The state should increase its share of public-school funding by $260 million a year, phased in over time, if it wants to adequately finance a quality education for Montana kids, an education official told lawmakers Thursday.

Lance Melton, executive director of the Montana School Boards Association, said while the proposal may sound "aggressive," it would merely put state support for schools back at 1991 levels, adjusted for inflation.

He also said while schools have seen a big influx of new state funds in the past three years, the state is spending a much lower share of its money now on schools than it did two decades ago.

"I'm not sure the state can impact (adequacy of education) if it's a minority partner in funding schools," Melton said, noting that local property taxes and federal funds combine to pay nearly 58 percent of Montana school budgets.

Melton presented the plan to the legislative Taxation and School Funding Subcommittee, which is looking at options for financing public schools in Montana.

Sen. Christine Kaufmann, D-Helena, a member of the panel, said she had one question for Melton: How would the state pay for a big increase in school funding?

"Are you prepared to support any particular revenue source, and help us out on this idea?" she asked.

Melton said that as far as schools are concerned, "nothing is off the table" on tax/revenue options, and that they're willing to "come to the table and find solutions."

Kaufmann persisted, asking if schools plan to offer any tax proposal.

Melton said if there is bipartisan interest in looking at tax proposals, the schools would gladly participate.

He also emphasized that the $260 million increase would be state funds, and that local property taxes that pay for schools could be frozen while the increase is phased in.

The plan presented by Melton was put together this spring by the Montana Quality Education Coalition, the group of school districts and others who spearheaded the successful 2003 lawsuit that said the state isn't adequately funding schools.

The plaintiffs in the lawsuit went back to state District Court in Helena this year, saying the state still isn't meeting its constitutional obligation to fund schools.

Judge Jeffrey Sherlock has not yet ruled on the latest action in the lawsuit.

A $260 million increase is 40 percent more than the approximate $650 million the state is spending on schools this year.

The proposal outlined Thursday includes:

- An increase of $7,250 in the "per educator" payment to schools, to allow schools to increase teacher salaries to the 25th highest in the nation. Cost: $91 million.

- A $1,000-per-student payment for kids deemed "at risk," meaning they would need extra help to keep them in school and succeed. Cost: $48 million.

Melton said schools have a moral imperative to help low-achieving kids improve: "Until we show that we make some progress (here), I don't see how we can say that adequacy (of education) actually exists," he said.

- A $260-per-student payment for textbooks and supplies. Cost: $39 million.

- Annual payments for school building construction and maintenance. Cost: $30 million.

Melton said schools are having more trouble meeting accreditation standards than they did when the 2003 lawsuit was launched.

He also said despite the increase in state funds of the previous three years, state government is now spending the lowest percentage of total funds on schools since 1991.

State dollars spent on public school general-fund budgets in 2007 also are only 1.5 percent of state's overall economy, or gross state product, compared to 2.9 percent in 1991, he added.