With the state facing lawsuits over school funding, the Joint Interim Subcommittee on School Funding of the Montana Legislature recommended establishing guaranteed tax base aid to schools. The subcommittee made the recommendations in November 1992 to the 53rd Legislature. The legislation, LC 36, would equalize funding for school district facility needs by providing guaranteed tax base aid to school districts if their district mill value per annual number belonging (ANB) is less than the corresponding statewide mill value ANB. School districts that qualify for guaranteed tax base aid would be allowed to incur indebtedness up to 45 percent of the statewide taxable value per pupil multiplied by the district's ANB. A second recommendation was made to adopt LC 180, which would clarify reimbursement rates in school district transportation laws. The subcommittee's discussion of administrative costs at public schools is also included. Also presented are findings on extending the school year and equitable distribution of the foundation program schedules. Legislative actions in the July 1992 special session and a proposal by the National Business Roundtable are also presented. Three appendices include texts of proposed legislation, charts showing school district expenditures by function and student for FY 1991, and a table showing legislative increases in foundation program schedules, FY 1951 through 1991. (JPT)