1. Building Reserve Funds – Permissive Levies
Montana Conference of Education Leadership (MCEL)
October 17, 2018

2. Senate Bill 307 (2017 Legislative Session)
Revised school funding law to address facilities
New permissive levy in the Building Reserve Fund
“School facility maintenance amount”
$15,000* + ($100 X previous year’s ANB)
Can levy up to 10 mills; supplement with other legally available funds if 10 mills isn’t enough
Must spend on certain items in 2008 School Facility Condition Inventory report
Eventual state subsidy (GTB) to support levy in future years

3. Max Annual Contribution
School Facility Maintenance Amount:
Max annual contribution amount from ALL sources
$15,000* + (budget limit ANB x $100)
Can permissively levy up to 10 mills; supplement with other legally available funds if 10 mills isn’t enough
Examples:
ANB
Max Annual Contribution
100
$ 25,000 (100 x $100 + $15,000)*
500
$ 75,000 (500 x $100 + $15,000)*
750
$100,000 (750 x $100 + $15,000)*
*$30,000 for a K-12 district

4. Remember to include in SB307 notice if you intend to levy
Trustees must adopt and publish by March 31
Requires use of Project Reporter Codes in Building Reserve Fund
Balance sheet accounts (including cash and fund balance), revenues, and expenditures all tracked separately
Reconcile PRCs monthly! Recommend using OPI Fund 15 spreadsheet

5. Allowable Uses:
Repairs categorized as ‘safety,’ ‘damage/wear out,’ or ‘codes and standards’ in 2008 Facility Condition Inventory, then:
Updating FCI
New projects designed to produce operational efficiencies such as:
Utility savings
Reduced future maintenance costs
Improved utilization of staff
Enhanced learning environments for students

6. Senate Bill 307 (2017 Legislative Session)
2008 School Facility Condition Inventory report
Link to Home page:
Find your district using drop down boxes
Look for deficiency categories:
1 = safety
2= damage/wearout
3 = codes/standards
MUST ADDRESS THESE ITEMS FIRST

7. Senate Bill 307 (2017 Legislative Session)
2008 School Facility Condition Inventory (FCI)
Address deficiency categories 1, 2 and 3
Review and update the FCI by July 1, 2019
Trustees determine
Scope and methods of the review
Any experts needed for the review
Certify completion of the update to OPI by October 31, 2019 and certify updates once every 5 years thereafter

8. Timeline: Date/Deadline Event March 1
OPI releases estimate of maximum state funding for ensuing year on preliminary budget data sheet ($0 for FY19)
March 31
SB307 notice published, to include:
Projects expected to be pursued
Funding sources
Funds & mills to be raised by levy
August
Budgets adopted, levies set
Last working day in May
State funding, if any will be distributed

9. IMPORTANT RESOURCES OPI Building Reserve Subfunds Guidance
Senate Bill 307 (2017 regular session)
MTSBA 2017 Legislative Session Resources (log in to mtsba.org to access SB307 Q&A)