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7/18/2025
Reported by Katie Fairbanks. Send Missoula news and tips to kfairbanks@montanafreepress.org.
Missoula Schools Await Federal Funds for Key Programs
Missoula County Public School Board approved up to $1 million to cover key programs and teaching roles impacted by a federal funding freeze.
The Trump administration has paused $6.8 billion in federal grants for school and adult education programs, prompting over 20 states to sue the administration, excluding Montana. The freeze has affected $26 million in state funding. This funding pause has left a shortfall of $966,400 for affected district programs, though some funds were carried over from last year.
Superintendent Micah Hill indicated that the district is better positioned due to a $3 million savings account. The board approved using these reserves to maintain programs, including salaries beginning in August. “The downside is those dollars are one-year only,” Hill noted.
Grants fund elementary and high school teaching positions, an English language tutor, and various after-school programs. Hill expressed concern over potential future funding issues due to the proposed federal budget cuts. The loss of after-school programs could strain working families as they look for alternatives for childcare.
Hill expressed that without federal money next year, the district must rely on its general fund to support affected programs. “The pie is only so big,” Hill stated, highlighting funding challenges.
Public Hearing on Missoula County Budget
Missoula County commissioners will hold a preliminary hearing for the fiscal year 2026 county budget on Thursday, July 24. Discussions will include income, expenditures, and departmental budget requests. The budget book will be available on the county website prior to the hearing. Residents can share comments online. The final budget vote is scheduled for Sept. 4, after public feedback and state-certified mill values are considered.
Study Reveals Shortfall in City Fee Collection
A study found Missoula’s fee revenue covers only 43% of service costs across five departments, Wohlford Consulting reported to the city council. The city subsidizes the remaining costs, leaving a $5 million gap from the $8.7 million in expenses. The study analyzed 3,209 fees, most of which fall short of full cost recovery.
Wohlford noted that Missoula’s cost recovery rate is comparable to other cities, though the planning department’s rate is notably lower than average. Recommendations for incremental fee increases are anticipated to improve recovery rates, aiming to balance cost-of-service outcomes over several years, according to City Operations Officer Eric Hallstrom.
Missoula Hotel Project Advances
The Missoula City Council approved sale and development agreements with Averill Hospitality for the Riverfront Triangle hotel project. The development includes a 180-room hotel, meeting spaces, restaurants, and retail outlets. Construction is expected in the next one to two years, potentially generating over $800,000 in new property taxes annually. Tax increment financing will cover public infrastructure costs, estimated at $14 million. The project will benefit the city’s Affordable Housing Trust Fund through incremental payments and a revenue assessment.
Key Updates in Missoula
Police Union Wage Agreement: The Missoula City Council and police union agreed to wage increases for fiscal years 2025-2027, avoiding arbitration costs.
Parks and Recreation Director Retirement: Donna Gaukler will retire after 23 years, having led major projects and program expansions.
School Board Appointment: Leslie McShane joins the school board, filling the vacant Hellgate Elementary trustee position.
Street Crews Begin Chip Sealing: Crews will treat streets from July 21 to Aug. 7, with traffic adjustments expected.
Property Tax Scam Warning: Residents are warned of scam calls regarding tax payments.
Upcoming Event: IndigiPalooza Festival
The IndigiPalooza MT: Indigenous Arts and Storytelling Festival will be held Aug. 1-2. The event will feature Indigenous artists, writers, and musicians, with activities at the Missoula Public Library and University of Montana. More details are available online.
Programming Note
Missoula This Week will not publish on July 24 as reporter Katie Fairbanks will attend the Ravitch Fiscal Reporting Program. The newsletter returns Aug. 1.
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