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7/18/2025
“Missoula This Week” is reported and written By Katie Fairbanks. Send your Missoula news and tips to [email protected].
District waiting on federal funding for teacher positions, after-school programs
The Missoula County Public School board Tuesday approved spending up to $1 million to cover programs and teaching positions affected by a federal funding freeze.
The Trump administration is withholding about $6.8 billion in federal grants for school programs and adult education as part of a review to ensure they align with the president’s priorities, the Associated Press reported. On Monday, more than 20 states — not including Montana — sued the administration over the freeze, which affects $26 million in funding for the state.
While the school district programs affected by the freeze cost a little over $1 million, the district had some funds carry over from last year, leaving a $966,400 shortfall, according to board documents.
Superintendent Micah Hill said the school district is in a somewhat better position than others affected because of its savings account that’s amassed about $3 million. Hill requested that the school board allow the district to spend some of that money on affected programs, including the salary and benefits it will start paying in August or September, he said.
“The downside is those dollars are one-year only,” Hill said. “There’s no plan after it is spent.”
Hill said the district is hopeful that the grants will come through this year, but the future is uncertain because Trump’s proposed federal budget cuts money for those grant programs. Congress will ultimately decide on the budget.
The grants currently pay for two elementary school teachers, three Willard Alternative High School teachers, an English language tutor, professional development for teachers, summer school, after-school programming at Hawthorn, Lowell and Franklin elementary schools, and related supplies for those programs, according to the district. About 75% of the money goes toward salary and benefits, Hill said.
While the money for after-school programs is not “super significant,” the loss of the programs would have broader ripple effects, Hill said.
“Without those, it puts strain on the community for families that are working, having to find child care or send kids home to empty households,” he said.
The district’s English Language Learner (ELL) program will likely be further affected by the anticipated cut of a different grant, Hill said. Last year, the district laid off nine tutors and dipped into the general fund to support others after the grant money came in late, he said.
“Right now, it looks like we’re going to be hit pretty hard there,” Hill said. “It takes special education services and support to work with families and try to accommodate ELL with 10 different languages in MCPS. Without those [grants], we have to say, ‘How are we going to do this?’”
If the federal money is unavailable next year, the district will have to find money in its general fund for things like the Willard High teachers, Hill said.
“The pie is only so big. When you start carving it up in different ways, there’s not enough to go around for all the things we offer,” he said.
Public Notice
The Missoula County commissioners will hold the preliminary hearing for the fiscal year 2026 county budget on Thursday, July 24. The hearing will cover income, expenditures and requests from departments for the county’s budget. It will also include the Missoula local government building special district budget, the fairgrounds redevelopment special district budget, the Seeley Lake refuse special district budget and all rural special improvement districts budgets.
The 2026 budget book will be available on the county website ahead of the hearing. Residents can learn more about the budget process or submit a public comment online. The Thursday meeting begins at 2 p.m. in the Sophie Moiese Room at the Missoula County Courthouse. Those interested can also attend virtually.
The commissioners will vote on the budget during the final hearing on Thursday, Sept. 4, after receiving certified mill values from the state and considering public input, according to the county. Last year, the commissioners approved a budget with a 4.2% property tax increase over the previous year.
Study: City fee collection falling short of costs
A recent study of the city of Missoula’s fees showed that five departments’ fee revenue covers 43% of the costs to provide related services. That number is not out-of-the-ordinary, though the rate varies among departments and fees, Chad Wohlford, of Wohlford Consulting, told the Missoula City Council on Wednesday.
The consulting group studied direct and supporting costs of fee services for the building, planning, public works engineering, fire prevention and business licensing departments to get a comprehensive picture of the city’s costs, Wohlford said. The group calculated the hourly rates for each staff position and the time to complete each task associated with a fee or potential fee to come up with the total cost of service, he said.
