Montana Attorney General Opinion 15-254

Opinion No. 254 County Commissioners-Budget--Coun- ties-Levies-Schools, Funds Lost in Bank Fa,ihu'e--Warrants, Interest on. I-n~LD: Under the provisions of Ch. 148, Laws of 192!), it is the duty of the e()unty commissioners to reduce the es- timate of expenditures required by any county officer or department in making up the preliminary county budget, with the view of keeping expenditures with- in the anticipated rel-enue. The tax leyies of two mills hereto- fore made by the county commissioners of ~fusselshell County to l'eplace school district funds lost in hanks which failed prior to June 30, 1931, cannot be said to haye been made for general fund purposes. If the board did not proceed according to the prol'isions of Ch. 159, Laws of 1981 (which is a general and not a special statute as contemplated hy Ch. 100. Laws of 1931) it should now proceed according to Ch. 51, Laws of U)33. . Under the provisions of Ch. 148, Laws of 1929, the board may include in the hudget an amount sufficient to tuke eare of the interest on registered war- rants and an amount to apply on the redemption of outstanding warrants. June 26. ]!)3~. Your letter of recent date and eopy of opinion accompanying it, relating to the budget for and tax lel'ies to be made in the County of Musselshell for the ensuing fiscal 'year, ha I'e heen re- ceived. -nre agree with you that under the lH'ol'isions of Chapter 148, Laws of 192fl. the board of count,· commissioners has the power to reduce the estimate of ex- penditures required by any county of- fice or department in making up the preliminary county budget, with the view of keeping expenditures within the antkipated rel-enue. More than that, it ill the duty of the board to do so. 'We further agree with you that the tax lel-ie,; of 2 mills heretofore made hy the board of count~- commissioners of ~Iusselshell County, to replace school district funds lost in banks which failed prior to .Tune 30. l!)Sl, cannot be said to have been made for general fund purposes. If in its efforts to replace such school district funds it did not proceed according to the provisions of Chapter 15H. r~'lWS of 1931, it should now proceed according to the proYisions of Chapter 51, Laws of Ul33. It 'may, as is therein set forth. issue funding honds 01' levy a speciai tax sufficient in amount to pay all the floating in- debtedness. including the sums still due the school districts, or levy a special tax each year, ol'er a period of five years, sufficient in amount to pay twenty per centum of such indebted- ness. The proc'eeds of the levy, if an~-, should be placed in a fund to be known and designated as the ';Deht Reduction Fund." (See State Y. :\fcGraw, 74 Mont. 152: Henderson v. Dawson County. 87 Mont. 122). You state in your opinion that Cha'P- tel' 15!) is such It special statute as is contemplated hy subdivision 13 of Sec- tion 1, Chapter 100, Laws of 1931, That is doubtful. "'e think it is a general law. (State ex reI. Roundup Coal :\fin- ing CO. Y. Industrial Accident Board. H·i Mont. 386: State ex reI. Federal Land Bank v. Hays, 86 1\:Iont. 58). That however, does not alter our view that the two-mill levy is no part of, in fact i~ distinct from, the general fund Ie 1-), . 'V~ believe as you do that under the provisions of Chapter 148, the board may include in the budget an amount OPI~IONS OI!' THE A'l'TOHNEY GENEHAL 177 sufficient t(i take care of the interest on registered warrants and an amount to al)ply on the redemption of out- standing warrants. Before doing so. howevel', it must obsen'e the provisions of Chapter 51, Laws of Hl33.