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Full text of "Appropriation report"

I^S^i#. 




THE STATE OF MONTANA 



Montana 
iropriatio 
Report 

FISCAL YEARS 1988-1989 



<;a-<^ /^ 



TED SCHWINDEN, GOVERNOR 




7872 9 



APPROPRIATION REPORT 
REGULAR SESSION - 1989 BIENNIUM 



Submitted By: 
David L. Hunter 
Budget Director 



June, 1987 



OFFICE OF BUDGET AND PROGRAM PLANNING 
STAFF 



DAVID HUNTER, BUDGET DIRECTOR 
TOM CROSSER, DEPUTY DIRECTOR 



DOUG BOOKER, 

LEAD BUDGET ANALYST 



KAREN BEAUSOLEIL 



SIB CLACK 



GEORGE HARRIS 



MARY LaFOND 
NORM ROSTOCKI 



FLORINE SMITH 



6107 


Long Range Building 


4201 


Public Service Regulation 


5201 


Fish, Wildlife & Parks 


5501 


State Lands 


5603 


Livestock 


5706 


Natural Resources and Conservation 


6201 


Agriculture 


5102 


Commissioner of Higher Education 


5103 


University of Montana 


5104 


Montana State University 


5105 


Montana College of Mineral Science 


5106 


Eastern Montana College 


5107 


Northern Montana College 


5108 


Western Montana College 


5109 


Agricultural Experiment Station 


5110 


Cooperative Extension Service 


5111 


Forestry & Conservation Experiment Station 


5118 


Board of Regents Higher Education 


6501 


Commerce 


5114 


Montana Arts Council 


5115 


Montana State Library 


5117 


Montana Historical Society 


6401 


Institutions 


6402 


Montana Developmental Center 


6404 


Center For The Aged 


6405 


Eastmont Human Services Center 


6407 


Mountain View School 


6408 


Pine Hills School 


6409 


Montana State Prison 


6410 


Swan River Youth Forest Camp 


6411 


Montana Veterans' Home 


6412 


Montana State Hospital 


6413 


Board of Pardons 


6414 


Montana Youth Treatment Center 


6602 


Employment Security 


6603 


Workers' Compensation 


3501 


Superintendent of Public Instruction 


3511 


Billings Vo-Tech 


3512 


Butte Vo-Tech 


3513 


Great Falls Vo-Tech 


3514 


Helena Vo-Tech 


3515 


Missoula Vo-Tech 


5101 


Board of Public Education 


5113 


School for Deaf and Blind 


5116 


Montana Advisory Council for Vo-Ed 


5119 


Fire Services 


5401 


Highways 


5801 


Revenue 


1101 


Legislative Auditor 


1102 


Legislative Fiscal Analyst 


1104 


Legislative Council 


1109 


Senate Legislative Assembly 


1110 


House Legislative Assembly 


1111 


Environmental Quality Council 


1112 


Consumer Counsel 


2110 - 


Judiciary 


3101 


Governor's Office 


3201 


Secretary of State 


3202 


Commissioner of Political Practices 



3401 State Auditor 

4107 Board of Crime Control 

4108 Highway Traffic Safety 
4110 Justice 

6101 Administration 

6104 Public Employees' Retirement 

6105 Teachers' Retirement 
6701 Military Affairs 

LOIS STEINBECK 5301 Health and Environmental Sciences 

6901 Social and Rehabilitation Services 

6911 Family Services 
TERRY JOHNSON - BUREAU CHIEF - DATA PROCESSING SYSTEMS & STATISTICS 

Trudy Hawe, Administrative Clerk 

Helen Kittel, Administrative Assistant 

Marianne Knoy, Administrative Clerk 

Mary LaFond, Administrative Secretary 

Mary McCullough, Systems Analyst 

Mike Walsh, Administrative Officer 



r 



TABLE OF CONTENTS 



BUDGET SUMMARY S-1 

GENERAL FUND SUMMARY S-3 

COMPARISON OF FULL-TIME EQUIVALENT (FTE) POSITIONS BY AGENCY S-9 

BUDGET SUMMARY BY FUND S-1 1 

General S-1 1 

State Special S-12 

Federal and Other Special S-1 3 

i Proprietary S-14 

Current Unrestricted S-15 

AGENCY BUDGET SUMMARY S-16 

REVENUE ESTIMATES S-34 

Revenue Estimating Advisory Council S-34 

: • General Fund Revenue Estimates S-35 

Foundation Program Revenue Estimates S-36 

Revenue Estimating Advisory Council Revenue Estimate Assumptions S-37 

Economic Overview S-39 

General Fund Revenues By Component S-45 

PAY PLAN S-64 

SCHOOL FOUNDATION PROGRAM S-70 

SUPPLEMENTAL APPROPRIATIONS S-75 

CAPITAL IMPROVEMENT PROJECTS S-79 

Resource Indemnity Trust Fund S-79 

Water Development Program S-83 

Cultural and Aesthetics Grant Program S-87 

Long Range Building Program (LRBP) S-90 

Oil Overcharge S-96 

Parks Coal Tax S-97 

TRUST FUNDS AND BALANCES S-98 

Permanent Coal Tax Trust S-98 

In-State Investment Trust . . . .• S-98 

Permanent Common School Trust S-98 

Education Trust S-98 

Resource Indemnity Trust S-98 

Parks Acquisition Trust S-98 

BUDGET PARAMETERS S-100 

Personal Services and Benefits S-100 

Per Diem Rates S-100 

Inflation Factors S-100 

Proprietary Account Rates S-101 

AGENCY/PROGRAM BUDGETS AND NARRATIVES 1 

HB0002 follows agency narrative (not numbered) 

Agency Index to HB0002 (last page) 



S-1 



BUDGET SUMMARY 



The 50th Legislature approved a budget of $759.7 million of 
general fund spending. The Governor recommended spend- 
ing $739.3 million for state operations, exclusive of the 
foundation program. He also recommended providing $77.1 
million dollars of general fund and earmarking and addi- 
tional $18.9 million for the foundation program. The legis- 
lature appropriated $749.0 million for state operations and 
$10.7 million for the foundation program. The legislature 
earmarked sufficient additional revenues to fund existing 
foundation schedules. 

The administration and the 50th Legislature faced the most 
difficult budget-balancing task in nearly two decades. Prior 
to the session, the gap between general fund revenues under 
current law and necessary expenditures for the 1988-89 
biennium was nearly $100 million. 

The Executive Budget recommended closing that gap with- 
out a general tax increase. The Governor's proposals accom- 
plished that goal by holding the spending for most state 
agencies at or below the current biennium level, freezing 
state employees' salaries and the foundation program sched- 
ules, continuing the reallocation of coal tax revenues 
approved during last June's Special Session and slowing the 
rate of savings going into the coal tax trust. 

The final budget adopted by the legislature followed the 
direction of most of these recommendations. However, since 
the legislature appropriated more than the Executive Budget 
recommended, granted tax reductions to some taxpayers and 
transferred $12 million less from coal trusts, in order to bal- 
ance the budget, the legislature found it necessary to impose 
a 10 percent surtax on individual income lax for calendar 
years 1987 and 1988. 

The following table compares the major elements of the 
Executive Budget recommendation with legislative action. 



Executive Budget Recommendation: 

Spending: 739. 5M (excluding Founda- 
tion program) 



Freeze school foundation program 
schedule 



Freeze state salaries 



Keep additional revenue from federal 
tax reform ($78. 8M) 

Slow the rate of savings into the coal 
tax permanent trust ($83. 3M) 



Adopt a 4% accommodations tax for 
travel promotion 

Endorsed Senator Smith's conversion 
of vehicle fee system to 2 percent of 
market value 

Utilize $4.6M of RIT monies in 
agency budgets 



Reallocate some coal tax revenues and 
interest earnings 

Enact a comprehensive, revenue- 
neutral tax reform package 

No general tax increase 



Legislative .Action 

Spending: 749. OM 
(excluding 
Foundation pro- 
gram) 

.Adopted 



Adopted. except 
for institutional 
teachers 

Adopted 



Took $7IM from 
the principal of 
Education Trust 
fund 

Adopted 



Adopted 



Utilized $4.9M of 
RIT monies in 
agency budgets 

Adopted 



Provided $I8.6M 
of tax breaks for 
certain taxpayers 

10% surtax on 
individual income 



Provide a fund balance of 5% of 
expenditures 



Provided a fund 
balance of 1.87% 
of expenditures 



S-2 



MAJOR EXECUTIVE INITIATIVES 

Economic Development 

The legislature reafTirmed and expanded the Build Montana 
program by enacting the following Executive Budget recom- 
mendations: 

-Montana's tourism industry will be assisted through 
a significant expansion of the travel promotion effort 
funded by an earmarked 4 percent accommodations 
tax. The state's effort will increase from $1.2M per 
year to approximately $4.8M annually. 

-A "Pacific Rim" effort was funded to build a 
stronger identity for our producers, manufacturers 
and the travel industry in the Orient. 

-The Science and Technology Alliance was given the 
authority to issue $16 million in bonds to help 
expanding business become significant Montana 
employers. 

-The linked deposit program to help finance oper- 
ating loans for farms and ranches was continued. 

-$2.1 M of oil overcharge monies was appropriated to 
develop a major new truck/train transloading facility 
to make Montana products more cost competitive. 

-The state's investment programs were consolidated 
under a single board and staff to maximize the 
state's ability to invest its resources and promote 
economic development. 

Department of Family Services : 

The legislature adopted the administration's bill to consoli- 
date existing services to youth and families within a single 
agency. The new Department of Family Services will enable 
the state to use available manpower and resources more effi- 
ciently and to encourage greater local involvement in serv- 
ing troubled children and youth. 

Workers' Compensation : 

The legislature adopted SB 315, a major administrative 
package designed to reform Montana's workers' compensa- 
tion system. The reform bill, which resulted from over two 
years of study and public input, will hold down costs of 
insurance for all Montana employers, allowing the continua- 
tion of a program that fairly protects injured workers at a 
cost their employers can afford. 



The legislature also provided fundmg lo solve ihc cash l1ow 
problems for the unfunded iiabililv created by pasi claims 
agamst the state fund. A 0.3% payroll tax on all emploscrs 
was established for four years. .As a result, the state vmII not 
have to raise workers" compensation rates on JuK 1. 1*^87. 

Tax Reform 



The legislators did not adopt the adi 
reform proposals, which would have: 



listraiion's major tax 



simplified and broadened Montana's income and 
corporation tax bases; 
- lowered the corporation tax by 10% for all corpora- 
tions; 

lowered state income taxes for 60% of Montanans 
and dropped the top marginal rate from 1 1% to 8%; 
eliminated a series of "nuisance taxes"; 
allowed Montana voters to vote on the enactment of 
a sales tax to replace Si 50 million each year in prop- 
erty taxes, and 

provided alternate revenue sources for local govern- 
ments. 

Instead, the legislature: 

imposed a 4% surtax on Montana corporations for 

calendar year 1987 

imposed a 10% surtax on individual income tax for 

calendar years 1987 and 1988. and 

enacted specific tax reductions geared to certain 

industries. 



GENERAL FUND SUMMARY 
(MILLIONS) 



S-3 



.ACTUAL 
FY 86 



ESTIMATED 
FY 87 



ESTIMATED 
FY 88 



ESTIMATED 
FY 89 



Beginning Fund Balance 

Receipts 

Estimated Revenue 
Education Trust Transfer 
Federal Tax Reform 

Total Receipts 
Total Available 
Disbursements 

Budgeted Disbursements 
Foundation Program 
Legislative Feed Bill 
Local Government 
Continuing Approp. Reserve 
Miscellaneous Appropriations 
Supplemental Requests 
Emergency & Disaster 
TRANS Interest 
Debt Service 
Language Appropriations 
Appropriation Cuts 
Reversions 

Total Disbursements 
Adjustments (Prior Year) 
Residual Equity Transfer 
Ending Fund Balance 



$ 27.545 


$ 16.002 


$ 10.332 


$ 1 1 .047 


$349,541 


$346,193 


$372,634 


$383,426 




35.000 


0.000 


0.000 


_ 


(5.470) 


(27.300) 


(46.040) 


$349,541 


$381,193 


$372,634 


$383,426 


$377,086 


$397,195 


$382,966 


$394,473 


$362,161 


$327,303 


$361,564 


$362,752 


4.654 


20.558 


0.000 


10.707 




4.318 




4.400 




6.500 








4.852 










1.839 


0.382 




24.107 


1.461 


1.019 




0.695 








4.261 


2.774 


3.089 




10.811 


11.037 


11.083 






0.277 


0.302 




-4.611 








-4.000 
$394,794 


-6.500 

$372,452 


-6.500 


$366,815 


$387,234 


5.731 


1.418 


0.333 






6.513 


0.200 




$ 16.002 


$ 10.332 


$ 11.047 


$ 7.239 



Surplus as % of Disbursements 



4.36% 



2.62% 



S-4 



General Fund Expend. <&: Revenue Growth 

Fiscal YoorB 1973 to 1989 




Fiscal 
Year 

1973 
1974 
1975 
1976 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 



General Fund 
Revenue 

$112,591,298 
$131,756,688 
$156,641,727 
$166,345,790 
$189,879,343 
$203,244,550 
$233,360,791 
$250,183,133 
$282,526,748 
$320,143,925 
$313,575,015 
$330,305,497 
$364,521,831 
$349,541,480 
$381,193,000 
$372,634,000 
$383,426,000 



General Fund 
Expenditures 

$94,739,472 
$115,543,830 
$146,247,584 
$166,340,893 
$194,300,258 
$218,093,767 
$239,029,560 
$238,167,938 
$264,551,569 
$347,901,270 
$332,610,274 
$357,387,046 
$380,358,776 
$366,815,431 
$394,794,000 
$372,452,000 
$387,234,000 



Ending Fund 
Balance 

$24,159,177 
$40,820,358 
$51,196,108 
$50,454,406 
$48,528,885 
$33,621,817 
$28,609,926 
$42,218,231 
$61,315,056 
$34,386,832 
$57,140,875 
$35,097,000 
$27,545,000 
$16,002,000 
$10,332,000 
$11,047,000 
$7,239,000 



General Fund Revenue Anciysis 

Contribution by Source - FY 84 



Other (16.5%) 



CIg&Tobocco (3.1JS) 
Institution (2.8%) 

Insurance (4.1%) 
Coal Trust (5.7%) 



Interest (7.1%) 




Coal (4.8%) 



Corporation (7.3%) 



Oil (9.9%) 



General Fund Revenue Analysis 

Contribution by Source - Pr' 86 



Other (14.3%) 



Cig&Tobocco (3.0%) 
Institution (4.1%) 

Insurance (4.8%) 
Coal Trust (9.3%) 




Income (37.0%) 



Oil (6.6%) 



S-6 



General Fund Revenue Analysis 

Contribution by Source - FY 88 
Other 03.7%) 



Cig&TobQcco (2,5?;) 
Institution (4.4JS) 



Inauranca (fi.5%) 



Cool Trust (9.8%) 




Interest (3.9?f) 



Income (41.3Jt) 



Cool (2.75S) 



Oil (4.7%) 



Corporation (8.5%) 



General Fund Revenue Analysis 

Contribution by Source - nr 89 
Other (13.95S) 



CIg&Tobacco (2.3%) 
Institution (4.4%) 



Insurance (5.4%) 



Coal Trust (10,4%) 




Interest (4.4%) 



Cool (2.3%) 

Oil (4.8%) 



ncome (43.1%) 



Corporation (9.1%) 



S-7 



General Fund Expenditure Analysis 

Rscol Year 1986 



All Other (26.2%) 



SRS (19.9%) 




V Education (37.0%) 



Institutions (16.9%) 



General Fund Expenditure Analysis 

Fiscal Year 1987 



All Other (20.8%) 



SRS (23.6%) 




Educotion (38.1%) 



Institutions (17.5%) 



S-8 



General Fund Expenditure Anciysis 

Hscal Year 1988 



All Other (22.5%) 



SRS (25.7%) 




^ Eaucation (35.4%) 



nstitutions (16.4%) 



General Fund Expenditure Analysis 

Fiscal Year 1989 



All Other (22.4%) 



SRS (24.8%) 




\ Education (36.9%) 



Institutions (15.9%) 



S-9 



COMPARISON OF FULL-TIME 
EQUIVALENT (FTE) POSITIONS 
BY AGENCY 

The level of FTE for stale government is the lowest since 
1975. Nearly 900 FTE have been eliminated as compared to 
the FY86 authorized level. The decline in FTE is even more 
dramatic when the new services that have been added m the 
past few years are considered. .An additional 35 FTE are 
added due to the passage of the lottery mitiatitive. Staffing 
the new forensics building at Warm Springs adds an addi- 
tional 15 FTE in FY88 and a total of 30 FTE in FY89. 

Over the past few legislative sessions state government has 
accepted the responsibility for services formerly outside of 
state government. .Assumption of the Vo-Tech system in 
FY82 added 246 FTE to the state's payroll even though the 
level of service remained the same. .Assumption of county 
welfare in the 12 "assumed counties" has added staff to 
SRS since 1983. Additional housing at the State Prision re- 
quired the addition of 79 prison guards. 
Despite these additions, the total number of state FTE has 
declined and the number of FTE per capita has declined sig- 
nificantly. The following graph depicts the number of slate 
employees per iOOO residents. 





Slate Emplovees (FTE) 






Per 1000 Residents 








FTE PER 




POPU- 


1(H)(I 


EX 


FTE L.ATION 


RESIDENTS 


72 


11706.72 711.000 


16.47 


73 


11880.17 719.000 


16.52 


74 


12369.41 727.000 


17.01 


75 


13047.48 736.000 


17 73 


76 


14510.52 748.000 


19.40 


77 


15370.17 757.000 


20.30 


78 


15026.60 770.000 


19.52 


79 


14488.23 782.000 


18.53 


80 


14410.62 787.000 


18.31 


81 


14550.72 788.000 


18.47 


82 


14266.46 796.000 


17.92 


83 


14156.49 805.000 


17.59 


84 


14296.09 815.000 


17.54 


85 


14459.07 823.000 


17.57 


86 


14679.75 825.000 


17.79 


87 


14654.46 819.000 


17.89 


88 


13817.65 822.000 


16.81 


89 


13884.01 825.000 


16.83 





State of Montana Employees 



FTE per 1000 Raaidanta 




S-10 



COMPARISON OF FULL-TIME EQUIVALENT (FTE) 
POSITIONS BY AGENCY 



State Agency 
Administration 
Agriculture 
Arts Council 
Auditor, State 
Commerce 

Deaf and Blind School 
Fire Services Training 
Fish, Wildlife and Parks 
Governor's Office 
Health and Environ Sc 
Highways 
Historical Society 
Institutions 
Justice 

Labor and Industry 
Lands 

Legislative Agencies 
Library Commission 
Livestock 
Military Affairs 
Nat Resources and Conser 
Political Practices. Com 
Public Education, Bd of 
Public Service Reg 
Revenue 

Secretary of State 
Social and Rehab Serv 
Supt of Public Instr 
Supreme Court 
University System 
Vo Ed., Advisor)' Council 
Vo-Tech Centers 
Family Services 

Totals 
FTE/REPORT TO GOVERNOR 
ALL OTHER 



Actual 


Approved 


Approved 




FY 86 


FY 87 


F\ 88 


FY 89 


419.84 


426.09 


387.09 


■?4I 


92.53 


91.32 


88.00 


88. 


5.50 


4.00 


7.97 




60.17 


60.00 


62.50 


62. 


278.95 


276.45 


343.60 


.U3. 


86.82 


86.82 


84.63 


84. 


6.00 


6.00 


5.00 


5. 


553.18 


493.71 


498.16 


498. 


64.08 


63.08 


60.40 


60. 


240.79 


241.25 


247.09 


246. 


2005.50 


1985.75 


1920.74 


1931. 


55.50 


51.00 


47.38 


47. 


2274.11 


2308.69 


1993.25 


2008. 


622.68 


627.85 


582.10 


588. 


798.57 


798.65 


824.15 


824. 


293.25 


304.08 


297.73 


302. 


131.50 


146.50 


132.95 


143. 


26.60 


25.50 


27.50 


27. 


116.61 


121,61 


126.61 


126. 


91.23 


91.00 


96.50 


96. 


273.22 


256.67 


238.20 


244. 


4.75 


4.75 


3.00 


^ 


2.00 


2.00 


3.00 


3. 


46.00 


46.00 


46.00 


46. 


1029.88 


1014.55 


886.67 


898. 


35.00 


31.50 


27.50 


27. 


1112.20 


1128.82 


757.57 


755. 


134.10 


134.10 


121.90 




91.24 


91.00 


91.50 


90. 


3474.61 


3482.38 


3002.51 


3002. 


2.00 


2.00 


2.00 


2. 


251.34 


251.34 


249.57 


249^ 


0.00 


0.00 


554.88 


55' 


14679.75 


14654.46 


- 13817.65 


13884. 


9826.36 


9777.04 


9495.12 


9546. 


4853.39 


4877.42 


4322.53 


4337. 



Notes: 

Actual FY86 includes both current level positions and positions added via the budget admendment process. 
Approved FY87 reflects current level FTE only as per the 49th Legislature. Approved F\'88 and FY89 reflects 
FTE only as per the 50th Legislature. 



S-I 



BUDGET SUMMARY BY FUND 



General Fund 



Actual 


Budgeted 


Appropriati 


:d 


FY 1986 


FY 1987 


FY 1988 


FY I9S9 


1.094.232.96 


1,068,819 


1,111,141 


1.102.793 


739,438.94 


721.386 


862,552 


788.773 


1.859.050.23 


2.102.918 


1.764.741 


1.985.204 


291.297.82 











528.672.13 











228.391.76 


223.375 


243.618 


239.609 


4.223.720.17 


4,193,301 


4,264,413 


4.241.703 


2,229.948.39 


2,212,916 


2,168.868 


2.166.936 


861.920.45 


859,387 


519.057 


521.931 


139.651.73 


135.584 


102.311 


100.063 


1.072.582.81 


1.050,115 


1.028.402 


784.154 


46,915.037.33 


61.071.780 


37.247.545 


47.954.875 


480,359.74 


469.170 


420.742 


411,834 


0.00 





277.200 


302,400 


8,852,419.65 


5.267.369 


5,215,514 


4.957.783 


1,591.501.64 





1,769,247 


1.679.762 


105,670.09 


99.801 


177.541 


178.509 


88.729,604.87 


81.431.571 


96.531.656 


96.908.760 


2,639.471.06 


2,060,846 


2.064.753 


2.062.057 


118,707.00 


111.174 


125.315 


120.154 


542.293.89 


524,096 


548.652 


520.199 


1.204,072.79 


1.072.839 


1.121.413 


1.111.737 


22.585.50 


22.292 


190,951 


28.008 


227,941.06 


213.777 


199.392 


199.440 


405.052.81 











3.853.776.54 


3.350,205 


4,273.548 


3.588,021 


8.678.724.68 


6,529,244 


6,959,942 


6,834.436 


641.095.67 


580,100 


746,342 


747.162 


4.416.053.26 


4,059.452 


3.815.935 


3.845.998 


18,841,525.08 


17.267,091 


17.482.614 


17.511.147 


16.073.522.42 


3.710,496 


3,857,082 


3.650.505 


1,542.157.28 


1,453,696 


1,582,894 


1.516.245 


10,960,489.01 


11.038.111 


11,129.797 


10.934.668 


10,711,415.75 


11.046.061 


11,739,951 


11.852.130 


2.497.287.26 


2.499.164 


2.662,888 


2.649.528 


2,084.528.55 


2.079.472 


2,239,779 


2,248,146 


1.661,606.49 


1.541,345 








2,594,333.63 


2,707.216 








10,410.158.62 


11.792,935 


12.735.624 


12,965,505 


829,228.24 


817,362 


845.854 


848.631 


441,336.40 


484,554 


542.000 


552.504 


17,596.933.03 


17,841,512 


19,826.836 


20.146.957 


160.620.69 


159,842 


160.439 


160,441 


2.095,064.74 


1,201,832 








9,350,978.18 


14,729,721 


5.166.141 


4,732,206 


1,335,930.61 


997.250 


2,669,453 


2.616.632 


99.977.91 


100,791 


69,582 


64,583 


1.952,725.19 


1,798,564 


1,814,721 


1,829,435 


72,882,336.13 


72,469,930 


75.352.577 


76.357,452 


0.00 





20.051,456 


20,124,606 


0.00 


24,107,013 


1,461,000 


1.019,000 


0.00 


4,317,534 





4.400.000 


0.00 


4,851,904 








0.00 


(632,134) 








0.00 


(5.356,246) 








0.00 


5,180,558 








0.00 


15,767,821 


13,810,006 


14,171,725 


0.00 


(4,611,003) 








0.00 


(4,000,000) 


(6,500,000) 


(6,500,000) 


$366,815,430.18 


$394,793,909 


$372,451,525 


$387,234,347 



Legislative Auditor 
Legislative Fiscal Analyst 
Legislative Council 
Legislature-Senate 
Legislature-House 
Envir Quality Council 
Judiciary 
Governor's Office 
Secy of State's Office 
Comm of Political Prac 
State .Auditor's OtTice 
Ofc of Public Instruct 
Crime Control Division 
Highway Traffic Safety 
Department of Justice 
Public Service Regulation 
Board of Public Education 
Commissioner of Higher Ed 
Sch For Deaf & Blind 
Montana Arts Council 
Library Commission 
Historical Society 
Board of Regents 
Fire Svc Training Sch 
Dept of Fish Wldlf & Parks 
Dept Hlth & Envir Sciences 
Dept of State Lands 
Department of Livestock 
Dept of Nat Res & Conser 
Department of Revenue 
Department of .Admin 
Department of Agriculture 
Department of Institutions 
Mt Developmental Ctr 
Center For The .Aged 
Eastmont Training Center 
Mountain View School 
Pine Hills School 
Montana State Prison 
Swan Rvr Yth Forest Camp 
Veterans Home 
Montana State Hospital 
Board of Pardons 
Mt Yth Treatment Ctr 
Department of Commerce 
Labor & Ind-Employ Svc 
Labor & Ind-Wrkrs' Comp 
Adjutant General 
Dept Social & Rehab Svc 
Department Of Family Svc 
Supplemental Requests 
Legislative Feed Bill 
Reserve for Cont Approp 
Adjustments 
Appropriation Transfers 
Misc .Appropriations 
Statutory .Appropriations 
2 Percent Cuts 
Reversions 

Total Appropriations 



S-12 



BUDGET SUMMARY BY FUND 



State Special Revenue Fund 


Actual 


Budgeted 


Appropriai 


•d 




FY 1986 


FY 1987 FY 


988 


FY 1989 


Legislative Auditor 


866,542.67 


938,807 1.011.063 


1.064. 400 


Legislative Council 


316,618.02 





987.391 





Envir Quality Council 


10,922.83 





101,200 





Consumer Counsel 


461,315.67 


852,691 


845.716 


844.336 


Judiciary 


424,663.88 


568,604 


487.656 


487.739 


Governor's Office 


63,846.83 


1 


828.220 


1.590.000 


Secy of State's Office 


322,855.69 


309,835 


577.480 


532.231 


Comm of Political Prac 


48.00 


950 


800 


4.800 


State Auditor's Office 


9,306,894.81 


1,171.509 1 


566,950 


1.532.712 


Ofc of Public Instruct 


174,638,717.70 


2,902.440 


801.694 


767.794 


Crime Control Division 


0.00 





482.795 


480.936 


Highway Traffic Safety 


70,790.93 


68.194 


72.000 


72.000 


Department of Justice 


11,103,274.59 


13,378,173 14.628,819 


14.918.888 


Public Svc Regulation 


0.00 


1,662.738 








Comm Of Higher Ed 


16,805,328.00 


21,671,074 14.504.093 


13.968.623 


Montana Arts Council 


530,716.35 


1 


222.217 





Library Commission 


528,390.61 


423.866 


429.461 


418.979 


Historical Society 


188,366.97 











Dept Of Fish Wldlf & Parks 


18,793,694.31 


16.773.038 22 


388.807 


17.598.521 


Dept Hlth & Envir Sciences 


1,774,244.74 


2.241,961 2 


800.278 


2.226.262 


Department of Highways 


183,387,074.13 


152.048,344 129 


229,829 


130.407.443 


Department Of State Lands 


3,333,684.78 


3.216.558 2 


810,649 


2.679.91^^ 


Department Of Livestock 


3.223.950.83 


3,576,256 3 


566.156 


3.579.203 


Dept Of Nat Res & Conser 


20,378,956.57 


5,706,641 12 


125,608 


5.563.174 


Department Of Revenue 


12,737,905.59 


880,288 i 


297.951 


1.171.994 


Dept of Administration 


1,162,125.96 


895,448 


866,833 


859,579 


Long Range Bldg Plan 


1,211,670.26 











Department Of Agriculture 


793.603.76 


1,120.773 1 


424.812 


1.291.224 


Dept Of Institutions 


1.885,453.63 


331,597 


347,085 


327.700 


Mt Developmental Ctr 


28,607.96 


20,324 


13,626 


13.626 


Center For The Aged 


3,959.26 


7.735 


9,735 


9.735 


Eastmont Training Ctr 


2,932.64 


3,000 


4,000 


4,000 


Mountain View School 


1,715.13 


2,000 








Pine Hills School 


45,569.12 


42,015 








Montana State Prison 


786,089.62 


780,201 1 


435.745 


1,247,541 


Swan Rvr Yth Forest Camp 


79,010.99 


74,794 


86,383 


86,617 


Veterans Home 


15.337.71 


20,764 


20.764 


20,764 


Montana State Hospital 


1,720,309.91 


1,713,608 1 


740.583 


1,729.533 


Department of Commerce 


25,922.289.77 


22,122,306 14.088,964 


13.785.514 


Labor & Ind-Employ Svc 


3,250.00 


3,250 


306.220 


295.208 


Labor & Ind-Wrkrs' Comp 


7.773,879.26 


7,388,959 8 


289.679 


8.464.439 


Dept Social & Rehab Svc 


7,779,510.37 


7,956,887 8 


216,515 


8.545,383 


Dept Of Family Svc 


0.00 





164,151 


163.242 


Total Appropriations 


$508,484,119.85 


$270,875,628 $250,481,928 


$236,754,059 



S-13 



BUDGET SUMMARY BY FUND 



Federal & Other Spec Rev Fund 


Actual 


Budgeted 


Appropriaii 


:d 




FY 1986 


FY 1987 


FY 1988 


FY 1989 


Judiciary 


8.856.41 





40.963 





Governor's Office 


504,028.05 


778.315 


438.651 


438.774 


Stale Auditor's Office 


5,921.758.63 











Ofc Of Public Instruct 


5,784,275.73 


6.436.474 


4,893.730 


4.795.075 


Crime Control Division 


652,834.19 


82.500 


2.189.599 


2.232.651 


Highway Traffic Safety 


1,438,371.66 


1.484.050 


1.105.732 


1.103.942 


Department Of Justice 


696,300.51 


829.927 


1.752.756 


1.569.903 


Public Svc Regulation 


30,033.20 


50.919 


33.491 


35.134 


Comm of Higher Ed 


1,155,079.30 


1.570.591 


4.632.159 


4.683.642 


Sch For Deaf & Blind 


413,426.40 


461,155 


385.370 


384.926 


Montana Arts Council 


417,550.00 


392.798 


401.850 


401.377 


Library Commission 


748,481.31 


609,005 


768.977 


742.722 


Mt Cncl On Vocational 


83,956.47 


117.338 


120,000 


1 20.000 


Historical Society 


900,338.95 


1,060,461 


1.093.780 


1.041.918 


Board of Regents 


0.00 





1.454.690 





Fire Svc Training School 


12,500.00 


2.000 


2.000 


2.000 


Dept Of Fish Wldlf& Parks 


8,189.848.79 


6,869,024 


7.164.622 


7.058.088 


Dept Hlth & Evnir Sciences 


16.347,547.03 


17,843.893 


22.419.684 


23.655.690 


Department Of Highways 


129,073,261.09 


114.992.701 


95.897.753 


95.300.954 


Dept Of State Lands 


6,922,694.16 


9.860.437 


8.735.417 


8.666.871 


Department of Livestock 


526,627.15 


588.000 


234.400 


231.900 


Dept Of Nat Res & Con 


1.221.384.39 


1.201.354 


13.827.487 


1.297.292 


Department of Revenue 


1,363.383.52 


1.560,191 


1.444.152 


1.955.688 


Long Range Bldg Plan 


176.652.67 











Dept of Agriculture 


858,194.23 


1.370,219 


1.688.601 


i. 729.827 


Dept of Institutions 


2,437.969.40 


2,322,126 


2,548.314 


2.540.606 


Mt Developmental Ctr 


38,733.24 


44.513 


42.661 


44.384 


Mountain View School 


105.796.10 


66,332 








Pine Hills School 


539.785.92 


489,191 








Montana State Prison 


125.541.38 


91,292 


157.137 


129.102 


Swan Rvr Yth Forest Camp 


38.837.83 


39.450 


38.902 


27,898 


Veterans Home 


1.367.647.52 


1.393.515 


1.636.773 


1,650,215 


Montana State Hospital 


5.985.77 


5.103 


3.775 


3.775 


Mt Yth Treatment Ctr 


38.000.16 


41,555 








Department of Commerce 


18.174.083.46 


17.894,707 


19.847.351 


18.324,820 


Labor & Ind-Employ Svc 


25.782,560.62 


25.768,825 


26.561.075 


26.920.314 


Labor & Ind-Wrkrs' Comp 


124,029.98 


222,981 


124.449 


124,876 


Adjutant General 


3,744,107.01 


1.834,842 


4.609.832 


4,647,343 


Dept Social & Rehab Svc 


151,353.372.48 


154,584.902 


188.743.931 


200.775,554 


Dept Of Family Svc 


0.00 





10.553.258 


10,575.764 


Total Appropriations 


$387,323,834.71 


$372,960,686 


$425,593,322 


$423,213,025 



S-14 



BUDGET SUMMARY BY FUND 



Proprietary Fund 


Actual 


Budgeted 


Appropnai 


ed 




FY 1986 


FY 1987 


FY 1988 


F>- 1984 


Governor's Office 


73,750.00 


73,750 








State Auditor's Office 


0.00 











Department Of Justice 


459,234.44 


436,046 


493.140 


493.454 


Public Svc Regulation 


8,700.67 


15,000 


1 5.000 


1 5.000 


Comm Of Higher Ed 


0.00 





8.739.609 


9.205.338 


Historical Society 


430,152.94 


361,909 


486,087 


519.880 


Fire Svc Training Sch 


1,620.31 


12.000 


12.000 


1 2.000 


Dept Of Fish Wldlf& Parks 


1,720,136.87 


2.193,510 


2.184,081 


2.347.155 


Department Of Highways 


14,453,261.21 


13,908.005 


16.498.027 


16.465.568 


Dept Of State Lands 


198.261.67 


176,584 


191.781 


190.319 


Department Of Revenue 


47,306.291.07 


49,474,740 


6.164.739 


6.136.550 


Dept Of Administration 


44,384,648.61 


29,120.603 


29.325,563 


29.493.748 


Long Range Bldg Plan 


22,110.66 











Dept Of Agriculture 


79,329.20 


146,189 


33.289 


33.490 


Dept Of Institutions 


0.00 





6.278 





Montana State Prison 


1,912,860.37 


2,385,063 


2.128.370 


2.201.218 


Mt Yth Treatment Ctr 


8,013.62 


28,065 








Department Of Commerce 


58,516,124.89 


3,478.385 


30.570.832 


30.537.647 


Ubor & Ind-Employ Svc 


1,309.00 


3.500 


2.622.203 


2.540.749 


Total Appropriations 


$169,575,805.53 


$101,813,349 


$99,470,999 


$100,192,116 



S-15 
BUDGET SUMMARY BY FUND 



Current Unrestricted Fund 


Actual 


Budgeted 


Appropriated 






FY 1986 


FY 1987 


FY 1988 


F\ 


1989 


Billings Vo Tech 


2,000,732.10 


1.736,993 


1,687.615 




1.677.076 


Butte Vo Tech 


1,582.840.86 


1,349,012 


1,378.791 




I.364.Q03 


Great Falls Vo Tech 


1,738,346.10 


1,445,418 


1.444,793 




1.433.211 


Helena Vo Tech 


2,389,881.97 


2,092,055 


2,100,932 




2,090.012 


Missoula Vo Tech 


2,604,302.31 


1,971,389 


1,935.938 




1.929.783 


University of Montana 


35,956,559.36 


35,612,295 


36.600,144 




36.740.503 


Mt State University 


45.127,771.43 


44,635,258 


44.248,373 




43.837.953 


Mt College Mm Sc'& Tech 


10,286,487.19 


10.238,012 


9,604.307 




9.625.467 


Eastern Montana College 


13.779,826.98 


13,735,246 


13,362.197 




13.428.017 


Northern Mt College 


7,567,829.10 


7,566,514 


7,864.954 




7.989.425 


Western Mt College 


3,920.189.29 


3,960,578 


4,389,174 




4.343.768 


Ag Exper Station 


8,559,556.70 


9.105,023 


8,589,225 




8.641.392 


Coop Extension Svc 


4,016,842.82 


4,236,089 


4,355,652 




4.363.435 


Forestry & Cons Exper St 


671,812.05 


645,309 


643,535 




644.954 


Total Appropriations 


$140,202,978.26 


$138,329,191 


$138,205,630 


$ 


138.109.899 



S-16 

AGENCY BUDGET SUMMARY 



LEGISLATIVE AUDITOR 

AUDIT & EXAMINATION PROGRAM 
General Fund 
State Special Revenue Fund 

TOTAL AGENCY FUNDING 
LEGISLATIVE FISCAL ANALYST 
ANALYSIS AND REVIEW 
General Fund 

TOTAL AGENCY FUNDING 
LEGISLATIVE COUNCIL 

INTERIM STUDIES & CONFERENCES 
General Fund 

State Special Revenue Fund 
MONTANA CODE ANNOTATED 

State Special Revenue Fund 
LEGISLATIVE COUNCIL 

General Fund 
AGENCY FUNDING SUMMARY 
General Fund 
State Special Revenue Fund 

TOTAL AGENCY FUNDING 

ENVIRONMENTAL QUALITY COUNCIL 

ENVIRONMENTAL QUALITY PROGRAM 

General Fund 
WATER POLICY COMMITTEE 

State Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

TOTAL AGENCY FUNDING 

CONSUMER COUNSEL 

ADMINISTRATION PROGRAM 
State Special Revenue Fund 

TOTAL AGENCY FUNDING 

JUDICIARY 

SUPREME COURT OPERATIONS 

General Fund 
BOARDS AND COMMISSIONS 

General Fund 
LAW LIBRARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
DISTRICT COURT OPERATIONS 

General Fund 
WATER COURTS SUPERVISION 

State Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
GOVERNORS OFFICE 

EXECUTIVE OFFICE PROGRAM 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
MANSION MAINTENANCE PROGRAM 

General Fund 



'ROPRIATED 
FY 1988 


APPROPRIATED 

FY 1989 


1,111,141 
1,011,063 
2,122,204 


1,102,793 
1.064.400 
2.167.193 


862,552 
862,552 


788,773 
788,773 


175,311 
12,000 


44.611 


975,391 




1.589,430 


1.940.593 


1,764,741 

987.391 

2,752,132 


1.985.204 
1.985.204 


243,618 


239.609 


101,200 




243,618 
101,200 
344,818 


239,609 
239,609 


845,716 
845,716 


84'4,336 
844.336 


1,330,278 


1,311,767 


182,919 


181,623 


511,307 
18,075 
40,963 


502,114 
18,075 


2,239,909 


2,246,199 


469,581 


469,664 


4,264,413 

487,656 

40,963 

4,793,032 


4,241,703 
487,739 

4,729,442 


957,920 
90,000 
121,613 


919,028 
90,000 
121,619 



AGENCY BUDGET SUMMARY 



S-17 



AIR TRANSPORTATION PROGRAM 

General Fund 
OFFICE OF BDGET & PGM PLANNING 

General Fund 
NORTHWEST REGIONAL POWER ACT 

Other Special Revenue Fund 
LT. GOVERNOR 

General Fund 
CITIZENS ADVOCATE OFFICE 

General Fund 
MENTAL DIS BD VISITORS 

General Fund 
STATEHOOD CENTENNIAL OFFICE 

State Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 

SECRETARY OF STATE'S OFFICE 

RECORDS MANAGEMENT PROGRAM 

General Fund 

State Special Revenue Fund 
ADMINISTR.ATIVE CODE PROGRAM 

State Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

TOTAL AGENCY FUNDING 

COMMISSIONER OF POLITICAL PRAC 
ADMINISTRATION 
General Fund 
State Special Revenue Fund 

TOTAL AGENCY FUNDING 

STATE AUDITOR'S OFFICE 
CENTRAL MANAGEMENT 

General Fund 
AUDIT DIVISION 

General Fund 

Slate Special Revenue Fund 
INSURANCE 

State Special Revenue Fund 
SECURITIES 

State Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

TOTAL AGENCY FUNDING 
OFFICE OF PUBLIC INSTRUCTION 
CHIEF STATE SCHOOL OFFICER 

General Fund 

Other Special Revenue Fund 
BASIC SKJLLS 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
VOCATIONAL EDUCATION 

General Fund 

Other Special Revenue Fund 
ADMINISTRATIVE SERVICES 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 



PROPRIATED 
FY 1988 


APPROPRIATED 
FY 1989 


BIENNIIM 


95.748 


99.224 


1^4.972 


676,417 


708.984 


1.385.401 


317,038 


317.155 


634.19.1 


201,238 


201.244 


402.482 


47,627 


47,570 


95.197 


129,279 


129.284 


258.563 


1,738,220 


1,500,000 


3.238.220 


2,168,868 

1,828.220 

438.651 

4,435,739 


2,166.936 

1.590.000 

438,774 

4,195,710 


4.335.804 

3.418.220 

877.425 

8.631,449 


519,057 
383,930 


521,931 
379,136 


1.040.988 
763.066 


193.550 


153,095 


346.645 


519,057 

577,480 

1,096,537 


521,931 

532,231 

1,054,162 


1.040.988 
1.109.711 
2,150,699 


102,311 

800 

103,111 


100,063 

4,800 

104,863 


202,374 

5,600 

207,974 



787,299 
441,174 


546,115 
430,584 


1.333.414 

871.758 


839,182 


823,614 


1.662,796 


286,594 


278,514 


565,108 


1,028,402 
1,566,950 
2,595,352 


784,514 
1,532,712 
2,316,866 


1,812,556 
3,099,662 
4,912,218 


124,190 
21,568 


124,062 
13,068 


248.252 
34,63o 


853,468 
237,905 
122,514 


855,549 
237,944 
122,651 


1,709,017 
475,849 
245,165 


178,167 
274,085 


177,974 
274,044 


356,141 
548,129 


887,717 
416,266 
617,759 


852,423 
416,149 
617,920 


1,740,140 

832,415 

1,235,679 



S-18 



AGENCY BUDGET SUMMARY 



SPECIAL SERVICES 

General Fund 

Other Special Revenue Fund 
DISTRIBUTION TO PUBLIC SCHOOLS 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
BILLING VO TECH 
INSTRUCTION 

Current Unrestricted Fund 
PLANT OPERATION & MAINTENANCE 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
BUTTE VO TECH 
INSTRUCTION 

Current Unrestricted Fund 
PLANT OPERATION & MAINTENANCE 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 

GREAT FALLS VO TECH 
INSTRUCTION 

Current Unrestricted Fund 
PLANT OPERATION & MAINTENANCE 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
HELENA VO TECH 
INSTRUCTION 

Current Unrestricted Fund 
PLANT OPERATION & MAINTENANCE 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
MISSOULA VO TECH 
INSTRUCTION 

Current Unrestricted Fund 
PLANT OPERATION & MAINTENANCE 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 



APPROPRIATED 
R- 1988 


APPROPRIATED 
FY 1989 


BIENNKM 


441,688 
1.332,804 


441.588 
1.332.392 


883. 27h 
:.665.14h 


34,762,315 

147.523 

2.525,000 


45.503.279 

113,701 

2.435.000 


80,265.5^4 

261.224 

4.46().(M)() 


37,247,545 

801,694 

4,893,730 

42,942,969 


47.954.875 

767.794 

4.795.075 

53.517.744 


85.202.420 
1.569.488 
9.688.805 

96.460.713 


1,015,711 


1.015.711 


2.031.422 


266,439 


275.198 


541,637 


405.465 


386.167 


791.632 


1,687,615 
1.687,615 


1.677.076 
1.677.076 


3.364,691 
3,364,091 


844.684 


844.684 


1,689.368 


164.519 


169,934 


334,453 


369,588 


350.285 


719.873 


1,378,791 
1,378,791 


1.364.903 
1.364.903 


2.743.694 
2.743.694 


866,816 


866.816 


1.733.632 


181,537 


189.254 


370.791 


396,440 


377.141 


773,581 


1,444,793 
1,444,793 


1.433.211 
1.433.21! 


