Law & Courts

Court Overturns Montana Funding System

By Mary Ann Zehr — November 16, 2004 3 min read
  • Save to favorites
  • Print

In the legislative session that begins in January, Montana lawmakers will be under the gun to come up with a definition for a “quality” public education, following the Montana Supreme Court’s decision last week to strike down the state’s school funding formula.

While it held that the financing system is fatally flawed, the court said the question of whether Montana schools have enough money can’t be resolved until the system is based on “educationally relevant factors.” For that to happen, the court found, the legislature needs to interpret the meaning of the state constitution’s reference to “a basic system of free quality public elementary and secondary schools.”

In a unanimous decision on Nov. 9, the state’s highest court gave the legislature a deadline of Oct. 1 of next year to come up with a better system. In doing so, it upheld the ruling in April of Helena District Judge Jeffrey Sherlock that state funding for public schools is insufficient. The three-page preliminary order also upheld Judge Sherlock’s finding that the public education system is violating a mandate in the state constitution for schools to teach children about the heritage of American Indians.

Order Is Preliminary

Having rushed to issue a preliminary order on the matter so the legislature could address it in its upcoming session, the high court will issue a full opinion at an unspecified later date. State legislators are set to resume work Jan. 3 for a session expected to last 90 days.

The decision marked the second time the state’s funding formula has been struck down since 1989.

Following the latest ruling, Montanans need to take a much closer look at the needs and true cost of public schooling, said Jack Copps, the executive director of the Helena-based Montana Quality Education Coalition, which filed the current lawsuit in 2002.

“We’ve only speculated in Montana the amount of resources our schools need,” he said. That has led to problems such as a difficulty in recruiting and retaining teachers, he said, because Montana’s schools don’t pay enough.

But Brian Morris, the state solicitor who defended Montana in the case, said he was disappointed by the ruling. “We had urged the court to look at output measures, such as graduation rates and what students are learning,” he said.

Montana’s schools measure up well nationally, he said. He noted, for example, that its students perform well above average on standardized tests and that their graduation rates are higher than many other states.

Linda H. McCulloch, Montana’s superintendent of public instruction, said she hopes the court decision will result in more money to pay teachers better salaries. Many Montana school districts offer a starting salary of less than $20,000 per year, and about 60 percent don’t provide health insurance for their faculty members, she said.

Spending Rise Foreseen

Both Republicans and Democrats who served on the state Senate’s education committee in the most recent legislative session surmised that revamping the funding system to satisfy the court would mean coming up with more dollars for schools.

“That doesn’t necessarily mean that on a given piece of property, the taxes will go up,” said Sen. William E. Glaser, a Republican who chairs the Senate education committee. “We’ve actually done quite well in our economy, when everyone else was struggling.”

“I’d be surprised if everyone isn’t resigned to the fact that we’ll have to put more money into education,” added Sen. Mike Cooney, a Democrat on the same committee. The difficulty of resolving the issue, he said, will be agreeing on what level of funding is appropriate.

Sen. Robert R. Story Jr., a Republican member of the education committee, said the state’s formula for financing public schools is based on the number of pupils in a school, and places caps on what local districts can spend in addition to what they receive from the state.

The system reflects revisions made more than a decade ago in response to a previous ruling by the supreme court, which held that the system wasn’t equitable, he noted. Mr. Story said the existing system worked when student enrollment was growing, but now that it has been declining districts haven’t been able to keep up with their fixed costs.

Montana provided $555 million for K-12 education in fiscal 2004, or 60 percent of the local and state total spent on public schooling.

On the separate issue addressed in the high court’s ruling last week, Joyce Silverthorne, the head of the tribal education department for the Salish/Kootenai tribes of Montana and a former state school board member, said she was pleased that the court affirmed the constitutional mandate that schools teach all Montanans about their state’s 12 Indian tribes.

Related Tags:

A version of this article appeared in the November 17, 2004 edition of Education Week as Court Overturns Montana Funding System

Events

Reading & Literacy K-12 Essentials Forum Supporting Struggling Readers in Middle and High School
Join this free virtual event to learn more about policy, data, research, and experiences around supporting older students who struggle to read.
School & District Management Webinar Squeeze More Learning Time Out of the School Day
Learn how to increase learning time for your students by identifying and minimizing classroom disruptions.
Recruitment & Retention Webinar EdRecruiter 2026 Survey Results: How School Districts are Finding and Keeping Talent
Discover the latest K-12 hiring trends from EdWeek’s nationwide survey of job seekers and district HR professionals.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Law & Courts Supreme Court to Weigh Birthright Citizenship. Why It Matters to Schools
The justices will review President Trump's bid to end birthright citizenship, a move that could affect schools.
4 min read
President Donald Trump signs an executive order on birthright citizenship in the Oval Office of the White House, Monday, Jan. 20, 2025, in Washington.
President Donald Trump signs an executive order to on birthright citizenship in the Oval Office on Jan. 20, 2025. The U.S. Supreme Court will consider the legality of Trump's effort to limit birthright citizenship, another immigration policy that could affect schools.
Evan Vucci/AP
Law & Courts 20 States Push Back as Ed. Dept. Hands Programs to Other Agencies
The Trump admin. says it wants to prove that moving programs out of the Ed. Dept. can work long-term.
4 min read
Education Secretary Linda McMahon appears before the House Appropriation Panel about the 2026 budget in Washington, D.C., on May 21, 2025.
Education Secretary Linda McMahon appears before a U.S. House of Representatives panel in Washington on May 21, 2025. McMahon's agency has inked seven agreements shifting core functions, including Title I for K-12 schools, to other federal agencies. Those moves, announced in November, have now drawn a legal challenge.
Jason Andrew for Education Week
Law & Courts A New Twist in the Legal Battle Over Trump's Cancellation of Teacher-Prep Grants
A district court judge says she'll decide if the Trump administration broke the law.
4 min read
Instructional coach Kristi Tucker posts notes to the board during a team meeting at Ford Elementary School in Laurens, S.C., on March 10, 2025.
Instructional coach Kristi Tucker posts notes to the board during a team meeting at Ford Elementary School in Laurens, S.C., on March 10, 2025. The grant funding this training work was among three teacher-preparation grant programs largely terminated by the Trump administration in its first weeks. Eight states filed a lawsuit challenging terminations in two of those programs, and a judge on Thursday said she couldn't restore the discontinued grants but could rule on whether the Trump administration acted legally.
Bryant Kirk White for Education Week
Law & Courts Educational Toymakers Sued Over Trump Tariffs. How Is the Supreme Court Leaning?
Most justices appeared skeptical of President Trump's tariff policies, challenged by two educational toymakers.
3 min read
People arrive to attend oral arguments at the Supreme Court on Wednesday, Nov. 5, 2025, in Washington.
People arrive to attend oral arguments at the U.S. Supreme Court on Wednesday, Nov. 5, 2025, in Washington. The court heard arguments in a major case on President Donald Trump's tariff policies, which are being challenged by two educational toy companies.
AP Photo/Mark Schiefelbein