SD+5+Current+Funding+Policies

__** Montana Funding Policies Question and Answer **__
 * Q: What other General Fund payments exist? **

A: In the 2005 special legislative session four new components were added to in the General Fund: Quality Educator, At-Risk, Indian Education for All, and American Indian Achievement Gap.


 * Calculations of these components are: **

Quality Educator - Each district and special education cooperative will receive a $3,042 payment in FY2010-11 for each full-time equivalent licensed educator and for other licensed professionals employed by the school district, including registered nurses, licensed practical nurses, physical therapists, speech language professionals, psychologists, licensed social workers, counselors, occupational therapists, and nutritionists.

At Risk - The At-Risk payment is intended to address the needs of at-risk


 * Q: How does the state fund special education? **

A: OPI distributes state funding for special education in three categories:

1) Instructional Block Grant (IBG) and Related Services Block Grant (RSBG)—If a school district is eligible, these block grants are based on the ANB of the district. The money is spent on allowable special education costs as defined in MCA 20-7-431. The district must spend $1 of local money for every $3 received from each block grant. If a school district is a member of a special education cooperative, the state pays the district’s RSBG directly to the cooperative.

2) Reimbursement (40%) for Disproportionate Costs—Districts with unusually high special education costs may be eligible for additional special education reimbursements.

3) Additional administrative/travel funding for special education cooperatives.


 * Q: How are the minimum and maximum general fund budget levels calculated? **

A: The budget levels are calculated based on state entitlements that are driven by enrollment, number of educators and licensed professionals and number of American Indian Students. The basic and per-ANB 13 entitlements, Quality Educator, Indian Education for All, Indian Student Achievement Gap, and At-Risk Student payments, along with the district’s special education funding, define the BASE (minimum) and Maximum general fund budget limits.


 * Q: Are school districts audited? **

A: Yes. In the 2007 legislative session, HB 487 was passed and changed the audit threshold from $200,000 to $500,000. For FY 2007-08, districts with $500,000 or more of revenue would receive a basic audit and districts with less than $500,000 of revenue must have a financial review at least once every four years. Federal law requires that districts that expend $500,000 of Federal money in a year must have a more comprehensive audit in accordance with OMB A-133 Federal audit guidelines.

References Montana Office of Public Instruction. (2011). Retrieved from http://www.opi.mt.gov/pdf/schoolfinance/budget/UnderstSchlFin.pdf