2.878.004 
2,878.004 


1,353,744 


1.353.744 


2.707,488 


313.032 


320,333 


633.365 


434,156 


415.935 


850.091 


2,100,932 
2,100,932 


2.090,012 
2,090,012 


4.190.944 
4,190,944 


1,208,873 


1,208.873 


2.417.746 


287,728 


299.793 


587,521 


439,337 


421,117 


860.454 


1,935,938 


1,929,783 


3,865,721 



AGENCY BUDGET SUMMARY 



S-19 



TOTAL AGENCY FUNDING 
CRIME CONTROL DIVISION 

BOARD OF CRIME CONTROL 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
HIGHWAY TRAFFIC SAFETY 

HIGHWAY TRAFFIC SAFETY DIV 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
DEPARTMENT OF JUSTICE 

LEGAL SERVICES DIVISION 

General Fund 

State Special Revenue Fund 
INDIAN LEGAL JURISDICTION 

General Fund 
COUNTY PROSECUTOR SERVICES 

General Fund 
AGENCY LEGAL SERVICES 

Proprietary' Fund 
DRIVER SERVICES BUREAU 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
HIGHWAY PATROL DIVISION 

State Special Revenue Fund 

Other Special Revenue Fund 
REGISTRAR'S BUREAU 

State Special Revenue Fund 

Other Special Revenue 
LAW ENFORCEMENT SERVICES DIV 

General Fund 
COUNTY ATTORNEY PAYROLL 

General Fund 
LAW ENFORCEMENT ACADEMY DIV 

State Special Revenue Fund 
FIRE MARSHAL BUREAU 

General Fund 
IDENTIFICATION BUREAU 

General Fund 
CRIMINAL INVESTIGATION BUREAU 

General fund 

Other Special Revenue Fund 
SPECIAL INVESTIGATION SECTION 

State Special Revenue Fund 

Other Special Revenue Fund 
CENTRAL SERVICES DIVISION 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietarv Fund 
DATA PROCESSING DIVISION 

State Special Revenue Fund 
EXTRADITION & TRANSP PRISONERS 

General Fund 
FORENSIC SCIENCE DIVISION 

State Special Revenue Fund 

AGENCY FUNDING SUMMARY 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 



APPROPRIATED 
FY 1988 


APPROPRIATED 
FY 1989 


BIENNU'M 


1.935.938 


1.929.783 


3.865.721 


420.742 

482.795 

2.189.599 

3.093.136 


411.834 

480.936 

2.232.651 

3.125.421 


832.576 

963.731 

4.422.250 

6.218.557 


277.200 

72,000 

1.105,732 

1.454,932 


302.400 

72.000 

1.103.942 

1.478.342 


579.600 

144.000 

2.209.674 

2.933.274 


778,653 
22,035 


775.185 
21,890 


1.553.838 

43.925 


165.579 


65.657 


231.236 


135.181 


135.334 


270.515 


492,562 


493.454 


986.016 


1.897,971 
446.207 
275,000 


1,756.674 
650.953 
145.000 


3.654.645 

1.097.260 

420.000 


9.653,646 
623.711 


9.735,252 
582.511 


19.388.898 
1.206.222 


1.993.923 
86,000 


2.064,472 
60,000 


4.058.395 
146.000 


78.662 


77,884 


156.546 


924.317 


937,463 


1.861.780 


625.791 


644.256 


1.270.047 


318.327 


319.335 


637.662 


236.734 


233.088 


469.822 


180.805 
116.616 


165,527 
102.348 


346.332 
218.964 


145,864 
649,832 


129,136 
680,044 


275.000 
1.329,876 


351,964 

33,603 

1,597 

578 


344,299 
11.826 


696,263 

45,429 

1,597 

578 


891,851 


888.503 


1,780,354 


147,321 


147.337 


294,658 


815,799 


772,600 


1.588,399 


5,215,514 
14,628,819 
1,752,756 


4.957,783 
14,918,888 
1,569,903 


10.173,297 

29,547.707 

3,322,659 



S-20 



AGENCY BUDGET SUMMARY 





APPROPRIATED 


APPROPRIATED 




FY 1988 


FY 1989 


Proprietary Fund 


493.140 


493.454 


TOTAL AGENCY FUNDING 


22.090.229 


21.940,028 


PUBLIC SERVICE REGULATION 






PUBLIC SERVICE REGULATION PROG 






General Fund 


1.769.247 


1.679.762 


Other Special Revenue Fund 


33.491 


35.134 


Proprietary Fund 


1 5.000 


1 5.000 


TOTAL AGENCY FUNDING 


1.817.738 


1.729.896 


BOARD OF PUBLIC EDUCATION 






ADMINISTRATION 






General Fund 


177.541 


178.509 


TOTAL AGENCY FUNDING 


177.541 


178.509 



COMMISSIONER OF HIGHER ED 
ADMINISTRATION PROGRAM 

General Fund 
STUDENT ASSISTANCE PROGRAM 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
ED. FOR ECON. SECURITY GRANT 

Other Special Revenue Fund 
COMMUNITY COLLEGE ASSISTANCE 

General Fund 
MUS GROUP INSURANCE PROGRAM 

Proprietary Fund 
TALENT SEARCH 

Other Special Revenue Fund 
VO-TECH APPROP DISTRIBUTION 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
VO-TECH ADMINISTRATION 

General Fund 

Other Special Revenue Fund 
APPROPRIATION DISTRIBUTION 

General Fund 

State Special Revenue Fund 
GUARANTEED STUDENT LOAN PGM 

Other Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietarv Fund 

TOTAL AGENCY FUNDING 

UNIVERSITY OF MONTANA 
INSTRUCTION 

Current Unrestricted Fund 
ORGANIZED RESEARCH 

Current Unrestricted Fund 
PUBLIC SERVICE 

Current Unrestricted Fund 
OPERATION & MAINT OF PLANT 

Current Unrestricted Fund 
SCHOLARSHIPS & FELLOWSHIPS PGM 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
MONTANA STATE UNIVERSITY 
INSTRUCTION 



802,138 



3.726,938 
683.164 
260.000 


3,996.510 
254.329 
260.000 


58.000 


58.000 


3.051.014 


3,041.798 


8.739,609 


9.205.338 


174.354 


173.617 


5.059.24! 
956.729 
807.474 


5.077.942 
808.294 
807.474 


82.319 
2.478,319 


93.165 
2.478.165 


83.810.006 
12,864.200 


83.925.241 
12.9Q6.000 


854.012 


906.386 


96,531.656 
14.504,093 
4.632,159 
8,739,609 

,24.407.517 


96.908.760 

13.968.623 

4.683.642 

9.205.338 

124.766.363 


19.143,786 


19.203.709 


595.254 


446.534 


195,892 


195.904 


5.388,983 


5.530.823 


983,741 


985.218 


10,292.488 


10.378.315 


36,600,144 
36.600.144 


36,746.503 
36.740.503 



AGENCY BUDGET SUMMARY 



S-21 



Current Unrestricted Fund 
ORGANIZED RESEARCH 

Current Unrestncted Fund 
PUBLIC SERVICE 

Current Unrestricted Fund 
OPERATION & MAINT OF PLANT 

Current Unrestricted Fund 
SCHOLARSHIPS &. FELLOWSHIPS PGM 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
MONT COLLEGE OF MIN SC & TECH 
INSTRUCTION 

Current Unrestricted Fund 
ORGANIZED RESEARCH 

Current Unrestricted Fund 
OPERATION & MAINT OF PLANT 

Current Unrestricted Fund 
SCHOLARSHIPS & FELLOWSHIPS PGM 

Current Unrestricted Fund 
INDEPENDENT OPERATIONS 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
EASTERN MONTANA COLLEGE 
INSTRUCTION 

Current Unrestricted Fund 
PUBLIC SERVICE 

Current Unrestricted Fund 
OPERATION & MAINT OF PLANT 

Current Unrestricted Fund 
SCHOLARSHIPS & FELLOWSHIPS PGM 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
NORTHERN MONTANA COLLEGE 
INSTRUCTION 

Current Unrestricted Fund 
PUBLIC SERVICE 

Current Unrestricted Fund 
OPERATION & MAINT OF PLANT 

Current Unrestricted Fund 
SCHOLARSHIPS & FELLOWSHIPS PGM 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 
AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
WESTERN MONTANA COLLEGE 
INSTRUCTION 

Current Unrestricted Fund 
OPERATION & MAINT OF PLANT 



APPROPRIATED 
FY 1988 


APPROPRIATED 
FY 1989 


BIENNIL M 


24.865,107 


24.491.863 


49.356.970 


597.925 


597.925 


1.195.850 


10.300 


10.300 


20.600 


5.503.085 


5.696.322 


11.199.407 


1,125.273 


1.106.723 


2.231.996 


12,146.683 


11.934.820 


24.081.503 


44.248,373 
44.248.373 


43.837.953 
43.837.953 


88.086.326 
88.086.326 


4.078.148 


4.085.074 


8.163.222 


43.718 


43.747 


87.465 


1.595.053 


1.626.140 


3.221.193 


202.189 


202.189 


404.378 


1.285.850 


1.286.523 


2.572.373 


2.399.349 


2.381.794 


4.781.143 


9.604.307 
9.604.307 


9.625.467 
9.625.467 


19.229.7-'4 
19.229.774 


6.602.051 


6.612.129 


13.214.180 


231.435 


231.447 


462,882 


2.030.343 


2.084.794 


4.115.137 


353.209 


353.099 


706.308 


4.145.159 


4.146.548 


8.291.707 


13.362.197 
13.262.197 


13.428.017 
13.428.017 


26.790.214 
26.790.214 


4.276.792 


4.354.686 


8.631.478 


8.891 


8.891 


17.782 


1,121,444 


1.146.577 


2,268,021 


274,815 


271,722 


546,537 


2,183,012 


2,207,549 


4,390.561 


7.864,954 
7,864,954 


7,989,425 
7,989,425 


15,854,379 
15,854,379 


2,368,994 


2,344,394 


4,713,388 



S-22 



AGENCY BUDGET SUMMARY 



Current Unrestricted Fund 
SCHOLARSHIPS & FELLOWSHIPS PGM 

Current Unrestricted Fund 
SUPPORT 

Current Unrestricted Fund 

AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
AGRICULTURAL EXPER STATION 
AG EXPERIMENT STATION 
Current Unrestricted Fund 
US RANGE STATION 

Current Unrestricted Fund 

AGENCY FUNDING SUMMARY 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
COOPERATIVE EXTENSION SERVICE 
COOPERATIVE EXTENSION SERVICE 
Current Unrestricted Fund 

TOTAL AGENCY FUNDING 
FORESTRY & CONS EXPER STATION 
RESEARCH 

Current Unrestricted Fund 

TOTAL AGENCY FUNDING 

SCHOOL FOR THE DEAF & BLIND 
ADMINISTRATION PROGRAM 

General Fund 
GENERAL SERVICES PROGRAM 

General Fund 
STUDENT SERVICES 

General Fund 

Other Special Revenue Fund 
EDUCATION 

General Fund 

Other Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
MONTANA ARTS COUNCIL 
PROMOTION OF THE ARTS 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
LIBRARY COMMISSION 

REFERENCE/INFORMATION SERVICES 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
NATURAL RESOURCES/HERITAGE 

State Special Revenue Fund 

Other Special Revenue Fund 

AGENCY FUNDING SUMMARY 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

TOTAL AGENCY FUNDING 

MONTANA COUNCIL ON VOCATIONAL 
ADMINISTRATION PROGRAM 

Other Special Revenue Fund 



'ROPRIATED 
FY 1988 


APPROPRIATED 
FY 1989 


BIENNIIN 


735.177 


750,530 


1,485.70- 


83.472 


82.469 


165.94 


1.201,531 


1.166.375 


2.367.90( 


4.389,174 
4.389,174 


4.343.768 
4.343.768 


8.732.94; 
8.732.94; 


8.203.271 


8.255.438 


16.458.70' 


385.954 


385.954 


771.90i 


8,589,225 
8,589,225 


8.641.392 
8.641.392 


1 7.230.61: 
1 7.230.61: 


4,355.652 
4.355.652 


4.363,435 
4.363.435 


8.^19.08: 
8.719,08: 


643,535 
643.535 


644.954 
644.954 


1.288.48^ 
i. 288.48^ 


197.893 


179.838 


377.731 


248.725 


259.536 


508.261 


686.096 
35.000 


691.805 
35.000 


1.377.90! 
70.00C 


932.039 
350.370 


930,878 
349,926 


1.862.91- 
700.296 


2,064.753 

385.380 

2.450,123 


2.062.057 

384.926 

2.446.983 


4.126.81C 

770.296 
4.897.106 


125,315 
1.222,217 

401,850 
1.749,382 


120.154 

401.377 
521.531 


245.46S 

1.222,21/ 

803.27/ 

2.270.913 


548.652 
299,000 

762,477 


520.199 
311.000 
720.085 


1,068,851 
610,00C 

1,482,562 


130,461 
6.500 


107.979 
22.637 


238,44C 
29,137 


548.652 

429.461 

768,977 

1,747,090 


520.199 

418,979 

742.722 

1,681.900 


1,068,851 

848,44C 

1,511,699 

3,428,990 



120.000 



AGENCY BUDGET SUMMARY 



S-23 



TOTAL AGENCY FUNDING 

HISTORICAL SOCIETY 

ADMINISTRATION PROGRAM 

General Fund 

Other Special Revenue Fund 
LIBRARY PROGRAM 

General Fund 

Other Special Revenue Fund 
MUSEUM PROGRAM 

General Fund 

Other Special Revenue Fund 
MAGAZINE PROGRAM 

General Fund 

Proprietary Fund 
PHOTOGRAPH ARCHIVES PROGRAM 

General Fund 

Other Special Revenue Fund 
HIST SITES PRESERVATION PROG 

General Fund 

Other Special Revenue Fund 
ARCHIVES PROGRAM 

General Fund 

Other Special Revenue Fund 
EDUCATION PROGRAM 

Other Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

Other Special Revenue Fund 

Proprietarv Fund 

TOTAL AGENCY FUNDING 

BOARD OF REGENTS 

ADMINISTRATION PROGRAM 
General Fund 
Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
FIRE SERVICES TRAINING SCHOOL 
FIRE SERVICES TRAINING SCHOOL 
General Fund 

Other Special Revenue Fund 
Proprietary Fund 

TOTAL AGENCY FUNDING 

DEPT. OF FISH. WILDLIFE & PARKS 

CENTR.ALIZED SERVICES DIVISION 
State Special Revenue Fund 
Other Special Revenue Fund 
Propnetar\ Fund 

FIELD SERVICES DIVISION 
State Special Revenue Fund 
Other Special Revenue Fund 

FISHERIES DIVISION 

State Special Revenue Fund 
Other Special Revenue Fund 

LAW ENFORCEMENT DIVISION 
State Special Revenue Fund 
Other Special Revenue Fund 

WILDLIFE DIVISION 

State Special Revenue Fund 
Other Special Revenue Fund 

RECREATION & PARKS DIVISION 
State Special Revenue Fund 
Other Special Revenue Fund 
PropnetarN Fund 

CONSERVATION EDUCATION DIV 



APPROPRIATED 
FY 1988 


APPROPRIATED 
FY 1989 


BIENMIM 


120.000 


120.000 


240.()()() 


439.873 
59.810 


431.418 
59.926 


8'i.:9i 

119.736 


154.194 
26.074 


154.151 
16.074 


308.345 
42.148 


207.379 
165.442 


207.342 
131,304 


414.721 
296.746 


41.320 
486.087 


41,320 
519.880 


82.640 
1.005.967 


81.319 
22.600 


81,961 
17,000 


163.280 
39.600 


66.379 
763.805 


64,359 
761,630 


130.738 
1.525.435 


130.949 
2.500 


131.186 
2.500 


262.135 
5.000 


53.549 


53.484 


107.033 


1.121.413 

1.093.780 

486.087 

2.701.280 


1.111.737 

1.041.918 

519.880 

2.673.535 


2.233.150 
2.135.698 
1.005.967 
5.374.815 


190.951 
1.454.690 
1.645.641 


28.008 
28.008 


218.959 
1.454.690 
1.673.649 


199.392 

2.000 

12.000 

213.392 


199.440 

2.000 

12.000 

213.440 


398.832 

4.000 

24.000 

426.832 


1.857.509 

303.235 

1.910.736 


1.867.282 

294.821 

2.081.686 


3.724.791 

598.056 

3.992.422 


1,919.537 
319,267 


1,762,237 
307,326 


3.681.774 
626,593 


2,806,308 
2,200,267 


2.782,335 
2.120,844 


5.588,643 
4,321,111 


3.702.088 
154.621 


3,703.724 
154.632 


7,405.812 
309.253 


7.264.150 
3.421,873 


2,627,810 
3,421,891 


9,891,960 
6.843,764 


2,947,038 
445.000 

273,345 


2,932.286 
445,000 
265,469 


5,879,324 
890.000 

538.814 



8-24 



AGENCY BUDGET SUMMARY 



State Special Revenue Fund 
Other Special Revenue Fund 
ADMINISTRATION 

State Special Revenue Fund 
Other Special Revenue Fund 

AGENCY FUNDING SUMMARY 
State Special Revenue Fund 
Other Special Revenue Fund 
Proprietary Fund 

TOTAL AGENCY FUNDING 
DEPT HEALTH & ENVIRON SCIENCES 

DIRECTOR'S OFFICE 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

CENTRAL SERVICES 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

ENVIRONMENTAL SCIENCES 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 
SOLID/HAZARDOUS WASTE 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

WATER QUALITY 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

HEALTH SERVICES/MEDICAL FAC 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

FAMILY/MCH BUREAU 
General Fund 
Other Special Revenue Fund 

PREVENTIVE HEALTH BUREAU 
General Fund 
Other Special Revenue Fund 

LICENSING AND CERTIFICATION 
General Fund 
Other Special Revenue Fund 

HEALTH PLANNING 
General Fund 

AGENCY FUNDING SUMMARY 
General Fund 

Slate Special Revenue Fund 
Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
DEPARTMENT OF HIGHWAYS 

GENERAL OPERATIONS PROGRAM 
State Special Revenue Fund 
Other Special Revenue Fund 

CONSTRUCTION PROGR.AM 
State Special Revenue Fund 
Other Special Revenue Fund 

MAINTENANCE PROGRAM 
State Special Revenue Fund 
Other Special Revenue Fund 

PRECONSTRUCTION PROGRAM 
State Special Revenue Fund 
Other Special Revenue Fund 



• PPROPRIATED 
FY 1988 


APPROPRIATED 
Ft' 1989 


BIENNILM 


1.111.104 
139.525 


1.088.942 
139.525 


2.200.046 
279.050 


781.073 
180.834 


833.905 
1 74.049 


1.614.978 
354.883 


22.338.807 
7,164.622 
2,184.081 

31.737,510 


17.598.521 
7.058.088 
2.347.155 

27.003.764 


39.937.328 
14.222.710 
4.531.236 
58.741.274 


336.017 

200.000 

93.809 


335.757 
82.725 


671.774 
200.000 
176.534 


884.202 
705.043 
570.102 


776.763 
495.601 
569.281 


1.660.965 
1.200.644 
1.139.383 


843,173 
471.236 
813.823 


791.887 
371.261 
664.102 


1.635.060 

842.497 
1.47\925 


75.734 
1.280.360 
6.102.261 


76.181 
1.212.055 
7.261.758 


151.915 
;. 492.41 5 
13.364.019 


461,655 

96.620 

1.568.386 


460.825 

100.320 

1.550.658 


922.480 

196.940 

3.119.044 


353.823 
47,019 
202.081 


353.775 
47,025 
202.008 


707.598 

94,044 

404.089 


30.635 
11.726.980 


31.013 
11.998:964 


61.648 
23.725,944 


743.645 
827.624 


223.707 
812.776 


967,352 
1.640.400 


368.558 
514,618 


367.630 
513.418 


736.188 
1.028.036 


176,106 


170.483 


346.589 


4.273,548 

2.800.278 

222,419.684 

29,493,510 


3.588,021 

2,226.262 

23.655,690 

29,469,973 


7.861,569 

5.026.540 

46.075.374 

58.963.483 


5.383,195 
1,606,694 


5,208,734 
1,555,856 


10.591.929 
3.162,550 


58,742,869 
85,241,460 


61,094,015 
86,791,294 


119.836.884 
172,032,754 


40.613.889 
211.000 


40,865,147 


81.479,036 
211.000 


5.459,612 
8.838.599 


4,357,716 
6,953.804 


9.817.328 
15,792,403 



AGENCY BUDGET SUMMARY 



S-25 



HIGHWAY SERVICE REVOLVING 

Propnetarv Fund 
STATE MOTOR POOL 

Propnetarv Fund 
EQUIPMENT PROGRAM 

State Special Revenue Fund 

Proprietary Fund 
STORES INVENTORY 

State Special Revenue Fund 
G.V.W. 

Slate Special Revenue Fund 
AGENCY FUNDING SUMMARY 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 

TOTAL AGENCY FUNDING 
DEPARTMENT OF STATE LANDS 

CENTRAL MANAGEMENT PROGRAM 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietarv Fund 
RECLAMATION PROGRAM 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
LAND ADMINISTRATION PGM 

General Fund 
RESOURCE DEVELOPMENT PGM 

State Special Revenue Fund 
FORESTRY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 

TOTAL AGENCY FUNDING 
DEPARTMENT OF LIVESTOCK 

CENTRALIZED SERVICES PROGRAM 

General Fund 

State Special Revenue Fund 
DIAGNOSTIC LABORATORY PRO- 
GRAM 

General Fund 

Slate Special Revenue Fund 
DISEASE CONTROL PROGRAM 

State Special Revenue Fund 
MILK & EGG PROGRAM 

General Fund 

Other Special Revenue Fund 
INSPECTION & CONTROL PROGRAM 

State Special Revenue Fund 
BEEF/PORK RESEARCH & MARKET- 
ING 

Other Special Revenue Fund 
PREDATORY ANIMAL CONTROL PGM 

State Special Revenue Fund 
RABIES CONTROL 

General Fund 

State Special Revenue Fund 
MEAT INSPECTION PROGR.AM 



APPROPRIATED 
R' 1988 


APPROPRIATED 
Ft 1989 


BIENNIUM 


2.903.023 


2.882.715 


5.785.738 


787.608 


701.709 


1.489.317 


1.930.659 
12.807.396 


1.705.659 
12.881.144 


3.636.318 
25.688.540 


13.602.298 


13.672.810 


27.275.108 


3.497,307 


3.503.362 


7.000.669 


129.229.829 
95,897.753 
16.498.027 

241,625.609 


130.407.443 
95.300.954 
16.465.568 

242.173.965 


259.637.272 

191.198.707 

32.963.595 

483.799.574 


1,057.899 
157,885 
89.282 
191.781 


1.028.672 
114.559 
89.282 
190.319 


2.086.571 
272.444 
178.564 
382.100 


85.057 
1.133.887 
6.932.286 


84.177 
1.012.474 
6.922.728 


169.234 
2.146.361 
13.855.014 


571.921 


567.235 


1.139.156 


273.185 


293.433 


566.618 


5.245.065 
1.245.692 
1,713.849 


5,154.352 
1.259.453 
1.654.861 


10.399.417 
2.505.145 
3.368,710 


6.959.942 
2.810.649 

8.735.417 

191.781 

18.697.789 


6.834.436 
2.679.919 
8.666.871 
190.319 
18.371.545 


13,794.378 

5.490,568 

17,402.288 

382.100 

37,069.334 


57.659 
360.984 


54.659 
344.711 


112.318 
705.695 


300,222 
371,513 


305.330 
378,356 


605.552 
749,869 


492.868 


491.731 


984.599 


203,948 
20,000 


205,160 
20,000 


409,108 
40.000 


2,058,015 


2.078.118 


4.136.133 


75,000 


75.000 


150,000 


267,776 


271,287 


539.063 


45,113 
15.000 


45,113 
15.000 


90.226 
30.000 



S.26 



AGENCY BUDGET SUMMARY 



General Fund 

Other Special Revenue Fund 

AGENCY FUNDING SUMMARY 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
DEPT NAT RESOURCE/CONSERVATION 

CENTRALIZED SERVICES 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

OIL & GAS REGULATION 
State Special Revenue Fund 

CONSERVATION DISTRICTS 
State Special Revenue Fund 
Other Special Revenue Fund 

WATER RESOURCES & PLANNING 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

ENERGY PLANNING 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

AGENCY FUNDING SUMMARY 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

TOTAL AGENCY FUNDING 

DEPARTMENT OF REVENUE 
DIRECTORS OFHCE 

General Fund 

State Special Revenue Fund 

Proprietary Fund 
CENTRALIZED SERVICES DIVISION 

General Fund 

Other Special Revenue Fund 
DATA PROCESSING DIVISION 

General Fund 

Proprietary Fund 
INVESTIGATION AND ENFORCEMENT 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 
LIQUOR DIVISION 

Proprietary Fund 
INCOME TAX 

General Fund 

State Special Revenue Fund 
CORPORATION TAX 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
PROPERTY VALUATION 

General Fund 

Other Special Revenue Fund 
MOTOR FUEL TAX 

State Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 



APPROPRIATED 
FY 1988 


APPROPRIATED 
R' 1989 


139.400 
139.400 


136.900 
136.900 


746.342 
3.566.156 

234.400 
4,546.898 


747.162 
3.579.203 

231.900 
4.558.265 


1.012,620 
350,859 

297.122 


1.013.227 
350.717 
231.043 


868.478 


1.098.894 


678.332 
502.703 


649.833 

2.703 


2.365.163 

8.953.427 
4.109.675 


2.381.653 

2.190.331 

69.675 


438.152 

1.274.512 
8.917.987 


451.118 

1.273.399 

993.871 


3.815.935 
12.125.608 
13.827.487 
29.769.030 


3.845.998 

5.263,174 

1.297.292 

10.706.464 


612.835 
96.506 

78.802 


535.697 
80.365 
48.600 


880.546 
6.600 


88«.766 
6,600 


1.005,278 
419.408 


1.007.144 
422,380 


581,656 

230.728 

1.315.424 

269,349 


573.449 

238.348 

1.326.171 

268.390 


5.397.180 


5.397.180 


3,079.363 
202.884 


3.156.379 
87.884 


1.106.908 
57,048 
122,128 


1.107.619 
57.048 
122.128 


10.216.028 


10,244,093 
500,789 


710.785 


708.349 


17,482,614 
1.297.951 


17,511.147 
1.171,994 



AGENCY BUDGET SUMMARY 



S-27 



Other Special Revenue Fund 

Propneiary Fund 

TOTAL AGENCY FUNDING 
DEPARTMENT OF ADMINISTRATION 
DIRECTOR'S OFFICE 

General Fund 

Proprietary Fund 
GOVERNOR ELECT PROGRAM 

General Fund 
ACCOUNTING PROGRAM 

General Fund 
ARCH & ENGINEERING PGM 

State Special Revenue Fund 

Capital Projects Fund 
"PUBLICATIONS AND GRAPHICS" 

Proprietary Fund 
INFORMATION SERVICES DIVISION 

Proprietarv Fund 
GENERAL SERVICES PROGRAM 

General Fund 

Capital Projects Fund 

Proprietary Fund 
PROPERTY AND SUPPLY BUREAU 

Proprietary Fund 
PURCHASING PROGRAM 

General Fund 
MAIL & DISTRIBUTION BUREAU 

Proprietarv Fund 
CENTRALIZED SERVICES BUREAU 

General Fund 

Proprietary Fund 
STATE PERSONNEL DIVISION 

General Fund 

Proprietary Fund 
TORT CLAIMS DIVISION 

Propnetary Fund 
WORKERS COMPENSATION JUDGE 

State Special Revenue Fund 
STATE TAX APPEAL BOARD 

General Fund 
AGENCY FUNDING SUMMARY 

General Fund 

Slate Special Revenue Fund 

Capital Projects Fund 

Proprietary Fund 

TOTAL AGENCY FUNDING 

PUBLIC EMPLOYEES RETIREMENT BD 

PUBLIC EMPLOYEES RETIREMENT 

Non-Expendable Trust Fund 

TOTAL AGENCY FUNDING 
TEACHERS RETIREMENT BOARD 

TEACHERS RETIREMENT PROGRAM 

Non-Expendable Trust Fund 

TOTAL AGENCY FUNDING 
DEPARTMENT OF AGRICULTURE 

CENTRALIZED SERVICES DIVISION 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Expendable Trust Fund 
HAIL INSURANCE UNIT 

Expendable Trust Fund 



APPROPRIATED 

FY 1988 


APPROPRIATED 
FY 1989 


BIENNIl M 


1.444.152 

6.164.739 

26.389.456 


1.955.688 

6.136.550 

26.775.379 


3.399.840 
12.301.289 
53.164.835 


254.147 
49.076 


255.153 
48.689 


509.300 
97.765 




5,000 


5.000 


860.890 


828,075 


1.688.965 


560.472 
560.472 


562.400 
562.400 


1.122.872 
1.122.872 


3.864.417 


4.146.853 


8.011.270 


15.696.301 


15.414.552 


3l.ltO.853 


408.324 

58.801 

3.063.276 


420.996 

58.801 

3.169.076 


829.320 

117.602 

6.232.352 


2.880.192 


2.873.757 


5.753.949 


403.942 


404.406 


808.348 


1.130,486 


1.226.129 


2.356.615 


417.902 
30,964 


408,266 
30.909 


826.168 
61,873 


937.855 
414.094 


940.614 
412.258 


1.878.469 
826.352 


2.196,757 


2.171,525 


4.368.282 


306,361 


297,179 


603.540 


574,022 


387.995 


962.017 


3,857.082 

866,833 

619.273 

29.325.563 

34,668.751 


3.650.505 

859.579 

621,201 

29,493.748 

34.625.033 


7.507.587 

1.726.412 

1.240.474 

58.819,311 

69.293,784 


770,488 
770,448 


714,774 
714,774 


1.485,262 
1,485,262 


421,733 
421,733 


397.093 
397,093 


818.826 
818,826 


264,469 

594,830 

71.526 

30.226 


252,481 
588,609 
46.935 
28,809 


516,950 

1.183,439 

118,461 

59,035 



160,131 



S-28 



AGENCY BUDGET SUMMARY 



WHEAT RESEARCH/MARKETING UNIT 

Other Special Revenue Fund 
ENVIRONMENTAL MANAGEMENT DIV 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
PLANT INDUSTRY DIVISION 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 
AGRICULTURAL DEVELOPMENT 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Expendable Trust Fund 

AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 

Expendable Trust Fund 

TOTAL AGENCY FUNDING 
DEPARTMENT OF INSTITUTIONS 
DIRECTOR 

General Fund 
MANAGEMENT SERVICES DIVISION 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 
ALCOHOL & DRUG ABUSE DIVISION 

General Fund 

Stale Special Revenue Fund 

Other Special Revenue Fund 
CORRECTIONS 

General Fund 

State Special Revenue Fund 
WOMEN'S CORRECTIONAL PROGRAM 

General Fund 
CORECTION'S MEDICAL BUDGET 

General Fund 
MENTAL HLTH/RESIDENTIAL SERV 

General Fund 

Other Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 

TOTAL AGENCY FUNDING 

MONTANA DEVELOPMENT CENTER 
SERVICE & SUPPORT 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
CENTER FOR THE AGED 
RESIDENTIAL SERVICES 
General Fund 
State Special Revenue Fund 



APPROPRIATED 
FY 1988 



1.360.198 



APPROPRIATED 
FY' 1989 



.360.491 



613.589 


612.823 


178.044 


167.115 


184.554 


243.830 


422,997 


422.945 


510,344 


494.081 


32,023 


33.271 


33,289 


33.490 


281,839 


227.996 


141,594 


41.419 


40.300 


45.300 


71,253 


72.874 


.582.894 


1.516.245 


.400.312 


1,291,224 


.688,601 


1,729.827 


33,289 


33.490 


261,610 


258.652 


.991.206 


4.829.438 


475.068 


475.944 


,011.369 


821.689 



1.011.369 
4.521 
7.709 
6.278 


821,689 


215.200 

341.564 

1.290.800 


215.200 

326.700 

1.290.800 


3.669.593 
1.000 


3.640.609 
1.000 


782.476 


788.829 


867.114 


883.457 


4.108.977 
1.249,805 


4.108.940 
1.249.806 


,1,129.797 

347.085 

2.548.314 

6.278 

:4.031.474 


10.934.668 

327.700 

2.540.606 

13.802,974 


1.739.951 

13.626 

42,661 

11.796,238 


11.852.130 
13.626 
44,384 

11,910,140 


2.662,888 
9,735 


2,649.528 

9.735 



AGENCY BUDGET SUMMARY 



S-29 



TOTAL AGENCY FUNDING 
EASTMONT TRAINING CENTER 
CARE & CUSTODY 

General Fund 

State Special Revenue Fund 

TOTAL AGENCY FUNDING 
MONTANA STATE PRISON 
CARE & CUSTODY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
RANCH & DAIRY 

Proprietai-v Fund 
LICENSE PLATE FACTORY 

State Special Revenue Fund 
PRISON INDUSTRIES REVOLVING 

Proprietarv Fund 
PRISON CANTEEN 

State Special Revenue Fund 
PRISON INDUSTRIES TR.AINING 

General Fund 

Other Special Revenue Fund 

Proprietary Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietarv Fund 

TOTAL AGENCY FUNDING 
SWAN RIVER YOUTH FOREST CAMP 
CARE & CUSTODY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 

VETERANS HOME 

CARE & CUSTODY 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
MONTANA STATE HOSPITAL 
TREATMENT SERVICES 
General Fund 

State Special Revenue Fund 
Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
BOARD OF PARDONS 
BOARD SERVICES 
General Fund 

TOTAL AGENCY FUNDING 
DEPARTMENT OF COMMERCE 

BUSINESS LICENSING/REGULATION 
State Special Revenue Fund 
Proprietarv Fund 
WEIGHT & MEASURES BUREAU 

General Fund 
FINANCIAL DIVISION 

State Special Revenue Fund 
MILK CONTROL BUREAU 

State Special Revenue Fund 
POL BUREAU 



PROPRIATED 
FY 1988 


APPROPRIATED 
FY 1989 


BIENMLM 


2.672.623 


2.659.263 


5.331,886 


2.239.779 
4.000 

2.243.779 


2.248.146 

4.000 

2.252.146 


4.487.923 

8.000 

4.495.925 


12.562.609 
51.424 
120.641 


12.801.624 
51.424 
94.772 


25.364.233 
102.848 
215.413 


1.228,480 


1,277.736 


2.506.216 


484.321 


496.117 


980.438 


678.311 


701.903 


1.380.214 


600.000 


700.000 


1.300,000 


173.015 
36.496 

221.579 


163.881 

34.330 

221.579 


336.896 

^0.826 

443.158 


12.735.624 

1.135.745 

157.137 

2.128.370 

16.156.876 


12,965,505 

1.247.541 

129.102 

2,201.218 

16.543.366 


25.701.129 

2.383,286 

286.239 

4.329.588 

32.700.242 


845.854 
86.383 
38.902 

971.139 


848,631 
86.617 
27.898 

963.146 


1.694.485 

173.000 

66.800 

1,934.285 


542.000 

20.764 

1.636.773 

2.199,537 


552.504 

20.764 

1.650.215 

2.233.483 


1.094.504 

41.528 

3.286.988 

4.423.020 


19.826.836 

1,740.583 

3.775 

21.571,194 


20.146,957 

1,729.533 

3.775 

21.880.265 


39,973,793 

3,470,116 

7,550 

43,451,459 


160,439 
160,439 


160.441 
160.441 


320,880 
320,880 


93,059 
59,789 


93.059 

59,937 


186.118 
119,726 


437,858 


436,178 


874,036 


790,952 


785,373 


1,576.325 


281,749 


279,598 


561,347 



8-30 



AGENCY BUDGET SUMMARY 



State Special Revenue Fund 

Proprietary Fund 
DIVISION OF AERONAUTICS 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprieiarv Fund 
TRANSPORTATION DIVISION 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
BUSINESS ASSISTANCE PROGRAM 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
MONTANA PROMOTION BUREAU 

State Special Revenue Fund 

Other Special Revenue Fund 
HOUSING ASSISTANCE PROGRAM 

Other Special Revenue Fund 
COMMUNITY ASSIST.ANCE PROGRAM 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
ECONOMIC POLICY & RESEARCH 

General Fund 

Other Special Revenue Fund 
LOCAL GOVERNMENT AUDIT SERVICE 

General Fund 
Proprietary Fund 
ACCOUNTING/MANAGEMENT SERVICES 

General Fund 

State Special Revenue Fund 

Proprietary Fund 
LOCAL GOVT ASSISTANCE ADMIN 

Proprietary Fund 
BUILDING CODES DIVISION 

State Special Revenue Fund 
INDIAN AFFAIRS COORDINATOR 

General Fund 
HEALTH FACILITIES AUTHORITY 

Proprietary Fund 
MT SCIENCE & TECH ALLIANCE 

Slate Special Revenue Fund 

Proprietarv Fund 
BOARD OF HOUSING 

Proprietary Fund 
INVESTMENTS DIVISION 

General Fund 

Proprietarv Fund 
LOTTERY DIVISION 

State Special Revenue Fund 

Proprietary Fund 
DIRECTORyMANAGEMENT SERVICES 

General Fund 

Proprietary Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 

TOTAL AGENCY FUNDING 

LABOR & IND-EMPLOYMENT SERVS 
JOB SERVICE DIVISION 



APPROPRIATED 
FY 1988 


APPROPRIATED 
Pr' 1989 


BIE.NMLM 


1.846.166 
714.478 


1.835.579 
706.154 


3.681.^45 


659.465 
140.000 
62.083 


659.960 
62.083 


1.31^,4:5 
140. (Kill 
124.166 


513.626 

71.250 

3,255.835 


510.444 

71.250 

1,816,000 


1.024.070 

142.500 

5.0^1.833 


636,692 
130.114 
581.226 


633,219 
159.257 
639.513 


1.269.91 1 

289.371 

1.220.739 


4,510,215 
350,000 


4.572.834 
350.000 


9.088.049 
^00.000 


10,032,634 


10.032.792 


20.065.426 


214,748 
1.993,041 
5.447,656 


213.995 
1.464.349 

5.446.515 


428.^43 
3.457.390 
10.894.i:-l 


242,347 
40.000 


237.410 
40.000 


4^q.75^ 
80.000 


43,560 
984.407 


43.546 

975.234 


87.106 
1.959,641 


2.372,467 
299.000 
168,716 


2.460.078 
311.000 
166.857 


4.832.545 
610.000 
335.573 


98.666 


98.233 


196.899 


1.170,240 


1.312.662 


2,482.902 


84.629 


81.208 


165.837 


123.320 


122,383 


245.703 


1,345,000 
72,549 


1.410.000 
105.060 


2.755.000 
177.609 


1.068,^73' 


1.066.961 


2.135.734 


500.000 
1,411,995 


1.348.021 


500.000 
2.760.016 


898,713 
25,010,000 


830.593 
25,100,000 


1.729.306 
50.110,000 


120.214 
796,056 


116,128 
726,724 


236,342 
1,522.780 


5,166,141 
14,088,964 
19,847,351 
30,570,832 
69,673,288 


4,732,206 
13,785,514 
18.324.820 
30.537,647 
67,380.187 


9,898,347 
27,874,478 
38.172,171 
61,108,479 
137,053,475 



AGENCY BUDGET SUMMARY 



S-31 



State Special Revenue 

Other Special Revenue Fund 
UNEMPLOYMENT INSURANCE 

Other Special Revenue Fund 
CENTRALIZED SERVICE ADMIN 

Propnetary Fund 
EMPLOYMENT RELATIONS 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 
EMPLOYMENT POLICY DIVISION 

General Fund 

Other Special Revenue Fund 
HUMAN RIGHTS DIVISION 

General Fund 

Other Special Revenue Fund 
COMMISSIONER 

Proprietarv Fund 
JOB TRAINING PARTNERSHIP ACT 

General Fund 

Other Special Revenue Fund 
PROJECT WORK 

General Fund 
CHILD CARE - AFDC 

General Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Proprietary Fund 

TOTAL AGENCY FUNDING 

LABOR & IND-WORKERS' COMP 
ADMINISTRATION PROGRAM 

State Special Revenue Fund 

Other Special Revenue Fund 
STATE INSURANCE FUND 

State Special Revenue Fund 
INSURANCE COMPLIANCE PROGRAM 

General Fund 

State Special Revenue Fund 
SAFETY AND HEALTH PROGRAM 

State Special Revenue Fund 

Other Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
ADJUTANT GENERAL 

ADMINISTR.^TION PROGRAM 

General Fund 

Other Special Revenue Fund 
ARMY NATIONAL GUARD PGM 

General Fund 

Other Special Revenue Fund 
AIR NATIONAL GUARD PGM 

General Fund 

Other Special Revenue Fund 
DISASTER COORDINATION RESPONSE 

General Fund 

Other Special Revenue Fund 
EMERGENCY MGMT DEVELOPMENT 

Other Special Revenue Fund 



APPROPRIATED 
FY 1988 


APPROPRIATED 
R- 1989 


BIENNU M 


66.883 
11.223.483 


61.407 
11.303.399 


128.290 
22.526.882 


3.512.517 


3,486.867 


6.999.384 


2.462.295 


2.380.650 


4.842.945 


621.358 

239.337 

1.096.309 

3.500 


622.676 

233.801 

1.081.351 

3.500 


1.244.0.34 

473.138 

2.177.660 

7.000 


19.567 
2.195.283 


2.186,075 


19.567 
4.381.358 


216.042 
96.000 


213,377 
96,000 


429.419 
192.000 


156.408 


156,599 


313.007 


216.760 
8.437.483 


216,760 
8.766,622 


433.520 
17.204.105 


1.427.722 


1,427,633 


2.855.355 


168.004 


136,186 


304.190 


2.669.453 

306.220 

26.561.075 

2,622.203 
32.158.951 


2.616.632 

295,208 

26.920.314 

2.540.749 
32.372.903 


5.286.085 

601.428 

53.481.389 

5.162.952 
64.531.854 


1,633.444 
33.100 


1.874.909 
33.069 


3.508.353 
66.169 


3.944.190 


3.954.996 


7,899.186 


69.582 
1.915.918 


64.583 
1.836.103 


134.165 
3.752.021 


796,127 
91.349 


798.431 
91.807 


1.594.558 
183.156 


69.582 

8.289.679 

124.449 

8.483,710 


64.583 

8.464.439 

124.876 

8.653.898 


134.165 
16.754.118 

249,325 
17.137.608 


171.327 
10,101 


170,627 
10,145 


341,954 
20,246 


848.274 
883,124 


868.498 
895,004 


1,716,772 
1,778,128 


119.185 
1.173.214 


125,671 
1,204,677 


244,856 
2.377.891 


222.320 
242,703 


219,001 
239,383 


441.321 
482,086 



270,690 



268,134 



538,824 



S-32 



AGENCY BUDGET SUMMARY 



LOCAL REIMBURSEMENT - DES 
Other Special Revenue Fund 

VETERANS AFFAIRS PROGRAM 
General Fund 
Other Special Revenue Fund 

AGENCY FUNDING SUMMARY 

General Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 
DEPT SOCIAL & REHAB SERVICES 

ASSISTANCE PAYMENT PROGRAM 

General Fund 

Other Special Revenue Fund 
ELIGIBILITY DETERMINATION PGM 

General Fund 

Other Special Revenue Fund 
ADMINISTRATIVE & SUPPORT SVS 

General Fund 

Other Special Revenue Fund 
STATE ASSUMED COUNTY ADMIN. 

