Politics

Montana SB 312 Changes Billings School Funding Starting 2027

The bill alters how state education dollars reach Billings Public Schools, with effects on classroom resources and local taxes projected to begin in the next fiscal year.

By Billings Policy Desk · Published July 8, 2026

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The Montana Legislature approved Senate Bill 312 during its 2026 session. The measure revises the formula for distributing state education funds to local districts. Billings residents with children in public schools stand to see shifts in available programs first.

Legislators advanced the bill to address rising operational costs reported by districts across the state. Lawmakers set the effective date for July 1, 2026, aligning with the start of the new state budget cycle. This timing coincides with preparations for the 2026-2027 school year in Yellowstone County.

Billings Public Schools officials will receive revised allocation notices by September 2026. Families might notice updated supply lists or after-school activity offerings by January 2027. Property owners could encounter recalculated mill levies on their 2027 tax statements from the Yellowstone County Treasurer.

Implementation Schedule for Yellowstone County

The state Department of Education plans to issue guidance documents to all districts by August 2026. Billings administrators expect to adjust staffing contracts ahead of the spring semester. Local tax collection offices will apply any formula changes during the annual assessment period that begins in October.

State budget documents list education as the largest single expenditure category, with Billings district receiving a significant share based on enrollment figures that exceed 15,000 students. The legislation requires annual reports on fund usage starting in 2027.

Next steps include a series of public meetings scheduled by the Billings school board in late summer 2026. Residents can review the full text of SB 312 on the Montana Legislative Information System website. District leaders will submit their first compliance reports to the state capital by March 2027.

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