Montana Attorney General Opinion 15-269

Opinion No. 269 Schools--Funding Bonds-Warrants -School Districts. HELD: That Chapter 160, Laws of l!)33. only authorizes tbe issuance of funding bonds to take up outstanding warrants. and bonds can only be issued to the extent of, and for the purpose of, taking up such outRtanding war- rants. July 10, 1933. "re quote from ~'our request for an opinion as follows: "As you are aware. . Chapter 160 of the 1933 Session Laws authorizes the board of trustees of any school district in the state to issue funding bonds for warrants outstandinl-( .Tune 30, 1933, and it also implies that the cash on hand belonging to the gen- eral fund and the reserve fund of a school district on .Tune 30, 1933, need not necessarily be applied on outstand- ing warrants, but may be reserved for the operation of the schools hetween .Tuly 1 and "'o\'el11ber 30, Hlflfl, within certain limitations." You inquire if, instead of reserving any money for the use of the schools. that money has been used in taking up warrants, a portion of the expense for the conducting of schools between Jul~' 1 and November 30, Hl33 may be in- cluded within the bond issue authorized u" said act and in excess .of warrants olltstanding on June 30. . To this inquiry we would reply in the negative. The law only authorizes the issuance of funding bonds to take up outstanding warrants, and bOll(lI;, can only be issued to the extent of and for the purpose of taking up such outstanding warrants.