Introduction

Montana HB 252, the "Student and Teacher Advancement for Results and Success Act (STARS)," aims to enhance educational outcomes by providing targeted support for students and teachers. This bill was sponsored by Representative Llew Jones to enhance school the funding formula through incentives and a housing cost budget increases.

The legislation includes two new funding opportunities for districts. This page will be updated as further implementation measures are necessary.

Teacher Incentive Application

Districts must complete an application for the Teacher Incentive funding to demonstrate their commitment to meet the legislative goals for fiscal year 2026:

Teacher base pay at least 11 times the QEC amount for the application year and teacher base pay that is at least 62% of the average teacher pay in fiscal year 2025.

Applications are now located in the MAEFAIRS system under Data Entry – Teacher Incentive.

An application for each LE will need to be submitted. This means an application for both an Elementary and High School will need to be submitted. A K-12 will submit one application.

Applications need to be completed on or before December 1st, 2025.

STARS Act Guidance
Teacher Incentive Guidance

General Fund Budget Spreadsheet

Recorded Training



Contacts

Legislative Liaison

Katie Bloodgood (406)-444-2082

 
School Finance

Autumn Warren (406)-444-9852

Cori Opie (406)-444-3533

opischoolfinance@mt.gov

Career & Technical Education 

Shannon Boswell (406)-444-7915

Future Ready Incentive Funding

The new legislation includes provisions to expand personalized career and technical education (CTE) opportunities for middle and high school students; increase postsecondary dual credit; motivate students to consider postsecondary options; and expand district flexibility to prepare students for college and career success.

Districts with graduating students who earned any of the following outcomes may be eligible for Future Ready incentive funding beginning in the 2027-28 academic year.

  • Postsecondary Credits

Students eligible to receive transcripted credit awarded within the Montana University System upon completing a course of study offered in a high school or K-12 school district.

  • CTE-Equivalency Credits

Students attaining an industry-recognized credential or combination of credentials, or completion of a state-approved work-based learning experience.

  • Associate’s Degree

Students earning an associate’s degree while enrolled in high school.

District payments are contingent on the number of 8th grade or high school graduates achieving outcomes two years preceding the current academic year. Accordingly, the first year of Future Ready incentive payments will occur in the 2027-28 academic year, with amounts based on the graduating class of 2026. This delay will ensure that district and state administrators have time to collect accurate data, audit submissions, and resolve any disputes that may arise.


The Montana Office of Public Instruction (OPI) and Montana Office of Commissioner of Higher Education (OCHE) are collaborating with the Montana Department of Labor and Industry and other state agencies to develop statewide policies and guidelines relating to the new legislation. More information on the implementation effort will be provided as it becomes available.

Future Ready Funding Components

Qualifying Credits 

Incentive funding is based on student attainment of the following criteria.

≫ Industry-Recognized Credentials (IRCs)

The Montana Department of Labor and Industry (DLI) has identified a list of IRCs eligible for incentive funding. These must lead to enhanced employment opportunities that offer higher rates of compensation and, where feasible, are stackable toward further credentialing. While districts have flexibility in choosing which IRCs to offer, only those identified by DLI in the Montana Credential Registry are eligible for incentive funding.

≫ Dual Enrollment

High school graduates who complete a course of study that is eligible for transcripted credit at any unit of the Montana University System may qualify for Future Ready incentive funding. Academic (AP/IB) and career and technical education credits count towards the Goal Level thresholds.  Credit amounts are contingent on the type and number of credits a student achieved.

≫ Work-Based Learning (WBL)

WBL includes a continuum of instructional experiences that enable students to build skills and apply their classroom learning in a work setting. Districts with high school graduates who successfully completed a WBL course that is part of an approved CTE program may be eligible to apply these course credits in the future. Due to the need to validate WBL offerings, it is not anticipated that WBL credits will be eligible for consideration in the 2027-28 academic year. OPI will provide more information as it becomes available.

≫ Associate’s Degree

A student who earns an associates-level degree prior to graduation.

Incentive awards are made based on three levels. Credit totals may be based on postsecondary credits, CTE-equivalent credits, or a combination of the two

Goal Eligability High School District Payment Elementary District or K-12 District Payment
Level 1

Any combination of 15 postsecondary or CTE equivalency credits

10% ANB* (≈ $800)

10% ANB (≈ $600)

Level 2

Any combination of 30 or more postsecondary credits or CTE equivalency credits

20% ANB (≈ $1,600)

20% ANB (≈ $1,200)

Level 3

Associate-level degree

30% ANB (≈ $2,400)

30% ANB (≈ $1,800)

FAQ

What should I do if my district is unable to offer students access to learning experiences that qualify for Future Ready funding?

The Office of Public Instruction recognizes that some districts, including those serving small, rural communities may face challenges in offering access to industry-recognized credentials, dual or concurrent credit-bearing coursework or work-based learning experiences. Options for offering qualifying coursework do exist, including virtual or distance-learning technologies, school-based enterprises, and/or simulated work-based learning. Contact staff at Montana’s Department of Career, Technical, and Adult Education for assistance.

How do I apply for Future Ready funding?

The Office of Public Instruction is collaborating with the Office of the Commissioner of Higher Education to develop new data collection systems. Districts will likely need to submit additional data via Infinite Campus to report on the outcomes of graduating students. Additional information and training will be provided as this information becomes available.

Implemention Timeline for 2027-28 Academic Year

June 2026

Data collection begins for IRC, DC, and WBL credits

  • Record winter 2025-26 credits
  • Record available 2025-26 credits

July – Sept. 2026

Data collection window re-opens

  • Record spring 2026 credits

Dec. 31, 2026

Data collection window closes

  • Update and finalize 2025-26 credit awards

Jan. – Feb. 2027

Review of incentive funding data for June 2027 graduates

  • State calculation of incentive funding allocations
  • District review of eligibilities

April – June 2027

Review of incentive funding data for June 2027 graduates

  • State calculation of incentive funding allocations
  • District review of eligibilities

Sept. 2027

First year of Future Ready incentive funding awarded based on 2025-26 graduates