1999 Montana Legislature

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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:

     (a)  except as provided in subsection (2), is at least equal to the BASE budget established for the district; or and,

     (b)  except as provided in section 3, Chapter 38, Special Laws of November 1993, and subsection (4) (3), of this section, does not exceed the maximum general fund budget established for the district.

     (2)  (a) If the BASE budget for a district for the school fiscal year is greater than the general fund budget of the district for the prior school fiscal year, the trustees of the district:

     (i)  shall increase the general fund budget by at least:

     (A)  25% of the range between the district general fund budget for the school fiscal year ending June 30, 1994, and the BASE budget for the district for the school fiscal year beginning July 1, 1994;

     (B)  33.3% of the range between the district general fund budget for the school fiscal year ending June 30, 1995, and the BASE budget for the district for the school fiscal year beginning July 1, 1995;

     (C)  50% of the range between the district general fund budget for the school fiscal year ending June 30, 1996, and the BASE budget for the district for the school fiscal year beginning July 1, 1996; or

     (D)  the remainder of the range between the district general fund budget for the school fiscal year ending June 30, 1997, and the BASE budget for the district for the school fiscal year beginning July 1, 1997;

     (ii) may increase the general fund budget beyond the amount in subsection (2)(a)(i) but not by more than 4% of the previous year's general fund budget or by more than 4% of the previous year's general fund per-ANB multiplied by the current year's ANB for budgeting purposes pursuant to subsection (2)(b).

     (b)  The trustees shall submit a proposition on any amount exceeding the limitations in subsection (2)(a)(i) to the electors of the district, as provided in 20-9-353.

     (3)  (a)(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 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 may adopt a general fund budget adopted under this subsection (3) may that does not exceed the greater of:

     (i)(a)  104% of the previous year's general fund budget as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993; or

     (ii)(b) 104% of the previous year's general fund budget per-ANB multiplied by the current year's ANB for budgeting purposes as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993.

     (4)  (a) If the maximum general fund budget for a district for an ensuing school fiscal year is less than the general fund budget for the district for the current school fiscal year, as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993, the trustees of the district may not adopt a general fund budget for the ensuing school fiscal year that is greater than  the district's general fund budget for the current school fiscal year.

     (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.

     (b)  Except for the school fiscal year beginning July 1, 1994, 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.

     (5)(4)  Whenever the trustees of a district adopt a general fund budget that does not exceed the BASE budget for the district, the trustees shall finance this amount with 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.

     (6)(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 levy for general fund -- election for authorization to impose -- definition of tax increase. (1) The trustees of a district may propose to adopt:

     (a)  a budget amount up to the BASE budget amount for the district general fund that is within the limitations and required budget increases provided in 20-9-308(2);

     (b)  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(3); or

     (c) a general fund budget amount in excess of the maximum general fund budget amount for the district, as provided in 20-9-308(4).

     (2)  When the trustees of a district determine that a voted amount of financing tax increase is required for the general fund budget, the trustees shall submit the proposition to finance the additional amount of authorize the tax increase for the general fund financing to the electors who are qualified under 20-20-301 to vote upon on the proposition at the tax election. 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 money to be financed, the approximate number of mills required to raise all or a portion of the money, 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 expend the sum of (state the additional amount to be expended), and being approximately (give number) mills, for the purpose of (insert the purpose for which the additional financing is made)?

     SHALL THE GENERAL FUND LEVY TAX BE INCREASED ANNUALLY BY (STATE THE NUMBER OF MILLS) IN THE FOLLOWING MANNER?

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

     [] AGAINST budget authority and any levy 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 financing 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 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, to raise the amount of the additional levy.

     (4)  Authorization to levy an additional tax to support a budget amount adopted as allowed by 20-9-308(4) 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 increased amount up to the BASE budget amount, as provided in 20-9-308(2)(b), an increased over-BASE budget amount, as provided in 20-9-308(3)(a), or an amount in excess of the maximum general fund budget amount for the district as allowed by 20-9-308(4) to the electors of the district, the trustees shall comply with the provisions of subsections (2) through (4)

     (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.  Contingent voidness. If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then [this act] is void.



     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:

     (a)  except as provided in subsection (2), is at least equal to the BASE budget established for the district; or and,

     (b)  except as provided in section 3, Chapter 38, Special Laws of November 1993, and subsection (4) (3) of this section, does not exceed the maximum general fund budget established for the district.

     (2)  (a) If the BASE budget for a district for the school fiscal year is greater than the general fund budget of the district for the prior school fiscal year, the trustees of the district:

     (i)  shall increase the general fund budget by at least:

     (A)  25% of the range between the district general fund budget for the school fiscal year ending June 30, 1994, and the BASE budget for the district for the school fiscal year beginning July 1, 1994;

     (B)  33.3% of the range between the district general fund budget for the school fiscal year ending June 30, 1995, and the BASE budget for the district for the school fiscal year beginning July 1, 1995;

     (C)  50% of the range between the district general fund budget for the school fiscal year ending June 30, 1996, and the BASE budget for the district for the school fiscal year beginning July 1, 1996; or

     (D)  the remainder of the range between the district general fund budget for the school fiscal year ending June 30, 1997, and the BASE budget for the district for the school fiscal year beginning July 1, 1997;

     (ii) may increase the general fund budget beyond the amount in subsection (2)(a)(i) but not by more than 4% of the previous year's general fund budget or by more than 4% of the previous year's general fund per-ANB multiplied by the current year's ANB for budgeting purposes pursuant to subsection (2)(b).

     (b)  The trustees shall submit a proposition on any amount exceeding the limitations in subsection (2)(a)(i) to the electors of the district, as provided in 20-9-353.

     (3)  (a)(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 (3) (2) may not exceed the greater of:

     (i)  104% of the previous year's general fund budget as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993; or

     (ii) 104% of the previous year's general fund budget per-ANB multiplied by the current year's ANB for budgeting purposes as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993.

     (4)  (a) If the maximum general fund budget for a district for an ensuing school fiscal year is less than the general fund budget for the district for the current school fiscal year, as adjusted by the provisions of section 3, Chapter 38, Special Laws of November 1993, the trustees of the district may not adopt a general fund budget for the ensuing school fiscal year that is greater than  the district's general fund budget for the current school fiscal year.

     (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)  Except for the school fiscal year beginning July 1, 1994, the 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.

     (5)(4)  Whenever the trustees of a district adopt a general fund budget that does not exceed the BASE budget for the district, the trustees shall finance this amount with 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.

     (6)(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)  a budget amount up to the BASE budget amount for the district general fund that is within the limitations and required budget increases provided in 20-9-308(2);

     (b)  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(3)(2); or

     (c)(b)  a general fund budget amount in excess of the maximum general fund budget amount for the district, as provided in 20-9-308(4)(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 additional voted amount of general fund financing 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 money budget authority to be financed, authorized and the approximate number of mills required to raise all or a portion of the money, and the purpose for which the money will be expended 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 expend the sum of (state the additional amount to be expended), and being approximately (give number) mills, for the purpose of (insert the purpose for which the additional financing is made 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 financing 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, to raise the amount of the additional levy.

     (4)  Authorization to levy an additional tax to support a budget amount adopted as allowed by 20-9-308(4)(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 increased amount up to the BASE budget amount, as provided in 20-9-308(2)(b), an increased over-BASE budget amount, as provided in 20-9-308(3)(a)(2), or an amount in excess of the maximum general fund budget amount for the district as allowed by 20-9-308(4)(3) to the electors of the district, the trustees shall comply with the provisions of subsections (2) through (4) (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 -




Latest Version of HB 103 (HB0103.02)
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