Budget & Taxes (Debt & Bonds)

This bill (LC 1145) proposed establishing ongoing transfers from the state's General Fund to support infrastructure projects and pension funding, unless specific fiscal conditions were met. It aimed to create a sustained funding mechanism for these priorities without requiring annual legislative approval. However, the bill never advanced beyond the drafting stage, as it was placed on hold in November 2024 and ultimately died in process by May 2025. No further action or implementation occurred.

HB 451 revises how tax increment financing (TIF) is calculated for newly established targeted economic development districts and urban renewal areas. For districts created after the bill's effective date, it excludes several specific mill levies from the tax increment calculation. These exclusions include certain university system mills, a portion of elementary, high school, and state equalization mills, new voter-approved levies, and mills for general obligation bond debt service. This means that a larger share of the new property tax revenue generated in these areas would directly go to the affected taxing jurisdictions, rather than into the TIF fund.

SB 108 requires Montana local governments (counties, cities, school districts) to get voter approval before raising property taxes or issuing bonds to pay court judgments, settlements, or tax protest refunds that exceed existing tax limits. Specifically, if a government needs to collect more tax revenue than permitted under current law (2-9-108) to cover these costs, voters must approve the levy or bond issuance. The bill amends multiple statutes to enforce this voter approval step for such "excess" tax increases. It does not change how governments pay routine expenses but adds a new voting requirement for specific, larger financial obligations tied to legal disputes. This affects local budgets when resolving court cases or tax disputes that require funding beyond standard tax allowances.

LC 1144 proposed a pilot program to test performance-based budgeting for state agencies, where funding would be tied to measurable results like service delivery outcomes. It would have directly affected state departments by requiring them to set specific, trackable goals for their budgets. However, the bill never advanced beyond the drafting stage, as its draft was officially "dead in process" by May 23, 2025, meaning it did not become law. This was a procedural proposal with no concrete policy changes enacted.

HB 19 requires local governments (like cities or counties) to hold a public hearing before using tax revenue from a tax increment financing district to pay for bonds that would extend the district's life beyond 15 years. This applies when a local government wants to pledge future tax revenue to fund bonds for urban renewal or economic development projects. The bill mandates that the local government must notify the county and school district where the project is located and hold the hearing to determine if extending the district is necessary to fulfill its development plan. The law takes effect for bond pledges made after its enactment date.