General Fund 

Other Special Revenue Fund 
MEDICAL ASSISTANCE 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
AUDIT AND PRO. COMPLIANCE DIV. 

General Fund 

Other Special Revenue Fund 
VOCATIONAL REHABILITATION PGM 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
DISABILITY DETERMINATION PGM 

Other Special Revenue Fund 
VISUAL SERVICES PGM 

General Fund 

Other Special Revenue Fund 
DEVELOPMENTAL DISAB PROGRAM 

General Fund 

Other Special Revenue Fund 
DEVELOPE DISAB ADVIS COUNCIL 

Other Special Revenue Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

TOTAL AGENCY FUNDING 

DEPARTMENT OF FAMILY SERVICES 
MANAGEMENT SUPPORT 

General Fund 

Other Special Revenue Fund 
COMMUNITY SERVICES 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
MOUNTAIN VIEW 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 
PINE HILLS 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 



'PROPRIATED 
FY 1988 


APPROPRIATED 
FY 1989 


BIENNILM 


2.000.000 


2,000,000 


4.000.000 


453.615 
30.000 


445,638 
30.000 


899.253 
60.000 


1.814.721 
4,609,832 
6.424.553 


1.829.435 
4.647.343 
6.476,778 


3.644.156 
9.257.175 
12.901.331 


16.941.601 
46,897,614 


16,477.684 
48,341,653 


33.419.285 
98.339.267 


2.235,057 
6.149.944 


2,234.149 
6,147.799 


4.469.206 

12.297.743 


1.253.542 
1.751.217 


1,196.115 
1,676.205 


2.449.657 
3.427.422 


934.967 
338.380 


918,972 
338.604 


1.853.939 
676.984 


46.873,494 

7,168.000 

106.336.817 


48.192.079 

7.349.000 

120.129.361 


95,063.573 

14.517.000 

226.466.178 


576.930 
703.252 


576.982 
704.370 


1.153.912 
1.407.622 


703,909 
1.048.515 
5,685.199 


702,955 
1,196,383 
5.579,061 


1.406.864 
2.244.898 
11.264.260 


2.384,632 


2.377,937 


4.762.569 


275,272 
758,487 


275.150 

75T.997 


550.422 
1.516.484 


5.557,805 
14,339.793 


5,783.366 
14.305.591 


11.341.171 
28.645.384 


398,596 


316.976 


715.572 


75.352,577 

8.216.515 

185,743,931 

272,313,023 


76,357.452 

8,545,383 

200.775.554 

285.678,389 


151.710.029 

16,761.898 

389,519.485 

557,991,412 


469,696 
273,886 


463,954 
269,062 


933,650 
542.948 


14,436,752 

89.000 

9.643,004 


14,509,266 

89,000 

9.670,230 


28,946.018 

178.000 

19,313,234 


1.733.990 

15.982 

107,846 


1,747,299 

14,982 

107,950 


3,481,289 

30,964 

215,796 


2,835,740 
59,169 

525,722 


2.858,834 
59,260 

525,722 


5,694,574 

118,429 

1,051,444 



AGENCY BUDGET SUMMARY 



S-33 



AFTER CARE SERVICES 

General Fund 

Other Special Revenue Fund 
YOUTH EVALUATION 

General Fund 
AGENCY FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

OTOTAL AGENCY FUNDING 
STATE FUNDING SUMMARY 

General Fund 

State Special Revenue Fund 

Other Special Revenue Fund 

Capital Projects Fund 

Propnetary Fund 

Expendable Trust Fund 

Non-Expendable Trust Fund 

Current Unrestricted Fund 

TOTAL STATE FUNDING 



APPROPRIATED 


APPROPRIATED 




FY 1988 


FY 1989 


BIENMLM 


429.026 


399.080 


828.106 


2.800 


2.800 


5.600 


146.292 


146.173 


292.465 


20.051.496 


20.124.606 


40.176.102 


1 64. 1 5 1 


163.242 


327.393 


10.553.258 


10.575,764 


21.129.022 


30,768,905 


30.863.612 


61.632.517 


363.680.519 


374.143.622 


737.824.141 


250.481.928 


236.754.059 


487,235.987 


425.593.322 


423,213.025 


848.806.347 


619.273 


621.201 


1.240,474 


99.470.999 


100.192.116 


199.663.115 


261.610 


258.652 


520.262 


1.192.221 


1.111.867 


2.304.088 


138.205.630 


138.109.899 


276.315.529 


1.279.505,502 


1.274.404.441 


2.553.909,943 



S-34 



REVENUE ESTIMATES 



REVENUE ESTIMATING ADVISORY COUNCIL 

The Governor created the Revenue Estimating Advisory 
Council by Executive Order in April 1986, to establish the 
economic assumptions necessary to forecast the revenues of 
the State of Montana. The Office of Budget and Program 
Planning (OBPP) was assigned to staff the Council. 
The Council held a public hearing on June 1st and 2nd to 
receive testimony from industry representatives, economists, 
university faculty, state agency officials and legislative staff 
The Council adopted the economic assumptions shown in 
the following tables. The revenue estimates in this Appropri- 
ations Report are based on those assumptions. 
The Council's public hearing process insures that the process 
of creating the executive branch revenue estimate is an open 
public process. The input of outside experts will increase the 
accuracy of the revenue estimation process. Hopefully, the 
process will allow for closer agreement on revenue estimates 
so that the legislature can spend its time deciding the spend- 



ing priorities of the state rather than debatmg hov^ much 

revenue is available. 

Membership: Revenue Estimating Advisor. Council 

William Mathers. Miles City. Chairman 

Fritz Tossberg. Hamilton 

George Ruff. Helena 

Nancy Nicholson. Helena 

Cal Robinson. Kalispell 

GENERAL FUND REVENUE ESTIM.\TES 

General fund revenue includes receipts from levies upon 
personal income, corporate income, mineral extraction, alco- 
holic beverage consumption, insurance premiums and 
numerous other fees, licenses and taxes. Since most sources 
are influenced by the economic climate, forecasts formulated 
for most revenues utilize the economic forecasts as delin- 
eated in the economic overview section. 
The tables that follow summarize estimated receipts. A re\e- 
nue description and the forecast methodology used for each 
of the larger general fund revenue sources is in the general 
fund revenues by component section 



REVENUE ESTIMATES 



S-35 



General Fund Revenue Estimates 
(In Millions) 





Actual 


Estimated 


Estimated 


Estimated 


Source of Revenue 


FY 1986 


FY 1987 


FY 1988 


R' 1989 


Individual Income Tax 


$110.218323 


$123.182000 


$131.214000 


$140.911000 


Corporation License Tax 


33.884815 


20.683000 


26.981000 


29.638000 


Coal Severance Tax 


20.001598 


17.291000 


10.130000 


8.690000 


Oil Severance Tax 


23.152504 


10.938000 


17.481000 


18,591000 


Interest on Investments 


13.285291 


12.385000 


14.607000 


16.793000 


Long-Range Bond Excess 


35.487786 


34.571000 


37.183000 


38.601000 


Coal Trust Fund Interest 


32.443208 


39.868000 


36.644000 


39.685000 


Insurance Premiums Tax 


16.780399 


18.019000 


31.782000 


20.860000 


Public Institution Reimb. 


14.166104 


14.822000 


16.240000 


16.894000 


Liquor Profits 


4.500000 


5.000000 


5.000000 


3.185000 


Liquor Excise Tax 


5.836884 


5.670000 


5.602000 


5.535000 


Inheritance Tax 


8.364764 


8.645000 


7.211000 


7,450000 


Metal Mines Tax 


0.989852 


1.093000 


1.975000 


2.762000 


Electrical Energy Tax 


2.530403 


2.992000 


2.914000 


3,256000 


Drivers' License Fees 


0.796349 


0.804000 


0.799000 


0.809000 


Telephone License Tax 


3.243935 


3.530000 


3.360000 


3.419000 


Beer License Tax 


1.287765 


1.289000 


1.287000 


1.285000 


Natural Gas Severance Tax 


2.890666 


2.421000 


1.574000 


1.516000 


Freight Line Tax 


1.195066 


1.212000 


1.166000 


1.186000 


Wine Tax 


0.946287 


0.979000 


1.027000 


1,055000 


Other Revenue Sources 


17.539483 


20.799000 


19.950000 


21.305000 


GRAND TOTAL 


$349.541482 


$346.193000 


$372.634000 


$382,426000 



$400 



General Fund Revenue 

Total Receipts 




S-36 



REVENUE ESTIMATES 



FOUNDATION PROGRAM REVENUE ESTIMATES 

The major components of foundation program revenue are 
income tax, corporation tax, coal tax, mterest and income. 



US oil and gas royalties, education trust interest and manda- 
tor>' and permissive tax levies. These sources arc depicted 
below. 



STATE REVENUE 

Income Tax 
Corporation Tax 
Coal Tax 
Interest Income 
US Oil & Gas Royalties 
Education Trust Income 
County Levy Surplus 
Education Trust Principal 

TOTAL STATE 

% CHANGE 
COUNTY REVENUE 
45 Mills 

Elementary Transportation 
Cash Reappropriated 
Forest Fund 
Taylor Grazing 
Miscellaneous 
High School Tuition 

TOTAL COUNTY 

% CHANGE 
DISTRICT REVENUE 
Permissive Levy 
Light Vehicle Replacement 

TOTAL DISTRICT 

% CHANGE 
TOTAL STATE. COUNTY, DISTRICT 

% CHANGE 



tion Program Revenue Estimates 






(In Millions) 








Actual 


Estimated 


Estimated 


Estimated 


FY86 


FYS 7 


FY88 


FV89 


43.054033 


48.118000 


7 1 .694000 


76.993000 


13.236255 


8.079000 


10.540000 


11.577000 


4.210861 


10.119000 


11.111000 


9.531000 


37.301053 


36.181000 


33.377000 


34.339000 


12.629639 


24.252000 


23.422000 


22.866000 


7.759479 


8.343000 


2.703000 


1.397000 


18.344046 












22.000000 


12.000000 


136.535366 


135.092000 


174.846000 


168.703000 


-19.44% 


-1.06% 


29.43% 


-3.51% 


88.311954 


101.734000 


86.450000 


84.357000 


-3.626615 


-3.838000 


-3.693000 


-3." 12000 


3.018776 


3.138000 


2.327000 


0.366000 


1.119352 


1.222000 


1.222000 


1.222000 


0.117681 


0.122000 


0.122000 


0.122000 


6.045683 


6.061000 


6.061000 


6.061000 


-0.760577 


-0.760000 


-0.764000 


-0 768000 


94.226254 


107.679000 


91.726000 


87.648000 


1.63% 


14.28% 


-14.82% 


-4.45% 


17.674084 


17.385000 


17.290000 


16.87100 


1.565139 


1.426000 


1.274000 


1.356000 


19.239223 


18.811000 


18.564000 


18.227000 


4.88% 


-2.22% 


-1.32% 


-1.81% 


$250.000843 


$261.583000 


$285.136000 


$274.578000 


-10.88% 


4.63% 


9.00% 


-3.70% 



REVENUE ESTIMATES 



S-37 



REVENUE ESTIMATING .\DVISORY COUNCIL 
Revenue Estimate Assumptions 



Oil 


CY85 




CY86 


CY87 


CY88 


CY 89 


Production (Millions) 


29.352 




26.518 


25.600 


25.000 


24.000 


Price 


$25,214 




$13,520 


$15,200 


$16,500 


$18,000 


Natural Gas 


CY85 




CY86 


CY87 


CY 88 


CV 89 


Production (Millions) 














MCFs 


44.330 




39.444 


40.500 


40.000 


40.000 


Gallons 


4.340 




4.972 


5.000 


5.000 


5.000 


Price 














MCFs 


$2,329 




$2,003 


$2,000 


$2,000 


$2,000 


Gallons 


$ .339 




$ .340 


$ .332 


$ .380 


$ .418 




CY85 




CY86 


CY87 


CY88 


CY 89 


Coal 














Production (Millions) 


31.213 




32.416 


30.681 


31.767 


29.527 


(Excludes Protested Tonnage) 














Price 


$9,592 




$8,387 


$7,700 


$7,420 


$7,420 


Tax Credits (Millions) 


$1,082 




$3,969 


$3,836 


$3,510 


$1,808 


Metal 


CY84/FV85 


CY85/FY86 


CY86/FY87 


CY87/FY88 


CY88/FY89 


Production 














Copper (Million lbs) 


35.936 




43.823 


42.621 


71.222 


86.643 


Gold (Million ozs) 


.168 




.158 


.183 


.221 


.312 


Silver (Million ozs) 


5.091 




5.215 


3.425 


4.498 


5.57? 


Lead (Million lbs) 


.402 




.136 


.122 


4.624 


10.125 


Zinc (Million lbs) 










22.000 


52.000 


Molybdenum (Million lbs) 








2.625 


6.500 


7.500 


Palladium (Million ozs) 










.038 


.075 


Platinum (Million ozs) 










.013 


.025 


Price 














Copper 


$ .616 


$ 


.556 


$ .508 


$ .560 


$ .560 


Gold 


$359,591 


$317,346 


$357,003 


$420,000 


$420,000 


Silver 


$ 7.385 


$ 


5.290 


$ 5.333 


$ 7.000 


$ 7.000 


Uad 


$ .255 


$ 


.189 


$ .188 


$ .190 


$ .190 


Zinc 










$ .300 


$ .300 


Molybdenum 








$ 2.675 


$ 2.680 


$ 2.680 


Palladium 










$ 1 25.000 


$125,000 


Platinum 










$550,000 


$550,000 


Wood Products 


FV 85 




FY 86 


FY 87 


FY 88 


FY 89 


Forest Receipts (Millions) 


$7,844 




$5,922 


$6,823 


$5,500 


$5,500 


Population (July 1 Thousands) 


CY84 




CY85 


CY 86 


CY87 


CY88 


All Ages 


823 




825 


819 


822 


825 


Age 16 and greater 


613 




613 


617 


619 


621 


Age 18 to 24 


92 




96 


104 


106 


108 


Inflation (% Change) 


CY85 




CY86 


CY87 


CY88 


CY 89 


CPI 


3.54 




1.89 


3.17 


4.70 


5.25 


GNP 


3.15 




2.60 


2.88 


4.25 


4.97 


PCE 


3.33 




2.15 


3.68 


4.65 


5.17 


Interest Rates (%) 


Fy85 




FY 86 


FY 87 


FY 88 


FY 89 


Short-Term 


9.80 




6.46 


5.85 


6.39 


7.11 


Long-Term 


12.10 




9.57 


8.00 


8.40 


8.81 


Pnme Interest Rate (CY) 


9.93 




8.33 


7.51 


8.80 


9.84 




FY 85 




FY 86 


FY 87 


FY 88 


FY 89 


TCA Average Balance (Millions) 


$260,501* 


$205,765* 


$156,784 


$178,690 


$186,285 


TRANS Issue (Millions) 


$ 38.000 


$ 46.000 


$ 83.200 


$ 49.900 


$ 49.900 


•Includes TRANS Issue 














Bond Calls (Millions) 














Permanent Trust 






5.464 


$ 5.666 


$ 


$ 


Education Trust 






1.983 


$ 3.086 


$ 


$ 


Common School Trust 






3.353 


$ 4.227 


$ 


$ 


Resource Indemnity Trust 






.644 


$ 1.506 


$ 


$ 


Park Acquisition Trust 






.718 


$ .129 


$ 


$ 



S-38 



REVENUE ESTIMATES 



Personal Income 

MT Total Personal Income (Billions) 
Corporation Tax 

MT Corporate Taxable Income (Millions) 

Department of Revenue 
Audits (Millions) 

Colstrip IV Sale (Millions) 

Liquor 
Liquor Unit Sales (Millions) 
Wine Unit Sales (Millions) 
Liquor Cost Per Unit 
Wine Cost Per Unit 
Liquor Division Budget Gromh (%) 

Cigarette 
Packs (Millions) 
Tobacco Value (Millions) 

Property Tax Base (Millions) 
Net/Gross Proceeds 
All Other Valuation 
Total Valuation 



Institutions Reimbursement (Millions) 



Insurance Premiums Tax 
Gross Revenue Growth (%) 
Police & Fireman Retirement (Millions) 

Telephone Tax 
Taxable Income Growth (%) 



Electrical Energy Tax 
KWH Produced (Millions) 



Inheritance Tax (Millions) 

Other Revenue 
Drivers' License Fee (Millions) 
Beer Tax Barrels (Thousands) 
Freight Line Earnings (Millions) 



Wine Tax Liters (Millions) 
Poker Receipts - Total (Millions) 
Vehicle Receipts - Total (Millions) 
Other Receipts (Millions) 



CY85 

$9,067 


CY86 

$9,642 


CY 87 
$10,000 


CY88 

$10,500 


CV 89 

$11,000 


CY84/FY85 
$698,183 


CY85/F\'86 
$614,227 


CY86/FY87 
$430,882 


CY87/FY88 

$537,024 


CY88/FV89 

$598.3611 


$ 16.639 


$ 10.312 
$ 7.600 


$ 5.000 


$ 6.000 


$ 6.00C 


FY 85 

6.317 

.334 

$4,197 

$2,819 

-1.79 


F\' 86 

5.988 

.299 

$4,398 

$2,883 

-1.31 


FY 87 
5.569 
.281 

$4,574 

$2,948 




P»-88 

5.290 

.264 

$4,757 

$3,036 

1.59 


FY 89 

5.02^ 

.24j 

$4.94 

$3.12 

2.9 


FY 85 

85.690 
$5,314 


FY 86 

80.897 
$5,550 


FY 87 
75.410 
$5,616 


FY 88 
71.069 

$5,774 


FYS' 
66.97 
$5.96i 


FY 85 
$ 730.330 
$1600.553 
$2330.883 


FY 86 

$ 768.271 
$1601.862 
$2370.133 


FY 87 
$ 705.064 
$1559.698 
$2260.762 


FY 88 
$ 364.350 
$1556.770 
$1921.120 


FY 8' 

$ 388.93: 
$1485.66( 
$1874.59; 


FY 85 
$ 12.895 


FY 86 
$ 14.166 


FY 87 
$ 14.882 


FY 88 
$ 16.240 


F\-8< 

$ 16.89- 


FY 85 

6.56 

$4,312 


FY 86 

12.41 

$5,009 


FY 87 

5.59 

$5,361 


FY 88 

5.49 

$5,671 


FY 8^ 

5.4- 
$6.00 


FY 85 
16.25 


FY 86 
10.65 


FY 87 
2.00 


FY 88 

1.55 


F\'8< 

1.7 


FY 85 

3522.915 


FY 86 
14538.496 


FY 87 

17077.962 


FY 88 
16635.840 


FY 8' 

18588.18( 


FY 85 

$ 7.657 


FY 86 
$ 8.365 


FY 87 
$ 8.645 


FY 88 

$ 7.211 


FY 89 

$ 7.450 


FY 85 


FY 86 


FY 87 ' 


FY 88 


FY 89 


$ 1.321 


$ 1.961 


$ 1,994 


$ 1.982 


$ 2.007 


771 


726 


716 


715 


714 


CY84 
$ 25.080 


CY85 

$ 21.728 


CY 86 

$ 22.024 


CY87 
$ 21.200 


CY8J 
$ 21.56: 


FY 85 
5.660 

$34,085 
$11,624 


FY 86 
5.899 

$3,498 
$36,062 
$12,106 


FY 87 
6.120 

$4,395 
$34,125 
$15,617 


FY 88 

6.419 

$7,014 

$36,207 

$14,347 


FY 8! 

6.59' 

$9.46^ 

$14.72< 



FY85 



FY86 



FY87 



Foundation Program Revenues 
Interest & Income (Millions) 
Mmeral Leasing $ 62.051 $ 37.301 $ 36.181 

Oil, Coal, Natural Gas production and prices are as forecast for severance taxes. 



FY88 

$ 33.377 



Miscellaneous .Assumptions: 

All public institutions remain certified. 

All REAC estimates are based on current state and federal laws. 

Westmoreland Resources will continue to protest a portion of their coal severance taxes on behalf of the Crow India 

tribe. 



ECONOMIC OVERVIEW 



S-39 



ECONOMIC OVERVIEW 

The budget for the 1988-89 biennium is significantly 
dependent upon the current and future economic climate of 
the state, nation and world economies. These conditions not 
only affect tax receipts; they dictate the costs of goods and 
services purchased by state government. 

Economic variables play a crucial role when developing rev- 
enue forecasting models. However, recent state legislation 
has placed greater emphasis on Montana personal income as 
a means to limit the growth in state government disburse- 
ments. Today levels of disbursements and receipts are sig- 
nificantly influenced by Montana personal income growth 
patterns. 

The key economic variables that affect state government 
receipts and disbursements are Montana personal income. 
Montana employment levels, inflation rates, energy prices 
and interest rates. There are many more variables that influ- 
ence receipt and disbursement patterns but this list covers 
the major variables. 

In the past. Montana's economy appeared to lag. yet paral- 
lel, the national economy. However, for the past decade. 
Montana's economic upturns and downturns have been 
more pronounced than the national average. This is due in 
part to Montana's scarcity of heavy industry and its reliance 
on the energy sector: oil, coal and natural gas exploration 
and production. 



The 49th Legislature established an appropriation for the 
Office of Budget and Program Planning to contract with an 
economic reporting and forecasting firm. Wharton 
Econometrics was selected for this purpose. In addition. 
Wharton Econometrics provides short and long-term 
econometric forecasts to the OBPP and LFA. These fore- 
casts were used bv the Revenue Estimating .Advisory Coun- 
cil. 

Personal Income 

Montana personal income is defined as labor income, trans- 
fer payments, dividends, interest and rents, less personal 
contributions for social security. 

This particular variable is especially critical in the budget 
process because of its direct effect on state government tax 
receipts and disbursements. Total personal income not only 
limits the growth in government disbursements, it also mea- 
sures the ability of the State of Montana to purchase food, 
clothing, automobiles and other items. Personal income tax. 
corporate income tax and many other taxes such as liquor 
and insurance are affected by the movement in personal 
income. 

From 1970 to 1985, total personal income has increased 
269% in Montana versus 301% nationally. The state's per 
capita income for 1985 was $10,974 compared wiih the 
national figure of $13,867. 

The following tables summarize personal income statistics 
for Montana and the United States. 



S-40 



ECONOMIC OVERVIEW 



TOTAL PERSONAL INCOME 
(MILLIONS) 



CY 

1970 
1971 
1972 
1973 
1974 
1975 
1976 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 



M( 


DNTANA 


UNITED STATES 


AMOUNT 


% CHANGE 


AMOUNT 


% CHANGE 


2,455.1 




825.528 




2.607.8 


6.22 


888.453 


7.62 


3.041.8 


16.64 


976.071 


9.86 


3,577.7 


17.62 


1.095.076 


12.19 


3,859.4 


7.87 


1.204.070 


9.95 


4,214.0 


9.19 


1.307.539 


8.59 


4,534.3 


7.60 


1.446.099 


10.60 


4,939.0 


8.93 


1.601.844 


10.77 


5,844.1 


18.33 


1.806.207 


12.76 


6.400.8 


9.52 


2.026.684 


12.2! 


6,992.8 


9.25 


2.252.021 


1 1 12 


7,803.9 


11.60 


2.512.327 


11.56 


8,110.4 


3.93 


2.660.940 


5.92 


8,487.6 


4.65 


2.833.184 


6.47 


8,921.3 


5.11 


3.101.402 


9.47 


9,066.9 


1.63 
PRO.IF.CTFD 


3.310.545 


6.74 


9,642.0 


6.34 


3.486.000 


5.30 


10,000.0 


3.71 


3.659.000 


4.96 


10.500.0 


5.00 


3.932.000 


7.46 


11.000.0 


4.76 


4.235.000 


7.71 



1986 
1987 
I98S 
1989 

SOURCE: 

HISTORICAL - BUREAU OF ECONOMIC ANALYSIS 
PROJECTED - REVENUE ESTIMATING ADVISORY COUNCIL 
WHARTON ECONOMETRICS 



TABLE 2 
PER CAPITA PERSONAL INCOME 



CY 

1970 
1971 
1972 
1973 
1974 
1975 
1976 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 

Average Annual Growth Rate 



MONTANA 
AMOUNT % CHANGE 



UNITED STATES 
AMOUNT % CHANGE 



3,521 




3,668 


4.18 


4,230 


15.32 


4,919 


16.29 


5,235 


6.42 


5,625 


7.45 


5,978 


6.28 


6,403 


7.11 


7,454 


16.41 


8,111 


8.81 


8,865 


9.30 


9,807 


10.63 


10,077 


2.75 


10,407 


3.27 


10,838 


4.14 


10,974 


1.26 



7.87 



SOURCE; 

HISTORICAL - BUREAU OF ECONOMIC ANALYSIS 

Employment 

Total sutc employment measures the ability of the state's 

economic base to provide jobs for its residents. 

When forecasting sute revenues, nonfarm wage and salary 

employment is used as a proxy for employment levels. Even 

though this statistic does not include all employment, it 



4.051 




4.296 - 


6.05 


4.664 


8.57 


5.181 


11.08 


5.644 


8.94 


6.069 


7.53 


6.647 


9.52 


7.289 


9.66 


8.133 


11.58 


9.025 


10.97 


9.910 


9.81 


10.940 


10.39 


11.470 


4.84 


12.093 


5.43 


13.114 


8.44 


13.867 


5.74 



does provide a more consistent indicator of the labor 
market. 

Employment levels in the state affect total personal income 
and are also indicative of the state's business activity. The 
relationship between personal income, consumer spending 
and, ultimately, corporate profits explains why personal 
income, corporate income and sumptuary taxes are affected 
by changes in this variable. 



ECONOMIC OVERVIEW 



S-41 



From 1970 to 1985, nonfarm wage and salar>' employment 
grew by more than 39% or 79.300 jobs. Almost all of this 
increase was in the wholesale/retail trade and service sectors. 
Traditionally, these jobs have been at the lower end of the 
pay scale. 





TABLE 3 






MONTANA E\iPLOYMENT 






NONFARM 






WAGE & SALARY 




CY 


EMPLOYMENT 


% CHANGE 


1970 


199,100 




1971 


204,900 


2.91 


1972 


215,300 


5.08 


1973 


224,200 


4.13 


1974 


233,900 


4.33 


1975 


238,200 


1.84 


1976 


251,100 


5.42 


1977 


264,800 


5.46 


1978 


280,400 


5.89 


1979 


283,800 


1.21 


1980 


280,400 


-1.20 


1981 


281,800 


.50 


1982 


273,700 


-2.87 


1983 


276,000 


.84 


1984 


281.100 


1.85 


1985 


278,400 


-0.96 








1986 


276.100 


-0.83 


1987 


278.000 


.69 


1988 


280,000 


.72 


1989 


280,900 


.32 


SOURCE: 






HISTORICAL - MONTANA DEPARTMENT OF 



Inflation 

Inflation indices measure the rate of price escalation and/or 
decrease for goods and services. The most commonly used 
statistic is the consumer price index which is based on 
prices of food, clothing, shelter, fuel, drugs, transportation 
fares, doctors' and dentists" fees and other items. 
During high inflationary periods, consumption of goods and 
services may decline. This not only may decrease employ- 
ment levels but may discourage business activity because of 
prohibitive operating costs. Low inflation may result in 
higher consumption, increased employment and greater 
business opportunities. 

In a majority of cases, inflation rates have some impact on 
each revenue component. The sources that are especially 
affected include personal income tax. public institution 
reimbursements and severance taxes. 

The Revenue Estimating .Advisory Council forecasts a mod- 
erate rate of inflation during the 1988-89 biennium of 
approximately 3 to 5%. This outlook anticipates; 1) wage 
negotiations will be sensitive to the need for reasonable 
compensation because of the lack of price competitiveness: 
2) no sudden or sleep increases in energy prices, and 3) the 
Federal Reserve Board will continue its inflation-fighting 
posture. 

Table 4 lists two measures of inflation rates as published by 
Wharton Econometrics. These national averages are pro- 
vided because indices for Montana are not available. 



LABOR & INDUSTRY 
PROJECTED - OFFICE OF BUDGET & 

PROGRAM PLANNING 



S-42 



ECONOMIC OVERVIEW 



CY 

1970 
1971 
1972 
1973 
1974 
1975 
1976 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 





TABLE 4 








MEASURES OF INFLATION 


USGNP 




USCPI 




DEFLATOR 




1967=100 


% CHANGE 


1982=100 


% CHANGE 


116.3 




42.0 




121.3 


4.30 


44.4 


5.71 


125.3 


3.30 


46.5 


4.73 


133.1 


6.23 


49.5 


6.45 


147.7 


10.97 


54.0 


9.09 


161.2 


9.14 


59.3 


9.81 


170.5 


5.77 


63.1 


6.41 


181.5 


6.45 


67.3 


6.66 


195.4 


7.66 


72.2 


7.28 


217.4 


11.26 


78.6 


8.86 


246.8 


13.52 


85.7 


9.03 


272.4 


10.37 


94.0 


9.68 


289.1 


6.13 


100.0 


6.38 


298.3 


3.18 


103.8 


3.80 


311.1 


4.29 


108.1 


4.14 


322.1 


3.54 
PROJECTED 


111.5 


3.14 


328.2 


1.89 


114.4 


2.60 


337.4 


3.17 


117.7 


2.88 


353.2 


4.70 


122.7 


4.25 


371.8 


5.25 


128.8 


4.97 



1986 
1987 
1988 



SOURCE: 

HISTORICAL - WHARTON ECONOMETRICS 
PROJECTED - REVENUE ESTIMATING ADVISORY COUNCIL 
WHARTON ECONOMETRICS 



Energy Prices 

Montana, as the fourth-largest state in the nation, has a vast 
potential for oil, coal and natural gas exploration and 
extraction. Because of this potential and our current level of 
natural resource taxation, energy prices play a critical role in 
the budgetary process. Oil, coal and natural gas severance 
taxes are directly affected by energy prices. 
Oil 

Since January 1986, oil prices have declined by more 
than 50%. The Revenue Estimating Advisory Council 
anticipates a steady growth in the price of oil over the 
forecast period. 
Natural Gas 

Under the Natural Gas Policy Act of 1978, all new gas 
was deregulated on January 1, 1985. Many industry ana- 
lysts expect prices to remain stable or to decrease 



moderately even with deregulation. Primarv reasons for 
this scenario include more competition, contract 
renegotiations, lower import prices primarily from Can- 
ada, and the competitive prices of other fuels. 
Coal 

The coal industry in the United States and Montana is 
heavily dependent upon the demand for electrical power. 
Slow economic growth on both the slate and national 
levels plus energy conservation have all contributed to 
electrical usage remaining below expectations. 

With lower demand and the competitive prices of other 
fuels, coal prices have remained soft. These conditions 
in conjunction with royalty deductions approved by the 
48th Legislature, should cause coal prices to decrease 
over the forecast period. 

Table 5 reflects historical and projected energy prices for 
oil, coal and natural gas. 



ECONOMIC OVERVIEW 



S-43 









TABLE 5 














ENERGY PRICES 










COAL 




OIL 




NATURAL 






CONTRACT 




WELL-HEAD 




GAS 






SALES PRICE 




PRICE 




PRICE 




CY 


$/TON 


% CHANGE 


$/BARREL % CHANGE 


$/MCF 


% CHANGE 


1970 










.082 




1971 










.084 


2.44 


1972 










.102 


21.43 


1973 






3.843 




.162 


58.82 


1974 






6.814 


77.31 


.257 


58.64 


1975 


4.224 




7.845 


15.13 


.394 


53.31 


1976 


4.415 


4.52 


8.411 


7.21 


.441 


1 1.93 


1977 


4.344 


- 1.61 


8.582 


2.03 


.735 


66.67 


1978 


5.154 


18.65 


9.253 


7.82 


.837 


13.88 


1979 


6.951 


34.87 


12.279 


32.70 


1.202 


43.61 


1980 


7.724 


11.12 


22.250 


81.20 


1.436 


19.47 


1981 


8.686 


12.45 


34.317 


54.23 


1.900 


32.31 


1982 


9.758 


12.34 


31.311 


- 8.76 


2.103 


10.68 


1983 


10.332 


5.88 


28.804 


- 8.01 


2.403 


14.27 


1984 


9.846 


- 4.70 


28.066 


- 2.56 


2.512 


4.54 


1985 


9.592 


- 2.58 


25.214 
PROJECTED 


-10.16 


2.329 


- 7.29 


1986 


8.387 


-12.56 


13.520 


-46.38 


2.003 


- 14.00 


1987 


7.770 


- 7.36 


15.200 


12.43 


2.000 


- 0.15 


1988 


7.420 


- 4.50 


16.500 


8.55 


2.000 


0.00 


1989 


7.424 


0.05 


18.000 


9.09 


2.000 


0.00 



♦ 



SOURCE: 

HISTORICAL - MONTANA DEPARTMENT OF REVENUE 
PROJECTED - REVENUE ESTIMATING ADVISORY COUNCIL 



Interest Rates 

Interest rates are highly susceptible to federal policies and 
the actions of the Federal Reserve Board (FED). Factors 
that are critical to the future direction of interest rates 
include the following: 

o the Federal Reserve's philosophy on monetary 
policy; 

o the anti-inflation posture of the federal government; 

o possible resolutions to the federal deficit; 

o a change in the value of the dollar. 
The Revenue Estimating Advisory Council expects interest 
rates to drift downward until mid- 1987 and then increase 
in 1988 and 1989. This is based on a less restrictive 



monetary policy by the Federal Reserve, continuation of the 
conflict between private credit demands and the federal gov- 
ernment's financing needs and the expectation of higher 
inflation rates. 

Interest rates directly affect Montana's investment earnings 
from both short and long-term securities. In addition these 
rates impact other tax sources by influencing economic 
variables such as construction activity, consumer spending 
and business borrowing. 

Table 6 reflects historical and projected interest rates as pro- 
vided by Wharton Econometrics. Also presented in the table 
is an approximation of the interest rates the state has earned 
on short-term securities. 



S-44 



ECONOMIC OVERVIEW 









TABLE 6 














INTEREST RATES 










SHORT-TERM 




PRIME 




LONG-TERM 




-CY. 


RATE 


% CHANGE 


RATE % CHANGE 


RATE 


% CHANGE 


1974 


8.69 




10.81 


34.62 


8.48 


9,42 


1975 


6.14 


-29.34 


7.86 


-27.29 


8.77 


3.42 


19T6 


5.26 


-14.33 


6.84 


-12.98 


8.26 


- 5.82 


1977 


5.48 


4.18 


6.83 


- .15 


7.88 


- 4.60 


1978 


7.63 


39.23 


9.06 


32.65 


8.73 


10.79 


1979 


10.46 


37.09 


12.67 


39.85 


9.78 


12.03 


1980 


11.90 


13.77 


15.27 


20.52 


12.09 


23.62 


1981 


14.26 


19.83 


18.87 


23.58 


14.52 


20.10 


1982 


11.30 


-20.76 


14.86 


-21.25 


13.95 


- 3.93 


1983 


8.72 


-22.83 


10.79 


-27.39 


11.93 


-14.48 


1984 


9.67 


10.89 


12.04 


11.58 


12.99 


8.88 


1985 


7.76 


-19.75 


9.93 
PROJECTED 


-17.52 
-16.11 


11.2! 
9.57 


-13.70 


1986 


6.46 


-16.75 


8.33 


-14.63 


1987 


5.85 


- 9.44 


7.51 


- 9.84 


8.00 


-16.40 


1988 


6.39 


9.23 


8.80 


17.18 


8.40 


5.00 


1989 


7.11 


11.27 


9.84 


11.82 


8.81 


4.88 



SOURCE: 

HISTORICAL - WHARTON ECONOMETRICS 
PROJECTED - REVENUE ESTIMATING ADVISORY COUNCIL 
WHARTON ECONOMETRICS 



GENERAL FUND REVENUES - BY COMPONENT 



S-45 



' Individual Income Tax 

Individual or personal income tax is the largest single source 
of revenue to the general fund. The original tax law was 
enacted in 1933 and has been altered many times since 
then. HB 904, which was passed by the 50th Legislature, 
changed the allocation of the tax for FY 88 and subsequent 
years to: 58.2% of the tax is dc^iosited in the general fund; 
31.8% in the public school equalization account; and 10% in 
the long-range building debt service account. 
The tax is levied against taxable income which is defined as 
Montana personal income adjusted for exemptions and 
deductions. Once tax liability is determined, the amount of 
tax due is computed by subtracting allowable credits. 



The income tax forecasts for the 1988-89 biennium arc 
based on a moderate growth in total personal income and 
employment. Although current economic growth is slow, the 
recovery is expected to continue at a modest pace. 
Since FY80. income tax collections have been reduced by a 
number of credits, exemption allowances and indexation. 
Projections for fiscal years 1987 through 1989 arc based on 
an inflation rate of approximately 3 to 5% and the continua- 
tion of all statutory credits. 

HB 904 also imposed a 10% surtax for tax years 1987 and 
1988, which will be collected in FY 88 and FY 89. The 
surtax is estimated to generate an additional $24.5 million 
in FY 88 and $17.3 million in FY 89. 

The additional revenue that will be generated by federal 
income tax reform has been included in the forecasts. It is 
estimated this will increase revenues by approximately $4.4 
million in FY87. $22.6 million in FY88 and $39.8 million 
in FY89. These estimates are strictly due to federal tax 
reform, they do not include the 10% surtax. 



GENERAL FUND INDIVIDUAL INCOME TAX COLLECTIONS 



Individual Income Tax 






TOTAL 


GENERAL FUND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


(MILLION $) 


CHANGE 


1970 


38.870851 


24.877342 




1971 


42.381455 


27.070705 


8.82% 


1972 


68.129858 


43.620321 


61.13% 


1973 


77.065529 


49.321939 


13.07% 


1974 


78.757516 


50.527303 


2.44% 


1975 


88.599406 


56.703595 


12.22% 


1976 


97.520297 


62.412990 


10.07% 


1977 


111.861527 


71.591377 


14.71% 


1978 


123.620799 


79.117312 


10.51% 


1979 


140.473459 


90.509280 


14.40% 


1980 


134.987297 


86.391870 


- 4.55% 


1981 


146.036287 


93.463223 


8.19% 


1982 


143.803751 


92.034568 


- 1.53% 


1983 


151.784173 


97.152215 


5.56% 


1984 


170.346344 


109.021660 


12.22% 


1985 


181.057157 


115.876580 


6.29% 


1986 


172.216130 


110.218323 


- 4.88% 




PROIFCTFn 




1987 


192.472000 


123.182000 


11.76% 


1988 


225.454000 


131.214000 


6.52% 


1989 


242.116000 


140.911000 


7.39% 



Corporation License Tax 

The corporation license tax is levied against a corporation's 
net income earned in Montana. The corporation income tax 
is imposed on corporations that, for reasons of jurisdiction, 
are not taxable under a license tax. These taxes apply to 
both domestic and foreign corporations, although there is an 
alternative rate for foreign corporations meeting specific re- 
quirements. 

Corporation taxes are distributed: 64% to the general fund; 
25% to the public school equalization account and 1 1% to 
the long-range building debt service account. Eighty percent 
of the taxes collected from financial institutions is distrib- 
uted to local governments in the county in which the finan- 
cial institution is located. The remaining 20% is allocated by 
the above percents. 

The decline in FY 87 collections can be attributed to the 
general slump in the business economy, along with lower 
taxable incomes in the banking and oil and gas sectors. 



The forecasts for fiscal years 1988 through 1989 are based 
on a slow level of economic growth. This assumption is 
premised on inflation in the range of 3 to 5% and short- 
term interest rates of about 6 to 7%. .Although moderate 
economic growth is expected to increase corporation taxes, 
the negative effects of oil prices below the early 1 980 levels 
reduces this anticipated level of growth. 

HB 703, referred to as the unitary tax, was passed by the 
50th legislature. It allows corporations to elect to be taxed 
only on their income produced in the United States (Water's 
edge). The tax rate for corporations electing water's edge is 
7.0%, others are still at 6.75%. HB 703 also imposed a 
surtax of 4% for tax year 1988, which should affect 60% of 
returns filed in FY 89. The surtax should generate an addi- 
tional $1.2 million in FY 89 and $0.9 million in FY 90. 
Additional factors that affect receipts include tax credits and 
audit efforts by the Department of Revenue. As with indi- 



S-46 



GENERAL FUND REVENUES - BY COMPONENT 



vidual income tax. all forecasts have been adjusted by allow- 
able credits. The projections also include audit collections of 
$5 million for FY87 and $6 million for FY88 and FY89. 
The additional revenue that will be generated by federal tax 
reform has been included in the forecasts. It is estimated 



this will increase revenues by approximateh Sl.l million i 
FY87. $4.7 million m FV88 and $6.2 million m F> 8^ 
These estimates do not include any additional surtax rcM 
nue. 



CORPORATION LICENSE TAX COLLECTIONS 

Corporation License Tax 




GENERAL FUND 



Coal Severance Tax 

The coal severance tax is imposed on all coal production in 
excess of 20,000 tons per company per calendar year. How- 
ever, producers of 50,000 tons or less in any calendar year 
are exempt from the tax. The current tax rate is 30% of 
value for coal with a heating quality of 7,000 or more 
BTU's per pound. Coal with a lower BTU rate is taxed at 
20%. HB 252, passed by the 50th Legislature, reduces these 
rates dependent on the level of coal production in FY 88. 
Lower tax rates are triggered if coal production in FY 88 
exceeds 32.2 million tons. 



FISCAL COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


MILLION $) 


(MILLION $) 


CHANGE 


1970 


9.535866 




6.102954 




1971 


9.605806 




6.147716 


0.73% 


1972 


11.299998 




7.326719 


19.18% 


1973 


12.057255 




7.716643 


5.32% 


1974 


15.637745 




10.071143 


30.51% 


1975 


22.078579 




14.130292 


40.30% 


1976 


23.020111 




14.732872 


4.26% 


1977 


24.957238 




15.972633 


8.41% 


1978 


29.238772 




18.712814 


17.16% 


1979 


36.062341 




23.098659 


23.44% 


1980 


45.623189 




26.658417 


15.41% 


1981 


52.900963 




30.962755 


16.15% 


1982 


44.630472 




26.234449 


-15.27% 


1983 


35.824951 




20.733658 


-20.97% 


1984 


35.396240 




20.547177 


- 0.90% 


1985 


62.609205 




36.657611 


78.41% 


1986 


58.584784 




33.884815 


- 7.56% 




PRO.iF.rTEn 




1987 


34.750000 




20.683000 


-38.96% 


1988 


45.849000 




26.981000 


30.45% 


1989 


50.643000 




29.638000 


9.85% 


HB 252 Tax Rates 










No Trigger 


In£ 


ger 




< 7,000. 


