The “95 mills” we’ve heard about recently are the mechanism to equalize funding across the state so that kids get a quality education regardless of their zip code.

This setup has worked well in the past, but the cost of living has dramatically increased, especially in places like Bozeman. The 2022 median taxable value of a Bozeman home was $448,650, while the median price of a Fort Benton home was $124,450. So how does that impact schools? Labor costs more in places with elevated cost of housing, but as the costs of running schools has increased, the funding for education has not.

The law is holding schools like Bozeman’s back from being able to pay competitive wages. The formula for funding education can’t keep up with inflation when the law caps inflation-based increases at half the average of the 3 previous years. That means when inflation went over 7%, the state funding formula provided only a 2.7% increase across the state for all school budgets. With their hands tied for income, school districts suffer funding levels far lower than the reality of growth, with no way to raise more.

Under these conditions, school budgets are effectively shrinking, with less and less available to fund all the needs of a district like maintenance, utilities, supplies, and teacher salaries.

Bozeman Chronicle: Guest column: Understanding how education is funded