I’ve tried to write about school funding before. It has multiple levels and at times is difficult to completely understand. But at a recent board training, I was given a Montana School Finance Handout a 25-page document explaining school finances.
I thought I would start by giving the Big Sandy K-12 Budget for FY2024. The total of all funds is $3,564,573.44, but having written that it’s important to know there are ten different fund categories.
The General Fund is $2,127,853.49. Transportation is $250,000; Bus Depreciation Reserve is $644,293.54; Tuition is $40,000; Retirement is $275,000; Technology $58,777.95; Flexibility $50,379.30; Building Reserve $98,269.15; and there is zero in the Non-Operating category.
In the General Fund, the state revenue is $1,322,724.42, district tax requirements are $805,129.07 and the District Mill Levies is 93.39.
“The BASE budget for the district must be financed by the following sources of revenue; state equalization aid, County equalization aid, A district levy for support of a school not approved as an isolated school, Payment in support of special education programs, non-levy revenue and a BASE budget levy on the taxable value of all property within the district.”
Tuition is “Special Education Funds which are formula funds proved to local school districts in the form of a block grant.”
“There are five core components. 1. Quality Educator Payment –A per educator or licensed professional payment made directly to local schools. 2. At-risk Payment- A payment to schools to address at-risk students; or students who are affected by an environment that negatively impacts performance and threatens the likelihood of promotion or graduation. 3. Indian Education for all payment—a per-student payment to fund the constitutionally required education regarding the cultural heritage of the American Indians. R. American Indian Achievement Gap Payment per American Indian student payment to close the performance gap that exists between American Indian students and non-Indian students, 5. Data for Achievement—used school districts to pay for access fees or other costs associated with the use of or participation in the state-wide longitudinal data system administered by the Office of Public Instruction.”
“The general fund revenue comes from seven major sources: Individual Income Tax pays 56.9% of education; Property Tax pays 11.9%; Corporation Income Tax 7.3% Vehicle Taxes & Fees 3.3%; Insurance Tax 2.9% Video Gambling 2.3% Oil and Natural Gas taxes 1.9%; and the following sources pays 13.4%.”
Other taxes pay as well. (Be prepared for a long list.) “Driver’s license Fee, Investment License Fee, Lodging Taxes, Public Contractors Tax, Railroad Car Tax, Rental Ca Sales tax, Telecommunications Excise Tax, Coal Severance Tax, Electrical Energy Tax, Metalliferous Mines tax, US Mineral Royalty, Wholesale energy Tax, Coal Trust interest, Treasury Cash Account interest, Beer Tax, Cigarette Tax, Liquor Excise and License Tax, Liquor Profits, Lottery Profits, Marijuana Tax, Tobacco Tax, Wine Tax, Highway patrol fines, Nursing Facilities Fee, Public Institution Reimbursements and the Tobacco Settlement.”
According to this document “No field trip, activity or athletic transportation expenditures are allowed from the transportation fun.”
Also Interesting is the $20,000 line item in the budget for adult education. If anyone has an idea of a class for adult education you should contact the Big Sandy School.
I visited with Dan Schrock, Big Sandy Superintendent he told me, “A big driver in our budget, is an FBI, which is the average number of students that we have in attendance in our count dates. We have two count dates per year.
He also told me although the state legislature determines funding “the Montana Quality Education Cooperative (QEC) is the legal arm of the schools, that belong and contribute to the legal defense for keeping the laws that are enacted at the state legislature from adversely impacting our school funding. And there’s been no shortage of things that have come up over the years that could possibly have adverse effects today.”
The school is a non-profit entity. So it is legal for anyone to donate funds to them. So an example would be what is happening in Winifred. “It’s an absolutely stunning school. So much above and beyond what the community could support. So they enacted some sort of residual revenue. So for maintenance and other things like that. I don’t know the actual legislation number, but there was something enacted where you could get a tax deduction for contributions to school districts. But if somebody wants to donate to the school districts, Big Sandy School District and the superintendent are more than happy to write them a letter verifying that contribution/donation to our school district.”
I asked Dan, “If this district decides they want to give their teachers a huge salary, they could tax themselves, and that’d be okay with the state of Montana.” He said, “But, I know farmers, they don’t have an easy road to hoe.” It isn’t something he would consider.
Larger schools can pay their teachers more. They just get more money, because they have more students. “Their funding far exceeds ours. And, you know, typically speaking, they have, they have more taxable assets in their communities. Look at the home values. For example, in Bozeman, I mean that’s I don’t think you can come up with a better example his friend’s home valuation went up 45% In one year, and that’s average for down there.”
Dan went on to say, “But at the same time, I don’t know another place that I’d rather be. I really like Big Sandy. You have what you need. There’s a lot of support for our school and our kids and our staff. And it’s wonderful. Sometimes the bigger schools are so fragmented, that you don’t know your neighbors, and you don’t necessarily care about school or school funding.
Dan went on to say, “Oftentimes for small schools, it’s a death of 1000 cuts. So it’s not one thing, it’s the cumulative effect of a lot of cuts. There is no greater cut to a school district then losing our students.
