Senate Bill No. introduced by D. Fern proposes amendments to Section 17-7-130 of the Montana Code Annotated, which governs the budget stabilization reserve fund and the transfer of excess funds. The bill stipulates that by August 15 of each fiscal year, the state treasurer must transfer an amount equal to the balance of unexpended and unencumbered general fund money appropriated in excess of 180.5% of the total general fund appropriations for that fiscal year into the budget stabilization reserve fund. Additionally, if the transfer increases the balance in the budget stabilization reserve fund to exceed 16% of all general revenue appropriations in the second year of the biennium, the excess amount will be transferred to the capital developments long-range building program account.

Notably, the bill introduces a new provision that mandates 10% of any funds exceeding the specified thresholds to be transferred to the Montana coal severance tax permanent fund, while also adjusting the percentage of remaining funds in the general fund from 25% to 15%. The effective date for this act is set for July 1, 2025. These changes aim to enhance the management of excess funds and ensure a more robust allocation towards the coal severance tax permanent fund.

Statutes affected:
LC Text: 17-7-130
SB0171_1(1): 17-7-130
SB0171_1(2): 17-7-130
SB0171_1(3): 17-7-130
SB0171_1(4): 17-7-130
SB0171_1(5): 17-7-130
SB0171_1: 17-7-130