Montana Attorney General Opinion 15-550

Opinion No. 550 School Districts-Budget-Buillling Fund, Expenditures from. HELD: Expenditures, for the pur- poses authorized, of the proceeds of bond sales for building purposes are f'xempt from the budget law and re- quire no further authority than a bond issue duly authorized at an election duly called and held_ June 8, 1934_ You request an opinion whether or not the school trustees may use $337.00 to the credit, of the building fund of school district No. 30 of Carbon Coun- ty without any provision haYing been made in the budget for any such ex· penditure. The budget system was established. as it relates to the puhlic schools, for the purpose of determining in advance the' amount, of money necessary to maintain the schools for the ensuing year, to determine the millage levy necessary as shown by the budget, and to restrict the expenditures by the school officials to the. amount au- thorized. School funds obtained by a bond is- sue for school buildings and equip- ment must be credited to the building and equipment fund, or building fund. as the case may be, and can be used for no other purpose. Before bonds are issued and sold, the issue must be authorized at an election duly called and held, and no further authority is necessary to authorize the expenditure for the purposes for which issued. It is our opinion that the budget law, so far as school districts are con- cerned. applies only to the general fund. While the statutes do not spe- cifically so state, the purpose of the law has no bearing on the building fund of a school district, and in the budget form set out in the statute on page 319, Chapter 146. Laws of 1931. where expenditures may be budgeted for "New Buildings and Alterations," it specificallypro\'ides "Not financed from sale of bonds." This, we think, expresses the intent of the legislature that 'the expenditure of the proceeds of bond sales for building purposes shall be exempt from the budget law.