There is a perception that, because property taxes went up and a large portion of that was directed towards school funding, somehow school districts received a windfall of money. However, this is just not true.

• The taxable value in our elementary district increased by $34.4 million and the taxable value in our high school district increased by $69.2 million. This increase in taxable value did not result in any additional tax revenue to MCPS.

• When taxable values increase, so do mill values. With the recent increase in taxable value, the elementary district mill value increased by $34,400 and the high school district mill value increased by $69,200.  When the mill value increased, MCPS levied fewer mills. MCPS levied 11.5 fewer mills in the elementary general fund and 6.6 fewer mills in the high school general fund.  

• Not all taxing jurisdictions reduce their mills when mill values increase. The state will collect the same 95 mills under the school equalization obligation reflected on your tax statement. Collecting the same mills means a significant increase in property taxes paid to the state. MCPS taxpayers will send a total of $9.8 million more to the state as part of the 95 mill state equalization obligation, beginning this year.

• Despite receiving $9.8 million more from MCPS taxpayers, the state sent the MCPS elementary district $50,000 less and the high school district $491,000 more. In other words, the state netted $9.75 million from MCPS taxpayers in FY24.

• Looking towards next year (FY25), however, it is anticipated that the state will send an additional $2.3 million in support of the MCPS general funds. This is significantly higher than the total budgeting increases to the General Fund as it allows under Montana law. That means that the local levies in support of the MCPS general funds will decrease in 2025. Even if the two operating levies pass - approximately $105,000 in the Elementary District and $403,000 in the High School District - local taxpayer levies in the general fund are estimated to go down by more than $1 million in total.   

• Levies in support of all of the district’s nine budgeted funds do not increase as a result of increases in property tax values. They increase and decrease based upon the following factors: approval of levies; expiration of levies; reductions in bonded indebtedness; and changes in state funding. In the past six years, total levies went down twice in the Elementary District and three times in the High School District.  The FY24 increase in the Elementary District was $2.8 million, which is significantly higher than any other year during the recent six years. The larger increase in FY24 levies is tied to the following: less state funding and more local levies in the general fund; more levies to support the increased transportation; and the voter-approved $700,000 levy in the Building Reserve Fund.  Other than the Transportation Fund, it is not anticipated that levies in these funds will increase significantly in FY25.   

Additional property tax analysis can be viewed by downloading this document. 

One way to illustrate school funding is to think of it as money that goes into a backpack. Wherever that student goes, so does the money allocated by the state. In this way, student enrollment is directly tied to the funding MCPS receives.

A new state law allows public school districts like MCPS to establish charter schools. Other new legislation makes it easier for students to enroll in school districts outside their area of residence.

MCPS is offering two charter schools - Missoula CONNECT Academy and Missoula TEACH Academy - starting in Fall 2024. Students who are already enrolled with MCPS, as well as students who are not currently enrolled with our District, may be eligible for enrollment. At the same time, current MCPS students may decide to enroll at a school outside of MCPS.

At this time, MCPS does not anticipate that enough students will leave our District, or a particular school or grade within a school, to significantly impact our enrollment. In some cases, a small fluctuation in students could even lead to reduced need for additional para support in some schools for classrooms that are overloaded, resulting in budget savings and less need to level enrollments across schools. 

It is also possible that students in private, home school and other neighboring districts will enroll with MCPS, which will drive up revenue from enrollment and other funding sources.

The nonprofit news organization Montana Free Press has an in-depth article answering this question: “The money allocated to Montana’s new charter schools.”

According to this article, “The short answer is about $1.2 million.”

So far this year, 19 public charter schools have been approved for school districts across Montana. Two of these new charter schools are being established within MCPS.

MCPS has a Facilities Committee that meets regularly to examine the status of various District properties. It also has a Budget & Levy Committee that has discussed the feasibility of selling properties to fill budget gaps. Ultimately, it was decided that the sale of any properties at this time would result in a long-term loss for the District while providing relatively insignificant short-term relief.

For example, if the District were to sell one of its properties for $1 million, that amount would not cover the entire $8 million deficit we are facing this year. Next year, that $1 million would be gone, and the District would once again have to find a way to close that funding gap. 

The MCPS Board of Trustees voted to approve high school baseball for our District starting in 2025, with the requirement that the entire first year’s costs be covered by fundraising led by community groups, with funding milestones that must be met in order to establish the new sport. If successfully established in 2025, the District will then include baseball in the general fund as a revenue-neutral addition in 2026.

No, MCPS does not receive funding from the city or from the county for our general fund budgets. The District does receive a small amount of money from the county for student transportation costs; however, most of that comes through local taxpayers.

The District does receive basically all of the revenue needed for the elementary retirement fund and the high school retirement fund from the county through a countywide levy.  Additionally, a small portion of the transportation fund revenue comes from a similar countywide levy.

More information about city and county property taxes is available on the City of Missoula website. The Clerk & Treasurer section of the Missoula County website also provides information about property taxes. Information regarding property taxes and school districts can be found in FAQ under “My property taxes have gone way up! Doesn’t that mean MCPS is getting a lot more money?”

School districts across Montana are facing many of the same budget challenges as MCPS: flatlining or declining enrollment at the elementary level, the end of federal ESSER funding, and steep increases in the costs of goods and services. In response, some of the larger districts have proposed closing schools, shuttering programs, and reducing staff.

The nonprofit news organization Montana Free Press has an article describing the situation statewide: “Montana school leaders attribute budget crises to pandemic funding cliff, state funding frustrations.” 

This KTVH news segment includes a description of the state funding system’s role: “Montana’s largest school districts facing financial challenges.” 

Individual school district budget reports are available on the Montana Office of Public Instruction website.

MCPS is requesting General Fund levies and Safety levies for both the Elementary (grades K-8) and High School (grades 9-12) Districts.

A school district’s general fund budget is calculated in accordance with a formula as defined in state law, and based on the school district’s prior year enrollment. The funding formula sets both the minimum and maximum general fund budget, as well as the levy amount that a school district can request of local voters. The state budget limit and other district budgets do not grow as a result of increases in local property values. If the General Fund levies are not approved by voters in the May 7, 2024 school election, MCPS will be forced to make additional reductions. 

The Safety levies are meant to provide a funding source for safety-related expenses. Currently, those expenses are largely paid for out of the General Fund. If the Safety levies are not approved by voters, many safety-related expenditures will no longer have funding. 

The nonprofit news organization Montana Free Press has recently published articles that do a great job of breaking down the complexities of school funding into easily understandable and digestible pieces: 

●     “How Montana pays for its public schools, in pictures.”

●     “Five things to know about Montana’s school funding formulas.”

     MCPS also offers a report, titled "School Funding and Budgets 101."