The total cost to provide services was $8.7 million, and the city is projected to receive $3.7 million in fee revenue, leaving the city to subsidize the remaining $5 million in costs, according to the report. Of the 3,209 fees analyzed, 82%, or 2,627, are less than the full cost of services.
This graph, included in the report, shows the cost recovery per department based on current fees and projections for the 2025 fiscal year. Business licensing had the highest recovery rate at 89%, followed by building at 60%, public works engineering at 38.5%, fire prevention at 23% and planning at 20%.
When asked if the city’s cost recovery rate is unusual, Wohlford told the council that building, fire prevention and business licensing are within the norms he sees among other cities. The planning department’s rate is a little lower than the typical 50%, but planning services commonly “grossly undercover” costs, he said.
“The overall 43%, I wouldn’t call that an outlier either,” Wohlford said. “You’ve got some low ones in here, some regular ones, and when I say regular, within norms. So this doesn’t shock me, but obviously it will be concerning for some folks.”
Comparing Missoula’s cost recovery to other cities is difficult because the details of costs that factor into fees aren’t easily available, Wohlford said.
The most common approach to increasing cost recovery is phasing in fee increases, regardless of whether the target is 100% recovery, Wohlford said. When considering how and when to raise fees, the council may factor in what activities it wants to incentivize and what activities have only a private benefit that taxpayers shouldn’t be subsidizing, he said.
City staff are working on recommendations based on the study but are not pursuing an across-the-board increase, said Eric Hallstrom, the city’s chief operations officer.
“[The mayor] is not recommending that we try to generate a lot of revenue out of this process but rather set ourselves on a path that gets us towards a more cost-of-service oriented outcome on fees,” he said. “But we believe that’s going to take time, take several years, and we’re not going to try to balance the budget on the back of those types of changes.”
Following Up
The proposed hotel development at the Riverfront Triangle moved forward this week after the Missoula City Council on Wednesday approved the sale and development agreements with Averill Hospitality.
The project, announced in late June, will include a hotel with about 180 rooms, 15,000 square feet of meeting and event space, multiple street-front restaurants and retail shops, a large community plaza and a riverfront trail and greenspace. Brian Averill, the owner of Averill Hospitality, told the council that the hotel will create up to 200 jobs. Construction will begin in one to two years after design and engineering work, he said.
The city will use tax increment financing funds to reimburse Averill for constructing public infrastructure, including underground utilities, streets, sidewalks, a public plaza, a riverfront trail and a greenway. Rough estimates for those costs total about $14 million, Ellen Buchanan, the Missoula Redevelopment Agency’s director, said previously. Once complete, the project could generate more than $800,000 annually in new property taxes, Buchanan said on Wednesday. As a city-owned property, it currently generates nothing, she said.
The $4 million from the land sale will incrementally go to the city’s Affordable Housing Trust Fund, but the MRA may initially use some of that money to reimburse Averill, Buchanan said. Averill Hospitality will assess 1% on room and food and beverage revenue to be donated to the fund. The assessment is estimated to generate $300,000 annually, and donations will last for 10 years or until $3 million has been contributed to the trust fund.
The council will take public comment on the agreements and vote again on Monday.
5 Things to Know in Missoula
The Missoula City Council on Wednesday approved an agreement with the police union to increase wages for fiscal years 2025, 2026 and 2027. When negotiating a larger contract in 2023, the city and the Missoula Police Officers Association were unable to agree on wages for 2025-2027 beyond an annual 4% cost-of-living increase, said Angela Simonson, the city’s chief human resources officer. The city and union were set to attend arbitration in September after they reached an impasse last summer. The union recently reached out with an offer that the city could agree to, avoiding arbitration costs for both parties, Simonson said. For fiscal year 2025, which ended on June 30, officers will receive an additional 9.5% increase on top of the 4% cost-of-living bump. Those wages will be retroactive to July 1, 2024. Fiscal year 2026 includes a 10.5% total increase retroactive to July 1, 2025. For fiscal year 2027, a 7.5% increase takes effect July 1, 2026. The police union already ratified the agreement, Simonson said.