> 7.000 


< 7.000 


> 7.000 




BTU 


BTU 


BTU 


BTU 


FY 88 


20% 


'30% 


20% 


30% 


FY 89 


20% 


30% 


17% 


25% 


FY 90 


13% 


25% 


17% 


25% 


FY91 


13% 


20% 


13% 


20% 


FY 92 


13% 


20% 


13% 


15% 


& after 











The distribution of the tax has been modified several times 
since the enactment of the tax in 1975. The current and 
future statutory tax distributions are presented in the follow- 
ing tables. SB 228. passed by the 50th Legislature, changed 
the allocation effective July 1. 1987. 



GENERAL FUND REVENUES - BY COMPONENT 



S-47 



COAL TAX DISTRIBUTION TABLE 



ACCT. 




ENTITY 


ACCOUNT NAME 


01100 


General Fund 


02403 


Public School Equalization 


02405 


State Library 


02424 


Highway Reconstruction Trust 


02434 


Conservation Districts 


02437 


Alternative Energy Research 


02444 


County Land Planning 


02445 


Local Impact 


04008 


Renewable Resources Bond 


04011 


Water Development 


09001 


Permanent Trust 


09004 


Park Acquisition Trust 


09005 


Education Trust 




Agriculture Act 




TOTALS 



Coal severance tax revenues are dependent on the contract 
sales price per ton of coal and the number of tons produced. 
Since most of Montana's coal is sold to utilities under long- 
term contracts, prices are usually allowed to increase by 
inflation indicies specified in the contracts. However, with 
lower demand and competitively priced other fuels, coal 
prices are expected to decrease during the forecast period. 
The other factor that offsets the price of coal is the 
deductibility of royalty payments from the contract sales 
price. The 48th Legislature approved a bill that phases in 
the royalty deduction over a period of 3 years. These deduc- 
tions have been included in the price forecasts. 
Production levels are driven by the demand for electrical 
power. Based on information from the major coal pro- 
ducers, production is anticipated to remain relatively stable 
throughout the forecast period. However, total production 
for FY88 is expected to exceed 32.2 million tons thereby 



EFFECTIVE 


EFFECTIVE 


JULY 1. 1986 


JULY 1. 1987 


22.550% 


15.314% 


13.200% 


16.796% 


, 0.440% 


0.380% 


7.760% 


12.000% 


0.220% 


0.190% 


1.100% 


1.710% 


0.440% 


0.380% 


2.640% 


1,520% 


0.550% 


0.475% 


0.550% 


0.475% 


50.000% 


50.000% 


0.550% 


0.000% 


0.000% 


0.000% 


0.000% 


0.760% 


100.000% 


100.000% 



reducing the severance tax rates for FY89 and subsequent 
years. 

In order to stimulate new production, the 1985 legislature 
enacted a Vj rate reduction on increased production under 
new or revised contracts signed during a 2.5 year "window 
of opportunity." HB 252 continued this credit for "incre- 
mental production", which results in effective tax rates of 
10% and 15% for the two BTU levels of this "incremental 
production." The new production resulting from this legis- 
lation and the credits claimed are included m the revenue 
estimates. 

.A dispute involving the state's authority to tax coal mined 
on Crow Indian land has prompted Westmoreland 
Resources to protest the taxes paid on this production on 
behalf of the Crow Indian tribe. Until a settlement is liti- 
gated, these taxes are being deposited in an escrow account. 
Tax forecasts for fiscal years 1987 through 1989 assume a 
settlement will not be reached until after FY89. 



S-48 



GENERAL FUND REVENUES - BY COMPONENT 



GENERAL FUND COAL SEVER.\NCE TAX COLLECTIONS 



Coal Severance Tax 



fcir 
ta- 
in- 

♦18- 
117- 
116- 
«15- 
$1*- 
$13- 
$12- 
$11- 
$10- 

$»- 

$«- 

r- 
n- 

$s- 
$*- 



V 



\ 



sU^ 





TOTAL 


GENERAL FUND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $ 


(MILLION $) 


CHANGE 


1970 


0.050300 


0.050300 




1971 


0.212056 


0.212056 


321.58% 


1972 


0.483434 


0.483434 


127.97% 


1973 


0.694213 


0.694213 


43.60% 


1974 


3.315416 


3.315416 


377.58% 


1975 


5.395415 


5.395415 


62.74% 


1976 


23.964642 


10.586335 


96 2 1 % 


1977 


35.906057 


14.362422 


35.67% 


1978 


34.372063 


11.241695 


-21.73% 


1979 


42.689164 


12.806813 


13.92% 


1980 


75.125009 


20.222579 


57.90% 


1981 


70.415073 


13.378906 


-33.84% 


1982 


86.186886 


16.375541 


22.40% 


1983 


80.045016 


15.20858! 


- .13% 


1984 


82.823427 


15.736468 


3.47% 


1985 


91.748855 


17.432283 


10.78% 


1986 


84.217223 


20.001598 


14.74% 




PROIFCTFD 




1987 


76.660000 


17.291000 


-13.55% 


1988 


66.151000 


10.130000 


-41.42% 


1989 


56.747000 


8.690000 


-14.22% 



Oil Severance Tax 

An oil severance tax is imposed on the production of petro- 
leum and other mineral or crude oil in the state. The tax 
was first enacted in 1921 and has since undergone several 
modifications. On April 1, 1983, the tax rate increased from 
5 to 6%. However, on April 1, 1985, the tax rate reverted 
back to 5%. 

Beginning in fiscal year 1984, one-third of the tax was 
deposited in the local government block grant account and 
two-thirds (less the county portion) in the general fund ac- 
count. If production in any county increases over produc- 
tion in the previous year, taxes on the increased production 
are returned to the county. 

Beginning in FY 88 the tax will no longer be deposited in 
the local government block grant account (SB 200). SB 200 
not only changed the method of taxing vehicles but also 
abolished the local government block grant program. 

Oil severance tax revenues are dependent on the price per 
barrel and the number of barrels of oil produced. Since oil 



is a commodity that is used for many purposes, the prices 
depend upon federal regulations and world demand. It is 
assumed that prices will stabilize and drift upward by calen- 
dar year 1989. This is based on OPEC's ability to maintain 
a stable production agreement among member countries. 
Production is expected to further decrease below calendar 
year 1985 levels. Slow economic recovery and world oil 
prices well below pre-1986 levels will not provide the 
demand or the economic incentive to explore and produce 
more oil. 

The decrease in collections from FY 86 to FY 87 is attribut- 
able to the drop in oil prices and production. General fund 
revenues increase from FY 87 to FY 88 due to the change 
in the tax distribution enacted by SB 200. HB 776, passed 
by the 50th Legislature, exempted from taxation all new 
production for the first 24 months of production. Stripper 
production tax rates were also reduced depending on the 
level of daily production. 



GENERAL FUND REVENUES - BY COMPONENT 



S-49 



GENERAL FUND OIL SEVERANCE TAX COLLECTIONS 



Oil Severance Tax 






TOTAL 


GENERAL FUND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


(MILLION %) 


CHANGE 


1970 


3.038492 


3.038492 




1971 


2.766963 


2.766963 


- 8.94% 


1972 


2.668316 


2.668316 


- 3.57% 


1973 


2.692453 


2.692453 


0.90% 


1974 


4.255716 


4.255716 


58.06% 


1975 


6.179984 


6.179984 


45.22% 


1976 


6.563569 


6.563569 


6.21% 


1977 


6.884010 


6.884010 


4.88% 


1978 


6.808100 


6.808100 


- 1.10% 


1979 


7.056573 


7.056573 


3.65% 


1980 


11.537042 


10.544555 


49.43% 


1981 


20.298580 


18.654469 


76.91% 


1982 


49.826910 


45.473425 


143.77% 


1983 


44.761150 


43.787960 


- 3.71% 


1984 


50.047016 


32.686014 


-25.35% 


1985 


48.789983 


32.526656 


-0.49% 


1986 


34.728749 


23.152504 


-28.82% 




PRO.TFCTED 




1987 


16.407000 


10.938000 


-52.76% 


1988 


17.481000 


17.481000 


59.82% 


1989 


18.591000 


18.591000 


6.35% 



Interest On Investments 

The Department of Commerce's Board of Investments is 
responsible for investing state funds. Sections 17-6-201 and 
17-6-211, MCA, provide specific guidelines under which the 
funds must be invested. Unless specifically stated by statute, 
all interest earned on these investments is deposited in the 
general fund. 

Since FY80 interest income has become a major source of 
general fund revenue. Higher interest rates and larger 
investable balances have caused this to occur. However, 
with rates and balances forecast to be lower, interest income 
is expected to contribute a smaller proportion of the total 
general fund. 

Interest on investments is projected to increase above FY86 
levels. The sharp decline in 1986 was the result of lower 
interest rates and a bill passed by the 48th Legislature that 



authorized interest earned on the highway gas account to ac- 
crue to the highway account. The June Special Session 
amended this legislation to allow earnings from the highway 
account to accrue to the general fund. 
Interest rates are forecast to drift downward until mid- 1987 
and then increase in 1988 and 1989. This is based on a less 
restrictive monetary policy by the Federal Reserve and the 
expectation of higher inflation rates. Although real interest 
rates remain high by historic standards, real rates are 
expected to drift downward. These trends are consistent 
with the forecasts provided by Wharton Econometrics. 
Average daily investable cash balances are anticipated to 
increase during the forecast period. The increase in gasoline 
and diesel tax rates, enacted by the 50th Legislature, will 
increase the investable cash in the Highway Gas Tax ac- 
count. 



S-50 



GENERAL FUND REVENUES - BY COMPONENT 



GENERAL FUND INTEREST ON INVESTMENTS COLLECTIONS 

Interest on Investments 

GENERAL FUND 




FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


CHANGE 


1970 


L064999 




1971 


1.027335 


- 3.54% 


1972 


1.507755 


46.76% 


1973 


3.391643 


124.95% 


1974 


8.884671 


16L%% 


1975 


12.150937 


36.76% 


1976 


10.607372 


-12.70% 


1977 


9.891246 


- 6.75% 


1978 


10.663504 


7,81% 


1979 


12.714971 


19.24% 


1980 


18.633664 


46.55% 


1981 


26.566775 


42.57% 


1982 


42.442544 


59.76% 


1983 


29.918421 


-29.51% 


1984 


23.527514 


-21.36% 


1985 


25.527889 


8.50% 


1986 


13.285291 


-47.96% 




PROIFCTFD 




1987 


12.385000 


- 6.78% 


1988 


14.607000 


11.67% 


1989 


16.793000 


14.97% 



Long-Range Bond Excess 

Each biennium all agencies are requested to submit propos- 
als for capital projects to be funded from the sale of long- 
range building bonds. If the legislature authorizes the sale, 
the principal and interest charges are paid from the long- 
range building debt service account. Revenues deposited to 
this account include portions of the individual income tax, 
corporation license tax, cigarette tax and tobacco tax. When 
the amount of money in the debt service account exceeds 
the annual principal and interest payments, the excess is 
transferred to the general fund. 

Historically, revenues from this source were estimated by 
adding anticipated receipts from the tax sources mentioned 



above and subtractmg the necessarv principal and interest 
payments. However, m FY84, the Department of Adminis- 
tration began transfernng all debt service revenues to the 
general fund. A general fund appropriation was also estab- 
lished to transfer the necessary principal and interest pay- 
ments back to the debt service account. These accounting 
transactions had zero impact on the general fund balance. 
The 50th Legislature did not authorize the sale of any addi- 
tional long range building bonds during the 1988-89 bien- 
nium that will require additional general fund debt pay- 
ments. Discussions of the tax forecasts are presented else- 
where in this document. 



GENERAL FUND REVENUES - BY COMPONENT 



S-51 



GENERAL FUND LONG-RANGE BOND EXCESS COLLECTIONS 



Long-Ronge Bond Excess 



n 




o as 87 



GENERAL FUND 



FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


CHANGE 


1970 


6.200000 




1971 


5.850000 


- 5.65% 


1972 


7.540000 


28.89% 


1973 


8.685000 


15.19% 


1974 


7.717204 


-11.14% 


1975 


12.787314 


65.70% 


1976 


13.512425 


5.67% 


1977 


16.589012 


22.77% 


1978 


19.900000 


19.96% 


1979 


21.800000 


9.55% 


1980 


20.700000 


- 5.05% 


1981 


26.500000 


28.02% 


1982 


20.450000 


-22.83% 


1983 


22.797971 


11.48% 


1984 


41.682643 


82.83% 


1985 


37.535668 


- 9.95% 


1986 


35.487786 
PROJECTED 


- 5.46% 


1987 


34.571000 


- 2.58% 


1988 


37.183000 


7.56% 


1989 


38.401000 


3.28% 



Coal Trust Fund Interest 

Article IX, section 5, of the Montana Constitution requires 
the Department of Revenue to deposit 50% of the coal 
severance tax receipts to the permanent trust fund. The 
principal cannot be spent unless three-fourths of the mem- 
bers of each house votes for its appropriation. The interest 
earned on the fund is available for appropriation each bien- 
nium. Interest earned on the fund is deposited in a clear- 
ance account and reinvested until appropriated. 

In 1982 voters approved Initiative 95 which required one- 
fourth of all future deposits to the permanent trust fund be 
invested in the Montana economy. This redistribution has 
caused investment income to grow at a slower rate. How- 
ever, as this policy stimulates economic development, collec- 
tions from personal and corporate income taxes will 
increase, offsetting a portion of the loss in investment 
income. 

The 48th Legislature established the authority to issue and 
sell coal severance tax bonds for financing specific water 



resource development projects. Debt service on these bonds 
is retired primarily with pledged project and coal severance 
tax revenues. This requirement will reduce permanent trust 
fund receipts by about $336,000 and $329,000 in fiscal 
years 1988 and 1989. respectively. 

Total permanent trust interest income is projected to 
increase over the forecast period. Balances available for 
investment are expected to increase because of additional 
coal severance tax receipts being deposited to the permanent 
trust. Long-term interest rates as forecast by Wharton 
Econometrics are estimated to gradually increase by calen- 
dar year 1989. 

From FY84 to FY86 85% of the interest earnings from the 
coal tax trust was deposited in the general fund, with 15% 
remaining in the trust fund. SB 228, which was passed by 
the 50th Legislature requires that 100% of the interest earn- 
ings be deposited in the general fund in FY87. This percent- 
age changes to 98% in FY88 and FY89, with the other 2% 
remaining in an expendable trust fund. 



S-52 



GENERAL FUND REVENUES - BY COMPONENT 



GENERAL FUND COAL TRUST FUND INTEREST COLLECTIONS 



Coai Trust Fund interest 






TOTAL 


GENERAL FL;ND 




FISCAL 


COLLECTIONS 


COLLECTKWS 


PERCENT 


YEAR 


(MILLION $) 


(MILLION S) 


CHANGE 


1970 








1971 








1972 








1973 








1974 








1975 








1976 








1977 








1978 








1979 








1980 








1981 


7.421901 


7.421901 




1982 


11.542421 


11.542421 


55.52% 


1983 


18.466762 


18.466762 


59.99% 


1984 


22.291337 


18.947636 


2.60% 


1985 


28.672038 


24.299902 


28.25% 


1986 


38.168226 
PRO 


32.443208 
JECTED 

39.868000 


33.51% 


1987 


39.867000 


22.89% 


1988 


37.391000 


36.644000 


- 8.09% 


1989 


40.495000 


39.685000 


8.30% 



Insurance Premiunis Tax 

The insurance premiums tax is levied on the net premiums 
or gross underwriting profit for each insurance company 
operating in Montana. The tax was first enacted in 1897 
and has been modified several times since then. The current 
tax rate is 2.75% of net premiums on policies sold in Mon- 
tana. Receipts from the tax are distributed to the police and 
firemen pension funds with the remainder going to the gen- 
eral fund. 

In addition to the premiums tax, there are additional insur- 
ance license and fee revenues collected by the State Auditor. 
These revenues are deposited in a state special revenue ac- 
count for the operation of the insurance program. Any 
excess left in the account at the end of each fiscal year is 
deposited to the general fund. 



The level of insurance tax receipts is dependent on the 
affordability of insurance and the attitude of consumers 
toward insurance purchases. Based on a slow growth in total 
personal income and employment and an anticipated stabil- 
ity in insurance rates, taxes for fiscal years 1987 through 
1989 are forecast to increase by about 5.5%. This rate is 
consistent with the growth observed from 1980 to 1983. 
The $31.8 million general fund estimate for FY 88 is due to 
HB 880, passed by the 50th Legislature. This legislation ac- 
celerated insurance premiumr payments from an annual to a 
quarterly reporting period. An additional $12.6 million 
should be deposited in the general fund in FY 88 by acceler- 
ating payments from FY 89 to FY 88. 
Senate bill 429 passed by the 48th Legislature increased the 
state's contribution to the police and firemen pension funds. 
These changes have been incorporated in the revenue esti- 
mates. 



GENERAL FUND REVENUES - BY COMPONENT 



S-53 



GENERAL FUND INSURANCE PREMIUMS TAX COLLECTIONS 



Insurance Premiums Tax 




Public Institution Reimbursements 

The Department of Institutions receives reimbursements for 
the cost of sheltering and treating residents of the state insti- 
tutions. There are four sources of reimbursement income: 

o state and federally matched Medicaid monies; 

o insurance proceeds from companies with whom the 

resident is insured; 
payments by residents or persons legally responsible 

for them; 
o federal Medicare funds. 

All revenue collected from these sources is deposited in the 
general fund. The one exception is the Veterans' Home 
receipts, which are returned to the institution. 





TOTAL 


GENERAL FUND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


(MILLION $) 


CH.ANGE 


1970 


4.931700 


4.003699 




1971 


5.383425 


4.333425 


8.24% 


1972 


6.115751 


5.065751 


16.90% 


1973 


6.812473 


5.612473 


10.79% 


1974 


7.366923 


6.166923 


9.88% 


1975 


8.323217 


6.723217 


9.02% 


1976 


9.101597 


7.496699 


11.50% 


1977 


10.766727 


8.885923 


18.53% 


1978 


12.106652 


9.787436 


10.15% 


1979 


13.748226 


10.748226 


9.82% 


1980 


14.492757 


11.031794 


2.64% 


1981 


15.254036 


9.551061 


-13.42% 


1982 


16.054771 


12.790003 


33.91% 


1983 


17.011494 


13.011479 


1.73% 


1984 


18.772261 


13.621332 


4.69% 


1985 


20.003012 


15.691565 


15.20% 


1986 


22.484437 


16.780399 


6.94% 




PRO.IF.CTFn 




1987 


24.086000 


18.019000 


7.38% 


1988 


38.275000 


31.782000 


76.38% 


1989 


27.673000 


20.861000 


-34.36% 



Most of the reimbursements come from state and federally 
matched Medicaid payments. For example, in FY85. 
approximately 88% of all reimbursements collected were 
Medicaid receipts. Forecasts for this component are based 
on the medicaid budget for the Department of Social and 
Rehabilitation Services. 

The other three components of reimbursement are expected 
to increase by the rate of inflation or roughly 3 to 5% per 
year. 

The estimates for fiscal years 1987. 1988 and 1989 do not 
include Medicaid reimbursements from the Montana Youth 
Treatment Center at Billmgs. The center was sold in Decem- 
ber of 1986. 



S-54 



GENERAL FUND REVENUES - BY COMPONENT 



GENERAL FUND PUBLIC INSTITUTION REIMBURSEMENTS COLLECTIONS 



Public institution Reimbursements 



trtiti - 




8Mrina<IM* 


WiiM 






tiito- 




f 


tua- 




J 


tiioo- 




J' 


ttm- 




/ 


tllJOO- 




1 


1 n;.- 




/A / 


lm»- 




r V 


\ iuo 




/ 


luo- 




^J 


rjOD- 




/^ 


tuo- 




J 


««- 




A/ 


IUO- 




/* 


tm- 


f 




tun- 


U^ 





GENERAL FUND 



FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


CHANGE 


1970 


1.146193 




1971 


1.069182 


- 6.72% 


1972 


1.184218 


10.76% 


1973 


2.945826 


148.76% 


1974 


3.838150 


30.29% 


1975 


4.964138 


29.34% 


1976 


4.054219 


-18.33% 


1977 


6.324501 


56.00% 


1978 


7.532377 


19.10% 


1979 


7.264924 


- 3.55% 


1980 


7.981975 


9.87% 


1981 


9.899562 


24.02% 


1982 


10.974196 


1086% 


1983 


11.406505 


3.94% 


1984 


9.179921 


-19.52% 


1985 


12.895427 


40.47% 


1986 


14.166104 
PROJECTED 


9.85% 


1987 


14.822000 


- 4.63% 


1988 


16.240000 


9.57% 


1989 


16.894000 


4.03% 



Liquor Profits and Excise Tax 

The Department of Revenue is authorized to sell liquor and 
wines to the public and retail liquor establishments through- 
out the state. These sales result in profits which are depos- 
ited in the general fund. 

Prices established by the department include a standard 
mark-up, a 16% excise tax and a 10% license tax. All of the 
excise tax is deposited in the general fund. The license tax is 
distributed to the Department of Institutions and cities, 
towns and counties for alcohol treatment and rehabilitation 
programs. 



Liquor sales for fiscal year 1987 through 1989 are expected 
to decline from their FY86 level. Although total personal 
income is growing, there appears to be a national trend 
toward moderation in liquor consumption. The increased 
profits in FY87 are attributable to a reduction in the liquor 
division's inventorv of goods. 

The deficit reduction package passed by Congress on Octo- 
ber 1,1985. increased the federal tax on alcohol by 19.05%. 
This change increased Montana's total liquor tax revenues 
which translated to larger profits and higher excise taxes. 
The forecasts for liquor profits and excise taxes arc based on 
no further changes in the federal laws. 



GENERAL FUND REVENUES - BY COMPONENT 



S-55 



GENERAL FUND LIQUOR PROFITS COLLECTIONS 



Liquor Profits 






GENERAL FUND 




FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


CHANGE 


1970 


4.653815 




1971 


4.878745 


4.8.V>«) 


1972 


4.950000 


21.96% 


1973 


4.500000 


-24.37% 


1974 


8.675600 


92.79% 


1975 


7.738305 


-10.80% 


1976 


7.260551 


- 6.17% 


1977 


7.189862 


- 0.97% 


1978 


6.778951 


- 5.72% 


1979 


7.200000 


6.21% 


1980 


5.500887 


-23.60% 


1981 


7.499113 


36.33% 


1982 


5.750000 


-23.32% 


1983 


4.500000 


-21.74% 


1984 


5.782000 


28.49% 


1985 


4.466000 


-22.76% 


1986 


4.500000 
PROIFCTFD 


0.76% 


1987 


5.000000 


11.11% 


1988 


3.507000 


-29.86% 


1989 


3.185000 


- 9.18% 



GENERAL FUND LIQUOR EXCISE TAX COLLECTIONS 



Liquor Excise Tax 



TOTAL GENERAL FUND 




itance Tax 

inheritance tax is imposed on the transfer of any dece- 

;'s property, interest in property or income from prop- 

ty within the state to any other person or corporation 

a surviving spouse, or governmental or charitable 

anization. The tax rate varies from to 32% depending 

the size of the estate and the relationship of the decedent 



FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


(MILLION $) 


CHANGE 


1970 


4.871287 


3.892771 




1971 


5.256299 


4.197793 


7.84% 


1972 


5.832888 


4.652984 


10.84% 


1973 


6.285037 


5.022561 


7.94% 


1974 


7.044522 


5.730242 


14.09% 


1975 


7.383326 


5.625391 


- 1.83% 


1976 


7.744188 


5.900333 


4.89% 


1977 


8.251359 


6.286748 


6.55% 


1978 


10.528892 


6.459007 


2.74% 


1979 


11.406432 


7.022237 


8.72% 


1980 


9.367704 


5.764741 


-17.91% 


1981 


10.300261 


6.340958 


10.00% 


1982 


10.675236 


6.572066 


3.64% 


1983 


10.655421 


6.559727 


- 0.19% 


1984 


10.422641 


6.415784 


- 2.19% 


1985 


9.642852 


5.935058 


- 7.49% 


1986 


9.482576 


5.836884 


- 1.65% 




PROJECTED 




1987 


9.214000 


5.670000 


- 2.86% 


1988 


9.104000 


5.602000 


- 1.20% 


1989 


8.994000 


5.535000 


- 1.20% 



to the beneficiary. All revenue collected from the inheritance 
tax is deposited in the general fund. 

Since 1980 revenues from inheritance taxes have fluctuated 
erratically because of legislative changes, accounting proce- 
dures and the processing of several large estates. The fore- 
casts for fiscal years 1987 through 1989 are based on an 
underlying 3.3% annual growth rate. However, FY87 
includes a large estate settlement of approximately $1.5 mil- 
lion in taxes. 



S-56 



GENERAL FUND REVENUES - BY COMPONENT 



GENERAL FUND INHERITANCE TAX COLLECTIONS 

Inheritance Tax 






GENERAL FUND 




FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


CHANCiE 


1970 


4.233429 




1971 


3.645252 


-13.89-S, 


1972 


4.233991 


16.15% 


1973 


4.457188 


5,27'S, 


1974 


5.659992 


26.99"i. 


1975 


5.395236 


- 4,68'N. 


1976 


6.180106 


14.55^) 


1977 


6.483191 


4.90% 


1978 


6.312432 


- 2.63% 


1979 


6.490196 


2.82% 


1980 


8.537242 


31.54% 


1981 


6.195069 


-27.43% 


1982 


7.680529 


23.98% 


1983 


6.398489 


-16.69% 


1984 


5.960471 


- 6.85% 


1985 


7.656622 


28.46% 


1986 


8.364764 
PROIFCTED 


9.25% 


1987 


8.645000 


3.35% 


1988 


7.211000 


-16.59% 


1989 


7.450000 


3.31% 



Metal Mines Tax 

The metalliferous mines license tax is imposed on the pro- 
duction of metals, gems or stones in the state. The tax rate 
is applied to the gross value of the product, which is defined 
as the market value of the commodity multiplied by the 
quantity produced. No deductions are allowed for smelting, 
reductions or treatments. 
For tax years beginning after December 31, 
rate is as follows: 



1984, the tax 



Gross Value 

$0-$250,000 

$250,000-$500,000 

$500,000-$ 1,000,000 

Greater Than $1,000,000 



Rate 
Exempt 

.50% 
1.00% 
1.50% 



Historically, the metal mines tax has been deposited in the 
general fund. Beginning in FY86, one-third of the receipts 
were deposited in a hard-rock mining trust account. 



Metal prices, metal production and the effect i\o ta.\ rate arc 
the major factors that determine the level of metal mines 
tax receipts. Production for gold, silver and copper arc 
expected to increase during the forecast period with the 
inclusion of new mines. Prices are assumed to remain rela- 
tively stable at calendar year 1986 levels. 

Major companies that are currently operating in Montana 
include Golden Sunlight. .AS.ARCO, Montana Resources. 
Landusky and Zortman. New companies that arc anticipated 
to begin operating by the end of calendar year 1988 include 
Centennial. Homestake and the Stillwater Project. 



GENERAL FUND REVENUES - BY COMPONENT 



S-57 



GENERAL FUND METAL MINES TAX COLLECTIONS 



Metal Mines Tox 

IRadR 






TOTAL 


GENERAL FUND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


(MILLION $) 


CHANGE 


1970 


1.440898 


1.440898 




1971 


1.976202 


1.976202 


37.15% 


1972 


1.313736 


1.313736 


-33.52% 


1973 


1.828501 


1.828501 


39.18% 


1974 


2.239654 


2.239654 


22.49% 


1975 


3.099368 


3.099368 


38.39% 


1976 


1.845076 


1.845076 


-40.47% 


1977 


2.177777 


2.177777 


18.03% 


1978 


1.978993 


1.978993 


- 9.13% 


1979 


1.544518 


1.544518 


-21.95% 


1980 


2.516820 


2.516820 


62.95% 


1981 


1.564569 


1.564569 


-37.84% 


1982 


1.861208 


1.861208 


18.96% 


1983 


1.542061 


1.542061 


-17.15% 


1984 


2.630135 


2.630135 


70.56% 


1985 


1.977324 


1.977324 


-24.82% 


1986 


1.479993 


0.989852 


-49.94% 




PRO.FFCTED 




1987 


1.631000 


1.093000 


10.42% 


1988 


2.948000 


1.975000 


80.70% 


1989 


4.123000 


2.762000 


39.85% 



Electrical Energy Tax 

The electrical energy tax is imposed on each person or orga- 
nization engaged in generating, manufacturing or producing 
electrical energy in Montana. The tax rate of $.0002 per 
kilowatt-hour is levied against all electrical energy produced 
within the state. A deduction is allowed for "actual and 
necessary" energy used by the plant for the production of 
the energy. All receipts are deposited in the general fund. 



Total Montana electricity production is projected to decline 
during calendar year 1987. Colstrip units 3 and 4 have had 
mechanical problems and are not expected to resume pro- 
duction until mid 1987. Electricity generation is expected to 
increase during calendar years 1988 and 1989. 
An audit by the Department of Revenue in FY84 generated 
$552,000 in additional revenue collections. This one-time 
adjustment has been accounted for in subsequent years. 



S-58 



GENERAL FUND REVENUES - BY COMPONENT 



GENERAL FUND ELECTRICAL ENERGY TAX COLLECTIONS 

Electrical Energy Tax 




GENERAL FUND 



FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLIONS) 


CHANGE 


1970 


0.639343 




1971 


0,717378 


12.21% 


1972 


0.756795 


5.44'H, 


1973 


0.805716 


6.46% 


1974 


0.992950 


23.24% 


1975 


0.946504 


- 4.68'S. 


1976 


0.907698 


- 4.10% 


1977 


1.082858 


19.30% 


1978 


1.850994 


70.94% 


1979 


2.523707 


36.34% 


1980 


2.060960 


-18.34% 


1981 


1.367959 


-33.63% 


1982 


1.753173 


28.16% 


1983 


1.546157 


-1 1.81% 


1984 


2.413172 


56.08% 


!985 


2.361855 


- 2.13% 


1986 


2.530403 
PRO.IFCTF.D 


7.14% 


1987 


2.992000 


18.24"'.) 


1988 


2.914000 


- 2.61% 


1989 


3.256000 


1 1.74% 



Drivers' License Fees 

A resident of Montana must have a valid driver's license to 
operate a motor vehicle on any highway in the state. A 
driver's license is issued only if the applicant passes speci- 
fied examinations and pays a $12 fee. The fees are collected 
by motor vehicle division staff or county treasurers and are 
forwarded to the state treasurer for deposit. Forty percent of 
the fees collected go to the general fund, 23 '/3% to the traf- 
fic safety and education account, 33 '/?% to the highway 



patrol retirement account and 3 "i% to couniics or the 
Department of Justice, depending on who collects the fee. 
Drivers' license fees are influenced by Montana population 
growth in the age cohort 16 years and older. It is estimated 
that the number of people in this group will increase b\ 
approximately .3% per year. Based on this growth rate and 
the unequal distribution of renewals each year, receipts arc 
expected to fluctuate from year to year. 



GENERAL FUND DRIVERS' LICENSE FEES COLLECTIONS 



Drivers' License Fees 






TOTAL 


GENERAL FUND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


(MILLION $) 


CHANGE 


1970 








1971 








1972 








1973 


1.107303 


1.037772 




1974 


0.907824 


0.851094 


-17.99% 


1975 


1.082272 


1.024492 


20.37% 


1976 


0.572576 


0.516664 


-49.57% 


1977 


0.669181 


0.609501 


17.97% 


1978 


1.174732 


1.111813 


82.41% 


1979 


1.237413 


1.171820 


5.40% 


1980 


1.302032 


1.189350 


1.50% 


1981 


1.270064 


1.163647 


- 2.16% 


1982 


1.376728 


0.916606 


-21.23% 


1983 


1.427548 


0.816365 


-10.94% 


1984 


1.328563 


0.799616 


- 2.05% 


1985 


1.320716 


0.803983 


.55% 


1986 


1.960814 
PRO 


0.796349 
JECTED 

0.804000 


- 0.95% 


1987 


1.994000 


0.93% 


1988 


1.982000 


0.799000 


- 0.64% 


1989 


2.007000 


0.809000 


1.26% 



GENERAL FUND REVENUES - BY COMPONENT 



S-59 



Telephone License Tax 

The telephone company license tax is levied on the gross 
income earned by any telephone business within the state, 
including the transmission of telephone messages by line or 
by microwave equipment. An exemption is allowed for the 
first $250 of gross income earned each quarter. The current 
tax rate of 1.725% is applied to the adjusted gross income 
level. All collections are deposited in the general fund. 

GENERAL FUND TELEPHONE LICENSE TAX COLLECTIONS 

Telephone License Tax 



Revenue forecasts for the telephone tax were based on the 
average growth rate anticipated by the companies operating 
within Montana. All companies contacted indicated that 
possible rate increases were not included in their growth 
rates. If rate increases are adopted by the Public Service 
Commission, then the estimates would have to be adjusted 
accordingly. 




GENERAL FUND 



FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


CHANGE 


1970 


0.694157 




1971 


0.753389 


8.53% 


1972 


0.792593 


5.20% 


1973 


0.879057 


10.91% 


1974 


0.970774 


10.43% 


1975 


1.060939 


9.29% 


1976 


1.137010 


7.17% 


1977 


1.243602 


9.37% 


1978 


1.398137 


12.43% 


1979 


1.634245 


16.89% 


1980 


1.783776 


9.15% 


1981 


2.039383 


14.33% 


1982 


2.167815 


6,30% 


1983 


2.463670 


13.65% 


1984 


2.521905 


2.36% 


1985 


2.931732 


16.25% 


1986 


3.243935 

PROiFrxpn 


10.65% 


1987 


3.530000 


8.82% 


1988 


3.360000 


- 4.82% 


1989 


3.419000 


1.76% 



Beer License Tax 

A tax of $4.30 is levied on each barrel of beer produced in 
or imported into Montana. Currently, 41.86% of the receipts 
are distributed to the general fund, 34.88% to the Depart- 
ment of Institutions alcoholism account and 23.26% to cities 
and towns. 



Beer consumption on a per capita basis has declined bv 
3.8% in FY84. 4.9% in FY85 and 6.0% in FY86. Revenues 
for fiscal years 1987 through 1989 are projected to continue 
these trends but at a slower rate of decline. HB 21. which 
raised the legal drinking age from 19 to 21. should decrease 
revenues about 2.1% in FY 89. 

General fund revenues increased in FY86 because of a tax 
increase from $4.00 to $4.30 per barrel. 



S-60 



GENERAL FUND REVENUES - BY COMPONENT 



GENERAL FUND BEER LICENSE TAX COLLECTIONS 



Beer License Tax 






TOTAL 


GENERAL FIND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


(MILLIONS) 


CHANGE 


1970 


1.418508 


0.709254 




1971 


1.627198 


0.813599 


I4."1'H, 


1972 


1.797406 


0.898703 


10.4(VSi 


1973 


1.847566 


0.923783 


2.79% 


1974 


1.917612 


0.958806 


3.79% 


1975 


2.121039 


1.092109 


1 3.90% 


1976 


2.250211 


1.215114 


11.26% 


1977 


2.454724 


1.325551 


9.09% 


1978 


3.056366 


1.185362 


-10.58% 


1979 


3.203812 


1.201430 


1.36% 


1980 


3.244011 


1.216504 


1.25% 


1981 


3.249022 


1.218383 


0. 1 5% 


1982 


3.279701 


1.229888 


0.94% 


1983 


3.295482 


1.235805 


0.48% 


1984 


3.211297 


1.204236 


- 2.55% 


1985 


3.083163 


1.156186 


- 3.99% 


1986 


3.105743 


1.287765 


11.38% 




PROJECTFD 




1987 


3.078000 


1.289000 


0.10% 


1988 


3.075000 


1,287000 


- 0.16% 


1989 


3.071000 


1.286000 


- 0.08% 



Natural Gas Severance Tax 

A natural gas severance tax is imposed on the production of 

natural gas in Montana. The tax rate of 2.65% is applied to 

the total gross value of natural gas produced from each lease 

or unit. All receipts, less the county portion, are deposited 

in the general fund. 

If production in any county increases over production in the 

previous year, taxes on the increased production are 

returned to the county. 

GENERAL FUND NATURAL GAS SEVERANCE TAX COLLECTIONS 



Natural gas production and prices are projected to remain 
stable throughout the forecast period. The decrease in collec- 
tions in FY88 and FY89 is attributable to HB 776. passed 
by the 50th Legislature. This legislation exempted from 
taxation all new production for the first 24 months of pro- 
duction. Stripper production lax rates were also reduced 
depending on the level of daily production. 



Natural Gas Severance Tax 






TOTAL 


GENERAL FUND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


(MILLION $) 


CHANGE 


1970 


0.379112 


0.379112 




1971 


0.418475 


0.418475 


10.38% 


1972 


0.410554 


0.410554 


- 1.89% 


1973 


0.412667 


0.412667 


0.51% 


1974 


0.406911 


0.406911 


- 1.39% 


1975 


0.403359 


0.403359 


- 0.87% 


1976 


0.445640 


0.445640 


10.48% 


1977 


0.527496 


0.527496 


18.37% 


1978 


0.923601 


0.923601 


75.09% 


1979 


1.151104 


1.151104 


24.63% 


1980 


1.498131 


1.264024 


9.81% 


1981 


2.065081 


1.881292 


48.83% 


1982 


2.681570 


2.474811 


31.55% 


1983 


2.701987 


2.525059 


2.03% 


1984 


2.982996 


2.797996 


10.81% 


1985 


2.945778 


2.945778 


5.28% 


1986 


2.890666 


2.890666 


- 1.87% 




PROJECTED 




1987 


2.528000 


2.421000 


-16.25% 


1988 


1.659000 


1.574000 


-34.99% 


1989 


1.601000 


1.516000 


- 3.68% 



GENERAL FUND REVENUES - BY COMPONENT 



S-61 



Freight Line Tax 

The freight line company tax is assessed on the gross earn- 
ings of every railroad freight line company operating in 
Montana. Freight line companies are defined as companies 
operating or leasmg railroad freight cars but not owning the 
rails over which the cars travel. The tax rate of 5 '/:% is 
applied to the gross earnings derived from busmess during 



the calendar year. All monies collected from this tax arc 
deposited in the general fund. 

The deregulation of railroads under the Staggers Act of 1 980 
and the depressed agricultural year of 1985 are responsible 
for the recent changes in the freight line lax receipt patterns. 
Future revenues are projected to fluctuate slightly during the 
forecast period. 



GENERAL FUND FREIGHT LINE TAX COLLECTIONS 



Freight Une Tax 




A wine tax is levied on table wines imported into Montana 
by wine distributors or the Department of Revenue. The 
$.27 per liter tax is distributed in the following manner: 
59.26% to the general fund; 30.89% to the Department of 
Institutions alcoholism account; 9.85% to counties and cit- 



GENERAL FUND 



FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


CHANGE 


1970 


0.293612 




1971 


0.293303 


- 0.11% 


1972 


0.343828 


17.23% 


1973 


0.391288 


1 3.80% 


1974 


0.371123 


- 5.15% 


1975 


0.402583 


8.48% 


1976 


0.416321 


3.41% 


1977 


0.568326 


36.51% 


1978 


0.582638 


2.52% 


1979 


0.675790 


15.99% 


1980 


0.956356 


41.52% 


1981 


1.200093 


25.49% 


1982 


1.344761 


12.05% 


1983 


1.432164 


6.50% 


1984 


1.334111 


- 6.85% 


1985 


1.379418 


3.40% 


1986 


1.195066 
PROJECTED 


-13.36% 


1987 


1.211000 


1.33% 


1988 


1.166000 


- 3.72% 


1989 


1.186000 


1.72% 



Since wine taxes are not based on the value of the commod- 
ity, revenues are a function of consumption. Montana's per 
capita consumption in fiscal year 1986 grew by 4.0%. Tax 
receipts are projected to increase due to this trend over the 
forecast period. HB 21. which raised the legal drinking age 
from 19 to 21, should decrease collections by 2.1% in FY 
89. 



S-62 



GENERAL FUND REVENUES - BY COMPONENT 



GENERAL FUND WINE TAX COLLECTIONS 



Wine Tax 




Other Revenue Sources 

There are a number of other taxes and fees that individually 
generate less than $ 1 million annually to the general fund. 
The statutes governing these taxes, fees and fines are fre- 
quently changed, thereby making the comparison of tax 
years difficult. However, if all the revenue sources are 
treated as a group, general trends can be identified. 
Since FY81, revenues in this category have grown an aver- 
age of 5.5% per year after adjusting for one-time receipts. 





TOTAL 


GENERAL FUND 




FISCAL 


COLLECTIONS 


COLLECTIONS 


PER( ENT 


YEAR 


(MILLION $) 


(MILLION $) 


CHANCiE 


1970 








1971 








1972 








1973 








1974 








1975 








1976 








1977 








1978 








1979 








1980 


1.59544! 


1.312406 




1981 


1.129641 


0.931611 


-29.02% 


1982 


0.888715 


0.715246 


-23.22"«i 


1983 


1.119855 


0.895884 


25.261*, 


1984 


1.131132 


0.904905 


1.01% 


1985 


1.132060 


0.905648 


0.08'Hi 


1986 


1.558356 


0.946287 


4.49% 




PRO.IF.CTFD 




1987 


1.652000 


0.979000 


3.46% 


1988 


1.733000 


1.027000 


4.90% 


1989 


1.781000 


1.056000 


2.82'Vi 



However, from fiscal year 1985 to 1986. receipts incrcascc 
by only 3.3%. It is assumed this trend will continue through- 
out the forecast period. 
Also included in this category is the anticipated revenue 
from video poker and keno machine net income taxes, vehi- 
cle license fees and public service commission fees. 
The revenue estimate for FY87 includes proceeds from the 
sale of the Montana Youth Treatment Center at Billings and 
the transfer of funds from the crime victims and junk vehi- 
cle accounts. 



GENERAL FUND REVENUES - BY COMPONENT 

GENERAL FUND OTHER REVENUE COLLECTIONS 



S-63 



Other Revenue Sources 



GENERAL FUND 




FISCAL 


COLLECTIONS 


PERCENT 


YEAR 


(MILLION $) 


CHANCiE 


1970 


7.669004 




1971 


8.194068 


6.85% 


1972 


2.847773 


-65.25% 


1973 


7.682533 


169.77% 


1974 


6.483429 


-15.61% 


1975 


7.055104 


8.82% 


1976 


6.689457 


- 5.18% 


1977 


7.920975 


18.41% 


1978 


6.952651 


-12.22% 


1979 


12.834864 


84.60% 


1980 


9.896386 


-22.89% 


1981 


10.755539 


8.68% 


1982 


9.476049 


-11.90% 


1983 


11.176082 


17.94% 


1984 


12.590802 


12.66% 


1985 


13.558652 


7.69% 


1986 


17.539483 
PROIFCTFD 


29.36% 


1987 


20.799000 


18.58% 


1988 


19.950000 


- 4.08% 


1989 


21.305000 


6.79% 



S-64 



PAY PLAN 



PAY PLAN 

The 50th Legislature froze the FY 1988-89 salaries of state 
employees through passage of House Bill 233. This action is 
consistent with the Governor's recommendation. .All 
employees will remain at the step they occupy as of June 30, 
1987 for the 1989 Biennium. New employees will move 
from step one to step two at the end of their probationary 
period. 

