In a ruling centered on the Montana Legislature’s budget allocation, a Lewis and Clark County District Court judge overturned a 2023 law establishing education savings accounts for students with disabilities. The law, known as House Bill 393, faced criticism for potentially diverting public funds to private education, which opponents deemed unconstitutional and detrimental to financially strained school districts.
District Court Judge Mike Menahan dismissed most of the arguments from Disability Rights Montana and the Montana Quality Education Coalition. He determined that the Legislature’s improper allocation of funds, not the alleged violation of the state constitution, was the issue. The lawsuit named the Office of Public Instruction Superintendent Susie Hedalen and Gov. Greg Gianforte, with Rep. Sue Vinton intervening as the bill’s sponsor.
House Bill 393 proposed a system where parents could use Education Savings Accounts for various educational services. School districts were required to return most of their state funding for participating students to these accounts, managed by the Office of Public Instruction. Despite objections that the program redirected taxpayer dollars to private initiatives, Menahan emphasized the lack of legislative funding authorization as the primary problem.
Since the program’s inception, 47 families have benefited, as court documents indicate. Critics argued HB 393 violated Article VIII, Section 14 of state law by not specifying a funding limit for the program. Menahan concurred that while the program was created, funding wasn’t allocated, noting that program costs would vary with participant numbers. In 2024, 13 students participated, increasing to 47 in 2025.
Menahan also pointed out that although funding was provided for the Office of Public Instruction to administer the program, the absence of allocated funds rendered the law invalid. Doug Reisig, executive director of the Montana Quality Education Council, stated, “Taking money from public schools for vouchers without clear limits on how much and when that money will be spent is unconstitutional.”
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