Missoula’s Parks and Recreation Director Donna Gaukler is retiring Nov. 12 after 23 years leading the department. Gaukler joined the city in 1991 as recreation manager and was promoted to director in 2002. Gaukler led the city’s implementation of four voter-approved bonds: the 2003 aquatics bond, the 2006 and 2018 open spaces bonds and the 2015 parks and trails bond. She championed the development of Missoula’s extensive trail system and oversaw the opening of the Splash Montana waterpark, Currents Aquatics Center and Fort Missoula Regional Park, according to the city. During Gaukler’s tenure, the department launched out-of-school and after-school programs that now serve nearly one-third of elementary-age children. Ryan Applegate, the department’s deputy director for business services, will serve as interim director until Gaukler’s position is filled.
“I’m confident the department will continue and expand innovative partnerships and programs that serve all Missoulians while protecting the natural environment that makes our community so special,” Gaukler said in a statement. “I am thankful for the support of our community members, the amazing team at Parks and Recreation and the ongoing support of our elected leaders.”
On Tuesday, the Missoula County Public Schools board appointed Leslie McShane to fill the vacant trustee position representing the attendance area for Hellgate Elementary School in the Sxʷtpqyen area west of Reserve Street. McShane was most recently the human resources director at the Missoula Family YMCA and was previously an independent college counselor and an attorney in the Los Angeles area, according to her application. McShane currently assists the Y with its child abuse prevention accreditation process and volunteers at the Missoula Food Bank. Rob Sharkey, a former Hellgate Elementary District trustee, also applied for the position. The seat will be up for election in May 2026.
City street crews will start chip sealing streets beginning Monday, July 21, and continue through Aug. 7, subject to weather conditions. All streets will remain open, but travel lanes will shift to make room for equipment and there may be minor traffic delays, according to the city. Drivers should go slowly over the loose rock chips, which will take two to three weeks to embed in the asphalt. Residents can view a list and map of streets treated this year online.
The Missoula County Clerk and Treasurer’s Office is warning residents of several property tax payment scams. Residents have reported receiving letters and phone calls that use government terms and alarmist language to convince residents that they are delinquent on their property taxes and that their property will be seized if they don’t take action by the stated deadline, according to the county. The letters often list an 800-number for people to call to resolve the issue, and scammers who call residents will try to coerce them into providing payment information over the phone. The county does send letters to property owners, but any official communication will include the correct address for the office, 200 W. Broadway, and phone number, 406-258-4747. Staff typically call only if a taxpayer has previously contacted the office. If a resident receives a letter or phone call about a delinquent tax payment, they should call the Clerk and Treasurer’s Office first before making payment or providing any personal information.
Happenings
The inaugural IndigiPalooza MT: Indigenous Arts and Storytelling Festival will take place Friday, Aug. 1, and Saturday, Aug. 2. The free event featuring Indigenous artists, writers, musicians and makers was organized by Anna East of Chickadee Community Services, Selya Avila with the Missoula Public Library and Montana Poet Laureate Chris La Tray.
The festival will open with a First Friday Indigenous Art Show curated by the Missoula Art Museum from 4 p.m. to 6 p.m. at the library. At 6:30 p.m., former U.S. Poet Laureate Joy Harjo, the first Native person to hold that position, will share her poetry and insights at the Montana Theatre at the University of Montana.
Saturday includes a full day of presentations from Indigenous artists, writers and musicians, as well as an art market, from 9:30 a.m. to 6:30 p.m. on the library’s fourth floor. More information and the full schedule are available online.
Programming Note
Missoula This Week will not publish on Friday, July 24, as reporter Katie Fairbanks will be attending the Ravitch Fiscal Reporting Program at CUNY. We will return to our regular publication schedule on Aug. 1.