Department of Education expanded the mandatory reporting requirements for detailed expenditures. We have been granted an extension for the reporting until the FY2025 TFS.

The following exhibits will need to be reported by school code starting with the FY2025 TFS reporting.

• Teacher Salaries (function 1XXX: Objects 112)
• Instructional Aid Salaries (function 1XXX: Object 117)
• Books and Periodicals (function 1XXX and object 640 & 650)

Local accounting systems will need to be altered to allow for this change in data reporting.

If you have questions, please contact Autumn Warren at Autumn.Warren@mt.gov.

Impact Aid Applications - Due January 31^st

The US Department of Education will open the Impact Aid Grant System (IAGS) for FY 2026 applications soon. Historically the applications open towards the end of November. Start early getting your application data in order.  OPI will notify each district when the data is available that is needed to complete applications.

Online Resources for the Upcoming Application can be found on the Impact Aid website Home - Impact Aid Grant System. Many training resources are available as you prepare for your FY 2026 Impact Aid application, due January 31. Visit their training page to review Section 7002 videos and Section 7003 videos, which cover important highlights of their webinars, including how to survey Federally connected children. You may also find it helpful to visit the resources page to view the new Handbook for Applicants and Grantees, and various tools to support your application preparation.

The Impact Aid Data Sheets are available on the OPI website. Please follow this link School Finance- Impact Aid and select the blue button Data Sheets 2026.

If you have questions, please contact Andrea Mohammadi at (406) 444-1960, or contact us by email at opischoolfinance@mt.gov.

Compensation Expenditure Reporting and Terms Of Employment – PAST DUE

Compensation Expenditure reports should have been submitted by December 10^th. Data can be entered starting when MAEFAIRS opens and may be advantageous to complete at the same time as the Infinite Campus reporting in October. If you have not completed this report please contact Andrea Mohammadi at Andrea.Mohammadi@mt.gov or 406-444-1960 for assistance.

Compensation Expenditure Reporting collects data used to determine each district’s payment information pertaining to salaries paid to district employees each fiscal year. Compensation Expenditure Reporting is a multi-step process of entering and certifying data in Infinite Campus and then submitting the data in MAEFAIRS. The process is to assist schools with their responsibility to be transparent with the use of public funds in accordance with section 20-7-104, MCA.

End of Year Personnel Collection: Infinite Campus Reporting – Due June 30^th

The End of Year Personnel (Compensation Expenditure) Collection replaces the Compensation Expenditure Terms of Employment (TOE) in AIM. All district staff employed from July 1, 2024, through June 30, 2025, must be included in this collection of data and be certified through entry into Infinite Campus. Only employees certified through Infinite Campus will be available for selection in the MAEFAIRS Compensation Expenditure Report submission. Districts are required to enter all staff employed in the 2024-2025 school year into Infinite Campus by June 30, 2025, to finalize the 2025 fiscal year end process. If you do not have access to Infinite Campus or are having troubles logging in, please contact opiaimhelp@mt.gov. 

If you have questions, please contact Andrea Mohammadi at (406) 444-1960 or Alivia Skeslien-Jenkins at (406) 444-1964.

Spring Student Count - February 3, 2025

The official spring count day is Monday, February 3, 2025.   You may import data once Aggregate Hours are entered in AIM (Infinite Campus), however you will not be able to submit to OPI until February 4, 2025.  You may import as many times as necessary before submitting your final data.  Student Count for ANB reports must be submitted to the MAEFAIRS system no later than February 14, 2025.

To access MAEFAIRS,  CLICK HERE

If you have questions, please contact Andrea Mohammadi, 406-444-1960 or email us at opischoolfinance@mt.gov.

Funding for Significant Enrollment Increases

The Office of Public Instruction (OPI) is providing this notice of HB 36 (2023 Legislative session) that revises the funding for significant enrollment increases. HB 36 modifies section 20-9-166, MCA, to allow significant enrollment increase (SEI) payments as described below. It also repeals 20-9-314, MCA, which provided procedures for determining eligibility and the amount of increased average number belonging (ANB) due to unusual enrollment increase.

The SEI Calculation worksheet can be found on the School Finance website under State School Payments>Entitlements 

In general, the SEI payment eligibility process is described in the bill as follows:

• School districts that experience an enrollment increase based on the October enrollment count in the current year converted to ANB must be greater than the budget limitation ANB for the fiscal year three years prior by 110%.
• The SEI payment is described in HB 36 as an amount that is the difference between 80% of the district’s total per-ANB entitlement for that fiscal year using the most current October enrollment count minus the “absorption factor”, and 80% of the district’s initial per-ANB entitlement for that fiscal year.
• The absorption factor is defined as an ANB amount rounded to the nearest whole number equal to the sum of five ANB plus 3% of the district’s budget limit ANB for that fiscal year.

