HELENA -- Gov.-elect Brian Schweitzer's new budget bumps state spending on public primary and secondary education by $58 million over fiscal 2006 and 2007 and creates $5 million in new scholarships for Montana's college students.

But the increase in K-12 spending doesn't pass muster with some plaintiffs in the school funding lawsuit. The Montana Supreme Court last month concluded the school funding lawsuit by ruling that the state isn't spending enough on public education.

The plaintiffs are asking the Legislature to increase spending for schools by $154 million over the next two years. Schweitzer's $58 million proposal falls $96 million short of their request.

Schweitzer put in $30 million on top of the $28 million inflationary increase that outgoing Gov. Judy Martz put in her proposed budget for the next two years. Proposed budgets offered by governors are subject to legislative approval and often change during the session.

"It's a raw beginning," said Eric Feaver, president of the MEA-MFT, the state's largest union of school and government employees and a plaintiff in the lawsuit. "This will not solve the underfunded schools litigation. It will not satisfy the plaintiffs in the lawsuit and it isn't a remedy. But it's a start."

Schweitzer's budget director, David Ewer, acknowledged that the spending increase is a start, but said $58 million is not immaterial. The state currently contributes $575 million toward public education's $1.2 billion annual budget. A $58 million increase will bump that figure to $633 million annually.

"Fifty-eight million is quite a bit of money," Ewer said. "But it's a beginning. More will need to be done."

Most of the new money will be used to increase the per-student elementary entitlements by $250, to $4,281, and the per-student high school entitlements by $50, to $5,421. Schools are given an entitlement from the state based on enrollment.

Some of the money will also be used to increase special education spending by $1.6 million per year, which comes on top of the $4.3 million Martz plugged into special education.

Linda McCulloch, state superintendent of public instruction, said she's particularly pleased with the increase in special education funding, since it will help make up for a loss in federal funding.

Schweitzer is also proposing to spend $1 million annually on Indian Education For All, a constitutionally mandated program that guarantees an education on the state's American Indians to all students. About $2.8 million more will be used to develop a student education information data system that will, in part, track student and district progress.

House Democratic Leader Dave Wanzenried of Missoula said Schweitzer's proposed spending increases bring the state closer to complying with the Supreme Court's mandate to increase school funding.

But House Republican Leader Roy Brown of Billings said there's no doubt that the budget will change as the 2005 Legislature wrestles with the school funding problem.

"Whether it's $30 million or $5 million or $100 million, I don't know," Brown said.

Higher education

Schweitzer also made some changes to the state's university system budget. While he kept the $54 million biennial increase Martz recommended, his administration added $2.9 million to the university system budget by increasing funding for tribal colleges.

He also took about $5 million out of the economic development proposals Martz was backing and turned it into scholarship money.

Schweitzer unplugged a $1.2 million workforce training program and a $1 million distance learning project. Instead, Schweitzer plans to plug the money into need-based and merit scholarships for Montana's college students over the next two years.

"I didn't completely expect they would unfund two areas in order to fund affordability," said Sheila Stearns, commissioner of higher education.

However, she did say that some of Schweitzer's scholarship programs might have the same end result as the programs he killed. For example, the $1,000 grants for students in two-year college programs could, in the end, be considered workforce development, she said.

"It may be just another way to skin the cat," Stearns said. "Obviously, it bears more study."

Each one of Montana's 180 high schools would offer a $1,000 need-based scholarship to a student looking to attend two-year programs within the Montana university system.

In addition, Schweitzer wants to provide 100 more $1,000 scholarships to people entering the health sciences and 220 more $1,000 scholarships to students entering other technical fields. These scholarships will cost the state $1 million annually when fully implemented.

Under his proposed Best and Brightest Program, Schweitzer plans to offer $1.5 million more worth of merit-based scholarships to Montana college students. The plan offers 180 $1,000 merit-based scholarships to students entering Montana four-year programs and 250 $1,000 scholarships to students entering two-year programs. The scholarships can be renewed.

The Best and Brightest Program would also offer 40 additional $2,000 merit based scholarships.