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SENATE BILL NO. 45
INTRODUCED BY SWYSGOOD C
A BILL FOR AN ACT ENTITLED: "AN ACT REVISING AND CLARIFYING STATE EXPENDITURE LIMITS; REQUIRING THE EXECUTIVE BUDGET TO COMPLY WITH EXPENDITURE LIMITS; REVISING THE FUNDS SUBJECT TO THE EXPENDITURE LIMITS; TYING THE LIMITS TO AN INFLATION FACTOR; AMENDING SECTIONS 17-7-123, 17-8-105, AND 17-8-106, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 17-7-123, MCA, is amended to read:
"17-7-123. Form of executive budget. (1) The budget submitted must set forth a balanced financial plan of funds subject to appropriation for each accounting entity and for the state government for each fiscal year of the ensuing biennium. The base level plan must consist of:
(1)(a) a consolidated budget summary setting forth the aggregate figures of the budget in a manner that shows a balance
between the total proposed disbursements and the total anticipated receipts, together with the other means of financing the
budget for each fiscal year of the ensuing biennium, contrasted with the corresponding figures for the last completed
last-completed fiscal year and the fiscal year in progress. The consolidated budget summary must be supported by
explanatory schedules or statements. (2)(b) budget and full-time equivalent personnel position comparisons by agency, program, and appropriated funds for
the current and subsequent biennium; (3)(c) the departmental mission and a statement of goals and objectives for each program of the department; (4)(d) base budget disbursements for the completed fiscal year of the current biennium, estimated comparable
disbursements for the current fiscal year, and the proposed present law base budget plus new proposals, if any, for each
department and each program of the department; (5)(e) a statement containing recommendations of the governor for the ensuing biennium by program and disbursement
category, including: (a)(i) explanations of appropriation and revenue measures included in the budget that involve policy changes; and (b)(ii) matters not included as a part of the budget bill but included as a part of the executive budget, such as the state
employee pay plan, programs funded through separate appropriations measures, and other matters considered necessary for
comprehensive public and legislative consideration of the state budget; (6)(f) a report on: (a)(i) enterprise funds, including retained earnings and contributed capital, projected operations and charges, and
projected fund balances; and (b)(ii) fees and charges in the internal service fund type, including changes in the level of fees and charges, projected use
of the fees and charges, and projected fund balances. Fees and charges in the internal service fund type must be approved by
the legislature in the general appropriations act. Fees and charges in a biennium may not exceed the level approved by the
legislature in the general appropriations act effective for that biennium. (7)(g) any other financial or budgetary material agreed to by the budget director and the legislative fiscal analyst.
(2) The executive budget must comply with the expenditure limitations in 17-8-105 through 17-8-107."
Section 2. Section 17-8-105, MCA, is amended to read:
"17-8-105. Definitions applicable to expenditure limitation. As used in 17-8-106, the following definitions apply:
"Montana total personal income" means the current income from all sources received during a particular period of
time by persons residing within Montana as determined by the United States department of commerce or its successor
agency. "Inflation adjustment" means the previous calendar year's consumer price index for all urban consumers, U.S.
department of labor, bureau of labor statistics, or other index that the bureau of business and economic research of the
university of Montana-Missoula may in the future recognize as the successor to that index.
(2) (a) "State expenditures" means
the general fund appropriations, the special revenue fund type appropriations, state
funds used for federal matching fund requirements, and the cash portion of the appropriations in the capital projects fund
type , excluding:.
(b) The term does not include:
(a)(i) money received from the federal government; (b)(ii) payments of principal and interest on bonded indebtedness for long-range building program, water project, or
renewable resource development purposes; (c)(iii) money paid for unemployment or disability insurance benefits; (d)(iv) money received from the sale of goods or services provided that the purchase of the goods or services is
discretionary; (e)(v) money paid from permanent endowments, constitutional trusts, or pension funds; (f)(vi) proceeds of gifts or bequests made for purposes specified by the donor; or (g) money appropriated for tax relief; and (h)(vii) funds transferred within state government or used to purchase goods for resale."
Section 3. Section 17-8-106, MCA, is amended to read:
"17-8-106. Expenditure limitation -- exception. (1) Except as provided in subsection (2), the state expenditures for a
biennium may not exceed the state expenditures for the preceding biennium plus the
product of the state expenditures for the
preceding biennium and the growth percentage inflation adjustment for the prior year. The growth percentage is the
percentage difference between the average Montana total personal income for the 3 calendar years immediately preceding
the next biennium and the average Montana total personal income for the 3 calendar years immediately preceding the current
(2) The legislature may appropriate funds in excess of this limit
from the reserve account if:
(a) the governor declares that an emergency exists; and
(b) two-thirds of the members of each house approve a bill stating the amount to be spent in excess of the expenditures limitation established in subsection (1), the source of the excess revenue to be spent, and an intention to exceed the limitation.
(3) Expenditures may exceed the expenditures limitation only for the year or years for which an emergency has been declared.
(4) The legislature is not required to appropriate the full amount allowed in any year under subsection (1)."
NEW SECTION. Section 4. Effective date. [This act] is effective on passage and approval.
NEW SECTION. Section 5. Applicability. [This act] applies to fiscal years beginning on or after July 1, 1999.
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Latest Version of SB 45 (SB0045.01)
Processed for the Web on December 9, 1998 (3:13PM)
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