Bill > SB171

This bill modifies the state of Montana's budget stabilization reserve fund rules to add a new requirement for transferring excess state funds. Specifically, when the state has excess general fund revenue beyond its operating reserve level and after making required transfers to the budget stabilization reserve fund and capital developments account, the bill mandates that 10% of any remaining excess funds must be transferred to the Montana Coal Severance Tax Permanent Fund. This change adjusts the previous distribution, which only specified transfers to the budget stabilization reserve fund and allowed 25% of excess funds to remain in the general fund. Now, the bill reduces the percentage of excess funds remaining in the general fund from 25% to 15%, while creating a new 10% transfer stream to the coal trust fund. The change aims to provide additional dedicated funding to the Coal Severance Tax Permanent Fund, which likely supports coal-related economic and community development initiatives. The bill will become effective on July 1, 2025, allowing state financial officials time to prepare for the new transfer requirements.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC4312