BOZEMAN — School is back in session, and teachers in Montana can look forward to higher wages thanks to the recent passage of the STARS Act. This legislation aims to improve starting salaries for educators in the state.

WATCH: Bozeman Schools Boost Teacher Pay Under New Montana Law

“It’s a baby step, really in this time around, but it’s a good start,” says Eric Matthews, president of the Bozeman Education Association.

The STARS Act was introduced to the Montana legislature in January and has now culminated in a significant investment. Governor Greg Gianforte recently signed the $100 million bill into law.

“When you zoom out on the STARS Act, it’s really about starting teacher pay. Montana lags far behind the country. I think we’re 51st if you include the District of Columbia in starting teacher pay,” says Casey Bertram, superintendent of Bozeman Public Schools.

The STARS Act establishes two key metrics for teacher-based pay. First, starting salaries must be at or above approximately $41,000 for the 2026-27 school year. Second, starting teacher pay must reach at least 70% of the district’s average teacher salary.

In Bozeman, this will translate to a starting salary of over $50,000 for new teachers, a benchmark Bertram is excited about. “It puts Bozeman Public Schools over $50,000 for starting teacher pay, which is a threshold we’re pretty excited about,” he says.

Schools that meet both metrics will be eligible for additional state funding, a boost the Bozeman school district is poised to receive. In addition to the new starting salary requirements, the bill includes provisions for a 4.2% raise in the 2025-26 school year and a 3% raise in the 2026-27 school year, along with a $1,500 cost of living stipend for each full-time staff member starting in the 2026-27 school year.

According to Bertram and Matthews, addressing the cost of living is essential for attracting and retaining teachers in Montana. “We didn’t fix the cost-of-living problem in Bozeman. We didn’t make it affordable for a first-year teacher to buy a home in Bozeman. But we did some very positive things on behalf of our educators that we support,” Bertram says.

The STARS Act represents a step forward in improving the financial landscape for teachers in Montana, but Bertram and Matthews acknowledge that further work is needed to tackle affordability issues in the region.