HOUSE BILL NO. 71

INTRODUCED BY ROSE S

A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING A SCHOOL DISTRICT WHOSE CURRENT YEAR GENERAL FUND BUDGET EXCEEDS THE ENSUING YEAR'S MAXIMUM GENERAL FUND BUDGET AMOUNT TO ADOPT A GENERAL FUND BUDGET FOR THE ENSUING YEAR UP TO THE ENSUING YEAR'S MAXIMUM GENERAL FUND AMOUNT OR UP TO 96 PERCENT OF THE CURRENT YEAR'S GENERAL FUND BUDGET, WHICHEVER IS GREATER; AMENDING SECTIONS 20-9-308 AND 20-9-353, MCA; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN EFFECTIVE DATE AND AN APPLICABILITY DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 20-9-308, MCA, is amended to read:

"20-9-308. BASE budgets and maximum general fund budgets. (1) The trustees of a district shall adopt a general fund budget that

is at least equal to the BASE budget established for the district and,

except as provided in subsection (3) of this section, does not exceed the maximum general fund budget established for the district.

(2) (a) Whenever the trustees of a district adopt a general fund budget that exceeds the BASE budget for the district but does not exceed the maximum general fund budget for the district, the trustees shall submit a proposition to the electors of the district, as provided in 20-9-353, for any budget amount that exceeds the previous year's general fund budget amount or the previous year's general fund budget per-ANB multiplied by the current year's ANB for budgeting purposes.

(b) A general fund budget adopted under this subsection (2) may not exceed the greater of:

(i) 104% of the previous year's general fund budget ; or

(ii) 104% of the previous year's general fund budget per-ANB multiplied by the current year's ANB for budgeting purposes .

(3) (a) The trustees of a district whose current year general fund budget exceeds the ensuing year's maximum budget amount may adopt a general fund budget for the ensuing year up to the ensuing year's maximum general fund budget amount or up to 96% of the current year's general fund budget, whichever is greater.

(b) The trustees of the district shall submit a proposition to raise any general fund budget amount that is in excess of the maximum general fund budget for the district to the electors who are qualified under 20-20-301 to vote on the proposition, as provided in 20-9-353.

(4) The BASE budget for the district must be financed by the following sources of revenue:

(a) state equalization aid, as provided in 20-9-343, including any guaranteed tax base aid for which the district may be eligible, as provided in 20-9-366 through 20-9-369;

(b) county equalization aid, as provided in 20-9-331 and 20-9-333;

(c) a district levy for support of a school not approved as an isolated school under the provisions of 20-9-302;

(d) payments in support of special education programs under the provisions of 20-9-321;

(e) nonlevy revenue, as provided in 20-9-141; and

(f) a BASE budget levy on the taxable value of all property within the district.

(5) The over-BASE budget amount of a district must be financed by a levy on the taxable value of all property within the district or other revenue available to the district, as provided in 20-9-141."

Section 2. Section 20-9-353, MCA, is amended to read:

"20-9-353. Additional budget authority for general fund -- election for authorization -- tax election to impose. (1) The trustees of a district may propose to adopt:

(a)

an over-BASE budget amount for the district general fund that does not exceed the maximum general fund budget for the district or other limitations, as provided in 20-9-308(2); or

(b) a general fund budget amount in excess of the maximum general fund budget amount for the district, as provided in 20-9-308(3).

(2) When the trustees of a district determine that a voted amount is required for the general fund budget, the trustees shall submit the proposition to adopt the voted amount of general fund budget authority to the electors who are qualified under 20-20-301 to vote upon the proposition. The special election must be called and conducted in the manner prescribed by this title for school elections. The ballot for the election must state the amount of budget authority to be authorized and the purpose for which the money will be expended. The ballot must be in the following format:

PROPOSITION

Shall the district be authorized to adopt a general fund budget that exceeds the nonvoted general fund amount by (state the additional budget amount) for the purpose of (insert the purpose for which the additional financing is made)?

[]	FOR budget authority .

[]	AGAINST budget authority .

(3) If the election on any additional budget authority for the general fund is approved by a majority vote of the electors voting at the election, the proposition carries and the trustees shall certify the budget authority authorized by the special election on the budget form that is submitted to the county superintendent, and the county commissioners shall submit to the electors who are qualified under 20-20-301 a proposition at the tax election on the authorized number of mills on the taxable value of all taxable property within the district, as prescribed in 20-9-141. The tax election ballot must be in the following format:

PROPOSITION

SHALL THE DISTRICT GENERAL FUND LEVY BE INCREASED ANNUALLY BY [state the number of mills] IN THE FOLLOWING MANNER?

[]	FOR increasing the district levy by (state the number of mills) to support the district's additional general fund budget amount.

[]	AGAINST increasing the district levy by(state the number of mills) to support the district's additional general fund budget amount.

(4) Authorization to levy an additional tax to support a budget amount adopted as allowed by 20-9-308 is effective for only 1 school fiscal year.

(5) If the trustees of a district are required to submit a proposition to finance an over-BASE budget amount, as provided in 20-9-308(2), or an amount in excess of the maximum general fund budget amount for the district as allowed by 20-9-308(3) to the electors of the district, the trustees shall comply with the provisions of subsections (2) through (4)."

NEW SECTION. Section 3. Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution is declared invalid, then [section 2 of this act], amending 20-9-353, is void.

NEW SECTION. Section 4. Effective date -- applicability. [This act] is effective July 1, 1999, and applies to school budgets for the school fiscal years beginning on or after July 1, 2000.

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