A provision was added to the bill prohibiting salary 
increases for exempt employees. Exempt employees are 
those individuals whose salaries are set by elected officials, 
legislative committees, or various boards and commissions. 
The only exception to the salary freeze is provided to teach- 
ers at the School for the Deaf and Blind (House Bill 871) 
and institutional teachers (House Bill 870). 

In addition to salaries, employer contributions for group 
benefits are also held at the current rate of $ 11 5 per month 



for FY88 and FY89. This level of employer contribu- 
tion will allow the same level of health benefits to be main- 
tained for the coming biennium. The estimated paymcni 
level for benefits will exceed the le\ei of coniribuiions. This 
will reduce the level of unallocated reserves, but should noi 
materially affect the reserxc balance now held for pas out. 
The following tables provide the approved matrices for state 
employees over the next two years. The only exception to 
these tables will be institutional teachers. Because matrices 
for these agencies have not been developed and are subject 
to negotiation, they are not included. 

.Also included in the tables are the number of FTE budgeted 
in the particular grade and step. 

The tables do not include the employers' health insurance 
contribution. To obtain a wage level with the insurance 
included, simply add $1,380 to the appropriate dollar figure 
shown. 



Fiscal Year 1988 & 89 

State Pav Matrix 

Excludes Insurance 

(Dollars) 


GRADE 


STEP STEP STEP STEP 
01 02 03 04 


STEP 

05 


STEP 

06 


STEP 

07 


STEP 

08 


STEP 

09 


STEP 

10 


STEP 

11 


STEP 

12 


STEP 

13 


AVE. 


01 


8,012 8,719 8,921 9,127 


9,337 


9,551 


9.770 


9,993 


10.220 


10.452 


10.689 


10.930 


11.422 


8.719 


02 


8,494 9,237 9,449 9,666 


9,887 


10,112 


10,342 


10.576 


10.815 


11.059 


11.308 


11,562 


12.080 


N/A 


03 


9,018 9,801 10,025 10,253 


10,486 


10,723 


10,965 


11.212 


11,464 


11.721 


11.983 


12,250 


12.795 


N/A 


04 


9,591 10,417 10,653 10,894 


11,139 


11,389 


11,644 


11.904 


12,170 


12,441 


12.717 


12.999 


13.574 


10.385 


05 


10,223 11,096 11,346 11,601 


11,861 


12.126 


12,396 


12,672 


12,953 


13.240 


13.532 


13.830 


14.438 


11.573 


06 


10,915 11,840 12,104 12,374 


12,649 


12,930 


13,216 


13,508 


13,806 


14,110 


14.420 


14.736 


15.381 


12.617 


07 


11,682 12,665 12,946 13,233 


13.525 


13,823 


14,127 


14.437 


14.753 


15.076 


15,405 


15.741 


16.426 


13.725 


08 


12,509 13,554 13,853 14,158 


14,469 


14,786 


15,109 


15,439 


15.775 


16,118 


16.468 


16.825 


17.553 


14.688 


09 


13,427 14,542 14,860 15,185 


15,516 


15,854 


16,199 


16,551 


16.910 


17,276 


17.649 


18.030 


18.806 


15.878 


10 


14,433 15,623 15,963 16,310 


16,664 


17,025 


17.393 


17.768 


18,151 


18.542 


18.940 


19.346 


20.175 


17.303 


11 


15,532 16,805 17,169 17,540 


17,918 


18,304 


18,698 


19.100 


19,510 


19,928 


20.354 


20.789 


21,676 


18.767 


12 


16,748 18,113 18,503 18,901 


19,307 


19,721 


20,143 


20,573 


21,012 


21.460 


21.917 


22.383 


23.334 


20.213 


13 


18,084 19,549 19,968 20,395 20,831 


21.275 


21,728 


22.190 


22,661 


23,142 


23.632 


24.132 


25.152 


22.009 


14 


19,760 21,351 21,806 22,270 22,743 


23,225 


23,717 


24,219 


24.731 


25,253 


25.786 


26.329 


27.437 


24.509 


15 


21,505 23,228 23,720 24,222 


24.734 


25,256 


25,789 


26,332 


26.886 


27.451 


28.028 


28.616 


29.816 


26.961 


16 


23,466 25,336 25,870 26,415 26,971 


27.538 


28,116 


28,706 


29.308 


29,922 


30.548 


31,187 


32.490 


29.857 


17 


25,587 27,617 28,197 28.789 29,392 


30,007 


30,635 


31,275 


31,928 


32.594 


33.273 


33.966 


35.380 


32.250 


18 


27,932 30,138 30,768 31,411 


32,067 


32,736 


33,418 


34,114 


34,824 


35.548 


36,287 


37.040 


38.577 


35.616 


19 


30,508 32,908 33,594 34,293 35,005 


35,734 


36.476 


37,233 


38,005 


38.793 


39.596 


40,416 


40.416 


38.304 


20 


33,321 35.933 36,679 37,440 38,216 


39,008 


39,816 


40,640 


41,480 


42,337 


43.211 


43.211 


43.211 


41.970 


21 


36,415 39,260 40,073 40,902 41,748 


42,611 


43,491 


44,388 


45.303 


46,237 


46,237 


46.237 


46.237 


45,154 


22 


39,811 42.911 43.797 44,701 


45,623 


46,563 


47,522 


48.500 


49.498 


49.498 


49,498 


49,498 


49.498 


46,920 


23 


43,526 46,906 47,872 48,872 48,857 


49,862 


50,887 


51.932 


52.998 


52.998 


52,998 


52,998 


52.998 


52,998 


24 


47,608 51,295 52,349 53,424 54,520 


55,638 


56,778 


56.778 


56,778 


56,778 


56,778 


56,778 


56,778 


56,778 


25 


51,091 56,116 57,266 58,439 59,635 


60.855 


60.885 


60.885 


60,885 


60,885 


60,885 


60,885 


60.885 


N/A 











PAY PLAN 












S-65 








Fiscal Year 1' 


988 & 8S 


















State FTE Frequency Distribution 














STEP STEP STEP STEP 


STEP 


STEP 


STEP 


STEP 


STEP 


STEP 


STEP 


STEP 


STEP TOTAL 


GRADE 


01 02 03 04 


05 


06 


07 


08 


09 


10 


11 


12 


13 




01 


.25 




















.25 


04 


1.00 9.50 1.84 




















12.34 


05 


.13 42.28 39.11 15.68 


3.67 


5.18 


4.18 


3.81 


1.52 


2.59 




1.00 


3.00 


122.15 


06 


.95 84.68 144.18 35.03 


25.35 


28.64 


14.42 


22.50 


9.12 


8.43 


5.00 


12.00 


19.50 


409.80 


07 


.85 124.62 253.36 96.91 


59.69 


63.73 


57.85 


67.86 


26.60 


30.61 


11.01 


28.92 


62.30 


884,31 


08 


1.70 206.49 235.70 92.34 


66.11 


54.03 


59.47 


66.50 


39.50 


48.50 


27.50 


27.75 


69.00 


994.59 


09 


112.40 149.10 63.73 


60.02 


63.33 


67.90 


66.50 


36.40 


28.00 


16.50 


26.50 


48.00 


738.38 


10 


71.30 151.20 83.06 


58.90 


59.40 


44.59 


73.50 


41.20 


32.98 


23.50 


64.10 


61.25 


764.98 


11 


91.68 125.84 60.87 


38.67 


37.88 


63.00 


71.00 


50.50 


38.75 


30.00 


103.00 


51.00 


762.19 


12 


112.53 133.57 58.00 


46.07 


44.78 


63.25 


89.50 


58.00 


66.00 


48.00 


98.50 


49.00 


867.20 


13 


1.00 100.04 110.05 48.00 


53.49 


54.35 


45.50 


87.10 


56.50 


50.70 


66.50 


129.30 


56.00 


858.53 


14 


87.30 109.65 43.00 


34.00 


39.45 


50.00 


74.00 


47.50 


52.60 


57.75 


212.00 


113.00 


920.25 


15 


54.50 51.75 23.00 


17.00 


19.00 


39.80 


59.75 


31.00 


48.50 


51.00 


141.00 


98.00 


634.30 


16 


25.00 21.00 17.00 


12.00 


11.00 


13.00 


33.00 


24.50 


25.50 


30.00 


85.00 


96.50 


393.50 


17 


11.00 22.00 9.00 


12.00 


15.00 


3.00 


17.00 


15.00 


21,00 


21.00 


36.50 


55.70 


238.20 


18 


7.50 6.00 2.00 


3.00 


5.00 


7.00 


8.00 


8.00 


11.00 


5.00 


24.00 


34.00 


120,50 


19 


1.00 3.60 2.00 


2.00 


4.00 


5.00 


7.00 


4.00 


. 4.10 


8.00 


9.00 


16.00 


65.70 


20 






2.00 


3.00 


3.00 


2.00 




1.00 


6.00 


7.00 


24.00 


21 


1.00 




1.00 


1.00 


2.00 




2.00 


1.00 


3.75 


4.00 


15.75 


22 


2.00 1 .00 


1.00 


1.00 




1.00 


1.00 


2.00 




1.00 




10.00 


23 


















1.00 




1.00 


24 


















1.00 




1.00 




5.63 1145.071557.95650.62 492.97 


508.77 


541,96 


753,02 


452.34 


473.26 


402.76 


1011.32 


843.25 8838.92 




Blue Collar Pav Schedules 

This pay schedule sets the hourly wag 






















;e for those workers 




BLUE COLLAR PAY PLAN 




classified 


in the blue collar pay schedule. A point factoring 






























method is 


i used to determine the grade 


to which a blue col- 














lar worker is assigned. As shown in the table there are 


14 


PraHp 




Salan 




Number " 
FTE 


Ul 


grades with one hourly wage rate for each grade. 




























01 




15,578 




















02 




16.410 




















03 




17,242 




















04 




18,074 




















05 




18.906 




26.70 
















06 




19,738 




9.00 
















07 




20,570 




246.99 
















08 




21,402 




70.50 
















09 




22,234 




157.25 
















10 




23.066 




95.43 
















11 




23,898 




129.00 
















12 




24,730 




28.00 
















13 




25,562 




1.00 




[ 












14 




26,787 
TOTAL 




33.00 








796.87 





















S-66 



PAY PLAN 



Liquor Store Occupations Pay Schedule 

The liquor store occupations pay schedule sets the hourly 
wage for all liquor store employees throughout the state. As 
shown in the tables, there are eight grade levels with one 
hourly wage rate for each grade. 



RETAIL CLERKS PAY PLAN 






Number of 


Grade 


Salary 


FTE 


02 


14,602 


6.00 


03 


15,642 


1.00 


04 


16,224 


37.50 


05 


16,827 


9.50 


06 


18,096 


8.50 


07 


19,469 


4.50 


08 


21,029 
TOTAL 


4.50 




76.50 





Physicians' Plan 

Section 2-18-303(6) of the MCA states: 

"The department may authorize a separate pa\ 
schedule for medical doctors if the rates provided in 
2-18-311 and 2-18-312 are not sufficient to attract 
and retain fully licensed and qualified physicians ai 
the state institutions." 
The Department of Administration has established the fol- 
lowing pay schedule for physicians at slate institutions. 



067 PHYSICIANS PLAN 



STEP STEP STEP STEP STEP 
GRADE 01 02 03 04 05 

01 51,233 53,929 55,007 56,105 57.228 
FTE 1.00 1.00 2.00 

02 60,588 63,775 65,049 66,349 67,676 
FTE 3.00 1.00 2.00 



FTE 



3.00 2.00 1.00 



.00 



STEP 

06 


STEP 

07 


STEP 

08 


STEP 

09 


STEP 

10 


58,371 


59,538 


60.727 


61.941 


63,!7S 



STEP STEP 



64,441 65.731 



STEP 

13 



67.043 
1.00 



69,027 70,408 71,814 73,251 74.715 76.209 77.733 79.287 



58.522 
5.00 

65.287 
6.00 



PAY PLAN 



S-67 



Salaries of Elected and Appointed Officials 
Senate Bill 370. of the 49th Legislature established the sal- 
aries for elected and appointed officials for the 1987 bien- 
nium. These salaries were not changed by the 50th Legis- 
lature. 



ELECTED AND APPOINTED OFFICIALS SALARIES 

Excluding Insurance 

(Dollars) 



Collective Bargaining 



Title 



Governor 

Lieutenant Governor 
Supreme Court 

Chief Justice 

Justices 
Attorney General 
State Auditor 
Supt of Public Instruction 
Public Service Commission 

Chairman 

Commissioner 
Secretary of State 
Clerk of Supreme Court 
District Court Judges 
Commissioner Political Practices 
State Tax Appeal Board 

Chairman 

Members 
Legislators (90 day session) 



Fiscal 88 and 
Salary 

$50,452 
36,141 

51,722 
50,452 
46,016 
33,342 
39,672 

37,363 
36,141 
33,342 
32,401 
49,178 
27,655 

28.373 

27.635 

5.408 



"Unified Pay Plan" History 

Prior to January 1. 1975, the State of Montana did not have 
a unified pay plan. Pay systems were decentralized within 
various agencies. Because of this decentralization, many per- 
sons performing similar jobs were compensated at substan- 
tially different pay levels. This fragmented system made it 
extremely difficult to set budget levels, compare past wage 
data and project future budget requirements. 
The 1973 Legislature directed the Department of Adminis- 
tration to develop a wage and salary plan for consideration 
by the 1975 Session. HJR 37 of the 1975 Session adopted 
the first statewide pay matrix for classified employees. The 
Public Sector Collective Bargaining Act was also adopted by 
the 1975 Session. 

The following table shows the number of collective bargain- 
ing units and the number of employees covered by collective 
bargaining over the past 14 years. University System bar- 
gaining units and employees are not included. 



Fiscal Year 

1974 
1975 
1976 
1977 
1978 
1979 
1980 
1981 
1982 
1983 
1984 
1985 
1986 
1987 



Number of Units 

33 
37 
51 
53 
57 
62 
67 
71 
72 
77 
68 
71 
74 
72 



Number of 
Employees 

4.194 

4.429 

4.940 

4.940 

5.689 

5.958 

5.665 

5,657 

5.082 

5.105 

5.148 

5.458 

5.659 

5.487 



Pay Matrix History 

Since the inception of the statewide pay plan each legislative 
session has provided for matrices for classified employees. 
The matrices have been provided in statute in most cases. 
However, the 1981 Session delegated the authority to the 
Department of Administration to set the matrix by rule. The 
1987 Session gave similar authority for the institutional 
teachers matrix for the 1989 biennium. 

Pay increases have varied by grade and step. Lower grade 
employees have been given larger percentage increases in 
some bienniums. In some cases a fiat dollar increase has 
been added to a percent increase which had the effect of 
giving a larger raise to lower salaried employees. Over time 
this has compressed the pay matrix, reducing the difference 
in pay between grades. 

In the fourteen years of the unified pay plan, the salary of 
grade 8 employees has neady kept pace with the consumer 
price index, while grade 12 and 16 employees have not. The 
following table prepared by the Personnel Division of the 
Department of Administration shows the percentage growth 
of three grades since FY 1976. The grade 12 step 7 position 
has been used to illustrate the salary of "average" state 
employees. 



S-68 



PAY PLAN 



Sample of Percent Salary Inreases From Previous Fiscal Years 

Includes Step Increases 

Excludes Insurance Contribution 





FY85 






























Annual 


Grade 


Step 


FY76 


FY77 


FY78 


FY79 


FY80 


FY81 


FY82 


FYS 3 


FY84 


FY85 


FY86 


FY87 


FY 8 8 


FY89 


A^g. 


8 


1 


7.5% 


6.5% 


7.2% 


7.4% 


6.5% 


8.0% 


13.1% 


13.1% 


3.9% 


4.0% 


2.3% 


1.8% 


0.0% 


0.0% 


5.8% 


8 


7 


7.5% 


6.7% 


6.6% 


6.8% 


6.2% 


8.1% 


10.8% 


10.7% 


3.4% 


2.4% 


2.3% 


2.0% 


0.0% 


0.0% 


5.3% 


8 


13 


5.0% 


4.1% 


4.9% 


5.2% 


5.5% 


5.8% 


10.8% 


10.7% 


3.4% 


2.4% 


2.3% 


2.0% 


0.0% 


0.0% 


4.4% 


12 


1 


7.4% 


6.5% 


5.8% 


5.9% 


5.8% 


7.1% 


11.5% 


11.5% 


3.8% 


3.8% 


1.7% 


1.4% 


0.0% 


0.0% 


5.2% 


12 


7 


7.5% 


6.4% 


5.3% 


5.5% 


5.1% 


7.2% 


9.2% 


9.2% 


3.3% 


2.7% 


1.7% 


1.5% 


0.0% 


0.0% 


4 6% 


12 


13 


5.0% 


4.1% 


3.6% 


3.8% 


4.3% 


5.0% 


9.2% 


9.2% 


3.3% 


2.7% 


1.8% 


1.5% 


0.0% 


0.0% 


3.8% 


16 


1 


7.0% 


6.0% 


4.7% 


4.8% 


6.7% 


7.1% 


10.7% 


10.8% 


3.7% 


3.8% 


1.6% 


1.3% 


0.0% 


0.0% 


4.9% 


16 


7 


6.8% 


5.8% 


4.5% 


4.6% 


9.1% 


7.1% 


8.5% 


8.5% 


3.2% 


2.2% 


1.6% 


1.4% 


0.0% 


0.0% 


4.5% 


16 


13 


5.0% 


4.1% 


3.6% 


3.7% 


8.0% 


5.0% 


8.5% 


8.5% 


3.2% 


2.2% 


1.6% 


1.4% 


0.0% 


0.0% 


3.9% 


CPI 




7.0% 


5.8% 


6.7% 


9.8% 


13.5% 


11.5% 


8.7% 


4.3% 


3.7% 


3.9% 


2.9% 


2.4% 


3.3% 


5.0% 


6.3% 





The following graph shows the average cumulative growth in 
percentages for grade 12 step 7 and the corresponding 
growth in the Consumer Price Index (CPI). 



Comparison of Cumulative CPI & Pay Plon 



The state contribution to pay for these benefits, is consid- 
ered part of the pay plan and is negotiated as such. The fol- 
lowing table lists the state contribution level since F\ 1978. 



nMHtoiimtmii^iM 




Group Benefits History 

The state group insurance program provides state employees 
medical, dentjil and life insurance. Retirees are allowed to 
participate in the state run program. 





Employ 


er Contribution 


History 








Monthlv 




Annual 


Fiscal Year 


Contribution 


Contribution 


1978 




$ 20 




240 


1979 




30 




360 


1980 




50 




600 


1981 




60 




720 


1982 




70 




840 


1983 




80 




960 


1984 




90 




1.080 


1985 




100 




1.200 


1986 




405 




1.260 


1987 




115 




1.380 


1988 




115 




1.380 


1989 




115 




1.380 





Prior to 1979, individual agencies were allowed to provide 
their own health insurance plans. These plans had varying 
costs and benefit levels. Beginning .April. 1979. the state 
adopted unified health coverage and purchased insurance 
from private carriers. In FY81, the state began limited self- 
insurance with a "minimum premium plan". That plan 
allowed the state to build up cash reserves and start full self- 
insurance in FY83. 

State contribution levels can be held at the FY87 amount in 
the coming biennium. As of March 31, 1987, there is cur- 
rently an unallocated reserve in the insurance fund of $1 1.5 
million. This reserve will allow current benefit levels to con- 
tinue through the next biennium without an increase in the 
monthly contributions. 

.At the end of the 88-89 biennium, the Department of 
Administration and the programs' actuary project that the 
state contribution will need to be raised. This action will be 
needed to maintain benefit levels and the required reserves 
for the following biennium. 



PAY PLAN 



S-69 



The following table shows the group benefit programs' actual income and expenditures since September of 1 98 1 . and projections for 
years 87, 88 and 89. 

Group Insurance Program 
Income and Expenses 



9-1-81 9-1-82 9-1-83 

to to to 

8-31-82 8-31-83 8-31-84 



-31-85 



9-1-85 


Projected* 
9-1-86 


Projected* 
9-1-87 


Projected 
9-1-88 


to 
8-31-86 


to 
8-31-87 


to 
8-31-88 


to 
8-31-89 



Income $11,574,200 $12,782,400 $14,964,600 $17,263,460 $17,600,248 $20,161,800 $20,148,000 $19,920,300 
Expenses $9,991,300 $12,030,400 $11,966,700 $13,626,700 $14,668,344 $19,382,100 $21,804,000 $24,274,200 
(Loss) $0 $0 $0 $0 $0 $0 ($1,656,000) ($4,353,900) 



Excess 



$1,582,900 $752,000 $2,997,900 $3,636,760 $2,931,904 $779,700 



$0 



$0 



The projected deficit to reserve is taken from the July 14, 1986 estimate made by Martin E. Segal Company. This 
company provides actuarial services for the state's group benefits plan. 



S-70 



SCHOOL FOUNDATION PROGRAM 



School Foundation Program 

The school foundation program, (including the permissive 
program), is maintained at the FY87 schedules for the 
FY88-89 biennium. Despite this freeze in the level of public 
school support payments, general fund requirements 
increase because of increasing K-12 enrollments. 

Because of the loss of revenue to the school equalization ac- 
count and the decline of the statewide property tax base, the 
50th Legislature appropriated $34 million from the educa- 
tion trust, earmarked an additional $39.5 million from indi- 
vidual income taxes (enacted in HB904) and allocated an 
additional $15.2 million from coal tax revenues through pas- 
sage of SB228. 
K-12 Enrollment 

Public school enrollment declined from 177,028 in FY75 to 
150,711 in FY84. This 26,317 student drop equals almost a 
15% decline in nine years. Since Fy84 enrollment has been 
stable. In fact, current enrollment is only 38 students higher 
than FY84. We project a gradual increase in the total 
number of students over the next two years. 
The following table and graph show the history of enroll- 
ment and what we project enrollment will be in the next 
biennium. 



K-12 ENROLLMENT - 1975 TO 1989 




Public School Enrollments 




Actual and Projected 


Fiscal 


K-12 


Year 


Enrollment 


75 


177,028 


76 


174.451 


77 


171.944 


78 


1 70. 1 1 7 


79 


167.664 


80 


163.276 


81 


158,185 


82 


154.256 


83 


152.386 


84 


150.711 


85 


151.246 


86 


151,557 


87 


150.749 


88est 


151.806 


89esi 


152,592 





The following table and graph provide detail on how the 
current school population breaks down by grade level. As 
can be seen, there appear to be higher enrollmcnis in the 
earlier grades. This trend will probably mean higher 
enrollments in the near future. In a time of increasing 
enrollments, maintenance of the existing schedules requires 
significant additional revenues. 



FY 87 K-12 


Enrollment by Grade 


Grade 


(ANB) 


K 


12,897 


1 


13.429 


2 


12,125 


3 


11,924 


4 


11,687 


5 


11.160 


6 


10.956 


7 


10,780 


8 


10.677 


9 


11,249 


10 


11,887 


11 


11,297 


12 


10,681 


Total 


150,749 





SCHOOL FOUNDATION PROGRAM 



S-71 



Public School Enrollment By Grade 



'7X7 



VA 



mmm 



CPl and Public School Costs 

The public school funding schedules have more than kept 
pace with the consumer price index (CPI) since 1975. On a 
fiscal year basis, the cumulative percentage increases made 
to the funding schedules have exceeded the cumulative V\ 
CPI increases by a large margin. As shown in the following 
table and graph, the current schedules, despite the freeze, 
have been far in excess of consumer inflation. 



Foundation Increoses vs Change In CPI 




Historical Percentage Changes 
Foundation Schedules and CPI 



Fiscal 
Year 



FY CPI 

%change 



Cumulative 
Foundation 



% Change 
Schedules 



Cumulative 
% change 



174,451 
171,944 
170,117 
167,664 
163,276 
158,185 
154,256 
152,386 
150,711 
151,246 
151,557 
150,749 
151,806 
152,592 



7.02 
5.84 
6.71 
9.38 
13.35 
11.52 
8.67 
4.33 
3.67 
3.90 
2.90 
2.40 
3.38 
5.00 



1.0000 
1.0702 
1.1327 
1.2087 
1.3221 
1.4986 
1.6712 
1.8161 
1.8947 
1.9643 
2.0409 
2.1001 
2.1505 
2.2232 
2.3343 



1.00 
14.50 
12.70 
6.90 
7.00 
8.00 
10.00 
18.00 
15.00 
4.00 
3.00 
4.00 
1.00 
0.00 
0.00 



1.0000 
1.1450 
1.2904 
1.3795 
1.4760 
1.5941 
1.7535 
2.0691 
2.3795 
2.4747 
2.5489 
2.6509 
2.6774 
2.6774 
2.6774 



S-72 



SCHOOL FOUNDATION PROGRAM 



Along with substantial increases in the state's share of public 
education, local commitment has also grown over the same 
time frame. The following table and graph show the total 



public school general fund per student smcc F\ ''5. The 
information also provides the per student cost if that cosi 
had been indexed to the CPI. 





Gen Fund $ 


FY CPI 


GF/ANB 


Actual 




Total 


Fiscal 














Year 


ANB 


/ANB 


Indexed For 


Total 

Inflation 

(76 IS base) 


Total 
Expenditures 


Expenditures 
Indexed 


76 


174,451 


$1,081 


1.0702 


$1,081.00 


$188,527,000 


$188,527,000 


77 


171,944 


$1,214 


1.0584 


$1,144.13 


$208,689,000 


$196,726,357 


78 


170,117 


$1,323 


1.0671 


$1,220.90 


$225,003,000 


$207,696,109 


79 


167,664 


$1,431 


1.0938 


$1,335.42 


$239,914,900 


$223,902,214 


80 


163,276 


$1,608 


1.1335 


$1,513.70 


$262,598,449 


$247,151,039 


81 


158,185 


$1,848 


1.1152 


$1,688.08 


$292,294,061 


$267,028,827 


82 


154,256 


$2,115 


1.0867 


$1,834.44 


$326,251,222 


$282,972,728 


83 


152,386 


$2,369 


1.0433 


$1,913.87 


$360,972,724 


$291,646,516 


84 


150,711 


$2,552 


1.0367 


$1,984.11 


$384,622,537 


$299,026,566 


85 


151,246 


$2,750 


1.0390 


$2,061.49 


$415,980,557 


$311,791,497 


86 


151,557 


$2,896 


1.0290 


$2,121.27 


$439,033,992 


$321,493,165 


87 


150,749 


$2,986 


1.0240 


$2,172.18 


$450,378,369 


5327,453.880 





General Fund Expenditures Per Af^lB 

Actual vs. CPI Adjusted 




Actual GF Per ANB 



CPI Adjusted GF/ANB 






SCHOOL FOUNDATION PROGRAM 



S-73 



Foundation Program Revenue 

Foundation program earmarked revenues and total expendi- 
tures are presented in the table and graph below. The 
foundation program is much more sensitive to changes in 
oil prices, coal prices and interest rates than the general 
fund revenues. In times of escalating oil, gas, and coal prices 



the earmarked revenues dedicated to the foundation pro- 
gram came close to generating enough revenue to provide 
for significant increases in the foundation program. When 
coupled with rising enrollments, declining prices and interest 
rates dramatically increase the demand on the stales general 
fund. 



Foundation Costs vs Foundation Revenues 

Hscal 1976 - RscqI 1989 



= 
= 
°2 




Foundation Revenues 



Foundation Costa 



S-74 



SCHOOL FOUNDATION PROGRAM 



PUBLIC SCHOOL SUPPORT 
(Figures In Millions) 



ACTUAL ESTIMATED 

FY 86 FY 87 



ESTIMATED 
F\ 88 



Schedule Increase In Percent 
Max. Gf Budget Without Vote 
% Change 

State Revenue 
Income Tax 
Corporation Tax 
Coal Tax 

Interest & Income 
Us Oil & Gas Royalties 
Education Trust Interest 
Education Trust Principal 
County Levy Surplus 

Total State 

% Change 
Statewide Taxable Valuation 

% Change 
County Revenue 

45 Mills 

Elementary Transportation 

Cash Reappropriated 

Forest Funds 

Taylor Grazing 

Miscellaneous 

High School Tuition 

Total County 

% Change 
District Revenue 
Permissive Levy 
Light Vehicle Replacement 

Total District 

% Change 
Total State,County,District 

% Change 



4.00% 


1.00% 


0.00% 


$282,166 


$283,334 


$284,839 


3.54% 


0.41% 


0.53% 


43.054 


48.118 


71.694 


13.236 


8.079 


10.540 


4.211 


10.119 


11.111 


37.301 


36.181 


33.377 


12.630 


24.252 


23.422 


7.759 


8.343 


2.703 


0.000 


0.000 


22.000 


18.344 






$136,535 


SI 35.092 


$174,847 


-19.44% 


-1.06% 


29.43% 


$2,370,133 


$2,260,762 


$1,921,120 


1.68% 


-4.61% 


-15.02% 


88.312 


101.734 


86.450 


(3.627) 


(3.838) 


(3.693) 


3.019 


3.138 


2.327 


1.119 


1.222 


1.222 


0.118 


0.122 


0.122 


6.046 


6.061 


6.061 


(0.761) 


(0.760) 


(0.764) 


$94,226 


$107,679 


$91,725 


1.63% 


14.28% 


-14.82% 


17.674 


17.385 


17.290 


1.565 


1.426 


1.274 


$19,239 


$18,811 


$18,564 


4.88% 


-2.22% 


-1.32% 


$250,000 


$261,582 


$285,136 


-10.88% 


4.63% 


9.00% 



SUPPLEMENTAL APPROPRIATIONS 



S-75 



Supplemental Appropriations 

During the 50th Legislature, $49,000,756 was appropriated 
in House Bill 434 for FY87 governmental operations. The 
bulk of these dollars went to the Department of Social and 
Rehabilitation Services. House Bill 2. the general appropria- 
tions act. also contains two FV87 supplemental from the 
local impact and education trust fund totalling $142,055. 
These funds are appropriated to the Department of Revenue 
and the Department of Justice for implementation of Senate 
Bill 200 which changes motor vehicle license fees. 
House Bill 434 also provides for the transfer of $35 million 
from the local impact and education trust fund to the state 
general fund. This transfer of funding was required to help 
pay the cost of the supplemental incurred in FY87 and pro- 
vide for a positive cash balance for the FY86-87 Biennium. 
The following narrative explains the major supplementals 
approved for fiscal year 1987. In addition to the narrative, a 
history of supplemental activity is presented in several 
tables and graphs. 

DEPARTMENT OF ADMINISTRATION 

State Tax Appeals Board 

$491,362 general fund - This supplemental provides 
funding to replace money transferred to the State Tax 
Appeals Board to cover the substantial increase in work- 
load stemming from property tax appeals because of the 
completion of reappraisal. 

OFFICE OF PUBLIC INSTRUCTION 

Title IX Sex Equity Lawsuit 

$100,609 general fund - This supplemental provides 
funds to pay for expenses incurred by the Office of 
Public Instruction in its defense in the Title IX Sex 
Equity Lawsuit. This suit involves athletic programs in 
Montana's Public Schools. 

Foundation Program Lawsuit 

$234,313 general fund - These funds help pay for 
expenses incurred in the Foundation Lawsuit brought 
against the state by various school districts. The suit 
challenges Montana's system and level of funding K-12 
education. 

School Transportation 

$281,586 general fund - This supplemental provides 
funding for the state transportation costs of K-12 educa- 
tion. Because the reimbursement amount to local schools 
is set by statute, any shortfall in the transportation pay- 
ments is funded through the supplemental process. 

School Foundation Program 

$ 1 ,000.000 - general fund - These funds are based on the 
assumption that the revenue generated to the school 
equalization account will not be sufficient to cover the 
anticipated reimbursements to public schools. Statute 
provides that any shortfall in equalization aid shall be 
funded through the supplemental process. 

MONTANA UNIVERSITY SYSTEM 

MSU - Fee Waiver 

$207,657 general fund - Montana State University 
received a supplemental appropriation to correct an 
error in the Scholarship and Fellowships appropriation. 
Mandatory fee waiver funding was not included in 
MSU's appropriation for either fiscal 86 or 87. The fact 



that funds for mandatory waivers were not included in 
the appropriation does not relieve the University of us 
responsibility to grant fee waivers to those students who 
qualify for them. 

DEPARTMENT OF ST.ATE LANDS 
Forestry - Fire Suppression 

$557,462 general fund - This supplemental provides 
funding for fire suppression costs in the Forestry Divi- 
sion. Because of the difficulty in estimating what kind of 
fire season we will have, the legislature has adopted the 
policy of paying for past fire costs by supplemental fund- 
ing. This request covers the 1986 fire season and one 
carryover bill from the 1985 season. 
Special Session II also added an additional $3,185,472 
for fire suppression costs in FY86. This amount is 
included in the historical tables and graphs. 

DEPARTMENT OF COMMERCE 

Local Government Block Grant 

$1,814,822 general fund - This supplemental allows com- 
pliance with the Montana Supreme Court's order which 
requires a state block grant payment to Lewis and Clark 
County. This amount is for reimbursement payments not 
received in the past due to a county error. This amount 
has been distributed to other counties over the life of the 
block grant program. 

DEPARTMENT OF INSTITUTIONS 

Corrections Medical 

$680,000 general fund - These funds augment the correc- 
tions medical budget. The supplemental is needed due to 
two reasons. First, the average daily population 
increased substantially over the 1984 population on 
which the original appropriation was based. Second, the 
cost per resident has escalated beyond the 1984 base 
cost. The appropriation was based on an average cost of 
$575.94 per year. Actual costs in FY85 was $738.82. 
Worker's Compensation 

$2,110,265 general fund - This supplemental covers 
increased Workers' Comp costs for all of the institutions. 
A breakdown bv institution is: 



Montana State Hospital 


$1,129,999 


Montana Developmental Center 


416,959 


Montana State Prison 


331,176 


Eastmont 


71,442 


Center for the Aged 


20.588 


Vets Home 


10,157 


Pine Hills 


(3,086) 


Mountain View 


(3,068) 


Others 


130 


Interest loss 


135,968 


Total 


$2,110,265 


Prison Lawsuit 





$351,291 general fund - This supplemental provides 
funding for payment of damages incurred at the Prison 
because of a law suit involving a malpractice settlement 
incurred by a local physician and his insurance com- 
pany. The doctor's contract had a hold harmless clause 
leaving the state liable under the original lawsuit by a 
former inmate. 



S-76 



SUPPLEMENTAL APPROPRIATIONS 



DEPARTMENT OF SOCIAL AND REHABILITATION 
SERVICES 



$1,727,008 general fund, $107,922 federal special & 
$378,377 other special (county) - Foster care benefits 
received a supplemental appropriation due to foster care 
and group home placements above the number estimated 
by the 1985 session. In addition, the number of place- 
ments by type of placement also changed between the 
last legislature and this session as different foster care 
benefits have different funding mixes. 

Aid to Families with Dependent Children (AFDC) 

$2,378,109 general fund, $5,915,012 federal special & 
$196,745 other special (county) - The most recent esti- 
mate of AFDC caseload for FY87 is 9,352. Budgeted 
caseload for FY87 is 8,083. This supplemental provides 
funding for the anticipated caseload through the end of 
FY87. These costs are based on 8,464 regular cases at 
$321.50 per month and 888 unemployed parent cases at 
$422.00 per month. 

General Assistance (GA) 

$2,905,006 general fund - The state General Assistance 
Program received supplemental funding due to the dis- 
trict court ruling that SRS cannot limit any recipient's 
GA benefits to two months in any twelve month period. 
The amount was increased 1.5 million due to the inabil- 
ity to move unexpended funds from FY 86 to FY87. 
Special Session II appropriated $3,638,948 for general 
assistance. $2,138,948 in general fund from this past 



supplemental is included in the historical graphs and 
tables. The balance of $1,500,000 reverted to the general 
fund at the end of FY86. 

state Medical 

$2,547,951 general fund - Claims for slate medical assis- 
tance are higher than estimated during the 1985 Legis- 
lature. To date the number of claims paid is running 
much higher than a year ago. This program is 100% gen- 
eral fund. 

Medicaid Youth 

$488,400 general fund & $1,011,600 federal speciaH - 
Rivendell Youth Treatment Center is expected to receive 
medicaid certification retroactive to January Isi of this 
year. This supplemental funds the cost of those medicaid 
eligible youth at the facility. 

Medicaid Other 

$7,045,153 general fund & $13,698,532 federal special - 
This supplemental appropriation is provided for the 
medicaid other program due to higher than anticipated 
AFDC caseloads and higher numbers of claims. 

HISTORICAL SUPPLEMENTAL DATA 

The following tables and graphs show supplemental activity 
since the FY79 biennium. The tables reflect both general 
fund and other funds while the graphs show only the general 
fund. 



SUPPLEMENTAL APPROPRIATIONS 



S-77 



FY87 GENERAL FUND SUPPLEMENTALS 

By Seloctad Agsnciea 



Othsrs (11. 9X) 



Admin. (1.7JJ) 



Mil. Aff8. (0.1 «) 



:^ 



state Lands (12.0X) 



Univ. (0.7X) 



(10.5%) 









^ 


1 


M 


w 

^■^"^ SRS (63.1%) 














Supplemental Appropriations by State Agency 














1979 Session 


through 1987 Session 










Agency 


1979 


1981 




1983 


1985 




1987 




General 


Other 


General 


Other 


General 


Other 


General 


Other 


General 


Other 




Fund 


Fund 


Fund 


Fund 


Fund 


Fund 


Fund 


Fund 


Fund 


Fund 


Admin. 


$1,458,000 


$1,337,000 


$52,500 


$0 


$152,365 


$0 


$64,000 


$0 


$525,112 


$0 


Inst. 


$1,785,850 


$468,483 


$4,043,208 


$0 


$1,805,531 


$1,002,100 


$0 


$0 


$3,281,556 S 


291.160 


SRS 


$7,297,672 


$179,000 


$4,379,606 


$0 


$4,000,000 


$295,020 


$3,768,462$! 


.024.740 


$19,710,236 $2 


,174,407 


Univ. 


$344,421 


$0 


$4,202,766 $ 


,725,704 


$1,898,782 


$1,205,978 


$0 


$0 


$212,157 


$0 


DNRC 


$554,440 


$0 


$1,853,314 


$0 


$575,000 


$0 


$0 


$0 


$0 


$0 


State Lands 


$0 


$0 


$0 


$0 


$797,355 


$0 


$2,896,992 


$0 


$3,754,734 


$0 


Mil. AfTs. 


$1,387,491 


$0 


$18,770 


$6,714 


$0 


$1,043,525 


$0 


$0 


$42,404 


$0 


Others 


$886,469 


$167,474 


$2,284,644 $360,565 


$1,383,077 


$1,647,834 


$909,159 $575,831 


$3,729,548 $1 


890,231 


TOTAL 


$13,714,343 $2,151,957 


$16,834,808 52,092,983 


$10,612,110 $5,194,457 


$7,638,613 $1 


,600,571 


$31,255,747 $23,355,798 



























S-78 



SUPPLEMENTAL APPROPRIATIONS 



GENERAL FUND SUPPLEMENTALS 

1979 Through 1987 Bionnium 




1979 Biennlum 1981 Biennium 1983 Biannium 1985 Biennium 1987 Blennium 

[ 7/1 SRS |\\1 Other Agoncioa 

FY87 GENERAL FUND SUPPLEMENTALS 



Agency 
Admin. 
Inst. 
SRS 
Univ. 
DNRC 
State Lands 
Mil. AfFs. 
Others 
TOTAL 



General Fund 

$525,112 

$3,281,556 

$19,710,236 

$212,157 

$0 

$3,754,734 

$42,404 

$3,729,548 

$31,255,747 



Percent 

1.68% 
10.50% 
63.06% 

0.68% 

0.00% 
12.01% 

0.14% 
11.93% 



CAPITAL IMPROVEMENT PROJECTS 



S-79 



Capital Improvement Projects 

This section of the appropriations report presents informa- 
tion on the following programs: 

1. Resource Indemnity Trust Fund 

2. Water Development Program 

3. Cultural & Aesthetics Grant Program 

4. Long Range Building Program (LRBP) 

5. Oil Overcharge 

6. Parks Coal Tax 

During each legislative session, appropriations are made for 
a variety of programs outside the normal operating budgets 
provided state agencies. Appropriations vary from roof 
repairs at state institutions to support for performances of 
Shakespeare throughout the state. 

Because these appropriations have grown over the years, the 
legislature designated a separate committee to review 
requests for these programs. The Long Range Planning Sub- 
Committee provides recommendations on how these pro- 
grams should be structured. 



The followmg narrative provides historical mformation on 
the various programs and a listing of those projcctcs 
approved by the 1987 Legislature. 



Resource Indemnity Trust Fund 

The Resource Indemnity Trust Fund (RIT) was established 
in 1973. Earnings from the RIT are to be used to "improve 
the total environment and rectify damage thereto", section 
15-38-203 MCA. 

Funding to implement this policy is derived from a tax on 
mineral production and interest earnings to the established 
trust fund. 

Section 15-38-202. MCA provides that once the trust fund 
reaches $10 million, all interest earnings on the trust can be 
appropriated. The trust reached the $10 million level in 
1978. Once the trust reaches $100 million, both the interest 
and tax proceeds can be appropriated. 
The following graph and table present the historv of the 
trust fund. FY 1987 through FY 1989 are estimated figures. 



S-80 



CAPITAL IMPROVEMENT PROJECTS 



70 



Resource Indemnity Trust Fund 

History of Taist Fund Boloncoa 



VA 



VA 



zM 



I 



I 



p^ 



^ 



'4 



R74 FY75 fY76 FY77 Pf78 Fr79 FY80 FY81 1^82 FY83 FY84 FY85 FY86 FY87 FY8e FY89 
Rscol Year 



4 



4 



4 



4 



a 



^ 







Resource Indemnity Trust Fund 










Yearly Tax and Interest Collections 






Fiscal 


Tax 


Interest 


Total 


Trust Fund 


Year 


Collections 


Earnings 


Revenue 


Balance 


FY74 


$1,137,902 


$3,483 


$1,141,385 


$1,141,385 


FY75 


$2,050,037 


$96,031 


$ 2.146.068 


$3,287,456 


FY76 


$1,981,363 


$283,377 


$2,264,740 


$5,552,291 


FY77 


$2,209,719 


$475,082 


$2,684,801 


$8,232,247 


FY78 


$2,246,415 


$696,050 


$2,942,465 


$10,646,851 


FY79 


$2,107,358 


$908,982 


$3,016,340 


$12,574,209 


FY80 


$3,630,322 


$1,175,530 


$4,805,852 


$16,204,531 


FY81 


$4,959,025 


$1,607,667 


$6,566,692 


$21,165,464 


FY82 


$7,159,153 


$2,294,265 


$9,453,418 


$28,328,946 


FY83 


$7,822,036 


$3,789,855 


$11,611,891 


$36,181,889 


FY84 


$6,716,089 


$4,225,130 


$10,941,219 


$42,986,128 


FY85 


$6,278,740 


$5,526,373 


$11,805,113 


$47,396,179 


FY86 


$5,992,270 


$6,487,967 


$12,480,237 


$53,039,675 


FY87 


$3,709,000 


$7,447,000 


$11,156,000 


$56,748,675 


FY88 


$3,729,000 


$6,275,000 


$10,004,000 


$60,477,675 


FY89 


$3,960,000 


$6,666,000 


$10,626,000 


$64,437,675 





Trust fund earnings are used for a number of different pro- 
grams. Thirty percent of the earnings are earmarked for 
water development. In the FY87 Biennium, 6% of the earn- 
ings are earmarked for the Department of Health's hazard- 
ous waste program. Starting in July of 1987, this number is 
increased to 12% and will provide funding for hazardous 
waste and Superfund projects. Starting in FY 1990, another 



4% (HB718) is earmarked to the Department of Health for 
non-superfund sites that require reclamation activity. Eight 
percent is earmarked (SB373) for the renewable resource 
development (RRD) program beginning in FY 1990. In the 
past RRD has received RIT funding. This 8% allocation is 
only slightly higher than the past RIT allocations to this 
program. 



