HOUSE BILL NO. 71

INTRODUCED BY S. ROSE, J. ANDERSEN, T. FACEY, S. KITZENBERG, L. MCCULLOCH

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 94 PERCENT OF THE CURRENT YEAR'S GENERAL FUND BUDGET, WHICHEVER IS GREATER; ALLOWING ADOPTION OF A GENERAL FUND BUDGET THAT EXCEEDS THE MAXIMUM GENERAL FUND BUDGET FOR A MAXIMUM OF 5 CONSECUTIVE YEARS; PROVIDING AN EXCEPTION REQUIRING A SCHOOL DISTRICT WHOSE BUDGET EXCEEDS THE MAXIMUM GENERAL FUND BUDGET BECAUSE THE AVERAGE NUMBER BELONGING DECLINES 30 PERCENT OR MORE TO REDUCE ITS GENERAL FUND BUDGET PROPORTIONATELY OVER 5 CONSECUTIVE YEARS; ELIMINATING THE PROVISION FOR TRUSTEES TO ADOPT A BUDGET BASED ON THE PREVIOUS YEAR'S GENERAL FUND BUDGET PER-ANB; AMENDING SECTION 20-9-308 , MCA; 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 .

(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) (i) Except as provided in subsections (3)(a)(ii) and (3)(a)(iii), 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 94% of the current year's general fund budget, whichever is greater. A school district may adopt a budget under the criteria of this subsection (3) for a maximum of 5 consecutive years.

(ii) The trustees of a district whose general fund budget was above the maximum general fund budget established by Chapter 30, Special Laws of November 1993, may continue to adopt a general fund budget in each ensuing school fiscal year that exceeds the district's maximum general fund budget but does not exceed the district's general fund budget for the current school fiscal year.

(iii) A school district whose current budget exceeds the ensuing year's maximum budget and whose current year ANB exceeds the ensuing year's ANB by 30% or more shall reduce its adopted budget by:

(A) in the first year, 20% of the range between the district's adopted general fund budget for the current fiscal year and the maximum general fund for the ensuing school fiscal year;

(B) in the second year, 25% of the range between the district's adopted general fund budget for the current school fiscal year and the maximum general fund budget for the ensuing school fiscal year;

(C) in the third year, 33.3% of the range between the district's adopted general fund budget for the current fiscal year and the maximum general fund budget for the ensuing school fiscal year;

(D) in the fourth year, 50% of the range between the district's adopted general fund budget for the current fiscal year and the maximum general fund budget for the ensuing school fiscal year; and

(E) in the fifth year, the remainder of the range between the district's adopted general fund budget for the current fiscal year and the maximum general fund budget for the ensuing school fiscal year.

(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."

NEW SECTION. Section 2. 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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