HOUSE BILL NO. 71
INTRODUCED BY S. ROSE, J. ANDERSEN, T. FACEY, S. KITZENBERG, L. MCCULLOCH
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; PROVIDING THAT A VOTE IS REQUIRED FOR ANY INCREASE IN LOCAL PROPERTY TAXES; AMENDING SECTIONS 20-9-308 AND 20-9-353, 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:
(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 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 (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) (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) 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)(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(3) 20-9-308(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) 20-9-308(3)(a)(ii).
(2) When the trustees of the district propose to adopt an over-BASE budget under subsection (1)(a), any increase in
local property taxes authorized by 20-9-308(5) must be submitted to a vote of the qualified electors of the district. The
trustees are not required to submit to the qualified electors any increase in state funding of the basic or per-ANB
entitlements approved by the legislature. 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 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 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 estimated increase in local property taxes and the estimated
impact on the over-BASE mills needed to fund the general fund budget. The ballot must be in the following format:
PROPOSITION
The district levied (state the total amount of local property taxes levied in support of the district's prior year's over-BASE general fund budget) dollars and (state the total number of mills levied in support of the district's prior year's over-BASE general fund budget) mills to support the previous year's over-BASE general fund budget. If this proposition is approved, the local property taxes to support the district's proposed over-BASE general fund budget will increase by (state the additional local property taxes) dollars. The mills will (increase or decrease as applicable) by (insert 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)
increase the local property taxes by (insert the amount), which will (increase or decrease as applicable) the local mills by
(insert the number of mills) mills?
[] FOR budget authority and any the additional levy.
[] AGAINST budget authority and any the additional levy.
(3) When the trustees of a district propose to adopt a general fund budget amount in excess of the maximum general fund budget under subsection (1)(b), the trustees shall submit the proposition to finance the additional 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 the budget to be financed, the approximate number of mills required to fund all or a portion of the budget amount, 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)?
[] FOR budget authority and any levy.
[] AGAINST budget authority and levy.
(3)(4) If the election on any additional financing or 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)(5) Authorization to levy an additional tax to support a budget amount adopted as allowed by 20-9-308(4)
20-9-308(3)(a)(ii) is effective for only 1 school fiscal year.
(5)(6) 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)(7) 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)
20-9-308(3)(a)(ii) to the electors of the district, the trustees shall comply with the provisions of subsections (2) through (4)
(6) of this section."
Section 3. 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.
- END -
Latest Version of HB 71 (HB0071.ENR)
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