CAPITAL IMPROVEMENT PROJECTS S-81 

The following table shows the various percentages of RIT earnings allocated to various programs and when the earmarking occured. 



RIT Earmarking 


Program 
Water 
Develop- 
ment 


FY83 
30% 


Fr'84 
30% 


FY84 

30% 


FY85 
30% 


FY86 
30% 


FY87 
30% 


FY88 
30% 


FY89 
30% 


FY90 
30% 


Hazardous 

Waste 

DHES 


0% 


0% 


0% 


0% 


6% 


6% 


12% 


12% 


12% 


Non-Super 
Fund DHES 


0% 


0% 


0% 


0% 


0% 


0% 


0% 


0% 


4% 


RRD 
DNRC 


0% 


0% 


0% 


0% 


0% 


0% 


0% 


0% 


8% 


Unallocated 
for projects 


70% 


70% 


70% 


70% 


64% 


64% 


58% 


58% 


46% 





RIT funds are also utilized to fund state governmental oper- The following table presents a breakdown of RIT revenues 

ations that pertain to resource development and their associ- and disbursements for FY 1986 through FY 1 989. 

ated impacts. House Bill 6 of the 50th Legislature provides 
RIT funding for various projects statewide. 



Resource Indemnity Trust Earnings Balance Sheet 



Beginning Balance 

Estimated Revenue 

Revenue Adjustment 

DHES Carryover 

Grant Reversion 

Total Available 
Disbursements 
Water Development 30% 
DHES 6% 

Superfund 6% - HB 777 
Contingency 
Operations 

DNRC 

DSL 

DOLI 

U System 
Projects(As Delineated on Following Page) 
Project Administration 
Water Marketing 

DLS - Water Rights 

Upper Missouri - DNRC 

Water Policy 
Cooney Dam 
Saline Seep 
DHES 
Livestock 
Clark Fork 

Total Disbursements 

Adjustments 
Ending Balance 



FY 86 
Actual 
2,176,069 


FY 87 
Estimated 
1,398.304 


FY 88 
Estimated 
698,991 


FY 89 
Estimated 
178,628 


6,487,967 





7,447.000 

227.048 






6,275,000 



443,000 

420,313 


6,666.000 





8,664,036 


9.072.352 


7.837.304 


6.844,628 


1,946,390 

389,278 






2.302,214 

460,443 



175,000 


1.882.500 
376.500 
819.500 
175,000 


1.999.800 

399,960 

399,960 




1,066,273 

1,284,729 

601,000 

1,131,036 

342,644 

277,000 


819.520 



580,800 



3,803,145 

(169,000) 


1,310,045 

616,704 

576,000 



1,744.481 

70,000 


1,261.128 

595.291 

555.600 



1.744,480 

70,000 




33,515 

10,923 

25,750 

75,000 

4,192 





7,187,730 


30,000 
133,985 
15,277 
49,250 

5,000 

167,727 



8,377,681 


90,000 
7,660,730 


90,000 
7,116,219 


(78,002) 











1,398,304 


698,991 


176,574 


(273,645) 



S-82 



CAPITAL IMPROVEMENT PROJECTS 



Projects funded by RIT revenue are listed in the following table. These projects are in the same prioritized 
appears in House Bill 6. 

1988-89 RIT PROJECT APPROPRIATIONS 



Applicant Name 



Name of Project 



Montana Department of State Lands Upper Blackfoot 

Montana Department of Health and Clark Fork Monitoring 
Environmental Sciences 

Montana Department of Fish, Wild- High Ore Creek Reclamation Project 
life and Parks 

Montana Department of State Lands Snowshoe Creek Streambank Recla- 
mation 

Montana Board of Oil and Gas Con- Plug-Wilkstrand Simero Well #1 

servation 

Montana Department of Health And Bannack State Park-Apex Mill 



Environmental Sciences 
Toole County 



Hazardous Waste Cleanup 

Provide Reclamation For Past Oil 

and Gas Extraction, Exploration, and 

Processing 

Nellie Grant Mine Reclamation 



Montana Department of State Lands 

Montana Department of Health and Abandoned Oil Refineries in Mon- 
Environmental Sciences Solid and tana 
Hazardous Waste Bureau 

Montana Department of Fish, Wild- Cataract Creek Reclamation Project 
life and Parks 

Sheridan County Conservation Dis- Reserve Pit and Oilfield Brine Dis- 
trict posal Assessment 

Montana Board of Oil and Gas Con- Plug-Sunburst Disotell Well #1 
servation 

Montana Board of Oil and Gas Con- Plug Well Leaking Gas Gas City Field 
servation 

Montana State Library Natural Resources Information Sys- 

tem Natural Heritage Program 
Montana Salinity Control Association Montana Salinity Control Program 
Butte-Silver Bow Government The Anselmo Mine Yard Reclamation 

Project 
Lower Musselshell Conservation Dis- Groundwater From Abandoned Mine 
trict Workings For Irrigation & Instream 

Flows, Lower Musselshell River 
Board of Oil & Gas Conservation Programmatic Environmental Impact 

Statement 

Montana Department of Natural Sodium & Salinity Sources In The 
Resources and Conservation Water Powder River Basin A Chemical - 
Management Bureau Budget, Modeling Approach 

Montana Department of State Lands Drill Hole Reclamation in Montana 
Hole Plugging Trails Utilizing Ben- 
tonite 
Montana Department of Natural Montana's Accelerated Soil Survey 
Resources and Conservation Conser- Program 
vation Districts Division 

Governor's Office Headwaters Headwaters Research, Conservation, 
RC&D, Deer Lodge County Conser- and Development, Deer Lodge Con- 
vation District servation District Clark Fork Recla- 

mation Demonstration For 
Floodplain Systems Impacted by 
Mining 



Recommended 
Funding 


Accumlativc 1 
Total 


$107,000 


$ 107.000 


$205,590 


$ 312.590 


$198,600 


$ 5 1 1 . 1 90 


$107,000 


$ 618.190 


$ 19,951 


$ 638.147 


$101,200 


$ 739.341 


$ 1 50,000 


$ 889.341 


$ 84.900 


$ 974.241 


$300,000 


$1,274,241 


$ 21,565 


$1,295,806 


$100,000 


$1,395,806 


$ 55.000 


$1,450,806 


$ 46,330 


$1,497,136 


' $177,970 


$1,675,106 


$300,000 


$1,975,106 


$150,000 


$2,125,106 


$272,320 


$2,397,426 


$143,800 


$2,541,226 


$ 89,257 


$2,630,483 


$100,000 


$2,730,483 


$300,000 


$3,030,483 


$130,000 


$3,160,483 



CAPITAL IMPROVEMENT PROJECTS 



S-83 



Applicant Name 



Name of Project 



23 Montana Bureau of Mines and Geol- Groundwater Information Center 
ogy Deep Aqiufer Databases 

24 University of Montana Botany Dept. Improve Biotic Resources of the 

Upper Clark Fork River 

25 Butte-Silver Bow Government Urban Enhancement/Mitigation of 

Past Mining & Smelting Damage 
Through Urban Forestry 

26 Montana Bureau of Mines and Geol- Low Grade Bentonile for Shot Hole 
ogy Plugging 



Recommended 
Funding 


Accumlativc 
Total 


$155,950 


$3,316,433 


$ 26.638 


$3,343,071 


$100,000 


$3,443,071 


$ 45,890 


$3,488,961 



Water Development Program 

Background 

The water development loan and grant program was estab- 
lished in 1981 by the legislature. The purpose of the pro- 
gram is to promote and advance the beneficial use of water 
and allow the citizens of Montana to achieve full use of the 
state's water by providing grant and loan financing for water 
development projects. 

Public entities, private individuals, partnerships and corpo- 
rations may apply for the financing. Grants and loans to 
public entities must be approved by the legislature, but 
loans to private entities can be considered and approved for 
funding at any time by the DNRC director. 

Funding sources for the water development grant program 
are the coal severance tax (CST) and the resource indemnity 
trust tax (RIT). The program receives .625% of the gross 
proceeds of the CST and part of the earmarked 30% of the 



RIT interest income. As they become available, these funds 
are disbursed to approved projects, based upon the project's 
legislative priority ranking. Since 1981. approximately $2.8 
million in grants have been disbursed to 64 projects, with 
another $500,000 still to be distributed. 

Under the water development loan program, loans larger 
than $200,000 are funded by proceeds from CST bonds, and 
loans $200,000 or less are funded by proceeds from general 
obligation (GO) bonds. Private entities are not eligible for 
loans larger than $200,000. To fund the loans larger than 
$200,000. CST bonds totaling $28,365,000 have been sold. 
General obligation bonds totaling $4,550,000 have been sold 
to fund small loans. Since 1981, $3,438,000 in GO loans 
have been disbursed to private entities, and $482,000 to 
public entities. 

The following tables and graphs show breakdowns by appli- 
cant type and project type for water development projects 
considered by the 1983 and 1985 Legislatures. This informa- 
tion shows funded and non-funded projects. 



S-84 



CAPITAL IMPROVEMENT PROJECTS 

Breakdown by Applicant Type 



145 Total Applicotions 



^ 



j^p. 



ij. 



_____ Applicont Type (see leoend) 

\/y\ Funded IX Xl Not Funded 



Water Development and Renewable Resource Development Programs 

Water Projects 

Applications Considered by the 1983 and 1985 Legislatures 

Breakdown By Applicant Type 

145 Total Applications 



Projects 
Funded 



Projects 
Not Funded 



(A) (B) (C) (D) 

City Cons. County Ind. 

Dist. Res. 



(E) 


(F) 


(G) 


(H) 


Irr. 


Private 


.Agencv 


Uni\ 


Dist. 









Total 

Projects 

Considered 



CAPITAL IMPROVEMENT PROJECTS 



S-85 



Breakdown by Project Type 

145 Total Applicotlona 




^^_^ Project Type (i 

\rA Funded 



Breakdown By Project Type 
145 Total Applications 



Projects 
Funded 

Projects 

Not 

Funded 



(A) 
Dams 

5 

2 



(B) (C) (D) (E) 

Flood Ground Hydro Invest- 
Cont. Water Power gations 



(F) (G) (H) (I) (J) 

Irri- Water Recrea- Rural Stream 

gation Sewer tion Water Stabil. 



Total 
Projects 
Consid- 
ered 



25 



Legislative Action 

Action of the 50th Legislature significantly affected the 
water development grant program. Revenues that would 
have been allocated to grants were diverted to help the state 
through its revenue shortfall. Because of this diversion, only 
about five of the approved grants will likely be funded in 



the coming biennium. In comparison, over $1.6 million for 
64 projects has been allocated in the previous two bien- 
niums. 

The following table lists all of the grant and loan projects 
approved for the FY88-89 biennium. These projects, along 
with the non-water renewable resource projects, are included 
in HB7. 



S-86 CAPITAL IMPROVEMENT PROJECTS 



WATER DEVELOPMENT PROGRAM 
G: Grant L: Loan 

Applicant/Project 
MONTANA STATE LIBRARY 

Montana Water Resources Data Management 
PRIVATE COMPANY 

Lima Dam Rehabilitation 
MONTANA BUREAU OF MINES 

Mobility of Agricultural Chemicals 
HILL COUNTY 

Lower Beaver Creek Dam 

Rehabilitation Study 
TREASURE COUNTY CONSERVATION DISTRICT 

Conservation Practice Loan Program 
PRIVATE COMPANY 

Edgar Canal Erosion Control 
MONTANA STATE UNIVERSITY 

Plastic Irrigation Canal Lining 
FLATHEAD CONSERVATION DISTRICT 

Rehabilitation of East Spring Creek 
MINERAL COUNTY 

St. Regis Park Irrigation 
CARBON COUNTY 

Roberts Water System Improvements 

GREENFIELDS IRRIGATION DISTRICT 

Willow Creek Measuring Device 
PRIVATE CORPORATION 

Nilan Canal Lining 
EASTERN SANDERS CONSERVATION DISTRICT 

Little Bitterroot Recharge Enhancement 
PRIVATE NONPROFIT CORPORATION 

Technical Assistance Advisor 
TOWN OF CASCADE 

Water Distribution and Supply Improvements 

CITY OF SHELBY 

Shelby Water Rehabilitation 

SUN PRAIRIE VILLAGE WATER AND SEWER ASSOCIATION 

Wastewater Lagoon Dike Repair 
LAKESIDE WATER DISTRICT 

Lakeside Water Well and Main Extension 
WIBAUX 

WATER STORAGE AND DISTRIBUTION IMPROVEMENTS 
SAGE CREEK COUNTY WATER DISTRICT 

SAGE CREEK WATER DISTRICT EXPANSION 
YELLOWSTONE COUNTY 
HILLCREST WATER SYSTEM 
MONTANA STATE UNIVERSITY 

RED BLUFF RANCH IRRIGATION 

Renewable Resource Development Program 

I. Agricultural Land Improvement Category 
HILL COUNTY CONSERVATION DISTRICT 

Grass Drill Purchase G $ 8,000 

DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION 
Conservation Districts Division 

Electronic Survey Equipment Purchase G 9,300 

II. Timber Improvement Category 
ANACONDA-DEER LODGE COUNTY 

Soil Stabilization and Erosion Control G 63,650 

MADISON CONSERVATION DISTRICT 



Recommended F 


indmg 


G 


$ 97, 7i: 


G 


64.000 


G 


98.500 


G 


35.000 


G 


100.000 


G 


10.000 


G 


37.500 


G 


75.000 


G 


35.000 


G 

L 


47.500 
142.500 


G 


2.074 


G 


25.000 


G 


86.300 


G 


60,000 


G 


50,000 
150,000 




25.000 
75.000 




162,000 




133.300 




95,000 




158,600 




99.934 




129.387 



CAPITAL IMPROVEMENT PROJECTS 



S-87 



Mobile Saw for Forest Land Management 

III. Water Reservation Development Category 
DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION 
Conservation Districts Division 

Water Reservations Development Program 
MILL CREEK WATER AND SEWER DISTRICT 

Water Distribution and Supply Improvements 
HARLEM 

Water System Improvements 
LIMA 

Water Svstem Improvements 
HELENA 

Ten-Mile Water Improvements 
BROWNING 

Water Treatment and Transmission Facilities 
DEPARTMENT OF FISH, WILDLIFE AND PARKS 

Gartside Dam 
WEST YELLOWSTONE 

Water System Improvements 
MIDDLE CREEK DAM REHABILITATION 
There is reappropriated $27,354 of available bond proceeds for the Martinsdale dam and reservoir project. 
BROADWATER DAM 
DUTTON 

Water Supply Construction 
BOZEM.AN 

Lyman Creek Water Improvements 
EAST HELENA 

Water System Improvement 
EVERGREEN WATER AND SEWER DISTRICT 

Wastewater Facilities 
DENTON 

Water Supply System 
EAST GLACIER 

Water System 
GLASGOW 

Water System 
PONDERA CONSERVATION DISTRICT 

Irrigation System Rehabilitation 
HILL COUNTY WATER DISTRICT 

Rural Water Supply 
CITY OF BELGRADE 

Water Well Improvements 

Interest rate 7% for 5 years, 

10.26% for the remaining 15 years of the bond term 
PONDERA CONSERVATION DISTRICT 

6% for the term of 20 years 



G 


50.000 




'i'i'i.ll} 




403.125 




250.000 




10.202,600 




1.294.900 




257.000 




1.500.000 
5.100.000 




26.000.000 




150.000 




726.079 




434.434 




3.226.900 




185,000 




484,270 




3,200.000 




750.000 




1.410,000 




1 1 5.000 



555.000 



Cultural & Aesthetic Grant Program 

The Cultural and .Aesthetic Grant Program began in the 
1978-79 Biennium. Funding for the program comes from 
coal tax interest earnings generated by the Parks Acquisition 
Trust Fund. Section 15-35-108, MCA specifies that one 
third of the earnings from this non-expendable trust is for 
cultural and aesthetic purposes. 

The program, initially administered by the Montana Histori- 
cal Society, began with a single project aimed at restoration 
of mural paintings in the Capitol building. In the FY84-85 
biennium, administration of the program transferred to the 
Montana Arts Council. 



In the FY84-85 biennium the legislature funded 39 projects. 
Because of rapid program growth, the Montana Arts Council 
developed a formal application process. This process 
includes extensive review work by an advisory panel. The 
panel's recommendations are submitted to the legislature for 
consideration. Utilizing the panel's recommendations, the 
legislature appropriates the available funds for various 
projects. 

The following table lists the total appropriations, amounts 
expended and the number of projects for the FY79 through 
FY89 bienniums. 



S-88 



CAPITAL IMPROVEMENT PROJECTS 



Cultural & Aesthetic Projects 



Biennium 

78-79 
80-81 
82-83 
84-85 
86-87 
88-89 



Appropriated 
$ 50,000 
$ 140.000 
$ 641,680 
$ 823,479 
$1,476,511 
$1,211,817 



Expended 

$ 50.000 
$ 140.000 
$ 601.477 
$ 811.116 
$1,442,870 



Projects 
1 

3 

15 
39 
63 
52 



Since its inception, the program has been authorized to 
spend over $4.3 million in trust fund earnings. 

During the June Special Session, funds flowing into the trust 
fund were diverted to the general fund for fiscal years 87, 88 
and 89 to help with the budget shortfall. The corpus of the 
trust is approximately $16 million at the present time. Inter- 
est earnings have dropped because of the decline in interest 



rates. Under current law, deposits will be made to trusts 
beginning July 1, 1989. and interest will grow during the 
1991 biennium. 

House Bill 6 of the 50th Legislature appropriates $1.2 mil- 
lion for the FY88-89 biennium for cultural and aesthetic- 
projects. The following table lists these projects. 



CAPITAL IMPROVEMENT PROJECTS S-89 

Authorized Cultural and Aesthetics Projects 

PROJECT AMOUNT 

Aleph Movement Theatre, Helena $ 7.500 

Archie Bray Foundation, Helena 19.200 

Big Fork Art and Cultural Center 6.000 
Billings Preservation Society, Moss Mansion 

Museum Restoration 25.000 

Billings Symphony Society 1 5.000 

Butte-Silver Bow Arts Chateau 7.752 

Copper Village Museum. Endowment, Anaconda 10.000 

Custer County Art Center, Operation Support 20.000 
Custer County Art Center, Conservation, 

Permanent Collection 6.165 

Daly Mansion Preservation Trust, Hamilton 30.000 

Daniels County Museum Association 7.000 

Dull Knife Memorial College, Lame Deer 5,000 

Fort Peck Tribal Museum 10.000 

Alberta Bear Theatre Corporation, Billings 40.000 

Gallatin County Historical Society. Endowment 15.000 

Garnet Preservation Association, Missoula 15,000 

Great Falls Symphony, Cascade Quartet 7,500 

Great Falls Symphony, Endowment 25.000 

Helena Civic Center 7.500 

Helena Film Society 50.000 

Hockaday Center tor the Arts, Kalispell 20,000 

Livingston Depot Foundation 20.000 

MSU - Media & Television Arts Department 25.000 

MSU - Museum of the Rockies 10.000 

MSU - Shakespeare in the Parks. Operational Support 40.000 

MSU - Shakespeare in the Parks, Endowment 1 5.000 

MSU - Vigilante Players 20.000 

Miles Community College 12,000 

Milwaukee Rode Cultural Project, Helena 10.000 

Missoula Children's Theatre, Operation Support 16,000 

Missoula Children's Theatre, Endowment 20.000 

Missoula Mendelssohn Club 4.000 

Missoula Museum of the Arts 25,000 

Missoula Symphony Association, Endowment 40,000 

Montana Art Gallery Directors Association, Billings 22,500 

Montana Arts Council, Folklife Project, Helena 60,000 

Montana Association of Symphony Orchestras, Billings 5,000 

Montana Ballet Company, Bozeman 10,000 

Montana Chorale, Endowment, Great Falls 10,000 

Montana Chorale, Operational Support, Great Falls 6,000 

Montana Dance Arts Association, Billings 6,000 

Montana Historical Society, Oral History Office 95,000 
Montana Institute of the Arts Foundation, 

Operational Support 10,300 

Montana Performing Arts Consortium, Billings 30,000 

Montana United Scholarship Service, Great Falls 30,000 

Northern Lights Insititute, Missoula 20,000 

Northern Montana College 12,000 

P.S., A Partnership, Bozeman 14,000 

Salish Kootenai College, Poison 1 5 000 

St. Mary's Mission 10,000 
String Orchestra of the Rockies, 

Operational Support, Missoula 10,000 

Twin Bridges Public School 3^000 

UM - Montana Repertory Theatre 5o!oOO 

UM - School of Fine Arts, Endowment 60ioOO 

Yellowstone Art Center, Montana's Own, Billings 2oioOO 

Yellowstone Chamber Players, Billings sioOO 

Young Audiences of Western Montana, Missoula 15^000 

Operating Expenses - Montana Arts Council §4.400 

TOTAL $1,211,817 



S-90 



CAPITAL IMPROVEMENT PROJECTS 



Long Range Building Program (LRBP) 

The Long Range Building Program was initiated in 1965 to 
provide funding for construction and maintenance of stale 
buildings and grounds. The program was developed in order 
to present a single, comprehensive and prioritized plan for 
allocating the state's resources for the purpose of capital 
construction and maintenance of state owned facilities. 
Sections 17-7-202 and 18-2-105, MCA, establish and delin- 
eate the Long Range Building Program. House Bill 5 of the 
50th Legislature appropriates funding to carry out the pro- 
gram in the 1989 Biennium. 

Historically, the program has been funded by cash accounts 
and bonding. In the coming biennium, no bonding is pro- 
vided for in House Bill 5. Generally, major maintenance of 
existing facilities, life safety improvements and handicapped 
access are the main priorities of the FY88 & FY89 program. 
FUNDING 
Cash Program 

Revenue to fund the "cash" portion of the building program 
comes from several sources. 20.25% of cigarette taxes 
authorized in section 16-11-111, MCA, are credited to the 
LRBP Capital Project Fund or "cash" account. In addition, 
A & E supervisory fees, interest earnings and account bal- 
ance are also credited to the "cash" account. This account is 
also utilized to fund the operating budget of the Architec- 
ture and Engineering Division. 

Current Capital Project Account Status 



LONG RANGE BUILDING CASH PROGRAM 




74-75 T-V 7»-7l lO-n B-C 8MB 
p7l CMWi>n)KtM IV^ 



Estimated beginning cash balance $2,395,349 
Revenue 
Cigarette Tax $4,293,000 

Interest Earnings 668,065 

Supervisory Fees 120,000 

Deferred Payments 20,000 

Total Revenue 5,101,065 

Total Available $7,496,414 

Expenditures 

A&E Budget $1,122,773 

Capital Projects - HB5 6,246,547 

Total Appropriations $7,369,320 

Projected Capital Project 

Fund Balance $ 127.094 



Other "cash" funding sources include Fish, Wildlife, and 
Parks license fees, highway special revenue, federal construc- 
tion funds and university auxiliary funds. 
During the coming biennium, HB5 appropriates 
$1 1,440,240 of these "other" funds. 

The following graph shows the level of cash building appro- 
priations made since the FY74-75 biennium: 



Bonded Program 

The bonded portion of the building program has three pri- 
mary sources of revenue utilized to guarantee debt service 
payments. 79.75% of cigarette taxes and 100% of other 
tobacco taxes are dedicated for bond debt payments. In ad- 
dition, 1 1% of personal income tax revenue and 1 1% of cor- 
poration license tax revenue (section 17-5-408, MCA) is 
dedicated to the debt service account. If these revenues 
exceed the amount required for debt service, the remaining 
balance is transferred to the state general fund. 
In the coming biennium. this revenue source will be used 
only for the retirement of debt established prior to the 50th 
Legislature. No new debt was authorized during the past 
session. 

The following graph shows the level of authorized capital 
bonding since the FY74-75 biennium: 



CAPITAL IMPROVEMENT PROJECTS 



S-91 



LONG RANGE BUILDING BONDING PROGRAM 

1975 Through 1989 Blannlum 




PTH LRBP Bonding 



Blannluma 
|\\| Other Coah Bonding 



HISTORY 
The following tables provide a brief history of LRBP activity since the 1975 biennium. 





LONG RANGE BUILDING PROGRAM HISTORY 








1975 BIENNIUM THROUGH 1989 BIENNIUM 










(Millions) 








Biennium 


Capital 


Other 


LRBP 


Other 


Total 




Project 


Cash 


Bonds 


Bonds 


Projects 




Fund 


Projects 








74-75 


$10.06 


$12.81 


$0.00 


$0.00 


$22.87 


76-77 


$16.39 


$13.39 


$0.00 


$0.00 


$29.78 


78-79 


$16.32 


$14.90 


$0.00 


$0.00 


$31.22 


80-81 


$8.52 


$21.44 


$11.13 


$8.00 


$49.09 


y 82-83 


$12.73 


$11.75 


$32.58 


$5.00 


$62.06 


84-85 


$10.87 


$15.69 


$36.26 


$3.08 


$65.90 


86-87 


$10.52 


$20.12 


$0.00 


$8.55 


$39.19 


88-89 


$6.25 


$11.44 


$0.00 


$0.00 


$17.69 


TOTAL 


$91.66 


$121.54 


$79.97 


$24.63 


$317.80 





S-92 



CAPITAL IMPROVEMENT PROJECTS 



MAJOR PROJECTS 

1975 Through 1989 Biennium 


74-75 
Biennium 


76-77 
Biennium 


78-79 
Biennium 


80-81 
Biennium 


82-83 
Biennium 


84-85 
Biennium 


86-87 
Biennium 


88-89 
Biennium 


New Prison 
Deer Lodge 


Highway 
Complex 
Helena 


UM Science 

Bldg. 

Missoula 


Highway 
Shop Helena 


Worker's 
Comp. 

Building 
Helena 


Prison 
Expansion 
Deer Lodge 


Forensics Bldg. 
Mt State Hosp. 
Warm Springs 


FW&P 

Regional 

Headquancrs 

Billings & 

Kalispell 


Vo-Tech 
Great Falls 


Liquor 

Warehouse 

Helena 


UM Library 
Missoula 


NMC Library 
Havre 


Vo-Tech Butte 


DNRC 

Building 
Helena 


Support 

Facilit> and 

Range Ft. 

Harrison 


MDC Cottage 

Renovation 

Boulder 


Mitchell Bldg. 
Addition 
Helena 


Vo-Tech 
Missoula 


Vo-Tech 
Billings 


Justice/Library 
Building 
Helena 


' MSU Animal 
Lab Bozeman 


Mt. Tech 
Engineering 
Bldg. Butte 


Fish Hatchery 
Miles Cit\ 


MSU Electrical 

Dist. System 

Bozeman 




Mt. Tech 
Library Butte 


Close 

Security 

Units 1 & 2 

Deer Lodge 


MSU Student 

Union 

Bozeman 


MSU Visual 
Communica- 
tions Bldg. 
Bozeman 


MSU 

Greenhouse 

Bozeman 


FW&P 

Regional 

Headquarters 

Great Falls & 

Bozeman 


MSU Energy 
Mngmt. 
System 
Bozeman 




Nursing 

Home 

Giendive 




MSUPE 
Complex 
Bozeman 


UM Fine Arts 
Building 
Missoula 


Historical 
Society 
Addition 







Helena 



EMC PE MDDB Museum of the 

Complex Cottages and Rockies - MSU 
Billings Gym Great Bozeman 

Falls 

Youth 

Treatment 

Facility 

Billings 

Capitol 
Remodel 

Helena* 
The State Capitol renovation project was only partially completed, in June of 1986, the $5.1 million remaining for the 
project was transferred to the state general fund. 



CAPITAL IMPROVEMENT PROJECTS 



S-93 



Current BuildinR ProRram 

The 50th Legislature provided a cash building program in 
HB 5 that totals $17,686,787. Of this amount. $6,246,547 
comes from the LRBP capital project fund and $1 1.440.240 
comes from other funding sources. No bonding is authorized 
in the legislation. 



Major projects include: FWP Regional Headquarters in 
Kalispell and Billings. Cottage renovation at the Montana 
Developmental Center. MSU electrical distribution system 
and the energy management control system at MSU. 
The following graph and chart shows the distribution of 
appropriations made to various agencies by the 50th Legis- 
lature. 



LONG RANGE BUILDING PROGRAM FT 88-89 

Diatribution by Agency 



All Other (7.7%) 



Admin. (7.3J5) 



U System (31.5Jt) 




FWiScP (32,8JS) 



Inst (12.0Jf) 



Highways (6.6%) 



LONG RANGE BUILDING PROGRAM 

DISTRIBUTION BY AGENCY 

FY88-89 



AGENCY 


AMOUNT 


Admin. 


$ 1.289,200 


FW&P 


$ 5.803,200 


Highways 


$ 1,522,000 


Inst. 


$ 2,127.447 


U System 


$ 5,578,400 


All Other 


$ 1,366,540 


State Total 


$17,686,787 



The following is a list of the projects approved in HB 5 
during the 50th Legislature. The list shows the various fund- 
ing sources for the approved projects. 



S-94 



CAPITAL IMPROVEMENT PROJECTS 



HB5 PROJECTS AND FUNDING SOURCES 



Agency/Project 

Dept. of Admin. 

Asbestos Abatement 
Capitol Complex 

Roofs 

Handicapped Mods 

Fire Protection 

Energy Retrofit 

Prison Loss Recovery 

Dept. of Education 

MSDB Handicapped 
Access 

Dept. of Fish, Wildlife 
and Parks 

Boat Facilities 

Wildlife Mgmt.& Parks 
Property 

Fishing Access Sites 

Creston Hatchery 
Miles City Hatchery 

Reg. Hdqrts. Improv. 

Helena Ofilce 

New Kalispell Office 

New Billings Office 

Warehouse Improvements 

Waterfoul Habitat 

Big Horn Sheep Habitat 

Centennial Projects 

Ashley Creek Headgate 

Dept. of Highways 

Statewide Repairs 

Columbia Falls Hdqts 

Great Falls Lab 

Glendive & Miles City 
Steam Cleaning BIdgs. 

Wolf Point Combination 
Shop, Phase I 
Kalispell Shop Add on 
Statewide Sandhouses 
Statewide Storage 
Dept. of Institutions 
Life Safety - MDC 
Life Safety - ETC 
Sewage Lagoon - MDC 
Smoke Detectors - MSH 
Roof Replacement - Misc. 



Cap. Proj. Fund 



$ 103.500 
$ 235.700 
$ 50.000 



$ 32.800 



$ 126,000 

$ 95,245 

$ 20,000 

$ 10.300 

$ 309,500 



$ 200.000 Federal 

$ 200.000 A&E State Special 



$ 50,000 FW&P License 
$ 140,000 Federal 

$ 379.000 Real Estate 

Trust Earnings 
150.000 FW&P License 
1 50.000 Federal 



225.000 FW&P License 
81,750 FW&P License 

245,250 Federal 
41,000 FW&P License 
65.000 FW&P License 

.400.000 FW&P License 

.200,000 FW&P License 
80.000 FW&P License 

425.000 Wildlife Rev. 

179.000 Wildlife Rev. 
50.000 Fed. & Private 
31.500 FW&P License 



$ 750,000 Hwy Revenue 

$ 99,700 Hwv Revenue 

$ 34.000 Hwy Revenue 

$ 80,000 Hwy Revenue 

$ 103,000 Hwy Revenue 

$ 71,000 Hwy Revenue 

$ 156,000 Hwy Revenue 

$ 228,300 Hwy Revenue 



S-95 



CAPITAL IMPROVEMENT PROJECTS 



Agency/Project 

Handicapped Access - MSH 

Handicapped Access & 
Fence Installation - Aged 

Drain System & Physical 

Plant - ETC 

Water Tower Repair 

Remodel Cottages - MDC 

Repair Proj. - MSH 

Storage & Toilets 

Prison 

Dining Hall - MSH 

Legal Fees - Prison 
Dept. of Justice 

Deer Lodge - Upgrade 

Registrar's Bureau 
Dept. of Labor & 
Industry 

Great Falls Job Ser. 

Repair Cracking 

Job Service - Statewide 

Remodel & Weatherize 

Helena Job Service 

Addition 



Dept. of State Lands 
Stillwater Repairs 

Dept. of Military Affrs. 
Chinook Armory - Roof 
Fed. Spending Authority 
Armory Storage - Statewide 

Montana University System 
Health Safety - Tech 
Fire Alarms MSU & WMC 
Eliminate PCB - EMC 
Roofs - Statewide 
Handicapped Access 
EMC & WMC 
Elect. Distrib. MSU 
Exhaust System - NMC 
Repair Projects - WMC 
Major Maint. AES 
Water&Steam Mains UM 
Energy Mngmt. MSU 



Cap. Proj. Fund 

$ 124,622 

$ 21.000 

$ 34.900 
$ 50,000 
$1,038,000 
$ 60,880 

$ 62,000 
$ 100,000 
$ 75,000 



Other Funds 



28,200 



$ 45,000 



$ 124.000 

$ 73.000 

$ 20,000 

$ 990,000 

$ 156,100 
$1,229,300 

$ 50,000 

$ 78,100 

$ 160,000 

$ 168,400 



$ 30.000 Federal 

$ 135.540 Federal 

$ 250.000 DOL Bond Proceeds 

$ 67.000 Federal Reed Act 

$ 103,000 Federal 



S 300.000 Federal 
$ 300.000 Federal 



$ 623,900 Auxiliary 



All of the projects listed above are appropriated to 
Department of Administration. The following projects 



$ 15,600 Auxiliary 

$ 1,890,000 Plant, Aux., 

$ and/or Loan, 

the appropriated directly to the Department of Fish, Wildlife 

are and Parks. 



S-96 



CAPITAL IMPROVEMENT PROJECTS 



Agency/Project 



Cap. Proj. Fund 



Dept. of Fish, Wildlife 
& Parks 

Fishing Access Site 

Acquisitions 

Land Transfer, Bozeman 



409.000 Fishing Licenses 
50.000 Private 



OIL OVERCHARGE 

Oil overcharge monies are allocated to states by the federal 
Department of Energy (DOE) or the federal court system as 
a result of litigation against oil companies overcharging for 
oil products. The funds are awarded as restitution. States 
must use the funds to assist those who were harmed as de- 
fined by DOE criteria. 

Oil overcharge monies may not be used to replace state 
funds and may only be used in authorized program areas. 
Under DOE regulation, oil overcharge monies are to be allo- 
cated by the Governor. He must make signed assurances to 
the court and DOE that the funds will be expended accord- 
ing to the established criteria. A plan must be submitted for 
approval to DOE prior to expenditure of funds. 



Oil Overcharge Funds Available 



Award Interest as of Total 

amount June 30, 1987 



Exxon 

Stripper 

Diamond Shamrock 

Amoco 

Total 



$ 9,584,666 

3,440,875 

220,444 

124,000 



$ 971,773 $10,556,439 

223,167 3,664,042 

14,472 234,916 

124,000 



$13,369,985 



$1,209,412 $14,579,397 



Limits on usage of funds: 

Exxon monies may be spent only on the following five 
approved programs administered by either the Department 
of Natural Resources and Conservation (DNRC) or the 
Department of Social and Rehabilitation Services (SRS) 
agencies as indicated below: 

1 State Energy Conservation Program - DNRC 

2 Institutional Conservation Program - DNRC 

3 Energy Extension Service - DNRC 

4 Low Income Energy Assistance Program (LIEAP) - 
SRS 

5 Weatherization Assistance Program - SRS 

Stripper, Diamond Shamrock, and Amoco monies may be 
spent on the same programs as Exxon or on any of the fol- 
lowing programs: 

1 Highway and bridge maintenance and repair 

2 Ridesharing programs (vanpooling, carpooling) 

3 Public transportation projects 

4 Residential or commercial building energy audits 

5 Grant or loan programs for weatherization or other 
energy conservation equipment installation 

6 Energy assistance programs 

7 Airport maintenance or improvement 

8 Reduction in airport user fees 



9 Energy conservation or energy research offices and 
administration 
Single Program Plan: 

The Department of Energy requires that stales present a sin- 
gle program plan for any monies allocated to the five pro- 
grams eligible for Exxon expenditures. Any monies proposed 
for those programs must be allocated to DNRC or SRS to 
meet DOE criteria. Allocations to the additional programs 
eligible under "Stripper" may be made separately. 
Allocation of Funds: 

HB 621 appropriated oil overcharge funds. The legislative 
allocation followed the Governor's recommendation with a 
few modifications. Projects were approved as follows: 
Exxon: 

1 An amount of $1,666,000 was appropriated to SRS 
for weatherization. This is the appropriation made 
by the June Special Session for weatherization in 
FY87. The program is operated by Human Resource 
Development Councils throughout the state. 

2 An appropriation of $3,200,000 was made to SRS for 
weatherization in the 1988-89 biennium. The legis- 
lature added a requirement that SRS ""encourage 
Human Resource Development Councils and other 
public or nonprofit entities that receive weatheriza- 
tion funds to hire individuals who are eligible for 
general relief.." 

3 For creation of an ""energy conservation and assis- 
tance account", $1,650,000 was appropriated to SRS. 
Any remaining balance from the FY87 weatheriza- 
tion appropriation and $850,000 of stripper monies 
were also appropriated to this account. The interest 
earnings may be used by the department for either 
the weatherization program or for ihe Low Income 
Energy Assistance Program (LIEAP). The department 
may also use the principal of the account to make up 
for lost federal funds in either program, but may not 
use the principal to increase expenditures of either 
program above their federal F\'87 level. 

4 DNRC received $2,100,000 for administrative 
appropriation to the Department of Commerce for a 
grant to a local government for construction of a 
truck/train transloading facility. The legislature made 
this appropriation effective on passage and approval 
so that construction could begin this year. The 
department was directed to advertise for proposals 
and award the grant primarily on the basis of simple 
payback in energy savings. The department is also to 
consider impact on freight rates, job creation, geo- 
graphic proximity to raw materials and access to new 
markets for Montana producers and shippers. 



CAPITAL IMPROVEMENT PROJECTS 



S-97 



5 DNRC also received $500,000 for energy conserva- 
tion in agriculture. The department is to make grants 
under the state energy conservation program that are 
also consistent with sound water and soil conserva- 
tion practices. 

6 An amount of $235,000 was appropriated to DNRC 
for a grant to the Montana Local Government 
Energy Office for technical assistance to local govern- 
ments and school districts. 

7 An amount of $305,439 was appropriated to DNRC 
for the State Energy Conservation Program. An addi- 
tional $338,000 was appropriated from Stripper 
funds for this program. 

8 DNRC received an appropriation of $900,000 for 
use in the institutional conservation program for 
schools and hospitals. These funds are in addition to 
the existing federal grant for schools and hospitals 
which is expected to be an additional $800,000. 

Stripper, Diamond Shamrock, and Amoco: 

1 An amount of $200,000 was appropriated to SRS for 
Energy Share Inc. These funds will be used by 
Energy Share Inc. to pay the fuel bills of low income 
individuals not eligible for LIEAP. Payments are 
limited to those whose income is less that 150% of 
the federal poverty threshold. 

2 DNRC was appropriated $1,985,000 for energy con- 
servation in state owned buildings. This appropria- 
tion adds to an existing program in the department 
which allows for loans for energy retrofit. DNRC 
receives repayment from the receiving agency from 
funds saved from the reduced utility bills, or the 
legislature has the option to reduce the receiving 
agencies budget by the amount of the savings. 

3 An appropriation of $211,000 was made to the 
Department of Highways to install low pressure 
sodium vapor lights east of the continental divide. 
The department has already installed these energy 
saving lights west of the divide through a Bonneville 
Power Administration program. 

4 An amount of $139,042 was appropriated to DNRC 
for use by the Department of Agriculture for the col- 
lection and distribution of biological agents to con- 
trol leafy spurge and spotted knapweed. The project 
will reduce energy consumption by reducing the need 
for repeated chemical application. 

5 The Department of Commerce received $65,000 for 
repair of the roof at the West Yellowstone Airport. 

6 An appropriation for administrative costs of the oil 
overcharge programs of $234,916 was made to 
DNRC. 



Proration of Funds: 

Because the appropriations anticipate interest earnings 
through June 30. 1987 funds are to be prorated if the inter- 
est earnings do not reach the appropriated amounts. 
Future of Oil Overcharge Payments: 

States will continue to receive oil overcharge funds as settle- 
ments are made or court decisions rendered. The Exxon set- 
tlement was the largest payment that will be received, future 
payments will be much smaller. Total additional payments 
to the State of Montana should be two to three million 
dollars and may be received over the course of the next two 
to three or more years, 

Any future payments will be made under the Stripper provi- 
sions and the broader project eligibility will apply. 

Parks Coal Tax 

In 1975, the 44th Legislature initiated the state coal sever- 
ance tax and allocated a portion to a parks trust fund. Inter- 
est earned on this trust fund is dedicated to the acquisition, 
operations and maintenance of the state park system. This 
trust fund is the same one that supplies interest earnings to 
the cultural and aesthetics program. Two thirds of the inter- 
est earnings are dedicated to the parks program while the 
remaining one third is allocated to cultural and aesthetics. 
Since 1975, the portion of the coal severance tax earnings 
earmarked for parks is approximately $3.6 million. It has 
provided for acquisition of 24 parcels consisting of more 
than 6,500 acres. Two additional site acquisitions are still 
pending negotiations. 

The original law allocating the coal tax earnings provided 
that the funds could only be used for acquisition, or mainte- 
nance and operations of sites purchased with coal tax 
money. In 1985, the regular legislative session changed the 
law to allow use of coal tax revenues for operation and 
maintenance of all state parks. 

The June 1986 Special Legislative Session made another sig- 
nificant change in the parks program. With the financial 
condition of the state general fund, the legislature elimi- 
nated $433,000 of general fund money in FY87 and 
replaced it with park trust fund earnings. This action 
reduced the amount of funds for both operations and ac- 
quisition. Except for the purchase of Lake Elmo phase II 
($372,000 coal tax and $277,500 federal land and water 
conservation) no funds were available for acquisition in 
FY87. 

For the 1989 biennium. the executive proposed and the 
legislature approved continuing the funding similar to what 
was approved by the June 1986 Special Session. All of the 
coal tax funding will be spent for operations and mainte- 
nance of existing parks. No general fund is authorized in the 
coming biennium and no acquisition of new sites will occur. 



S-98 



TRUST FUNDS AND BALANCES 



Since FY73 there has been significant growth in the number 
of trust funds and the amount of funds deposited to them. 
While the past legislature diverted some of the money 



placed 
remain. 



these trust funds, substaniial trust fund saMngs 



The following table presents the histon, of six of the major 
trust funds since FY73. Amounts listed for F^ 87. F^ 88 and 
FY89 are estimated. 







