HOUSE BILL NO. 103

INTRODUCED BY R. PECK

BY REQUEST OF THE OFFICE OF PUBLIC INSTRUCTION

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING THE SCHOOL GENERAL FUND BUDGET VOTING LAWS TO REQUIRE SCHOOL DISTRICT TRUSTEES TO SUBMIT TO THE ELECTORATE OF THE DISTRICT A PROPOSITION TO INCREASE THE DISTRICT'S LEVY BY ANY AMOUNT THAT EXCEEDS THE GREATER OF THE PREVIOUS YEAR'S GENERAL FUND LEVY; ELIMINATING THE VOTE ON BUDGET AUTHORITY; CLARIFYING THE CONDITIONS UNDER WHICH A SCHOOL DISTRICT MAY EXCEED THE MAXIMUM GENERAL FUND BUDGET; CONFORMING THE LANGUAGE ON THE BALLOT SUBMITTED TO THE ELECTORATE FOR THE GENERAL FUND LEVY TO ARTICLE VIII, SECTION 17, OF THE MONTANA CONSTITUTION; DEFINING "TAX INCREASE" FOR PURPOSES OF THE ELECTION; AMENDING SECTIONS 20-9-308 AND 20-9-353, MCA; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING EFFECTIVE DATES 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), does not exceed the maximum general fund budget established for the district.

(2) 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

may adopt a general fund budget that does not exceed the greater of:

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

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

(3) The trustees may adopt a general fund budget that is greater than the maximum general fund budget only if the adopted budget for the previous year was greater than the maximum general fund budget for the previous year. The adopted budget may not exceed the adopted budget for the previous year.

(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 levy for general fund -- election for authorization to impose -- definition of tax increase.

When the trustees of a district determine that a tax increase is required for the general fund budget, the trustees shall submit the proposition to authorize the tax increase for the general fund to the electors who are qualified under 20-20-301 to vote on the proposition at the tax election. The ballot must be in the following format:

PROPOSITION

SHALL THE GENERAL FUND LEVY TAX 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 general fund budget.

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

(3) If the election on any additional levy for the general fund is approved by a majority vote of the electors voting at the election, the proposition carries and the trustees may use any portion or all of the authorized amount in adopting the final general fund budget. The trustees shall certify any additional levy amount authorized by the election on the budget form that is submitted to the county superintendent, and the county commissioners shall levy the authorized number of mills on the taxable value of all taxable property within the district, as prescribed in 20-9-141 .

(4) As used in this section, "tax increase" has the meaning provided in Article VIII, section 17, of the Montana constitution."

NEW SECTION. Section 3. Coordination instruction. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then [section 1], amending 20-9-308, and [section 2], amending 20-9-353, must read as follows:

"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) , 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 greater of:

(i) the previous year's general fund budget amount; or

(ii) 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 may adopt a general fund budget that is greater than the maximum general fund budget only if the adopted budget for the previous year was greater than the maximum general fund budget for the previous year. The adopted budget may not exceed the adopted budget for the previous 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."

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

"20-9-353. Additional financing for general fund -- election for authorization 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 of financing is required for the general fund budget, the trustees shall submit the proposition to finance 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 approximate effect on the district's general fund mill levy. The ballot must be in the following format:

PROPOSITION

The district levied (state the number of mills) mills to support the previous year's general fund budget. If this proposition is approved, the mills levied in support of the district's general fund budget are estimated to (state whichever is applicable):

(1) remain the same;

(2) increase by approximately (state the number of mills) mills; or

(3) decrease by approximately (state the number of mills) mills.

Shall the district be authorized to adopt a general fund budget that exceeds the nonvoted general fund budget amount by (state the additional budget amount)?

[]	FOR budget authority and any levy.

[]	AGAINST budget authority and any levy.

(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 may use any portion or all of the authorized amount in adopting the final general fund budget. The trustees shall certify any additional levy amount authorized by the special election on the budget form that is submitted to the county superintendent, and the county commissioners shall levy the authorized number of mills on the taxable value of all taxable property within the district, as prescribed in 20-9-141 .

(4) Authorization to levy an additional tax to support a budget amount adopted as allowed by 20-9-308(3) is effective for only 1 school fiscal year.

(5) All levies adopted under this section must be authorized by a special election conducted before August 1 of the school fiscal year for which it is effective.

(6) 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 (5).""

NEW SECTION. Section 4. Effective dates -- applicability. (1) Except as provided in subsection (2), [this act] is effective on passage and approval and applies to school budgets for school fiscal years beginning on or after July 1, 1999.

(2) [Section 2] is effective July 1, 1999, and applies to school budgets for school fiscal years beginning on or after July 1, 1999.

- END -