School Finance Compass April 2025

Upcoming Deadlines

State School Payments

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

The FY2025 April State School payments are scheduled for distribution on April 25, 2025. The April payment will include Direct State Aid, 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 (406) 444-3533

Notice of Intent To Increase Non-Voted Levies – Due March 31^st

School districts that intend to impose an increase in a non-voted levy in FY2026 for the purposes of funding the Transportation, Bus Depreciation Reserve, Tuition, Adult Education, Flexibility and/or Building Reserve funds, shall adopt a resolution and provide notice no later than March 31, 2025, per 20-9-116, MCA.

At a minimum, the resolution must show the estimated number of increased or decreased mills to be imposed and the estimated increased or decreased revenue to be raised compared to non-voted levies in the Transportation, Bus Depreciation Reserve, Tuition, Adult Education, Flexibility and/or Building Reserve funds imposed in the current school fiscal year and, based on the district’s taxable valuation most recently certified by the Department of Revenue under 15-10-202, MCA the estimated impacts of the increased or decreased on a home valued at $100,000, a home valued at $300,000 and a home valued at $600,000.

Publish a copy of the resolution in a newspaper that will give notice to the largest number of people in the district as determined by the trustees and post a copy of the resolution on the school district’s website.

Additional requirements for Building Reserve permissive levy: identify and list the anticipated school major maintenance projects for which the proceeds of the levy will be used in the resolution. Note: Proceeds from the levy may be expended only for the purposes in 20-9-525(2), MCA

For more information, please contact Laci Novark (406) 444-4401 or email at Laci.Novark@mt.gov, or Alivia Skeslien-Jenkins (406) 444-1964 or email at Alivia.Skeslien-Jenkins@mt.gov.

FY2024 Audits of School Districts – Due Dates

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

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

For more information on Federal, Yellow Book and Review Audits, visit the School Finance, Audit website to review the Audit Processes.

For more information, please contact Amanda Zigan (406) 444-3583

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 starting in the same schedule as 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.

For more information, please contact Alivia Skeslien-Jenkins (406) 444-1964 or email at Alivia.Skeslien-Jenkins@mt.gov or contact Laci Novark (406) 444-4401 or email at Laci.Novark@mt.gov.

FY 2026 Preliminary General Fund Budget Data Sheets  (This can be updated before the compass goes out if HB15 is signed and new data sheets are posted. It is updated as for now 3/11/25)

The Office of Public Instruction (OPI) has posted the FY 2026 Pre-Session Preliminary Budget Data Sheets and the FY 2026 General Fund Budget Spreadsheet to assist schools in budgeting for fiscal year 2026.

Revised Preliminary Budget Data Sheets will be re-issued after the Implement K-12 Inflation HB 15 is signed into law.

Before June 1, 2025, the Preliminary Budget Data Sheets will then be revised once again and reissued to include final legislative changes.  

The FY 2026 Preliminary Budget Data Sheets are located at the following link: CLICK HERE

The FY 2026 General Fund Budget Excel Spreadsheet is located at the following link: CLICK HERE

Note: Please download this current version of the spreadsheet to your computer. Make sure to check back periodically for possible revised versions as the data sheets are currently set to match the Pre-Session amounts.

For any additional questions, please contact:

Autumn Warren (406) 444-9852

Laci Novark (406) 444-4401

Andrea Mohammadi (406) 444-1960

Alivia Skeslien-Jenkins (406) 444-1964

Cori Opie (406) 444-3533

In District Special Education Permissive Tuition Levy

School districts that intend to impose an increase in a non-voted levy in FY2026 for the purposes of funding the Tuition shall adopt a resolution and provide notice no later than March 31, 2025, per 20-9-116, MCA.

At a minimum, the resolution must show the estimated number of increased or decreased mills to be imposed and the estimated increased or decreased revenue to be raised compared to non-voted levies in the Tuition

fund imposed in the current school fiscal year and, based on the district’s taxable valuation most recently certified by the Department of Revenue under 15-10-202, MCA the estimated impacts of the increased or decreased on a home valued at $100,000, a home valued at $300,000 and a home valued at $600,000.

If you have students that live in district and have tuition requirements above the normal use tuition calculator to help determine the additional funding needed for FY2026. The spreadsheet is found on the website at Tuition and Attendance.

If you have students attending out of district, this cost should be levied in the permissive tuition levy. Use the agreements that were sent to you from the district of attendance to help figure this cost. Please call or email Andrea Mohammadi if you need help with the calculation.

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

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 (406) 444-3533

Detailed Expenditures

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

The following expenditures 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. It is recommended that accounting software vendors and local school districts consider these adjustments for FY2025.

For more information, please contact Autumn Warren (406) 444-9852

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:

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

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

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 (406) 444-3096 or opischoolfinance@mt.gov.

For more information on how to complete the indirect cost rate application, please contact Autumn Warren (406) 444-9852.

Impact Aid Applications

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

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

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

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

• 1 Parent or District Student Attendance Agreement – FY2026
• 2 Foster and Group Home Student Attendance Agreement
• FP15 Day Treatment and Out of State Tuition

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

FY2026 County Reporting Forms

The Office of Public Instruction (OPI) has posted the FY2026 County reporting forms at the following link: CLICK HERE

• County Treasurer Statement (FP6a)
• FY2026 Countywide School Funds (FP6b)
• Joint District Basic Data (FP8a)
• Joint District Tax Levy Summary (FP8b)

For more information, please contact Autumn Warren (406) 444-9852.

FY2026 Special Education Cooperate Reports

The Office of Public Instruction (OPI) posted the FY2026 Special Education Allowable Cost Funding Cooperative Preliminary reports at the following link: CLICK HERE

For more information, please contact Autumn Warren (406) 444-9852

FY2025 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.

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

MAPT 2025 Bus Driver Conference Registration

Registration is now open for the 2025 Bus Driver Conference that will be held in Great Falls on June 18-20, 2025. At the Heritage Inn, 1700 Fox Farm Road.

CLICK HERE to register for the conference – NO AT-CONFERENCE REGISTRATION WILL BE ALLOWED.

CLICK HERE for the conference agenda.

CLICK HERE for awards forms.

Drivers will have the opportunity to fulfill their mandatory 15 hours of training requirements.

For questions about the conference or assistance with registration, please email MAPT at montana.mapt@gmail.com.

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 (406) 444-1960, or Alivia Skeslien-Jenkins (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 (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 (406) 444-3096, or contact us by email at CentralUpdates@mt.gov.

OPI Compass Webpage

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.