History of Six Major State Trust Funds 










Fiscal Year End Trust Fund Balance 






Fiscal 


Permanent 


In State 


Common 


Education Trust 


Resource 


Parks Acquisition 


Year 


Coal Tax 


Investment 


School 


Fund Balance 


Indemnity Trust 


Trust Fund 




Trust Fund 


Trust Fund 


Trust Fund 




Fund Balance 


Balance 




Balance 


Balance 


Balance** 








FY73 


$0 


$0 


$64,223,773 


$0 


$0 


$0 


FY74 


$0 


$0 


$108,998,870 


$0 


$1,141,385 


$0 


FY75 


$0 


$0 


$113,064,188 


$0 


$3,287,456 


$0 


FY76 


$0 


$0 


$117,849,628 


$2,227,793 


$5,552,291 


$278,725 


FY77 


$0 


$0 


$123,281,528 


$6,039,530 


$8,232,247 


$758,308 


FY78 


$6,268,262 


$0 


$129,949,247 


$8,983,763 


$10,646,851 


SI. 174. 356 


FY79 


$16,940,538 


$0 


$137,716,735 


$12,339,549 


$12,574,209 


SI. 475.732 


FY80 


$39,964,765 


$0 


$147,527,943 


$23,905,146 


$16,204,531 


S3. 565. 371 


FY81 


$75,187,459 


$0 


$163,163,556 


$33,624,170 


$21,165,464 


S5.325.746 


FY82 


$118,336,314 


$0 


$176,467,865 


$44,338,477 


$28,328,946 


S7.480.4i8 


FY83 


$158,358,806 


$0 


$189,390,417 


$52,665,410 


$36,181,889 


$9,481,542 


FY84 


$192,761,293 


$10,173,172 


$201,319,109 


$60,925,268 


$42,986,128 


$11,565,460 


FY85 


$230,599,696 


$21,820,828 


$214,764,544 


$70,500,922 


$47,396,179 


SI3.859.18I 


FY86 


$268,234,509 


$31,920,751 


$217,677,906 


$79,761,708 


$53,039,675 


Si6.222.131 


FY87 (E) 


$296,494,509 


$41,340,751 


$228,677,906 


$44,619,653 


$56,844,675 


S 16.644. 131 


FY88 (E) 


$321,610,509 


$49,712,751 


$239,677,906 


$21,892,308 


$60,924,675 


S 16.644. 131 


FY89 (E) 


$343,250,509 


$56,926,751 


$250,677,906 


$9,164,963 


$65,149,675 


$16,644,131 


•* Includes land value assets. 












Note: The trust fund balances as 


projected above do 


not include the 


revenue gains or losses from bond swaps. 





TRUST FUNDS AND BALANCES 



S-99 



The following graph shows activity for the six trust funds 
since FY73. Only one of the funds existed in the first fiscal 
year. 



■nS 



Six Major Trust Funds 

History of Truat Fund Boloncaa 




FY73 P(74 FY75 FY76 FY77 FtVB FY79 Pr-BO FY81 FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 
nacq l Yeor 



# 1 Permanent Coal Tax Trust Fund 
#2 In State Investment Trust Fund 
#3 Common School Trust Fund 
#4 Education Trust Fund 
#5 Resource Indemnity Trust Fund 
#6 Parks Acquisition Trust Fund 



S-100 



BUDGET PARAMETERS 



Personal Services and Benefits: 

Total budgeted personal services costs for the biennium 
include salaries and benefits totaling $749,687,854. Personal 
service costs are calculated on a position by position basis 
for those positions on the state PPP system. University sys- 



tem and vo-tech positions are calculated on an 'average 
salary basis" because information is not available for the ac- 
tual salaries and benefits of individual mcumbcnts. The fol- 
lowing table shows the budgeted personal service costs for 
the 89 biennium. 



Personal Service and Benefit Costs 



Positions on central payroll: 

Salaries 

Per Diem 

Retirement, WCC, UI 

Workers' Comp Tax* 

Health Insurance 

Vacancy Savings 

Total 

University and Vo-tech positions : 

Salaries 

Benefits & Insurance 

Worker's Comp Tax* 

Vacancy Savings 

Total 

Total 



FY88 
$225,663,834 
439.907 
39,387,519(17.45%) 

676,992 (0.30%) 
13,503,923 (6.43%) 
(10,556,277) (3.91%) 
$270,115,898 

FY88 
$ 86,510.175 
17,482,566(16.81%) 
259,531 (0.30%) 
(259,531) 
$103,992,641 

$374,108,639 



FY89 

$226,214,796 
406.047 
40,637,801 (17.84%) 

678,644 (0.30%) 
14.559,855 (6.44%) 
(10.598.515) 13.90%) 
$271,628,628 

FY89 
$ 86.436,619 
17,513,968 (16.85%) 

259,310(0.30%) 
(259.310) 



$103,950,587 
$375,579,215 



The legislature enacted a 0.30% Worker's Compensation Tax, but did not provide funding to pay for it. The effect is to 
increase the vacancy savings by an equal amount. 



Benefit rates paid by the employer total 24.18% in FY88 
and 24.58% in FY89 for positions on central payroll. For 
University System and VoTech position budgeted rates total 
17.81% and 17.85%. 

Benefit rates increase from FY88 to FY89 because PICA 
rates increase January 1, 1988 from 7.15% to 7.51%. The 
average PICA rate for FY88 is 7.339%, for FY89 the rate is 
7.51%. Worker's compensation rates are budgeted to 
increase by 12% in FY89 over the FY88 rates. The employ- 
ers contribution for retirement systems remains constant for 
the biennium. For the Public Employees Retirement System 
(PERS) the rate is 6.417%, for the Teachers Retirement Sys- 
tem (TRS) the rate is 7.428%. Health Insurance rates of 
$115 per month per employee ($1380 per year) remain con- 
stant for the biennium. The health insurance contribution is 
applied to all employees who work half time or more. 
Rates for Unemployment Insurance and Worker's Compen- 
sation vary from agency to agency. Each agency has its own 
rate based on the last three years of experience. Unemploy- 
ment rates vary from 2.50% to 8.50% for state agencies. 
Worker's compensation involves both an experience rating 
for the agency which varies from 0.70 and 2.60. That expe- 
rience rate is multiplied times the "class rate" for the job 
classification of each individual position. 

Per Diem Rates: 

Per diem rates are established in 2-18-501, MCA. The rates 
apply to state employees in travel status, members who 
serve on boards and commissions, and to travel expenses in 
contracts for service. The following rates apply for the 88-89 
biennium. 



Per Diem Rates 




In State 


Out-of-State 


Lodging-with 






receipt 


$24.00 plus taxes 


$50.00 


Lodging-without 






receipt 


7.00 


7.00 


Breakfast: 


3.00 


4.00 


Lunch: 


3.50 


6.50 


Dinner: 


8.00 


12.00 





Inflation Factors: 

The budget was built using a number of inflation factors for 
the operational budgets of state agencies. Individual sub- 
committees chose to vary the rates in some instances. In 
general the following rates were applied to the base budgets. 





Increase from 


Increase from 




FY86-FY88 


FY86-FY89 


Data Processing 


-3.5% 


-7% 


Food and Medical 


14% 


25% 


Communications 


12% 


19% 


Gasoline 


($0,936) 1% 


($0,968) 4% 


Electricity 






MPC 


20% 


38% 


MDU 


9% 


11% 


Natural Gas 






MPC 


2% 


5% 


MDU 


-4% 


0% 





BUDGET PARAMETERS 



S-101 



Proprietary Account Rates: 

The legislature does not budget proprietary fund rates, but 
the budget of those programs and other agency budgets are 
based on rate assumptions. The proprietary agencies may 
change the rate during the biennium if it is necessary to do 



so. (For example, most rates were reduced in FY 8 7 as a 
result of the budget reductions.) Rates for proprietary ac- 
counts are projected as follows: 



Projected Proprietary .Account Rates 



Rent : 

Captiol Complex 
Telecommunications : 
Equipment : 
Single line 
SOI 
Long Distance : 
.A^vg. Rate Network 

Agency Legal Services : 
Attorney 
Investigators 

Grounds Maintenance : 

Mail & Messenger : 
Deadhead 

Administrative Costs 
(based on avg. of 2 stops per day) 

Motor Pool : 
4-6 people 
2 people 
Pickups 
4x4 
Vans 



FY88 
$2.97 sq.ft. 



$21.00 per month 
$26.00 per month 



$0.26 per minute 



$47.80/hr 
$27.50/hr 



$0.2120 sq.ft. 



$31.00 per month 



$21.25 per mile 
$24.50 per mile 
$ 0.22 per mile 
$ 0.33 per mile 
$ 0.33 per mile 



FY 89 
$3.08 Sq.ft. 



$21.00 per month 
$26.00 per month 

$0.26 per minute 



$47.80/hr 
$27.50/hr 



$0.1926 sq.ft. 



$31.00 per month 



LEGISLATIVE AUDITOR 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


60.00 


60.00 


60.00 60.00 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,627,870.12 


1,644,795 


1,707,574 


1,708,277 


302,312.56 


344,281 


377,480 


430,234 


30,592.95 


18,550 


37,150 


28,682 



$1,960,775.63 

1,094,232.96 

866,542.67 

$1,960,775.63 

1,960,775.63 
$1,960,775.63 



$2,007,626 

1,068,819 

938,807 

$2,007,626 

2,007,626 
$2,007,626 



$2,122,204 
1,111,141 
1,011,063 

$2,122,204 
2,122,204 

$2,122,204 



$2,167,193 

1,102,793 
1,064,400 

$2,167,193 
2,167,193 

$2,167,193 



Agency Description 

The Office of the Legislative Auditor was established in 
1967 and is governed by the Legislative Audit Act, con- 
tained in Title 5, Chapter 13, MCA. Article V, Section 10(4) 
of the Montana Constitution mandates a legislative post- 
audit function. 

The three functional areas of the agency are: Administra- 
tion, Financial-Compliance Audits, and Performance- 
Electronic Data Processing (EDP) Audits. An annual state- 
wide financial audit is conducted, as well as, biennial 
financial-compliance audits of all state agencies. 
Legislatively requested audits and performance audits are 
conducted to determine effectiveness, efficiency, and com- 
pliance with laws, rules, goals, and objectives. EDP audits 
are evaluations of data processing systems and controls, and 
are conducted in conjunction with financial-compliance and 
performance audits. 



The office works under the general supervision of the bipar- 
tisan Legislative Audit Committee. The members are evenly 
divided between the Senate and House of Representatives. 

Issues Addressed/Legislative Intent 

The agency is supported by two funding sources, general 
fund and revenues from fees charged to audited state agen- 
cies that are placed in a state special revenue account. 
Appropriation authority includes the $271,200 cost of the 
statewide audit. Half the cost was allocated to state agencies 
and is reflected in the state special revenue fund. General 
Fund supports the balance. HB2 includes language to re- 
quire that a fee be assessed on bonding agencies at 30 cents 
per $1,000 of bonds issued, to reimburse the state for the 
portion of the statewide audit that is funded by general 
fund. 

Vacancy savings for this program was set at 4%. 
Annual lottery audit. $74,256 in FY88 and $53,456 in FY89 
was authorized for this audit, to be funded with proceeds 
from the lottery, and are line itemed. 



LEGISLATIVE FISCAL ANALYST 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



17.50 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



530,601.30 

127,190.60 

81,647.04 

$739,438.94 

739,438.94 
$739,438.94 

739,438.94 
$739,438.94 



585,579 

128,973 

6,834 

$721,386 

721,386 
$721,386 

721,386 
$721,386 



609,646 

250,156 
2,750 
$862,552 

862,552 
$862,552 

862,552 
$862,552 



618,161 

167,862 

2,750 

$788,773 

788,773 
$788,773 

788,773 
$788,773 



Agency Description 

The Legislative Finance Committee and the Office of the 
Legislative Fiscal Analyst were created and are governed by 
Title 5, chapter 12, MCA. The office staff are responsible 
for estimating revenue, analyzing the Executive Budget, 
assisting the Legislature in the development of the state 
appropriation bills and assisting individual legislators in 
compiling and analyzing financial information. In addition, 
the staff of the Fiscal Analyst monitor agency operations 
throughout the biennium and review executive agency ac- 
tions that have a fiscal impact upon the state. 



Issues Addressed/Legislative Intent 

Vacancy savings for this program was set at 2%. 
Personal services were increased to bring this agency in line 
with the FY87 pay matrix and other state agencies. 
Two biennial appropriations are included in the FY88 bud- 
get. $20,000 for consultants and $130,000 for the coordina- 
tion of a study on the adequacy of the method for funding 
the university system. 

The travel budget for the Legislative Finance Committee 
was reduced by $5,000 inFY88. 



LEGISLATIVE COUNCIL 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



43.50 



58.00 



.70 



54.45 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Capital Projects Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,241,079.38 
874,117.96 
64,591.79 

0.00 

$2,179,789.13 

1,859,050.23 

316,618.02 

4.120.88 

$2,179,789.13 

2,179.789.13 

$2,179,789.13 



1,525,281 

564,496 

13,141 





2,102,918 




$2,102,918 

2JP2_,918 



1,235,190 

1,308,082 

8,860 

200,000 

$2,752,132 

1,764,741 

987,391 



$2,752,132 

2,752,132 

$2,752,132 



1,399,267 

577,437 

8,500 



$1,985,204 

1,985,204 





$1,985,204 

1,985.204 

$1,985,204 



Agency Description 

The Legislative Council provides a variety of support ser- 
vices to the Legislature under the general supervision of an 
eightmember bi-partisan committee composed of four mem- 
bers of the House of Representatives and four members of 
the Senate. Council services include bill drafting, clerical 
preparation of bills for introduction using automated equip- 
ment, and the engrossing and enrolling of bills; printing and 
distribution of legislative proceedings, session laws, and 
journals of the House and Senate, and the preparation of 



indexes to the same; provision of legislative research and 
reference services; legal counseling for the legislature; busi- 
ness management services; committee staffing; provision of 
interim investigation authority; service as the agency of 
interstate cooperation; preparation and publication of the 
Montana Code Annotated statute text and annotations; and 
other services as assigned by the Legislature. The Council 
was established in 1957. Principal statutory authority is 
found in Title 5, chapters 5 and 1 1 and Title 1, chapter 1 1, 
MCA. 



LEGISLATIVE COUNCIL FEED BILL 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



12,956.32 
149,242.56 

$162,198.88 
162.198.88 

$162,198.88 
162,198.88 



Program Description 

The Legislative Council Feed Bill Program provides service 
support to the Legislature including: 



a. ■ the printing and distribution of legislative proceedings 

and other related documents, 

b. operation of the business office, 

c. provision of legislative telephones, and 

d. the operation of the legislative information office. 



LEGISLATIVE COUNCIL 



INTERIM STUDIES & CONFERENCES 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Capital Projects Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



37,026.09 

159.006.27 

$196,032.36 

188,036.30 

3,875.18 

4,120.88 

$196,032.36 

196,032.36 

$196,032.36 




70.017 



$70,017 

70,017 





$70,017 

70,017 




18L311 



175,311 

12,000 





$70,017 



$187,311 

187.311 
$187,311 




44,611 



$44,611 

44,611 







$44,611 

44,611 



$44,611 



Program Description 

The Interim Studies and Conferences Program exists to pro- 
cess and monitor the expenditures of the various legislative 
interim committees and conferences. The program has a 
technical component that represents the service provided by 
the office in support of the policy component which reflect 
the legislature's purposes for activities supported by the pro- 
gram. Included in the program are: 

a. limited support of interim studies activities established 
under 5-5-202 through 5-5-217, MCA 

b. support of interstate cooperation activities of the legis- 
lature 

c. support of other legislative activities for which appropri- 
ations are made 

Issues Addressed/Legislative Intent 

The budget reflects the recommendation of the Legislative 
Council. The Council reduced their original request by 
approximately 50%. Additional cuts were taken by the legis- 
lature. All activities are line-itemed with biennial appropria- 
tions except for the dues paid to the National Council of 
State Legislatures and Council of State Governments. Table 
1 outlines the approved activities and appropriations. 



Table 1 

Legislative Council - Interim Studies and Conferences 

1989 Biennium 



Activity 


Appropriation 


National Council of State Legisla- 




tures (NCSL) 


$46,422 


Council of State Governments 




(CSG) 


40,900 


Travel for NCSL and CSG 


30,000 


Interim Studies 


20,000 


Forestry Task Force 


8,000 


Revenue Oversight Committee 


30,000 


Administrative Code Committee 


14,000 


Five-State Biennial Conference 


4,100 


Statewide Issues 


20,000 


Coal Tax Subcommittee 


12,000 


Montana-Western Canadian Prov- 




inces Boundary Advisory Commit- 




tee 


2,000 


Total 


$227,422 



The Coal-Tax Subcommittee is funded with state special 
funds coal tax revenues. The balance are all general fund 
supported. 



LEGISLATIVE COUNCIL 



MONTANA CODE ANNOTATED 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Equipment 

Transfers 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



312,438.27 
304.57 

0.00 

$312,742.84 

312,742.84 

$312,742.84 

312,742.84 

$312,742.84 



775.391 



200.000 



$975,.391 

975,391 
$975,391 

975,391 



$975,391 



Program Description 

The Montana Codes Annotated program supports the publi- 
cation and distribution of the Montana Code Annotated 
Statute Text, Annotations, and ancillary publications issued 
under 1-11-301 and 1-11-303, MCA. 



Issues Addressed/Legislative Intent 

This program has a biennial appropriation. A $200,000 
excess balance in the state special revenue account will be 
transferred to the general fund in FY88. 



LEGISLATIVE COUNCIL 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,191,096.97 

253,430.86 

64,287.22 


1,525,281 

494,479 

13,141 

$2,032,901 


1,235,190 

345,380 

8,860 


1,399,267 

532,826 

8,500 


$1,508,815.05 


$1,589,430 


$1,940,593 


1,508,815.05 
$1,508,815.05 


2,032,901 
$2,032,901 


1,589,430 
$1,589,430 


1,940.593 
$1,940,593 


1,508,815.05 
$1,508,815.05 


2,032,901 
$2,032,901 


1.589,430 
$1,589,430 


1,940,593 
$1,940,593 



Program Description 

The Legislative Council Program provides for overall policy 
direction of the agency through the Legislative Council. The 
program also provides the personnel required to support the 
programs of the agency including an executive director and 
such other personnel necessary to assist in the preparation 
of proposed legislative acts and standing and select commit- 
tee and subcommittee reports and recommendations and to 
carry out other council activities. 

Issues Addressed/Legislative Intent 

The original agency budget request was reduced by $293,204 
in FY88 and $293,938 in FY89. 



Personal services changes include .7 FTE added to FY88 
and 3.05 session FTE deleted from FY89. Additional per- 
sonal services reductions are a result of changing executive 
directors and resulting staff changes, reduction in secretarial 
services and changing one secretarial position lo an office 
clerk, and switching session bill drafting staff to contracted 
services. Operating expense reductions are in the staff, 
travel, training and data processing cost categories. $50,000 
was added to FY89 contracted services to compensate for 
the FTE reduction, and to allow the agency to contract with 
the University of Montana Law School for bill drafting ser- 
vices. The equipment budget was also substantially reduced. 
Vacancy savings for this program was set at 4%. 



LEGISLATURE-SENATE 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


FY 1988 FY 1989 , 

^1 


Full Time Equivalent Employees 


1.00 


.00 


.00 .dO 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



260,100.10 

31,102.11 

95.61 

$291,297.82 

291,297.82 

$291,297.82 

291,297.82 

$291,297.82 



Agency Description 

Article V of the Montana Constitution of 1972 vests legis- 
lative power in a Legislature comprised of a Senate and a 
House of Representatives. The size of the Legislature is pro- 
vided by law: the Senate has no more than fifty and no 
fewer than forty members. Members are elected from single 



member districts for four-year terms. The Legislature is a 
continuous body that meets at least once each odd-num- 
bered year in regular session of not more than ninety legis- 
lative days. It may be convened in special session by the 
Governor or upon written request of a majority of the mem- 
bers. 



LEGISLATURE-HOUSE 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



482,856.54 

45,168.05 

647.54 

$528,672.13 

528,672.13 

$528,672.13 

528,672.13 

$528,672.13 



Agency Description 

Article V of the Montana Constitution of 1972 vests legis- 
lative power in a Legislature comprised of a Senate and a 
House of Representatives. The size of the Legislature is pro- 
vided by law: the House has not more than one hundred 
and no fewer than eighty members. Members of the House 



are elected from single member districts for two-year terms. 
The Legislature is a continuous body that meets at least 
once each odd-numbered year in regular session of no more 
than ninety legislative days. It may be convened in special 
session by the Governor or upon written request of a major- 
ity of the members. 



ENVIRONMENTAL QUALITY COUNCIL 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 4 


Full Time Equivalent Employees 


6.25 


6.25 


6.50 6M 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 

General Fund 

State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



63,228.31 


170,986 


182,243 


176,976 


76,086.28 


52,389 


159,575 


59,613 


0.00 





3,000 


3,000 



$239,314.59 

228,391.76 

10.922.83 

$239,314.59 

239,314.59 
$239,314.59 



$223,375 
223,375 

g 

$223,375 

223,375 

$223,375 



$344,818 

243,618 

101.200 

$344,818 

344,818 



$239,609 

239,609 



$239,609 

239,60 9 
$239,609 



Agency Description 

The Environmental Quality Council was established by the 
Extraordinary Session of the 42nd Legislature in 1971 to 
implement provisions of the Montana Environmental Policy 
Act (MEPA - Title 75, chapter 1, MCA). The council func- 
tions as an arm of the Legislature, with the role of anticipat- 
ing and analyzing the causes of environmental problems and 
recommending solutions to those problems. The council also 



insures that state environmental policy is consistently 
observed by all state agencies that are concerned with envi- 
ronmental matters. The Legislature assigns interim studies 
relating to natural resources and economic development to 
the council. The council also assists the Legislature by staff- 
ing natural resource committees during the legislative ses- 
sions. In addition, the Environmental Quality Council is 
assigned by statute the duties of staffing the permanent 
Water Policy Committee of the Legislature. 



ENVIRONMENTAL QUALITY PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


6.25 


6.25 


6.25 6.25 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



163,228.31 


170,986 


177,443 


176,976 


76,086.28 


52,389 


63,175 


59,633 


0.00 





3,000 


3,000 



228,391.76 

10.922.83 

$239,314.59 

239.314.59 



223,375 




$223,375 

223,375 

$223,375 



$243,618 

243,618 



$243,618 

243,618 

$243,618 



$239,609 

239,609 

_0 

$239,609 

239,609 



Program Description 

The Environmental Quality Council program reviews the 
policies and programs of Montana state agencies that are 
concerned with environmental mailers and natural resource 
development and conservation. The Council researches and 
analyzes environmental trends and problems and recom- 



mends ways to improve the state's natural, social, and eco- 
nomic environments. 

Issues Addressed/Legislative Intent 

Vacancy savings lor this piogiam was set at 2%. 

Personal services increased to bring the agency in line with 

the FV87 pay matrix and other state agencies. 



ENVIRONMENTAL QUALITY COUNCIL 



WAIK.R I'OIK V COM Mir 
Buditcl Detail Summary 


IKK 


Actual 
FY 1986 


BudRited 
FY 1987 




Appropriated 
l\ 1988 F\ 


1989 


Full Time Equivalent Employees 






.00 






.00 


.25 


.2.S 


Personal Services 
Operating Expenses 








0.00 
0.00 


: 






$0 


$0 

_o 

$0 


4.800 
96,400 






Total Program Costs 

State Special Revenue Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 








$0.00 

0.00 
$0.00 

0.00 
$0.00 


$101,200 

101.200 
$101,200 

101,200 
$101,200 


$0 


$0 


$0 



Program Description 

The Water Policy program was set up to operate the Water 
Policy Committee, statutorily created by the 49th Legis- 
lature. The Water Policy Committee's duties include advis- 
ing the legislature on the adequacy of the state's water 
policy and of important state, regional, national and interna- 
tional developments relating to Montana's water resources; 
overseeing the policies and activities of the Department of 
Natural Resources and Conservation and other entities as 
they relate to water management; analyzing and commenting 



on the state water plan, the water development program, 
water research, and water data management system; and re- 
porting to the legislature each biennium. 

Issues Addressed/Legislative Intent 

This program has a biennial appropriation of $26,200 equal 
to the prior biennium. $75,000 of Water Development Stale 
Special Revenue Account funds for a water adjudication 
study was added. The Resource Indemnity Trust Stale Spe- 
cial Revenue Account supports the general operations of the 
committee. 



10 



CONSUMER COUNSEL 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

lotal Agency Costs 
Stale Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Fotal Service Costs 



168,670.46 

273,627.20 

19,018.01 

$461,315.67 


192,134 

659,557 

1,000 

$852,691 


174,278 

669,238 

2,200 

$845,716 


173,898 

668,238 

2,200 

$844,336 


461,315.67 
$461,315.67 


852,691 
$852,691 


845,716 
$845,716 


844,336 
$844,336 


461,315.67 
$461,315.67 


852,691 
$852,691 


845,716 
$845,716 


844,336 
$844,336 



Agency Description 

The Office of the Consumer Counsel was created by Article 
XIII, Section 2 of the Montana Constitution of 1972. The 
ofTice is governed by Title 5, chapter 15, MCA and by Title 
69, chapters 1 and 2, MCA. The Consumer Counsel is 
charged with the "duty of representing consumer interest in 
hearings before the Public Service Commission or any other 
successor agency." The Consumer Counsel also may initiate, 
intervene in, or otherwise participate in appropriate pro- 
ceedings in the state and federal courts and in administra- 
tive agencies on behalf of the public of Montana. 



The office is not funded with general fund monies, but 
rather through a Consumer Counsel Tax on all regulated 
entities under the Public Service Commission's jurisdiction 
(gas, electric, telephone, waste and sewer utilities; motor car- 
riers and railroads). Title 69 provides for both a base appro- 
priation and a contingency appropriation for expenses 
resulting from an unanticipated caseload. 

Issues Addressed/Legislative Intent 

$100,000 was line-itemed for expert witness fees for unan- 
ticipated caseload each year of the biennium. 
Vacancy savings for this program was set at 1%. 



JUDICIARY 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



(,593,339.61 


3,589,026 


3,710,884 


3,685,553 


806,330.47 


954,001 


854,900 


838,251 


257,570.38 


218,878 


227,248 


205,638 



$4,657,240.46 

4,223,720.17 

424,663.88 

8,856.41 

$4,657,240.46 

4,648,384.05 

8,856.41 

$4,657,240.46 



$4,761,905 

4,193,301 
568,604 



$4,761,905 
4,761,905 



$4,761,905 



4,264,413 

487,656 

40,963 

$4,793,032 

4,793,032 



$4,793,032 



$4,729,442 

4,241,703 

487,739 



$4,729,442 

4.729,442 





Agency Description 

The Judicial branch of state government is provided for in 
Article III, Section I and Article VII of the 1972 Montana 
Constitution. In Section II of Article VII, the jurisdiction of 



the Supreme Court is defined. That jurisdiction consists of 
all appellate jurisdiction and original jurisdiction in peti- 
tions for writs of habeus corpus and other such writs, gen- 
eral supervisory control over all courts, and rule making 
powers for Montana's courts. 



SUPREME COURT OPERATIONS 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FN 1989 


Full Time Equivalent Employees 


32.00 


32.00 


32.00 32.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



,007,705.92 


990,019 


1,028,563 


1,028,807 


306,739.72 


282,959 


293,665 


282,960 


29,118.68 


5,163 


8,050 






$1,343,564.32 

1,343,564.32 
$1,343,564.32 

1,343,564.32 
$1,343,564.32 



$1,278,141 

1,278.141 
$1,278,141 

1,278,141 
$1,278,141 



$1,330,278 

1,330,278 
$1,330,278 

1,330,278 
$1,330,278 



$1,311,767 

1.311,767 
$1,311,767 

1,311,767 
$1,311,767 



Program Description 

The Supreme Court Operations Program supports the opera- 
tions of the Supreme Court itself and includes staff and the 
Clerk of the Supreme Court. 

Issues Addressed/Legislative Intent 

Vacancy savings for this program was set at 4% excepting 
elected official positions. 

Personal services increased to bring the agency in line with 
the FV87 pay matrix and other state agencies. 
Operating expenses decreased from FY86 actual as com- 
pared to authorized FY88 and FY89. $34,000 of one-time 
expenditures for systems development costs were removed 
but partially offset by an increase of $3,700 in FY88 and 



$5,800 in FY89 of National Center for State Courts dues 

and $15,466 of audit fees in FY88. 

The agency originally requested $44,664 for printing of 

Montana Reports - Supreme Court cases. Half of the request 

was approved which will support the printing of the current 

cases only. No funds were authorized for the four volume 

backlog. 

Seven Justice Court. SB161 re-instated the two Supreme 

Court Justices, four law clerks and one secretary through the 

biennium. These positions were scheduled to sunset on 

December 31. 1988. The six month budget is $113,749 of 

general fund. 

Table 1 presents the workload of the court from 1970 

through projected 1989. Two justices were added to the five 

member court beginning in 1981. 



12 



JUDICIARY 





Table 1 








Montana Supreme Court Caseload 






1970- 1989 






Year 


Filings Still Active 


Opinions 


1989 


675 






1988 


657 






1987 


639 






1986 


602 


379 


374 


1985 


639 


320 


322 


1984 


567 


251 


373 


1983 


561 


330 


285 


1982 


522 


350 


313 


1981 


574 


357 


298 


1980 


490 


369 


292 


1979 


481 


375 


323 


1978 


516 


350 


269 


1977 


469 


303 


255 


1976 


408 


207 


210 


1975 


301 


191 


210 


1974 


265 


150 


153 


1973 


243 


174 


195 


1972 


230 


135 


147 


1971 


198 


146 


149 


1970 


194 


110 


130 



NOTE: 1)1987, 1988 and 1989 are projections made by the 
National Center for State Courts, Williamsburg, Virginia, 
using the period from 1976 to 1986. 2)Two justices were 
added to the five member court beginning in 1981. 



There has been considerable growth in the number of exam- 
inations conducted by the Board of Bar Examiners. Begin- 
ning in 1983, University of Montana Law School graduates 
were required to take the Montana Bar Examination. Since 
1982, the examination has been given twice each year. 

Table 2 presents the annual number of examinations from 
1981 through 1986. 





Table 2 




Number of Examinations Conducted 




By the Board of Examiners 




1981 - 1987 


FY 


Number of Examinations 


1981 




1982 


73 


1983 


62 


1984 


129 


1985 


164 


1986 


156 





NUMBER OF EXAMINATIONS CONDUCTED 



BfrTHEB(MDOFBWEXM«ERS 




The caseload of the Commission on Practice has been on a 
continual increase since 1981. Table 3 presents the commis- 
sion's caseload from 1981 through 1986. There was a slight 
decline (8 cases) from 1984 to 1985. 



JUDICIARY 



13 





Table 3 






Caseload of the Commission on Practice 






1981 - 1986 




FY 


Number of Cases 




1981 


71 




1982 


103 




1983 


112 


^ 


1984 


155 


? 


1985 


147 


J 


1986 


174 


; 


NOTE 


1986 is an estimate based upon the first ten months 


}, 


of the 


year. 


J 









CASELOAD OF THE COMMISSION ON PRACTICE 



K^ 



z 



14 



JUDICIARY 



BOARDS AND COMMISSIONS 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


3.00 


3.00 


3.00 3.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



46,369.70 


49,715 


68,378 


68,240 


17,254.73 


129,458 


114,541 


113,383 


756.00 












$164,380.43 

164,380.43 
$164,380.43 

164,380.43 



$179,173 

179,173 
$179,173 

179,173 
$179,173 



$182,919 

182,919 
$182,919 

182.919 
$182,919 



$181,623 

H,623 



81,623 

81,623 



$181,623 



Program Description 

The Boards and Commissions Program staff provide sup- 
port and supervision of the various boards and commissions 
appointed or established by the Supreme Court. These 
boards and commissions perform a variety of services to 
support jurisprudence within the state, including sentence 
review, court rule revision, training of court personnel, 
giving and evaluating bar exams, investigation of complaints 
against members of the bench and bar, and recommenda- 
tions for judicial appointments. 



Issues Addressed/Legislative Intent 

The budget and finance officer position was reduced to a .5 

FTE. A .5 FTE clerical position was added to work with the 

Commission on Practice. Previously this was a contracted 

service. 

Vacancy savings for this program was set at 4%. 

Personal services increased to bring the agency in line with 

the FY87 pay matrix and other state agencies. 

Other Appropriation Bill 

HB754 appropriated $1,200 for the Judicial Nomination 
Commission expenses relating to water court appointments. 



JUDICIARY 



15 



LAW LIBRARY 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



168,317.75 
141,913.03 
215,537.98 



499,131.48 

17,780.87 

8,856.41 

$525,768.76 

516,912.35 

8,856.41 

$525,768.76 



156,465 
171,840 
196,215 



$524,520 



504,826 

19,694 





$524,520 
524,520 



$524,520 



161.459 
219.198 



$570,345 

511,307 

18,075 



40,963 



$570,345 



570,345 




162,457 
152,094 
205,638 



$520,189 

502,114 

18,075 




$520,189 

520,189 




$570,345 



Program Description 

The Law Library program staff are responsible for the oper- 
ation of the State Law Library. The library is maintained for 
use by the members of the bar, legislators, state officers and 
employees, and the general public. 

Issues Addressed/Legislative Intent 

Vacancy savings for this program was set at 4%. 

Personal services increased to bring the agency in line with 

the Fy87 pay matrix and other state agencies. 



An equipment allowance of $3,660 in FY88 was included 
for a mandated upgrade to the OCLC system, an on-line 
system used for cataloging and interlibrary loan transactions. 
Helena Faxnet Project. The agency received a $134,600 
grant from the Fred Meyer Trust. $93,637 was included in 
the 1987 biennium by budget amendment. The balance of 
$40,963 is budgeted for FY88 and supports 1.0 FTE and 
operational expenses associated with the position. The pur- 
pose of the grant is to establish and operate a rapid docu- 
ment delivery system in Montana, using telephone 
telefacsimile equipment to transmit library documents to 
network users. 



DISTRICT COURT OPERATIONS 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


36.00 


36.00 


36.00 36.00 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



2,072,789.96 
143,853.98 


2,060,988 

170,173 

$2,231,161 


2,097,347 

142,562 

$2,239,909 


2,099,742 
146,457 


$2,216,643.94 


$2,246,199 


2,216,643.94 
$2,216,643.94 


2,231,161 
$2,231,161 


2,239,909 
$2,239,909 


2,246,199 
$2,246,199 


2,216,643.94 
$2,216,643.94 


2,231,161 
$2,231,161 


2,239,909 
$2,239,909 


2,246,199 
$2,246,199 



Program Description 

The District Court Operations Program pays the salaries, 
travel and judicial education expenses for the 36 district 
court judges as provided by legislative appropriations. 



Issues Addressed/Legislative Intent 

No vacancy savings factor was applied to this budget. 

The approved budget allows this program to maintain its 

current level of operation. 



16 


JUDICIARY 










WATER COURTS SUPERVISION 
Budget Detail Summary 


Actual 
FY 1986 


FY 1987 


Appropriated 
FY 1988 FY 


1989 


Full Time Equivalent Employees 


13.50 




13.50 


13.00 


13.00 


Personal Services 
Operating Expenses 
Equipment 


298,156.28 
96,569.01 
12,157.72 
$406,883.01 
406,883.01 
$406,883.01 
406,883.01 
$406,883.01 


— 


331,839 

199,571 

17,500 

$548,910 

548,910 
$548,910 

548,910 
$548,910 


326,908 

142,673 




326,307 

143,357 




Total Program Costs 

Stale Special Revenue Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 


$469,581 

469,581 
$469,581 

469,581 
$469,581 


$469,664 

469,664 
$469,664 

469,664 
$469,664 



Program Description 

The Water Courts Supervision Program staff are responsible 
for the adjudication of claims of existing water rights in 
Montana and supervision of the distribution of water among 
the four water divisions. 

Issues Addressed/Legislative Intent 



A .5 FTE clerical position was deleted 
agency. 



the request of the 



Personal services increased to bring the agency in line with 
the FY87 pay matrix and other state agencies. 
The court was prevented from working on new basins or 
preparing preliminary hearings on these basins during FY86 
by a lawsuit. The 1989 biennium budget is realistic in com- 
parison to the agency's work plan. 

A budget modification request for an additional water 
master was denied. 



GOVERNORS OFFICE 



17 



Ajscncy 

BudKcl Detail Summary 



Full Time Equivalent Employee 



Personal Serviees 
Operating Expenses 
Equipment 
Grants 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



Actual 
FY 1986 



64.08 



1,915,316.09 
910,053.08 
46,204.10 

0.00 

$2,871,573.27 

2,229,948.39 

63,846.83 

504,028.05 

73,750.00 

$2,871,573.27 

2,835,240.17 

36,333.10 

$2,871,573.27 



Budgeted 
FY 1987 



1,927,637 

1,133,144 

4,200 



$3,064,981 

2,212,916 



778,315 

73,750 

$3,064,981 

3.064,981 



$3,064,981 



Appropriated 
FY 1988 F^ 



60.40 



1,943,294 

1,186,080 

6,365 

1,300,000 

$4,435,739 

2,168,868 

1,828,220 

438,651 



$4,435,739 
4.435,739 



$4,435,739 



$4,195,710 

2,166,936 

1,590,000 

438,774 



$4,195,710 
4,195,710 

g 

$4,195,710 



Agency Description 

The Office of the Governor was created 
Montana into the United States in \&i 



upon acceptance of 
9 and exists under 



authority contained in Article VI of the Montana Constitu- 
tion. The office oversees and directs the activities of the 
executive branch agencies. 



EXECUTIVE OFFICE PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


24.68 


23.18 


23.00 23.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



758,611.53 

452,551.01 

4,823.11 


753,843 

521,145 



$1,274,988 


742,602 

423,441 

3,490 

$1,169,533 


743,462 

387,185 




$1,215,985.65 


$1,130,647 


1,023,805.87 

18,000.00 

174,179.78 

$1,215,985.65 


956,017 



318,971 

$1,274,988 


957,920 

90,000 

121,613 

$1,169,533 


919,028 

90,000 

121,619 

$1,130,647 


1,179,652.55 

36,333.10 

$1,215,985.65 


1,274,988 



$1,274,988 


1,169,533 



$1,169,533 


1,130,647 



$1,130,647 



Program Description 

The Executive Office program provides support to the Gov- 
ernor in overseeing and coordinating the activities of the 
executive branch of Montana State government. The pro- 
gram provides administrative, legal, press, and centralized 
services support for the offices of the Governor, as well as 
executive administration of programs of special impact on 
the citizens and governmental concerns of Montana. Special 
programs directed through staff efforts in this program 
include coordination of services for senior citizens, preserv- 
ing clean water in the Flathead Basin, and coordination of 



slate agency activities relating to reclamation of land and 
water in the Clark Fork River Basin. 

Issues Addressed/legislative Intent 

A 4% vacancy savings factor was applied to all positions in 
the Executive Office. 

The authorized budget for the Executive Office will allow 
the program to maintain its current level of operations. 

The Executive Office budget includes several special activi- 
ties which were approved by the legislature. The funding 
levels of these programs are shown in Table I . 



18 



GOVERNORS OFFICE 



Tabic 1 

Governor's Office - Special Projects 

1989 Biennium 



Aging Services Coordinator 
Flathead Basin Commission 
Clark Fork River Basin 
Client Assistance Program 



FY88 


FY89 


$40,057 


$40,279 


19,845 


19,845 


136,613 


136,619 


75,000 


75,000 



The Aging Services Coordinator and the Flathead Basin 
Commission arc funded from the general fund. The Clark 
Fork River Basin Coordination Project is funded by the 
Resource Indemnity Trust Fund ($90,000 per year) and fed- 
eral funds ($46,613 in FY88 and $46,619 in FY89). The 
Client Assistance Program is 100% federally funded. 



The Coal Tax Advocacy program budget was deleted during 
FY87. The program eliminated a .18 general fund FTE. 

FY87 reductions made as a result of the general 5% cut were 
made permanent by the reduction of a 1.0 professional FTE 
and a .50 clerical FTE. 

Two line-itemed appropriations were made to the Executive 
Office. An appropriation of $8,190 annually has been made 
for expenses related to membership in the National Com- 
mission on Uniform State Laws. A $25,000 biennial appro- 
priation was included to allow the office to deal with 
unforeseen emergencies. 

Other Appropriation Bills 

HB867 appropriated $300,000 in general funds to the Gov- 
ernor's Office for the establishment of the Supercollider 
Task Force. The bill also called for $100,000 match to be 
raised by the private sector. The unexpended balance of the 
appropriation will revert after June 30, 1988, unless Mon- 
tana is still in contention for the Supercollider program. 



MANSION MAINTENANCE PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



2.15 



Personal Services 
Operating Expenses 
Equipmenl 

I'olal Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



33,502.35 

21,845.78 

1 70.00 

$55,518.13 

55,518.13 
$55,518.13 

55,518.13 
$55,518.13 



35,071 
21,771 



$56,842 

56,842 



$56,842 

56,842 



$56,842 



37,052 

23,587 





$6«,639 

60,639 



$60,639 

60,639 



$60,639 



37,087 

24,515 





$61,602 

6 1 ,602 



$61,602 

61,602 



$61,602 



Program Description 

The staff of the Mansion Maintenance Program maintains 
the Governor's official residence. 

Issues Addressed/Legislative Intent 

A 4% vacancy savings factor was applied to ail positions in 
the Mansion Maintenance Program. 



FY87 reductions made as a result of the general 5% cut were 
made permanent by the reduction of a .5 FTE custodial 
worker position to .25 FTE. 

The operating expense budget was maintained at current 
level, except for projected utility rate increases. 



GOVERNORS OFFICE 



19 



AIR TRANSPORTATION PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1.934.59 


30,753 


32,408 


32,536 


9.008.38 


75,155 


63,340 


66,688 


199.00 












$91,141.97 

91.141.97 
$91,141.97 

91,141.97 
$91,141.97 



$105,908 

105,908 
$105,908 

105,908 



$95,748 

95,748 



$95,748 

95,748 



$99,224 

99,224 



$99,224 

99,224 



$95,748 



Program Description 

The Air Transportation Program provides transportation for 
the Governor. 



Issues Addressed/Legislative Intent 

A 4% vacancy savings factor was applied to the Air Trans- 
portation Program. 

The authorized budget for this program will allow FY86 
level of operations. 



OFFICE OF BDGET & PGM PLANNING 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



18.25 



Personal Services 
Operating Expenses 
Equipment 

I'olal Program Costs 
General Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



523,504.40 

176,606.85 

39.167.94 

$739,279.19 

665,529.19 

73,750.00 

$739,279.19 

739,279.19 

$739,279.19 



556,809 

208,197 





691,256 
73,750 



$765,006 

765,006 



549,223 

125,319 

1,875 



676,417 




$676,417 

676,417 
$676,417 



560,402 

146,707 

1,875 



$708,984 

708,984 
$708,984 



Program Description 

The staff of the OfTice of Budget and Program Planning 
(OBPP) assist the Governor in the planning, preparation, 
and administration of the state budget, the development and 
evaluation of alternative program plans for the provision of 
state government services, and the examination and 
improvement of methods of providing services to state citi- 
zens. OBPP reviews the total organizational structure of the 
executive branch, makes recommendations on the transfer 
of functions between departments or the elimination of 
unnecessary functions, and formulates and monitors policies 
in areas of management concerns. Additional functions 
include: preparation and monitoring of revenue estimates; 
approving all FTE position additions, deletions and trans- 
fers by state agencies; verifying and documenting the accura- 
cy of position actions; and maintaining reconciliation re- 
porting of FTE's per legislative intent. The accuracy of the 
automated Payroll/Personnel/Position Control system main- 



tained by the Personnel Division of the Department of 
Administration is also monitored. 

