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Montana politics, elections and legislative news

Report: Inflation has outpaced state school funding since 2021

Line chart titled “District General Fund BASE Budget: Nominal and Real (2008) Dollars.” The horizontal axis shows fiscal years 2008 through 2027. The vertical axis shows budget amounts from $0 to $1.4 billion.

Two lines track funding over time: a green line for nominal budget and a gold line for real budget in 2008 dollars. A dashed blue horizontal line marks the 2008 constant-dollar baseline of about $756 million. The 2008 base budget is labeled $756,498,779.

Nominal funding rises steadily from about $756 million in 2008 to roughly $1.2 billion by 2027. Real funding remains near the 2008 level through the mid-2010s, then declines during a period of high inflation around 2021–23, before partially rebounding. A red arrow marks SB 175 in 2013. Another note indicates enrollment increased until peaking in fiscal 2023, then began to decline. Additional annotations note a period of high inflation and a 2025 STARS Act adjustment. The 2026 real budget is labeled about $711 million, and the estimated 2027 real budget about $765 million in 2008 dollars. Logos for the Fiscal Division and Legislative Services Division appear at the bottom.
Legislative Fiscal Division and Legislative Services Division
District General Fund BASE Budget: Nominal and Real (2008) Dollars

School administrators have long said that education funding in Montana hasn’t kept pace with inflation. State lawmakers last week got a glimpse of how wide that gap became at the height of the pandemic.

Legislative staff presented an analysis of state education spending to members of the School Funding Interim Commission. Members are exploring potential changes to how Montana pays for public school.

The state’s share of school budgets has gone up in dollar amount over the last two decades. But due to inflation, the value of that money has stayed almost exactly the same as it was back in 2008. After prices rose dramatically starting in 2021, the state’s investment in schools was valued at roughly $100 million less than it was more than a decade earlier.

Lawmakers last year approved a big increase in funding designed to improve teacher pay and close that inflation gap. That is happening, but Democratic Rep. Luke Muszkiewicz of Helena said that law is looking more like a Band-Aid than an investment.

“If basically what we hoped was this huge step forward is really just getting us out of the hole that we dug ourselves, it’s not going to be enough to move the needle,” Muszkiewicz said.

Schools also got a big influx of emergency cash from the federal government during the pandemic. But that funding ran out, and legislative analysis shows inflation-adjusted school spending is lower than it was in 2008.

Lawmakers are now debating whether to boost their investment in schools above that decades-old status quo. The School Funding Interim Commission will decide whether to recommend changes later this summer.

Austin graduated from the University of Montana’s journalism program in May 2022. He came to MTPR as an evening newscast intern that summer, and jumped at the chance to join full-time as the station’s morning voice in Fall 2022.

He is best reached by emailing austin.amestoy@umt.edu.
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