The timeline for the SEI payment is as follows:

• By December 1^st each year following the October enrollment count, the OPI must determine the school districts that qualify for a SEI payment.
• By December 15^th of each year, the OPI must notify schools of their eligibility for a SEI payment.
• No later than March 1^st, the trustees of a SEI payment qualifying district are to notice OPI of acceptance of all or partial amount of the allowable SEI payment. This is done by passing a general fund budget amendment.
• As soon as passed, the school district general fund budget amendment must be provided to the OPI.
• Upon successful completion of the budget amendment process, the OPI will begin distribution of the SEI payments using appropriation authority from the BASE aid appropriation in HB 2. This payment will be distributed to schools by the OPI in the following months along with the direct state aid payment.
• With the regularly scheduled June payment, all distributions of the SEI payment will be complete for the fiscal year.

The Budget Amendment Packet is located on our website to help you with your budget amendment timelines and requirements.

If you have questions, please call Alivia Skeslien-Jenkins at 406-444-1964 or email us at OPISchoolFinance@mt.gov

Indirect cost rate applications - Due April 30^th

Districts that plan to charge indirect costs (e.g., general administration, accounting services, and personnel services) to FY2026 federal and state grant awards using an indirect cost rate must complete an indirect cost rate application form.  Application for an indirect cost rate does not increase the amount of the grant award.

For compatibility with the e-grants system the closing date for applying for an Indirect Cost Rate is April 30, 2025. 

The U.S. Department of Education renewed our indirect cost agreement effective for FY2022.  Consequently, some aspects of the indirect calculation have changed with this application round:

• School Systems enrolling greater than 2,600 students must redirect costs associated with business manager salary and benefits to direct and unallowable.
• Indirect Cost Rates will be awarded per school system rather than by LE.
• The use of a carry forward calculation has been eliminated. The calculation has been replaced with a five-year rolling average with a 5% discount.

Indirect Cost Rate Application and resources for FY2026 will be made available on the OPI website.

Please review the instructions and additional documentation for more details.

Indirect Cost Rate Cover Letter (please read)

Indirect Cost Rate Instructions

If you reclassify costs to adjust the indirect cost rate, please read the Indirect Cost Rate Instructions prior to reclassification of costs for an adjusted rate.  A reclassification calculator will be made available for aiding in the determination of an adjusted indirect cost rate. 

If you have questions or need assistance viewing the files, please contact: Amanda Zigan at 406-444-3096.

If you have questions, please contact Autumn Warren at (406) 444-9852 or contact us by email at opischoolfinance@mt.gov.

In-State Facility Tuition Claims

In accordance with section 20-9-435, MCA, resident districts will be responsible for a portion of the education costs for students attending in-state treatment facilities contracted with the OPI. The currently contracted facilities are Aware, Intermountain, New Day, Shodair, and Yellowstone Boys and Girls Ranch. The state facility must invoice the resident district of any obligation for tuition by August 15^th.  Resident districts may access the MAEFAIRS system to run a report at any time to see claims that have been submitted.  MAEFAIRS reports should not be viewed as actual bills from the facility, but rather an opportunity to review submitted claims.  The report may be found in MAEFAIRS under Views>Tuition>State Facilities District of Residence.

Any discrepancies must be resolved between the district and the facility.

If you have questions, please contact Enly Kovis at (406) 444-1579 or enly.kovis2@mt.gov.

QEC Planning for Superintendents and Principals

Principals and Superintendents please follow up with your teachers to ensure that their licensing is up to date. There are deadlines for licensing and verification that must be complete by December 1^st as pursuant to ARM 10.21.201. This impacts the distribution of the Quality Education Component Payment.

If you have questions, please contact Laci Novark at (406) 444-4401.

Mandatory 15 Hour Bus Driver Training

A quality driver training program is critical to the success of a school transportation program.

The commitment to provide school bus drivers who are safe, competent and well trained should be the goal of every school district. In order to achieve that goal, each district shall develop and implement a continuing education program for school bus drivers providing at least 15 hours of mandatory in-service training annually. The plan shall, upon request, be available for inspection by the Office of Public Instruction.

The minimum required training topics can be reviewed on pages 61-62 in the 2022 Montana School Bus Standards.

Training should be well documented for every driver that includes the date of training, hours completed, topic of training, and the duration of the training.

If you would like to inquire about how to pursue training opportunities for your drivers, please contact Donell Rosenthal at (406) 461-9316 or contact us by email at opischoolfinance@mt.gov.

