School Finance Compass March 2025

Upcoming Deadlines

State School Payments

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

The FY2025 March payments are scheduled for distribution on March 26, 2025. The March payment will include Direct State Aid, Significant Enrollment Increase, Quality Educator Component, At Risk Component, Indian Education for All, Student Achievement Gap, Data for Achievement, Special Education and Transportation.

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

Funding for Significant Enrollment Increases (SEI)

The Office of Public Instruction (OPI) is providing this notice of HB 36 (2023 Legislative session) that revised the funding for significant enrollment increases. HB 36 modified section 20-9-166, MCA, to allow significant enrollment increase (SEI) payments as described below. It also repealed 20-9-314, MCA, which provided procedures for determining eligibility and the amount of increased average number belonging (ANB) due to unusual enrollment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% or more.
• 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 contact Alivia Skeslien-Jenkins at (406) 444-1964 or email at Alivia.Skeslien-Jenkins@mt.gov or contact Laci Novark at (406) 444-4401 or email at Laci.Novark@mt.gov.

FY2024 Audits of School Districts - Due Dates

FY2024 Federal Audits are due no later then March 31, 2025, per CFR 200.512.

FY2024 Yellow Book Audits and Review Audits are due no later then June 30, 2025, per MCA 2-7-503(3)(a.

For more information on Federal, Yellow Book and Review Audits, visit the OPI Website Audit Processes.

If you have questions, please contact Amanda Zigan (406) 444-3583.

State School Entitlements

The State School Funding Payments Entitlement for FY 2025 were posted at the following link: State School Payments>Entitlements

For more information, please contact Cori Opie, at (406) 444-3533

Emergency School Closures

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 law, but a couple of important reminders are as follows:

1. Trustees should notify the County Superintendent of Schools and the OPI as soon as a school district closure has been declared.

2. Trustees may close school for 1 school day each year for unforeseen emergencies that is not subject to a state funding reduction 20-9-806(2), MCA.

3. 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 send notice to OPISchoolFinance@mt.gov or call or Alivia Skeslien-Jenkins

at (406) 444-1964 or Laci Novark at (406) 444-4401.

Impact Aid Applications

If you need to amend your application, this is allowed until June 30, 2025.

For more information, please contact Andrea Mohammadi at (406) 444-1960, or contact us by email 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 are 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 is available for aiding in the determination of an adjusted indirect cost rate. 

Schedule A, which shows preliminary rates.

The Certification forms.

If you have questions or need assistance viewing the files, please contact: Amanda Zigan at (406) 444-3096 or opischoolfinance@mt.gov.

If you have questions about how to complete the indirect cost rate application, please contact: Autumn Warren at (406) 444-9852.

Tuition Forms - Complete and Enter in MAEFAIRS – Due June 30^th

Tuition applications are now available in MAEFAIRS. The new FP14’s for 2026 is also available on the OPI website. Training was held on February 19, 2025. The training is recorded and available on our website.

Student Attendance Agreements should be completed upon enrollment for the district as defined in school (20-5-322, MCA).  Students who are in foster or group homes outside of their resident district should be entered into MAEFAIRS as soon as they are approved by the district of attendance.  This allows resident districts to review their obligations or dispute their status as resident district – facilitating payments due in the ensuing year.  Please make sure to enter these agreements in a timely manner and run the reports set up for resident districts in MAEFAIRS.  Forms can be accessed on the website under  Tuition and Attendance.

FP14.1 Parent or District Student Attendance Agreement – FY2026

FP14.2 Foster and Group Home Student Attendance Agreement

FP15 Day Treatment and Out of State Tuition

For more information, please contact Andrea Mohammadi at (406) 444-1960 or email Andrea.Mohammadi@mt.gov.

FY 2025 Election

Watch for upcoming election webinars provided by MASBO. Go to the MASBO website for more information.

The election calendar is available here Election Calendar. Additional guidance is also available at Elections Guidance.

If you need more information or immediate assistance, please contact Andrea Mohammadi at  (406)444-1960 or email Andrea.Mohammadi@mt.gov or opischoolfinance@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. For more information, please contact Amanda Zigan at (406) 444-3096 or contact us by email at opischoolfinance@mt.gov.

Bus Driver Certificate TR35

School bus drivers must hold a valid Montana School Bus Driver Certificate (TR35) for a district to be eligible to receive state reimbursement. ARM 10.7.111.

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 files 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.

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

Audit Letter for FY-2024

The annual letter to auditors can be found on the OPI website by clicking this Audit link. The letter provides general information for the fiscal year 2024 regarding issues affecting Montana school district audits and special items the OPI would like auditors to review for compliance with statute and administrative rule.

For more information, please contact Amanda Zigan at (406) 444-3583 or contact us by email at OPIAuditReports@mt.gov.

School Year 2024-2025 Changes

• STRUCTURE CHANGES 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.   

For more information, please contact Andrea Mohammadi at (406) 444-1960, or Alivia Skeslien-Jenkins at (406) 444-1964 or contact us by email at OPISchoolFinance@mt.gov.

• PERSONNEL CHANGES in the Directory of Montana Schools: Changes to Trustee, board chair, clerk/business manager, superintendent, or principal must be changed in OPI Contacts.  Instructions for how to make these changes are found here: Instructions.

For more information, please contact Amanda Zigan at (406) 444-3096, or contact us by email at CentralUpdates@mt.gov.

Updating School Contact Information with OPI

District Clerks are responsible for keeping contact information up to date. In accordance with  § 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 AR 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.

For more information, please contact Amanda Zigan at (406) 444-3096, or contact us by email at CentralUpdates@mt.gov.

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.