BUDGET & TAX IMPACT

BUILDING BUDGETS

How did we build the budgets for a $43M elementary school and $240M in high school improvements?

Planning new and improved school facilities requires more than just construction—it requires a comprehensive budget that ensures our students walk into safe, well-equipped, and future-ready learning environments. The 2025 School Bonds for a new elementary school ($43 million) and major high school improvements (over $150 million across two campuses) were developed with input from architects, contractors, and school and district leadership.

These budgets reflect today’s construction costs, Helena’s specific facility needs, and the full scope required to deliver modern, accessible, and efficient schools for every student. Both bond packages cover everything needed to plan, build, and equip school buildings—from demolition and design to desks and data systems. They also include contingency funding to manage inflation and unexpected costs without compromising the end product.

Here’s a breakdown of what’s included:

CONSTRUCTION COSTS

THE LARGEST SHARE OF THE BOND BUDGET COVERS ACTUAL CONSTRUCTION:

BUILDING MATERIALS & LABOR

SITE DEVELOPMENT (UTILITIES, GRADING, ACCESS ROADS)

DEMOLITION AND HAZARDOUS MATERIAL ABATEMENT (IF NEEDED)

SOFT COSTS

THESE ARE ESSENTIAL NON-CONSTRUCTION EXPENSES REQUIRED TO DELIVER A COMPLETE PROJECT:

ARCHITECTURAL & ENGINEERING DESIGN FEES

LEGAL FEES & INSURANCE

PERMITTING, TESTING, INSPECTIONS, & COMMISSIONING

A CONTINGENCY FUND TO MANAGE UNEXPECTED COSTS

PROJECT MANAGEMENT & OWNER'S REPRESENTATIVE SERVICES

FURNITURE, FIXTURES & EQUIPMENT (FF&E)

EVERY NEW SCHOOL NEEDS TO BE MOVE-IN READY:

DESKS, CHAIRS, WHITEBOARDS, STORAGE, AND PLAYGROUND EQUIPMENT

CLASSROOM TECHNOLOGY: PROJECTORS, AV SYSTEMS, SMARTBOARDS

KITCHEN & FOOD SERVICE EQUIPMENT

SITE WORK & SURVEYING

A SAFE, FUNCTIONAL SITE IS CRITICAL:

LAND SURVEYS AND SOIL TESTING

ENVIRONMENTAL & TRAFFIC ASSESSMENTS

EASEMENTS OR LAND ACQUISITION

BOND ADMINISTRATION

TO PROVIDE PUBLIC INVESTMENT, THE BUDGET INCLUDES ALLOWANCES FOR:

PUBLIC INFORMATION AND ELECTION MATERIALS

FINANCIAL ADVISORY AND LEGAL SERVICES

BOND ISSUANCE AND MANAGEMENT FEES

ESCALATION & CONTINGENCY

TO PROVIDE PUBLIC INVESTMENT, THE BUDGET INCLUDES ALLOWANCES FOR:

INFLATION & MARKET ESCALATION (ESPECIALLY IMPORTANT IN TODAY'S VOLATILE CONSTRUCTION CLIMATE)

UNKNOWNS THAT ARISE DURING CONSTRUCTION, LIKE UNSTABLE SOILS OR SUPPLY DELAYS

Why do school construction costs per square foot seem so high compared to houses or office buildings?

School buildings are held to much higher standards than homes or typical commercial spaces. They’re built to last 50–75 years, with durable materials, fire protection systems, and life safety features to serve hundreds of students daily. Unlike homes or offices, schools include specialized spaces like science labs, gyms, commercial kitchens, and secure entryways—all of which add complexity and cost.They must also meet strict accessibility, energy, and seismic codes, and use prevailing wages in publicly bid contracts. Add today’s high construction and labor costs, and the square-foot price reflects a facility that’s safer, stronger, and built for generations—not just decades.