Transportation Semester 2 Bus Inspections

The Montana Highway Patrol must perform the 2^nd semester bus inspections by January 31 and re-inspect the buses, if necessary, before transporting students.

Only school buses that pass inspection may be used to transport students and only school buses that pass inspection will receive state and county transportation reimbursement. A school bus that fails to pass inspection will not be eligible for state and county reimbursement until the bus is reinspected and approved by the inspecting officer.

Upon completion of bus inspections, forms must also be signed and dated by the District Official.

The school district is responsible for contacting the Montana Highway Patrol for bus inspections.  Buses that are placed in operation after the school semester has begun must be inspected and approved by the Montana Highway Patrol before the bus is operated on the established route.

Inspection Forms can be accessed through the Pupil Transportation System and must be entered electronically upon completion of the inspections.

If you have questions, please contact Donell Rosenthal at (406) 461-9316 email us at opischoolfinance@mt.gov.

Passenger Vehicles-Vans

A district may use an 8-15 passenger vehicle/van only for school-sponsored functions or activities.

A district may not use a passenger vehicle for purposes of transporting students to or from school on a regular bus route. 20-10-129, MCA.

Passenger vehicles owned by the district is not eligible to be included in the calculations for the Bus Depreciation Reserve fund under 20-10-147, MCA. In addition, these vehicle types are not an allowable purchase from the Transportation Fund.

A “School Bus” pursuant to 20-10-101(5), MCA,  are the only allowable form of transportation that may be used when transporting students to and from school.    Other vehicles that do not meet the definition of a “School Bus” will not be reimbursed by the state or county.

If you have questions, please contact Donell Rosenthal at (406) 461-9316 or contact us by email at opischoolfinance@mt.gov.

Bus Driver Certificate TR35

All school bus drivers (includes a Superintendent) must hold a valid Montana School Bus Driver Certificate (TR35) for a district to receive state reimbursement.

Qualifications for bus drivers are prescribed by 20-10-103, MCA, and by the Board of Public Education in ARM 10.64.201. The bus driver certificate forms are provided and must be maintained electronically in the Pupil Transportation System.

The Chair of the board of trustees must sign the certificate which is issued to a driver who is authorized and qualified to drive a school bus pursuant to all applicable rules, regulations, and laws. The district must retain a current copy of each bus driver’s certificate, provide a copy to the bus service contractor, if applicable, and file a copy with the county superintendent. The bus driver is required to always carry a current and valid hard copy of the certificate while driving a school bus.

If you have questions, please contact Donell Rosenthal at (406) 461-9316 or contact us by email at opischoolfinance@mt.gov.

Bus Route Change Requirements

When the board of trustees changes a route's mileage per day, or if a different school bus is used on the route, the trustees must approve the change in miles, submit it first to the county transportation committee for approval and then electronically submit a revised TR1 form to the Superintendent of Public Instruction by accessing the Pupil Transportation Portal.

The route (the area served and the miles per day) must be established by the board of trustees, by board resolution. 20-10-132 , MCA and 10.7.112, ARM.

For more information, please contact Donell Rosenthal at (406) 461-9316 or contact us by email at opischoolfinance@mt.gov.

Type E School Bus Requirements

Before a type E school bus is purchased, the school is required to complete a cost analysis of a traditional type A – D school bus versus the type E school bus before acquiring this bus type. This cost analysis must be on file for review pursuant to section 20-10-148, MCA

The analysis must be detailed to include the costs associated with purchase and operation of the school bus compared to the costs associated with purchase or contract and operation of a school bus designed to carry more than 10 passengers.  The overall purpose of the cost analysis is to demonstrate that the purchase and operation of a school bus as defined in 20-10-101(4)(a)(ii) is the most cost-effective means of transporting eligible transportees on the bus route(s).  The Type E is required to have an overall safety rating of 5 Stars as per NHTSA.   These results must also be on file for review.

If you have questions, please contact Donell Rosenthal at (406) 461-9316 or contact us by email at opischoolfinance@mt.gov.

In District Special Education Permissive Tuition Levy

The spreadsheet for FY2025 has been updated and posted to the OPI Webpage. The calculator for FY2025 is located on the website at the following link:  Tuition and Attendance (mt.gov).

If you have questions, please contact Andrea Mohammadi at (406) 444-1960 or contact us by email at opischoolfinance@mt.gov.

Fiscal Year 2025 Election Calendar

Our new election calendar is updated and posted to the website. The calendars are found Elections (mt.gov). If you are running a special election, please contact Andrea Mohammadi and we can assist with your calendar.

If you have questions, please contact Andrea Mohammadi at (406) 444-1960 or contact us by email at opischoolfinance@mt.gov.

