Operational Levies

Many districts across Montana and the country are experiencing decling student enrollment.  Some significant factors include:

• Lower birth rates
• Cost of living

Montana school funding is based on the number of students enrolled.  Fewer students means less state funding.  HOWEVER, many costs remain fixed.  Schools still need to pay the bills for staff and operations, even with fewer students.

Think of a 60-Passenger Bus

Imagine your school district is a large, 60-passenger school bus traveling on a long-distance mountain road.

• The Fixed Costs (The Bus): Whether you have 60 students or 10 students on that bus, you still have to pay the full price for the vehicle, the insurance, the driver’s salary, and the maintenance. You can’t "cut the bus in half" just because it's only half full. Heating a school building or maintaining a roof costs the same regardless of how many kids are inside.

• The Variable Costs (The Snacks): The only thing that gets cheaper with fewer students is the "snacks" (textbooks, paper, and art supplies). But these make up a tiny fraction of the total budget.

• The 3% Fuel Limit (The Funding Cap): The state provides a 3% increase in your "fuel budget" every year. However, the price of gas, tires, and engine parts (inflation) has actually gone up by 8% or 10%.

• The Result: Even though you have fewer passengers, the bus is becoming more expensive to keep on the road. Because your fuel budget (funding) isn't keeping up with the price of parts (inflation), you eventually have to decide between fixing the brakes or keeping the heater on.