PROJECT COST OR IN THIS CASE, PROJECT BUDGET

THE ALL IN COST FOR THE PROJECT. INCLUDES THE FOLLOWING:

CONSTRUCTION COSTS

SITE WORK &

SURVEYING

SOFT COSTS

BOND

ADMINISTRATION

FURNITURE, FIXTURES & EQUIPMENT

ESCALATION & CONTINGENCY

AN INTERACTIVE, COMMUNITY-DRIVEN BUDGET PROCESS

Creating the budgets for the 2025 school bonds was not a one-time calculation—it was an iterative process shaped by community input, evolving priorities, and fiscal responsibility.

When we first developed initial cost models for the high school projects, the total was over $360 million—well beyond what our community could support. Rather than scaling back blindly, we returned to the stakeholders—teachers, staff, students, and administrators—and asked a key question:

“What are the most critical success factors for a school that supports student learning now and into the future?”

Through that dialogue, we didn’t try to replicate everything offered in larger AA districts—we focused on what mattered most to Helena’s students and staff. We heard about the importance of:

Reinforcing school communities and unique campus identities
Adding an auxiliary gym to support athletics, allowing existing gyms to be renovated
Prioritizing long-term investment, flexibility, and future-readiness in learning spaces
Improving safety, security, and campus circulation
Expanding and modernizing commons, libraries, and CTE areas to reflect current and emerging educational needs

That input helped us refine scopes, reduce non-essential costs, and align final bond budgets with community capacity—without compromising educational outcomes. What resulted is a focused, responsible investment that puts resources where they’re needed most.

STAKEHOLDER INTERVIEWS

Initial ideas for project scope, needs, and potential square footage/program

DEFINE PROJECT SCOPE

Scope definition & estimated square footage needs per facility.

ESTIMATE PROJECT COSTS

Initial project budget (hard costs)

COMPLETE BUDGET DEVELOPMENT

Comprehensive project budgets for each facility

VALIDATE & PRIORITIZE

Refined scope & essential budget needs

BUDGET ALIGNMENT WITH BOND CAPACITY

Final pre-bond project budgets aligned with community support

BALANCING BUDGET AND IMPACT: WHAT HAPPENS WHEN WE CUT TOO FAR?

When school construction budgets are reduced too far, it can result in long-term trade-offs that impact student learning, staff support, and operational efficiency.

This graphic highlights some of the key consequences of underbuilding:

Educational Impacts

Fewer student-centered spaces like commons, breakout areas, and flexible learning environments
Limited access to natural daylight and ventilation, which support health and learning
Reduced capacity to adapt to future educational models or enrollment growth

Operational & Safety Impacts

Higher long-term operating costs due to less efficient systems
Fewer staff workspaces and support areas
Simplified or reduced security and supervision features
Lower comfort due to poor acoustic and thermal performance
Use of less durable materials, leading to more frequent repairs and replacements

Without enough budget, new buildings may lack the flexibility or capacity to accommodate changes in how we teach—or increases in student enrollment. It’s not just about cost—it’s about building smart for the long term.

WHAT KIND OF TAX INCREASE SHOULD I EXPECT?

Helena voters will be asked to consider two separate bond measures in 2025:

$43 million Elementary Bond (20-year term)

$240 million High School Bond (30-year term)

The Elementary Bond will appear on tax rolls starting in the 2026–27 fiscal year. To help reduce the early impact on taxpayers, the bond is structured to levy fewer mills until two existing school bonds are paid off in 2037 and 2039—balancing near-term affordability with long-term investment in Helena’s aging elementary facilities.

The High School Bond, also appearing on tax rolls in 2026–27, funds critical safety upgrades, new construction, renovations, and facility modernization at Helena’s two high schools.

The chart below shows estimated tax increases based on your home’s market and taxable value. These examples reflect homestead-qualified residential properties (primary homes or long-term rentals).

New in 2025: Montana’s tax laws are changing. Your home’s taxable value will now be based on its market value range:

Up to $400,000 – taxed at 0.76%

$400,001 to $1.5 million – taxed at 1.10%

Over $1.5 million – taxed at 2.20%

Non-primary homes and some agricultural properties will be taxed at different rates.

For the full Tax Impact Information, click here to view the complete mill levy estimate chart.

Visit Property Record Card | Property Assessment Division

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