In a recent legal decision, a District Court in Lewis and Clark County invalidated a Montana law that aimed to establish an education savings account specifically for students with disabilities. The court’s ruling centered on the legislative misallocation of funds, which ultimately led to the law’s downfall.
House Bill 393, passed in 2023, faced opposition from groups like Disability Rights Montana and the Montana Quality Education Coalition. Critics argued that the bill, which proposed state-funded private education, was unconstitutional and detrimental to public school resources. Despite these concerns, the court did not find the law unconstitutional regarding the use of public funds for private education. Instead, District Court Judge Mike Menahan pointed out the improper allocation of funds by the Legislature as the critical issue.
The lawsuit was brought against the state by Disability Rights Montana and the Montana Quality Education Coalition, targeting officials such as Superintendent Susie Hedalen and Governor Greg Gianforte. Representative Sue Vinton, a Republican from Billings and the bill’s sponsor, defended the legislation on behalf of the lawmakers involved. At the time of the bill’s passage, Elsie Arntzen, also a Republican, served as Montana’s Superintendent of Public Instruction, although her term expired in 2024.
HB 393 was designed to allow parents of children with disabilities to access an Education Savings Account for various educational services and opportunities. School districts were expected to redirect most of their allocated funds for these students to the accounts, managed by the Office of Public Instruction (OPI).
Although opponents argued the bill would divert public education funds to private programs, Judge Menahan dismissed this claim. However, he sided with the plaintiffs on the issue of improper legislative funding. The court found that the Legislature had failed to specify the appropriation of funds, making certain aspects of the lawsuit irrelevant.
Since the law’s implementation, 47 families have participated in the program. The plaintiffs contended that HB 393 violated Article VIII, Section 14 of the state law due to the absence of a definitive appropriation and a specified budget cap for the program.
Judge Menahan acknowledged that the Legislature had indeed initiated the program without allocating the necessary funds. He also noted that while the Legislature did allocate funds for OPI to manage the program’s expenses, the lack of a clear funding plan rendered the law invalid. “Taking money from public schools for vouchers without clear limits on how much and when that money will be spent is unconstitutional,” stated Doug Reisig, executive director of the Montana Quality Education Council.
