Montana Attorney General Opinion 15-81

Opinion No. 81 S~hool Distl'icts-Budget-Wanants. HI~LD : It is not necessary to in- elude in the hudget of sch()()1 districts the outstanding registered warrants. It is advisable to do so, however, for the purpose of the levy. Februa ry IS, 10)-1.3. 1 ha \'e yum' letter rel]uesting an opin- ion of this office as to the necessity of inc:Iuding in the budget of school dis- tricts the outstanding reb'1stered \Va 1'- rants. It is not m,cessary to hurlget warrants previously iSi>ued by the dis- trict for the purpose of authorizing their payment as they have l)l"eSumably been issued against budgeted items in the previous years. It is advisahle, how(l\'el', to include these warrants ill the hudget for the purpose of the le\'y. The question is one of good judgment alld g'ood hn~illess 1Il11llagemcnt rathel' than olle of legal requirements under l'xisting law. \Varrants can he legally is,,'ued ill a nticipation of the collection of taxes levied. If the taxes al'e not fully col- lected and walTant;; ha\'e been issued to the full amount anticipated there would be a corresponding lack of funds with which to pay a part of the war- rants so issued. These warrants which were registered must be paid in the or- der of their registration out of the first moneys a \'ailahle. They may, there- fore. absorb the funds of the district so that current warrants cannot be lla id, ca usi ng them to he registered in turn. If provision is made in the budget for these warrants and a levy made to pay them the credit of the district will be maintained because all warrants will then he paid. On the other hand, if no levy is made to take care of these warrants and thc delillquent taxes cannot be collected hecause no one will purchase the prol>erty for the amount of the taxes it is easy to see that the district will gradually become obligat- ed for wa rrants that it has issued and canllot obtain nny money to pay. As before sta ted, the' budgeting is for the purpose of the le\'y and the purpose of maintaining the credit of the dis- trict.