School Finance March 2026 Current

Upcoming Due Dates

State School Payments

The FY2026 February State School payments are posted at the following link: State School Payments. 

The FY2026 March State School Payments are scheduled for distribution on March 26, 2026.

The March 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, Special Education and Transportation.

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

State School Entitlements

The State School Funding Entitlement Reports for FY2026 are posted at the following link:

State School Payments-Entitlements

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

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 FY2027 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, 2026. 

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 FY2027 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.

Impact Aid Applications for 2027

The Impact Aid section 7002 and section 7003 applications have closed for the 2027 school year. Late Applications may be submitted until April 3, 2026. Late applications will have a 10% reduction in funding. If you have submitted and need to make amendments, this is allowed until June 30, 2026.

There are a number of helpful tools available on the IAGS Training and Resources pages to help you submit your application. In particular, please review the Section 7002 Application Instructions [impactaid.ed.gov] and Section 7003 Application Instructions. If you need a refresher on IAGS account set up and how to complete an application, see the slide deck, A Guide to Submitting a 7003 Application in the IAGS. If you have not logged in to the Impact Aid Grant System within the last 120 days, your system account is deactivated. You can request that the system administrator reactivate your account by entering your email address in the green box on Get Help. Each year, some applicants wait until the last minute and find that they can't log in due to a deactivated account. Applications submitted after the deadline, but before April 3, 2026 incur a 10 percent payment reduction penalty. Don't let this happen to you!

The 2027 Impact Aid Data Sheets are available on the OPI website at School Finance- Impact Aid and select the blue button Data Sheets 2027.

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

Active Expenditure String Tool

A spreadsheet of active expenditure strings is available on the School Finance website. All open MAEFAIRS expenditure strings that have been used since 2017 are available for review. Expenditure strings can be filtered or enter your string to determine if the coding string is valid.

For more information, please contact School Finance at OPISchoolFinance@mt.gov.

Tuition Forms for All Students and Foster-Group Home Students Completed and Entered to MAEFAIRS

Student Attendance Agreements must be completed at the time of a student’s enrollment in a school, as outlined in Section 20-5-320, MCA. For students placed in foster or group homes outside their resident district, it is essential that they are entered into the MAEFAIRS system promptly following approval by the attending district. This process ensures that resident districts can review their financial obligations or confirm their status as the resident district.

Payments for out of district students and students in foster or group homes are due in the following school year. To facilitate timely processing, please make sure to enter these agreements without delay and regularly run the relevant MAEFAIRS reports for resident districts. Forms required for this process are available on the Tuition and Attendance page of the School Finance website.

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

In-State Facilities Program

In State Facility Program Facility Guidance has been updated for facilities that are currently contracted with the In State Facility Education Reimbursement Program.

Clarifications have been made to school tuition billing requirements, special education requirements, and reporting requirements for contracted facilities.

For more information, please contact Enly Kovis or call (406) 444-1579.

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.

For more information, please call Autumn Warren at 406-444-9852 or email us at OPISchoolFinance@mt.gov.

Bus Driver Background Checks

Per HB 745, all current and new school bus drivers who will have contact with students are required to complete a fingerprint-based background check. This applies to any transportation staff who may be alone with, or responsible for, students during routes and activity trips. This requirement is intended to help protect students and reduce potential liability for districts.

For more information, please contact Elsie Workman at (406) 444-2463.

Annual Driving Records

Annual driving records must be performed on all drivers to ensure compliance with School Bus Driver Qualifications in 20-10-103, MCA and ARM 10.64.201. Driving Records information can be requested through the Montana Department of Justice.

For more information, please contact Elsie Workman at (406) 444-2463.

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.

For more information, please contact Elsie Workman at (406) 444-2463.

Bus Driver Certificate TR-35

All school bus drivers 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 contract, 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.

For more information, please contact Elsie Workman at (406) 444-2463.

In District Special Education Permissive Tuition Levy

The Special Education Permissive Tuition Levy spreadsheet for FY2026 has been posted to the OPI Webpage at the following location: Tuition and Attendance.

For more information, please contact Andrea Mohammadi at (406) 444-1960 or email 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, 2026:  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.

Elections

The OPI has posted the election calendar for the 2026 fiscal year. The most recent version is now available on the OPI website, providing important dates and deadlines for school district elections. Calendars can be accessed through the Elections section of the website.

OPI and MASBO are providing biweekly check ins beginning in February. The webinars are designed to assist districts with meeting statutory deadlines and overall election assistance. The check-ins will also provide a forum for discussion. Get your questions ready and we will see you there! The schedule is as follows. Links to the webinar will be provided on the MASBO website.

March 6, 2026 at 9:00 AM

March 20, 2026 at 9:00 AM

April 3, 2026 at 9:00 AM

April 17, 2026 at 9:00 AM

May 1, 2026 at 9:00 AM

May 15, 2026 at 9:00 AM

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

Audit - School District Compliance Supplement

The 2025 Compliance Supplement is now available on the LGSB website. The changes from the 2023 and 2025 legislative sessions have been highlighted for ease of identifying the updates. We have a link on our School Finance Auditing tab that links to the Past and Current School District Compliance Supplements.

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

FY2025 Audits of School Districts – Due Dates

FY2025 Federal Audits are due no later than March 31^st, 2026, per CFR 200.512.

FY2025 Yellow Book Audits and Reviews are due no later than June 30^th, 2026, per MCA 2-7-503(3)(a.

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

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

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 school 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.

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.

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 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/Supervising Teacher.

For more information, 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.

For more information, please contact us by email at OPISchoolFinance@mt.gov.

Sending Confidential Information

When sending confidential information to the OPI, the best method is to use the Montana File Transfer Service (FTS).  You can find the link to the Montana FTS on the School Finance home page, however, there are two requirements for the use of the Montana FTS:

• The recipient must be a state employee.
• The file must be sent to an individual (not a group email).

Regular email is not a safe or recommended communication method when sending confidential or personally identifiable information.

For more information, please email us at OPISchoolFinance@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.