Audit Letter for FY2024 Audits

The annual letter to auditors can be found on the Office of Public Instruction (OPI) website locate here Auditing. The letter provides general information for FY2024 regarding issues affecting Montana school district audits and special items the OPI would like auditors to review for compliance with statute and administrative rule.

If you have questions, please contact Amanda Zigan at (406) 444-3096 or contact us by email at opischoolfinance@mt.gov.

School Year 2025-2026 Changes

Changes to school names, grade ranges, non-operating, or attach/abandon (closing a district) with an effective date of July 1, 2025:  School districts with changes to operating status, grade level configurations, school/district name, etc., should contact the OPI as soon as possible.  Please send official notice of these change requests, on district letterhead, signed by the Authorized Representative, to the School Finance email at OPISchoolFinance@mt.gov.   

If you have questions, please contact Andrea Mohammadi at (406) 444-1960 or Alivia Skeslien-Jenkins at (406) 444-1964.

Emergency School Closures

School Closures are a local decision based on the needs of the community. Information on Emergency School Closures can be found on the School Finance Webpage. The document is titled “School District Closures – Unforeseen Emergencies.”

It is important to be familiar with the laws, but a couple of important reminders are as follows:

• Trustees should notify the County Superintendent of Schools and the OPI as soon as a school district closure has been declared.
• Trustees may close school for one school day each year for unforeseen emergencies that is not subject to a state funding reduction 20-9-806(2), MCA.
• If a school has an emergency closure for longer than the one-day exception, the Trustees may later adopt a resolution that a reasonable effort has been made to reschedule the pupil-instruction time lost. Not taking this action could result in a reduction to the schools District’s BASE aid.

Adherence to the statutes is necessary to prevent reduction of state entitlement funding for the district.

Please sent notice to the OPI at OPISchoolFinance@mt.gov or call Amanda Zigan at (406) 444-3096 or contact Alivia Skeslien-Jenkins at (406) 444-1964.

Updating School Contact Information with OPI

District Clerks are responsible for keeping their district’s contact information up to date. According to § 20-3-307, MCA, Trustee Contact information is required to be updated within 14 days following the qualification and oathtaking of a newly elected trustee or for the filling of vacancy on the board (the county superintendent is responsible for providing information to the district clerk for the purpose of updating the Trustee Repository). Contact information also affects the Budget and TFS reports as well as how the Authorized Representative for OPI and E-Grants updates. The instructions on how to update your schools’ information can be found at the following link: Instructions.

PERSONNEL CHANGES:  All school districts please go to the OPI website - Directory of Montana Schools - to verify your schools’ information.

Changes must be made by the Clerk in OPI Contacts for:

• Trustees (required by HB 811).
• Board chair.
• Clerk/business manager.
• Superintendent.
• Principal.

If you have questions, please contact us by email at CentralUpdates@mt.gov.

OPI Application Access Guides for NEW Clerks and Superintendents

The OPI has information for new:

• District Clerks
• District Superintendents
• County Superintendents

To assist in getting set up with their new roles, please see the documents located on the School Finance webpage.

If you have questions, please contact Amanda Zigan at (406) 444-3096 or contact us by email at opischoolfinance@mt.gov.

Sending confidential information

When sending confidential information to the OPI, there are two best methods to use:

• File Transfer Service (FTS). The link is on the school finance home page, however, there are two requirements for the use of FTS:
  • one of the parties must be a state employee
  • files must be sent to a person not a group email.
• Fax to us at (406) 444-3924 and let us know that you have sent something.

E-mail is not a safe or a recommended communication method for sending confidential or personally identifiable information.

If you have questions, please contact Amanda Zigan at (406) 444-3096 or contact us by email at opischoolfinance@mt.gov.

School Finance Updates to the OPI Website

Updated 2025 Elections Handbook link on the School Finance Elections page, on the Guidance tab.

Updated 2025 Elections Calendar with Forms on the School Finance Elections page, on the Guidance tab.

Updated 2025 Elections Calendar without Forms on the School Finance Elections page, on the Guidance tab.

Updated Significant Enrollment Increase (SEI) Calculation on the School Finance State School Payments page, on the Entitlements tab.

Updated Data Sheets 2026 button on the School Finance Impact Aid page.

Added Donated Commodities (Value of USDA Foods) link on the School Finance Auditing page, on the Information to Auditors tab.

The OPI is committed to providing reasonable accommodations to people with disabilities. If you need a reasonable accommodation, require an alternate format, or have questions concerning accessibility, contact the OPI ADA Coordinator, 406-444-3161, opiada@mt.gov, Relay Service: 711.