Issues Addressed/Legislative Intent 

A 4% vacancy savings factor was applied to all positions in 
the Office of Budget and Program Planning. 
A budget analyst position was eliminated in FY87 and a .75 
administrative clerk position will be eliminated in Fy88. An 
additional .50 FTE (administrative clerk) was requested for 
FY89. This will be a net reduction of 1.75 FTE in FY88 
and 1.25 in FY89 from the levels budgeted by the 1985 
Legislative Session. 

Statewide audit costs are no longer included in this program 
budget. Language in HB2 slates that any funds remaining in 
the statewide audit proprietary account at Fiscal Year End 
87 must be transferred to the general fund to help support 
the cost of the annual audit. 



20 



GOVERNORS OFFICE 



HB2 allows the Office of Budget and Program Planning to 
establish transfer appropriations for vocational-technical 
centers and the university units. This provision allows com- 



pliance with proper accounting of current unrestricted oper- 
ations. 



NORTHWEST REGIONAL POWER ACT 
Budget Detail Summary 


Actual 
FY 1986 


FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


7.00 


7.00 


5.00 5.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



37,535.95 


241,449 


198,417 


198,536 


90,501.27 


213,695 


117,621 


117,619 


1,811.05 


4,200 


1,000 


1.000 



$329,848.27 

329,848.27 

$329,848.27 

329,848.27 



$459,344 

459,344 
$459,344 

459,344 



$317,038 

317,038 
$317,038 

317,038 
$317,038 



$317,155 
317,155 

$317,155 
317,155 



Program Description 

The Pacific Northwest Electric Power and Conservation 
Planning Council was created in accordance with Public 
Law 96-501, passed by the U.S. Congress on December 5, 
1980. The Power Planning Council is made up of two mem- 
bers from each of the states of Montana, Washington, Idaho, 
and Oregon. It is charged with the development of a twenty- 
year electric energy plan that will provide an efficient and 
adequate electric power supply for consumers in the Pacific 
Northwest and will encourage conservation and develop- 
ment of natural resources. This plan will also provide for 
enhancement offish populations. House Bill 641 of the 47th 
Montana State Legislature in 1981 enabled Montana to par- 



ticipate in the Regional Power Planning Council by provid- 
ing for the appointment by the Governor of two Montana 
members. 

Issues Addressed/Legislative Intent 

A 4% vacancy savings factor was applied to all positions in 
the Northwest Regional Power Act Program. 
Two positions will be eliminated on June 30, 1987 (an 
information officer and an administrative aide) as proposed 
by the agency. 

This program is 100% federally funded, provided through a 
negotiated contract with the Bonneville Power Administra- 
tion. 



LT. GOVERNOR 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



191,250.42 

36,846.44 

$228,096.86 

228,096.86 
$228,096.86 

228,096.86 



188,313 
40.283 



$228,596 

228,596 
$228,596 

228,596 
$228,596 



163,912 
37,326 



$201,238 

201,238 
$201,238 

201,238 
$201,238 



163,716 
37,528 



$201,244 

201,244 
$201,244 

201,244 
$201,244 



Program Description 

As provided in Article VI, Section 4. of the Montana Con- 
stitution, the Lieutenant Governor shall perform the duties 
provided by law and those delegated to him by the Gover- 
nor. The Office of the Lieutenant Governor serves as the 
liaison between state and local governments (56 counties 
and 127 municipalities). Current priorities include 
infrastructure issues and the local voter review process. The 



Office also handles supervision of Intergovernmental Review 
Clearinghouse operations, planning for Statehood Centennial 
activities and occasional special projects. 

Issues Addressed/Legislative Intent 

A vacancy savings factor was applied to all positions in the 
Lieutenant Governor's office. 



GOVERNORS OFFICE 



21 



A 1.0 FTE professional position was eliminated by the legis- 
lature IVom this ofTice. 



CITIZENS ADVOCATE OFFICE 
Budget Detail Summary 


Actual 
FY 1986 




Budgeted 
FY 1987 


.Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 




1.00 


1.00 


1.00 1.00 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



32,573.39 
16,064.12 



$48,637.51 

48,637.5 1 
$48,637.51 

48.637.51 
$48,637.51 



31,306 
19,238 



$50,544 

50,544 



$50,544 

50,544 



$50,544 



31,575 
16,052 



$47,627 
47,627 



$47,627 
47,627 



31,518 
16,052 



$47,570 
47,570 



$47,570 
47,570 



Program Description 

The Citizen's Advocate Office gives Montana's citizens 
ready access to their state government. The public contacts 
the Citizens' Advocate Office by toll-free telephone to 
obtain information, make suggestions, air complaints, and 
ask for assistance with problems regarding state government. 



Issues Addressed/Legislative Intent 

A 4% vacancy savings factor was applied to the Citizens' 
Advocate office. 

The authorized budget allows the office to maintain its cur- 
rent level of operation. 



MENTAL DIS BD VISITORS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



3.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



),845.06 


90,093 


89,933 


89,865 


?,340.80 


33,660 


39,346 


39,419 


33.00 












$117,218.86 

117.218.86 
$117,218.86 

117.218.86 
$117,218.86 



$123,753 
123,753 



$123,753 

123.753 

$123,753 



$129,279 

129.279 
$129,279 

129.279 



$129,284 
129.284 

$129,284 
129.284 

$129,284 



Program Description 



The Mental Disabilities Board of Visitors, established by 
Section 2-15-211. MCA, protects the right of the mentally ill 
and the developmentally disabled by reviewing the care and 
treatment provided by those community mental health cen- 
ters and state institutions which serve this population. The 
Board also provides legal services for the residents at those 



institutions. The Board performs its duties pursuant to Title 
53, Chapters 20 and 21, Part 1, MCA. 

Issues Addressed/Legislative Intent 

A 4% vacancy savings factor was applied to all positions in 
the Mental Disabled Board of Visitors. 
The approved budget allows this program to maintain its 
current level of operation. 



22 



GOVERNORS OFFICE 



STATEHOOD CENTENNIAL OFFICE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



4.00 



Personal Services 
Operating Expenses 
Grants 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



26,558.40 

19,288.43 

0.00 



$45,846.83 

45,846.83 
$45,846.83 

45,846.83 
$45,846.83 



98,172 

340,048 

1,300,000 

$1,738,220 

1,738,220 

$1,738,220 

1,738,220 



101,992 
1 ,300,000 



$1,500,000 

1,500,000 
$1,500,000 

1.500,000 



$I,500,( 



Program Description 



The 1985 Legislative Session created the Montana State- 
hood Centennial Office and a Montana Statehood Centen- 
nial Commission. The purpose of the commission and the 
office is to encourage the commemoration and celebration 
of Montana's 1 00th anniversary of statehood on November 



Issues Addressed/Legislative Intent 

No general funds were appropriated for operations of the 
Montana Statehood Centennial Office; the program will be 



funded by donations and centennial revenue raising activi- 
ties. 

Three FTE were added to the program in anticipation of the 
1989 Statehood Centennial Celebration. 

The 1985 Legislature authorized the office to borrow start- 
up funds from the Junk Vehicle Disposal Account and the 
Crime Victims Compensation Account. HB849 extended the 
repayment deadlines on the loan from June 30, 1987, to 
January I, 1988. 

A 4% vacancy savings factor was applied to the Montana 
Statehood Centennial Office. 



SECRETARY OF STATES OFFICE 



23 



Agency Summary 
Budget Detail Summary 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 
Transfers 

Total Agency Costs 

General Fund 

Stale Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



Actual Budgeted .o«r""'"'''^FN 1989 

FY 1986 FY 1987 V\ 1988 FN 1989 



35.00 



677,722.18 

460,018.20 

16,435.76 

0.00 

30,600.00 

$1,184,776.14 

861,920.45 

322,855.69 

$1,184,776.14 

1.184,776.14 

$1,184,776.14 



31.00 



663,509 
475,713 


30,000 





590,479 

506,058 









$1,169,222 

859,387 
309,835 

$1,169,222 
1,169,222 

$1,169,222 



$1,096,537 

519,057 

577,480 

$1,096,537 

1,096,537 



27.50 

589,901 

464,261 









$1,054,162 

521,931 
532,231 

$1,054,162 
1.054,162 

$1,054,162 



Agency Description 

The ofTicc of the Secretary of Slate, cslablished by Article 
VI Section 1 of the Montana Constitution, reviews and 
maintains public interest records of busmcss, non-profit 
organizations and secured financial transactions. As the 



chief election officer of the state, the Secretary of State is 
responsible for the application, operation and interpretation 
of all election laws except those pertaining to campaign 
finance. In addition, maintains the official records of the 
executive branch and the acts of the Legislature. 



RECORDS MANAGEMENT PROGRAM 
Budget Detail Summary 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



Actual Budgeted Appropriated 

FY 1986 FY 1987 FY 1988 FY 1989 



31.50 



27.50 



24.00 



24.00 



590,196.61 

389,849.52 

15,261.32 

0.00 

$995,307.45 
831,320.45 
163.987.00 

$995,307.45 
995,307.45 

$995,307.45 



577,972 

398,269 



30,000 



505,595 

397,392 







$1,006,241 



859,387 
146,854 



$1,006,241 

1,006,241 
$1,006,241 



$902,987 

519,057 

383,930 

$902,987 

902,987 



$902,987 



505,128 

395,939 





$901,067 
521,931 
379.136 

$901,067 
901,067 

$901,067 



Program Description 

The Records Management Program staff are responsible for 
filing, maintaining, and preserving records of the state and 
certain public interest records of the private sector — such 
as corporate charter documents, trade names, assumed busi- 
ness names, and financial statements under the Uniform 
Commercial Code. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program including 
the elected official position. 

This program has two activities - Records Management and 
Agricultural Lien. The records management activities for the 
most part are funded with general fund and the agricultural 



lien with user fees - state special revenue. $33,000 of annual 
agricultural lien fees that passed through to county clerk and 
recorders for services provided, were eliminated by HB83/. 
HB837 also transferred the funding for Uniform Commer- 
cial Code (records management) from general fund to state 
special revenue. Resulting in general fund reductions of 
$189,327 in FY88 and $187,844 in FY89. 
The FTE level decreased by 7.5 from FY86 (31.5 FTE in 
FY86 to 24 FTE for the biennium). 1 .0 FTE was author- 
ized in FY86 only for the Uniform Commercial Code files 
conversion to microfilm project. 3.0 FTE data entry oper- 
ators were hired for the agricultural lien activity start up - 
FY86 A 5 FTE clerk position was deleted in FY86 as a 
result of automation; a .5 FTE data entry operator was 
deleted as part of June 1986 Special Session cuts; in addi- 



24 



SECRETARY OF STATES OFFICE 



tion, 1.0 FTE corporate documents specialist and 1.5 FTE 
office clerk positions were deleted at the agency's request. 



ADMINISTRATIVE CODE PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



3.50 



3.50 



3.50 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



87,525.57 

70,168.68 

1,174.44 

30,600.00 



$189,468.69 

30,600.00 
158,868.69 

$189,468.69 
189,468.69 

$189,468.69 



85,537 

77,444 







$162,981 



162,981 

$162,981 

162,981 



108,666 






193,550 



$193,550 

193,550 
$193,550 



84,773 

68,322 







$153,095 


153,095 

$153,095 
153,095 

$153,095 



Program Description 

The Administrative Code Program staff execute the duties 
required of the Office of the Secretary of State under the 
Montana Administrative Procedures Act. These duties 
include filing, indexing, organizing for publication, and dis- 
tributing the administrative rules adopted by state agencies 
in the Administrative Rules of Montana (ARM) and the 
Montana Administrative Register (MAR). 



Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program including 
the elected official partial position. 

HB901 removed the statutory requirement for general fund 
to cover the cost of "free copies" of the Administrative 
Rules (ARM) distributed to certain state agencies. This is an 
annual savings of $30,600. 

The FY88 budget reflects $37,900 for printing and binding 
costs of 100 new sets of the ARM manual. The costs will be 
recovered as the volumes are sold. 



COMMISSIONER OF POLITICAL PRAC 



25 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


4.75 


4.75 


3.00 3.00 



Personal Services 
Operating Expenses 

Total Agency .Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



125,196.80 
14,502.93 


123,951 
12.583 


74,360 
28,751 


73,970 
30,893 


$139,699.73 


$136,534 


$103,111 


$104,863 


139,651.73 
48.00 


135,584 

950 

$136,534 


102,311 
800 


100,063 
4,800 


$139,699.73 


$103,111 


$104,863 


139,699.73 


136,534 
$136,534 


103,111 


104,863 


$139,699.73 


$103,111 


$104,863 



Agency Description 

The Office of the Commissioner of Political Practices was 
created by the 44th Legislature in 1975 for the purpose of 
monitoring disclosures of financial contributions to and 
expenditures of Montana political committees and candi- 
dates. The office exists under the authority contained in 
Title 13, chapter 37, MCA. The responsibilities of the office 
were expanded in 1980 by Initiative 85, to include the regis- 
tration of lobbyists, their principals' financial reports, and 
the disclosure of elected officials' business and ownership 
interests. The Office of the Commissioner of Political Prac- 
tices is attached to the Office of the Secretary of State for 
administrative purposes only. 

Issues Addressed/Legislative Intent 

A revised 1989 biennial budget presented by the new Com- 
missioner provided for an overall 26% reduction in FY88 
and 25% in FV89 as compared to FV86 actual expenditures. 



The FTE level was reduced from 4.75 to 3.0 eliminating a 
three-quarter time administrative officer position and a law- 
yer position. $15,000 in each year of the biennium was add- 
ed for contracted legal services. No vacancy savings factor 
was applied to this budget. 

It is the intent of the legislature and language has been 
included in HB2 that a fee be charged for copies of the 
Summary of Contributions/Expenditures for the 
Candidates/Committees book sufficient to cover the costs of 
publication. Fees would be deposited in the state special 
revenue account with balances reverting to the general fund 
at the end of the biennium. Public libraries will continue to 
receive free copies of the book. 

The state special revenue account will be used for both the 
sale of the post-election book and for fees collected for copy- 
ing documents and campaign reports. The copying fees are 
intended to off-set the cost of the leasing and maintaining a 
copy machine. 



26 



STATE AUDITORS OFFICE 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


60.17 


60.00 


62.50 62.50 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 
Transfers 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,323,498.16 


1,349,537 


1,475,049 


1,473,471 


914,467.16 


871,087 


1,023,551 


843,107 


102,703.54 


1,000 


96,752 


288 


1,890,198.39 











2,070,369.00 












$16,301,236.25 

1,072,582.81 
9,306,894.81 
5,921,758.63 

$16,301,236.25 
16,301,236.25 

$16,301,236.25 



$2,221,624 

1,050,115 
1,171,509 



$2,221,624 

2,221,624 



$2,595,352 

1,028,402 

1,566,950 



$2,595,352 
2,595,352 

$2,595,352 



$2,316,866 

784,154 
1,532,712 



$2,316,866 

2,316,866 

$2,316,866 



Agency Description 

The Office of the State Auditor, established by Article VI, 
Section 1 of the Montana Constitution, has statutory duties 
to superintend the fiscal concerns of the state, suggest plans 
for improvement and management of public revenues, keep 
an accounting system of all state funds, and pay into the 
state treasury all funds and fees received. 

The auditor has been responsible for examining the legality 
of all obligations or claims incurred by state government 
and issuing warrants for their payment. 

The State Auditor, as ex-officio commissioner of insurance, 
is empowered with duties to license and regulate insurance 
companies and agents in Montana. 



As ex-officio securities commissioner, the auditor and staff 
regulate and register issuers, broker-dealers, and investment 
advisors and license the sellers of securities. 
The state auditor is director of the state central payroll sys- 
tem. This division is responsible for paying all state employ- 
ees. Effective July 1, 1983, the entire responsibility for the 
Payroll/Position Control/ and Personnel (P/P/P) System 
resides with this office. 

The office is also responsible for distributing police and fire- 
men's retirement funds to local governments. 



CENTRAL MANAGEMENT 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Cunenl Level Services 

Total Service Costs 



211,522.06 


208,123 


197,578 


197,547 


78,908.57 


141,569 


43,102 


40,492 


73,680.15 





423 






$364,110.78 

364,110.78 
$364,110.78 

364.110.78 
$364,110.78 



$349,692 

349,692 
$349,692 

349.692 
$349,692 



$241,103 

241,103 
$241,103 

241.103 
$241,103 



$238,039 

238,039 
$238,039 

238,039 



Program Description 

The Central Administration Division staff provides the 
administrative, budgeting, and accounting functions for the 
State Auditor's Office. It also provides for the deposit and 



issue of receipts for all fees collected by the Insurance and 
Securities departments. 

Issues Addressed/Legislative Intent 

A 4% vacancy savings factor was applied to this program 
and includes the elected official position. 



STATE AUDITORS OFFICE 



27 



Budget reductions (actual FY86 vs. FY88 and FY89) reflect 
one time expenditures related to the office automation 
project and warrant writing system study. 



A 1.0 FTE data processing technician position was elimi- 
nated as part of June 1986 Special Session budget reduc- 
tions. 



AUDIT DIVISION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


19.50 


20.00 


19.50 19.50 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



193,134.83 


400,281 


412,643 


412,141 


i98,912.15 


568,173 


731,260 


564,558 


20,400.99 





84,570 






$1,012,447.97 

708,472.03 
303,975.94 

$1,012,447.97 
1,012,447.97 

$1,012,447.97 



$968,454 

700,423 
268,031 

$968,454 
968,454 

$968,454 



$1,228,473 
787,299 
441,174 

$1,228,473 
1,228.473 



$976,699 

546,115 
430,584 
$976,699 

976,699 



Program Description 

Fiscal Control and Management Division staff provide 
direct mailing of State of Montana warrants, replacement of 
lost or damaged warrants, final storage of cashed warrants. 
State Payroll operates a central payroll system for state 
employees. All payroll warrants for state employees are pre- 
pared and issued by this program. 

Issues Addressed/Legislative Intent 

Vacancy savings for this program was set at 4%. 
An administrative clerk position was eliminated as part of 
the June 1986 Special Session budget reductions and a per- 
sonnel processing technician was transferred from the Per- 
sonnel Division, Department of Administration. The duties 



and responsibilities of the transferred position will not 
change. The position's responsibilities are more directly 
associated with the payroll system and the costs are better 
reflected in this program. 

The program is supported with general fund and state spe- 
cial revenue. The state special revenue funds are obtained 
through a payroll service fee assessed against non-general 
fund operations. Expenses charged to the state special reve- 
nue account will increase for the 1989 biennium in order to 
utilize existing fund balances. 

Warrant Replacement System. $199,250 general fund bien- 
nial appropriation was approved for the design, develop- 
ment and implementation of a new warrant writing system. 
$118,000 will cover computer processing and system devel- 
opment charges, and $81,250 will be for hardware. 



INSURANCE 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



22.67 



23.00 



26.00 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



505,799.08 

193,183.81 

5,680.83 

347,100.00 

$1,051,763.72 

1,051,763.72 

$1,051,763.72 

1,051,763.72 

$1,051,763.72 



522,936 

124,169 

1,000 





$648,105 

648,105 
$648,105 

648,105 
$648,105 



635,145 

197,426 

6,611 





$839,182 

839,182 
$839,182 

839,182 



634,315 
189,011 



$823,614 

823,614 
$823,614 

823.614 
$823,614 



Program Description 

The staff of the Insurance Regulation and Licensing Pro- 
gram protect the insurance-buying public by: 



requiring that each insurer transacting business in Montana 
be authorized by a subsisting certificate of authority; 



28 



STATE AUDITORS OFFICE 



examining the affairs, transactions, accounts, and assets of 
each authorized insurer to determine whether it is finan- 
cially solvent; 

regulating insurers' and agents' trade practices and prohib- 
iting unfair competition and unfair or deceptive practices; 
requiring all agents and solicitors to pass a written examina- 
tion and be licensed before doing business in the state; 
regulating insurance rates to insure that they are not exces- 
sive, inadequate, or unfairly discriminatory; 
examining and approving before use all forms used by insur- 
ers; 

collecting all insurance and license fees established by stale 
law; and 

allocating money collected from the insurance premium tax 
to the appropriate funds, as provided by law. 

Issues Addressed/Legislative Intent 

Vacancy savings for this program was set at 4%. 
Funding for this program is Insurance Regulatory Trust Ac- 
count state special. Any balance in the account at fiscal year 
end reverts to the general fund as provided in section 
1 7-2- 121, MCA. Therefore, any increase to this budget has a 
dollar for dollar impact on general fund revenue. Table 1 



shows a comparison of fees collected to expenditures and 
the amount of excess reverting to the general fund. 
A compliance specialist position increased from a .17 in 
FY86 to a 1.0 FTE because it only existed for 2 months in 
FY86. The position was established during the March spe- 
cial session for the Montana Insurance Assistance Program. 
A .5 FTE payroll clerk position was transferred to the Audit 
Division during the agency's reorganization in the 1987 
biennium. A 1.0 FTE hearings officer was eliminated as part 
of the June 1986 Special Session reductions and replaced by 
$10,000 annually in contracted services - contract for hear- 
ings officer. 

HB372 provides for increasing certain regulated insurance 
company license fees. The purpose being to increase reve- 
nues to cover the cost of insurance regulation activities sup- 
ported by the insurance industry. Three additional FTE 
were approved to provide these services; and include an ac- 
tuary, a field investigator and an administrative aide. Reve- 
nues are projected at $117,497 annually with approved 
appropriation authority of $116,127 in FY88 and $112,442 
in FY89. 

Other Appropriation Bill 

HB880 appropriated $18,208 in FY88 and $17,108 in FY89 
of Insurance Regulatory Account funds for a 1.0 FTE 
administrative assistant to implement the provisions of the 
act. The intent of HB880 is to change premium tax pay- 
ments by insurers from annually to quarterly. 



Table 1 
Insurance Regulatory Trust Account 



1964 
1965 
1966 
1967 
1968 
1969 
1970 
1971 
1972 
1973 
1974 
1975 
1976 
1977 
1978 
1979 



1982 

1983 

1984 

1985 

1986 

1987(Budgeted) 

Totals 



Regulation 

Fees Collected 

151,050.00 

1 36,942.00 

145,250.00 

140,760.00 

147,510.00 

147,574.00 

353,566.00 

364,254.00 

373,655.00 

409,056.00 

428,157.00 

598,265.00 

584,003.00 

579,433.00 

668,879.00 

895,409.00 

753,832.00 

872,647.00 

1,049,767.00 

1,179,719.00 

1,180,030.00 

1,157,380.00 

1,170,584.00 

1,332,049.00 

14,819,771.00 



Actual 

Expenditures 

To Regulate 

69,168.00 

63,883.00 

75,499.00 

91,338.00 

98,028.00 

93,376.00 

114,101.00 

112,156.00 

137,565.00 

142,800.00 

246,362.00 

397,294.00 

342,775.00 

452,518.00 

400,107.00 

403,554.00 

429,235.00 

458,777.00 

542,781.00 

613,048.00 

604,071.00 

665,167.00 

704,665.00 

684,705.00 

7,942,973.00 





Collections 


Excess 


To 


Fees 


Expenditures 


81,882.00 


46% 


73,059.00 


47% 


69,751.00 


52% 


49,422.00 


65% 


49,482.00 


67% 


54,198.00 


63% 


239,465.00 


32% 


252,098.00 


31% 


236,090.00 


37% 


266,256.00 


35% 


181,795.00 


58% 


200,971.00 


66% 


241,228.00 


59% 


126,915.00 


78% 


268,772.00 


60% 


491,855.00 


45% 


324,597.00 


57% 


413,870.00 


53% 


506,986.00 


52% 


566,671.00 


52% 


575.959.00 


51% 


492,213.00 


58% 


465,919.00 


60% 


647,344.00 


51% 


6,876,798.00 





STATE AUDITORS OFFICE 



29 



SECURITIES 

Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


9.00 


9.00 


9.00 9.00 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



213,042.19 

43,462.63 

2,941.57 

1,723,269.00 

$1,982,715.39 

1,982,715.39 

$1,982,715.39 

1,982,715.39 

$1,982,715.39 



M 8,197 

37,176 







$255,373 
255,373 

$255,373 
255,373 

$255,373 



229,683 

51,763 

5,148 





$286,594 

286,594 
$286,594 

286,594 



229,468 

49,046 







$278,514 
278,514 

$278,514 
278,514 



Program Description 

The staff of the Securities Division are responsible for the 
administration of the Securities Act of Montana, which pro- 
tects investors against nefarious and unsubstantial securities 
schemes. 

Issues Addressed/Legislative Intent 

This program is supported by the Securities Regulatory Ac- 
count state special. Any balance in the account at fiscal year 



end, reverts to the general fund as provided for in section 
30-15-1 15, MCA. $10,000 was included in the program bud- 
get for the purpose of contracting for hearings officer ser- 
vices. 

A 4% vacancy savings factor was set for this program. 
Table 2 presents statistical data on activities performed by 
the Securities section. 









Table 2 














State Auditor - Securities Statistics 














1980- 1986 












FY80 


FY81 


FY82 


FY83 


FY84 


FY85 


FY86 


Registration Activities 
















Insurer Filings 


713 


1,175 


1,319 


1,847 


1,867 


1,894 


2,261 


Salesmen 


583 


771 


932 


2,587 


4,616 


5,873 


7,688 


Brokers 


157 


179 


222 


258 


370 


419 


505 


Advisors 


•1 


18 


25 


26 


53 


49 


60 


Total 


L464 


2,143 


2,498 


4,718 


6,906 


8,235 


10,514 


Enforcement Activities 








Investigations 






23 


83 


82 


62 


38 


Revocations & Denial 









6 


4 


2 


4 


Orders 
















Cease & Desist Orders 






6 


44 


45 


18 


32 


Consent Orders 






1 


6 


4 


5 


6 


Permanent Injunctions 








30 

_^iLOOO 


2 . 
14i 

$1,741.900 


3 
138 

$388,000 




87 

$72,000 


1 


Total 


N/A 
N/A 


N/A 
N/A 


81 


Dollars Recovered 


$407,000 





30 



STATE AUDITORS OFFICE 



LOCAL ASSISTANCE DISTRIBUTIONS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Local Assistance 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



$5,009,339.54 
5,009.339.54 

$5,009,339.54 
5,009.339.54 

$5,009,339.54 



Program Description 

Pursuant to Sections 19-10-305. 19-9-702, 19-11-512, 
19-12-301, and 19-13-604, MCA. payments are made to the 
Public Employees Retirement Division (PERD) and to fire 



and police departments of qualifying Montana cities and 
towns. Funds to make payments are received from the pre- 
mium tax collected on insurance against risks enumerated in 
19-11-512, MCA. 



FOREST RES & FPGA TO COUNTIES 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Local Assistance 

Total Program Costs 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



5,921.758.63 
$5,921,758.63 

5.921.758.63 
$5,921,758.63 

5,921.758.63 
$5,921,758.63 



$0 



Program Description 

Moneys received from National Forests under the provisions 
of the Act of May 23. 1908, as amended (16 USC 500) are 



distributed according to a statement furnished by the United 
States Department of Agriculture, Forest Service, showing 
county distribution. 



STATE AUDITORS OFFICE 



31 



PENSION ADJ RH IRED FIREMEN 
Budget Octail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 


1989 


Full Time Equivalent Employees 


.00 


.00 


.00 


.00 


Local AssislancT 

lotal Program Costs 

State Special Revenue Fund 

Current Level Services 
Total Service Costs 


yS'), 100.22 

$959,10«.22 

959,100.22 
$959,100.22 

959,100.22 
$959,100.22 



$0 


$0 


$0 


_ 
$0 


$0 


$0 



$0 


$0 


$0 



Program Description 

The Pension Adjustment - Retired Firemen Program is 
responsible for the distribution to cities and towns of certain 



supplemental firemen's retirement system funds under the 
provisions of 19-1 1 606, MCA. 



fe 



32 



OFFICE OF PUBLIC INSTRUCTION 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


134.10 


134.10 


121.90 121.90 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 
Grants 
Transfers 

Total Agency Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



3,525,844.18 

1,722,732.87 

134,322.45 

205,909,897.01 

3,913,930.71 

12,131,303.54 

$227,338,030.76 

46,915,037.33 

174,638,717.70 

5,784,275.73 

$227,338,030.76 

227,265,878.72 

72,152.04 

$227,338,030.76 



3,587,270 

1,884,986 

60,075 

33,669,498 
3,964,879 

27,243,986 
$70,410,694 

61,071,780 
2,902,440 
6.436,474 



70,410,694 



$70,410,694 



3,438,591 

1,592,554 

68,374 

33,609,838 

3,825,000 

408,612 

$42,942,969 

37,247,545 

801,694 

4,893,730 

$42,942,969 

42,942,969 



$42,942,969 



3,438,026 

1,550,928 

68,378 

33,519,838 

3,825,000 

11,115,574 

$53,517,744 

47,954,875 

767,794 

4,795,075 

$53,517,744 

53,517,744 



$53,517,744 



Agency Description 

The Superintendent of Public Instruction is an elected offi- 
cial Mandated by Section 1, Article VI, of the Montana 
Constitution. Section 20-3-106, MCA, states that the Super- 
intendent "...has the general supervision of the public 
schools and districts of the state." Section 20-7-301, MCA, 
names the Superintendent as "the governing agent and 
executive otTiccr" for vocational education in Montana. 
The office provides services to Montana's school age chil- 
dren and to teachers in 556 school districts. The staff pro- 
vides technical assistance in planning, implementing and 
evaluating educational programs in such areas as teacher 
preparation, teacher certification, school accreditation, 
school curriculum, school finance and school law. The staff 
administers a number of federally funded programs and pro- 
vides a variety of information services. 



Issues Addressed/Legislative Intent 

The budget for the Office of Public Instruction generally did 
not change from the FY86 base except for the deletion of 
FTE that were removed to absorb the unfunded pay plan in 
FY87. 

Two major program changes were implemented by the legis- 
lature. First, governance of vocational technical centers was 
transferred from OP! to the Board of Regents. This change 
impacts program 09, the Distribution Program. The OPI 
budget will no longer reflect transfers of general fund, inter- 
est earnings from the educational trust fund, and millage 
spending. 

The second major change to the Office of Public Instruction 
was the addition of the audiology program which was trans- 
ferred from the School For The Deaf and Blind to the Spe- 
cial Services Division in this department. 



OFFICE OF PUBLIC INSTRUCTION 



33 



CHIEF STATE SCHOOL OFFICER 
Budget Detail Summary 



Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
V\ 1988 FN 


1989 


3.00 




2.00 


3.00 


3.00 


91,050.41 

55,713.94 

537.96 

$147,302.31 


— 


75,235 

60,532 



$135,767 


93,922 

51,836 



$145,758 


<)3.7()2 

43,368 



$137,130 


128,187.35 

19,114.96 

$147,302.31 




116,696 

19,071 

$135,767 


124,190 

21,568 

$145,758 


124,062 

13,068 

$137,130 


147,302.31 
$147,302.31 




135,767 
$135,767 


145,758 

$145,758 


137,130 
$137,130 



Full Time F.quivalenl Employees 

Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 

General Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



Program Description 

The Chief State School Officer Program provides leadership, 
direction and coordination of services to a variety of school 
and public groups. The staff provides assistance to the 
Superintendent of Public Instruction in performing pre- 
scribed duties requiring the Superintendent's personal atten- 
tion or representation. This program's educational services 
component provides informational, evaluative, planning, 
data processing and administrative support for basic and 
vocational programs available in Montana schools at the ele- 
mentary, secondary and post-secondary levels. Staff mem- 
bers manage state and federal financial resources for 
schools; assist school staff directly through on site consulta- 
tion, research, needs assessments, material development and 



in-service education; prepare recommendations for school 
accreditation; and operate a teacher certification program. 

Issues Addressed/Legislative Intent 

The budget for the superintendent's office was adjusted 
slightly from the FY86 level. Vacancy savings was not taken 
on the superintendent's position, but 4% vacancy savings 
was applied against the other two positions in this program. 
A contract totalling $6,413 in FY86 was deleted because the 
contractor has been hired. The budgeted printing costs for 
FY88 include $8,500 for printing the school laws of Mon- 
tana to incorporate changes made during the 49th Legis- 
lature. The publication of these laws is supported with funds 
generated from the sale of the publication. 



BASIC SKILLS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted Appropriated 

FY 1987 FY 1988 FY 1989 



Full Time Equivalent Employees 



32.80 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

lotal Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



934,456.99 


900,589 


887,329 


888,871 


318,969.12 


299,541 


257,145 


257,860 


68,531.34 


32,573 


35,000 


35,000 


19,221.43 


34,802 


34,413 


34,413 



$1,341,178.88 

939,533.05 

253,627.56 

148,018.27 

$1,341,178.88 

1,286,696.25 

54,482.63 

$1,341,178.88 



$1,267,505 

882,134 

269,371 

116,000 

$1,267,505 

1,267,505 




$1,213,887 



853,468 
237,905 
122,514 



$1,213,887 

1,213,887 




$1,216,144 

855.549 

237,944 

122.651 

$1,216,144 



!16,144 




$1,216,144 



Program Description 

The Basic Instructional Services Department is designed to 
offer assistance to elementary and secondary schools in the 
academic disciplines of Math, Science, Computer Education, 
Social Studies, Language Arts, Reading, Library Science, 
Art, Music, Indian Education, Second Languages, Driver 



Education and Safety, Veterans Education, and Health and 
Physical Education. This department also issues nearly 
23,000 teacher certificates and provides administrative assis- 
tance to the Board of Public Education for review of teacher 
training programs for all public and private colleges in Mon- 
tana. Over 800 public and private schools are accredited 
each year and a five year rotation of on-site visitations 



34 



OFFICE OF PUBLIC INSTRUCTION 



occur for each of these schools. The department provides 
the schools, other agencies, and private concerns with a state 
film library for more than 7,000 films, videotapes, and laser 
discs, as well as satellite reception. 

Issues Addressed/Legislative Intent 

The FTE level decreases 5.0 FTE in each year when FY86 is 
compared to FY88 and FY89. Of these, 2.5 FTE were 
deleted due to vacancies and absorbtion of the FY87 un- 
funded pay plan, 2.0 film clerk positions were deleted to 
attempt to make the film library self sufficient, and a .5 
FTE Indian education position 



was transferred to the Special Services Program in order to 

allow the use of national origin federal funds. 

Operating expenses decline from FY86 due to the deletion 

of one-time federal grants totalling $54,809 and a reduction 

of $50,500 due to one-time expenses for teacher certification 

procedures. These changes reflect the reduction in general 

funds. 

State special funds are budgeted from the audio/visual 
library at $145,125 in each year and from traffic fines 
totalling $92,780 in FY88 and $92,819 in FY89. Federal 
revenue budgeted includes veteran's education funding at 
approximately $53,000 per year and federal driver's educa- 
tion funding at approximately $43,000 per year. 



VOCATIONAL EDUCATION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



492,129.12 


530,384 


339,928 


339,843 


87,440.81 


140,326 


36,772 


36,796 


4,524.08 


2,400 


8,000 


8,000 


67,647.52 


61,119 


67,552 


67,379 



$651,741.53 

302,457.39 
349,284.14 

$651,741.53 
651,741.53 

$651,741.53 



386,132 
348,097 



$734,229 
734,229 



$452,252 
178,167 
274,085 

$452,252 
452,252 

$452,252 



$452,018 
177,974 
274,044 

$452,018 
452.018 

$452,018 



Program Description 

The Department of Vocational Education Services staff pro- 
vide supervision, leadership and consultant services for local 
vocational education programs. The staff assist students, 
teachers, counselors, and administrators in secondary and 
postsecondary vocational-technical schools through evalu- 
ations, workshops, and technical assistance. 

Issues Addresses/Legislative Intent 

The Vocational Education Program was substantially 
changed by the 49th Legislature by the passage of HB39. 
This legislation removed the supervision of the vocational- 
technical centers from the Office of Public Instruction and 
placed the centers under the Board of Regents. This accom- 
plished the purpose of incorporating all primary and secon- 
dary educational functions under the Office of Public 
Instruction (OPI) and combining all post-secondary func- 
tions under Ihc Board of Rcgcnis. 



Language in HB 2 requires that the Board of Regents will 
contract with the Office of "Public Instruction to provide ser- 
vices to secondary school vo tech programs. The Board of 
Regents will become the sole state agent for the receipt of 
federal Carl Perkins vocational education funds. 

This legislation resulted in the reduction of 5.0 FTE which 
were transferred to the Commissioner of Higher Education. 
The legislature also deleted a 0.2 FTE position which was 
vacant, and a program specialist which was never filled in 
FY86. 

Equipment includes two personal computers in each fiscal 
year. Non-operating expenses reflect indirect cost transfers 
to the indirect cost pool to support administrative functions. 
This program receives federal funds from the Carl Perkins 
Act totalling $179,924 in FY88 and $179,939 in FY89. 
Also, federal job training funds total $41,140 in FY88 and 
$41,106 in FY89. Finally, adult basic education funds arc 
budgeted at $53,000 per year. 



OFFICE OF PUBLIC INSTRUCTION 



35 



ADMINISTRATIVE SERVICES 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time F-quivalcnl Employees 



50.05 



47.30 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



1.259,887.54 

581,053.28 

55,182.56 

106,327.09 

$2,002,450.47 

939,997.05 

425,272.71 

637.180.71 

$2,002,450.47 

1,984,781.06 

17,669.41 

$2,002,450.47 



.299,705 

624,493 

4,705 

120,952 



$2,049,855 

862,941 

493,326 

693,588 

$2,049,855 

2.049.855 

g 

$2,049,855 



1.303.617 

511,994 

4.000 

102,131 

$1,921,742 

887,717 

416,266 

617.759 

$1,921,742 

1.921.742 



$1,921,742 



,302,316 

478,045 

4,000 

102.131 



$1,886,492 

852,423 
416,149 
617,920 



$1,886,492 

1,886,492 




$1,886,492 



Program Description 

The Administrative Services Program staff administer the 
planning, development, implementation, and evaluation of 
the Office of Public Instruction programs. This area man- 
ages the entire data information system for the office. 
The staff also administers and provides consulting service in 
the areas of equalization aid, transportation, federal impact 
funding, school food services, legal services, budgeting and 
accounting. They also allocate and distribute the state equal- 
ization aid money and pupil transportation reimbursement. 

Issues Addressed/Legislative Intent 

This budget reflects a decrease from the FY86 level due to 
several factors. First, a 1.0 FTE clerk was deleted to absorb 
the unfunded pay plan. Second, the legislature deleted the 
operating expenses attributable to the foundation program 
lawsuit totalling $59,275 in each year. Although these 
expenses were deleted, the superintendent was directed to 
pursue the lawsuit for the state, and request supplemental 
funding in 1989 if necessary. Finally, audit expenses were 
increased from approximately $22,000 in FY86 to $36,000 
in FY88. 

Equipment approved includes a personal computer in each 
year to be used for the school foods program. 

The non-operating expenses represent the administrative 
costs attributable to the school foods program. 
Funding for this division comes from general funds, federal 
school lunch funds, school lunch reimbursements from pri- 
vate schools, federal administrative funds from chapter II 
and funds from indirect costs assessed against all federal 
and state special funds used in the superintendent's office. 
The indirect cost pool program provides administrative sup- 
port such as accounting and personnel services. This effort 
is funded from an assessment of 21% in FY88 and 23% in 
FY89 against all state special and federal funding sources 
used by the superintendent's office. The remainder of this 
program's funding comes from the general fund. The follow- 
ing table shows the sources of funding approved by the 49th 
Legislature to support the indirect cost pool functions. 



Table 1 

Charges Against Federal and State Special Revenue 

Accounts 

Fiscal Years 1988- 1989 



Program/Funding 


FY88 


FY89 


Source Assessment 


Indirect 
Costs 


Indirect Costs 


Publications 






Chief State School Officer 


$ 


$ 


Basic Skills 






Film Library 


$10,125 


$10,125 


Federal Grants 








Traffic Education 


16,102 


16,102 


Johnson-O'Malley 


2,100 


2,100 


Veterans' Education 


6.086 


6,086 


Drivers' Education 








Vocational Education 






Carl F. Perkins 


$29,654 


$29,656 


JTPA 


7,354 


7,354 


Adult Basic Education 


9,198 


9,025 


Administrative Services 






Chapter II 


$52,066 


$52,086 


Total School Foods 


50,065 


50,065 


Computer Search 








Indirect Costs 








Special Services 






Chapter II 


$32,107 


$32,107 


EHA-B 


65,446 


65.446 


Deaf/Blind 


11,169 


11.177 


Sex Desegregation 


14,106 


14.101 


Chapter I 


53,368 


53,358 


Diffusion. Bilingual, 


26,000 


26.000 


Origins 






Drugs and Alcohol 


2,320 


2.320 


AIDS 








TOTAL ALL PROGRAMS 


$387,266 


$387,108 



36 



OFFICE OF PUBLIC INSTRUCTION 



SPECIAL SERVICES 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


27.85 


27.10 


27.85 27.85 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 

General Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



748,320.12 


781,357 


813,795 


813,234 


323,671.68 


407,534 


734,807 


734,859 


5,546.51 


20,397 


21,374 


21,378 


195,168.60 


226,865 


204,516 


204,509 



$1,272,706.91 



131,079.02 
141.627.89 



$1,272,706.91 

1,272,706.91 
$1,272,706.91 



$1,436,153 

1,436,153 



$1,774,492 

441,688 

1,332.804 

$1,774,492 

1.774.492 



441,588 
.332,392 



$1,773,980 

1,773,980 



Program Description 

The function of the Special Services Program is to adminis- 
ter ail federal grants except Vocational Education. School 
Food Services. Veteran's Education and Adult Education. 
The largest programs are Education for the Handicapped 
and Chapter 1 Chapter II of the Education Consolidation 
and Improvement Act of 1981, which provide financial 
assistance to stales and local education agencies. Also 
included in this division are Gifted and Talented, National 
Origins, Sex Desegregation, Title IX Compliance, Bilingual 
Education and National Diffusion Network Desegregation. 
The division staff provide assistance to local districts in 
these program areas. 

The 49th Legislature transferred the Hearing Conservation 
Program from the School for Deaf and Blind to this pro- 
gram. 

Issues Addressed/Legislative Intent 

The primary change in this division was that the audiology 
program which had been supervised by the School For Deaf 
and Blind was transferred to the Special Services Division. 
This transfer moves the audiology program from the super- 
vision of the Board of Public Education to the Office of 
Public Instruction. The legislature funded the program as 
was requested by the Office of Public Instruction which 
resulted in a decrease from the 1987 level of $500,000 per 



year to $310,000 per year. The program will be supported 
by a full-time administrator. Clerical assistance, travel and 
administrative costs are budgeted at $38,200 per year. 
The audiology program will change under the scenario 
approved by the legislature. The primary difference will be a 
shift in responsibility for the actual screening from the audi- 
ology program to the local school district. It was anticipated 
that the local school nurse and the county nurse will assist 
an audiologist with screenings using equipment provided by 
the audiology program. Funding history of the audiology 
program is shown below. 

Table 2 

Audiology Program Funding 

Fiscal 1985-1989 



Year 


FTE 


Actual Expenditures/ 
Funding Level 


FY 1985 
FY 1986 
FY 1987 
FY 1988 
FY 1989 






1.0 

1.0 

1.0 


$739,237 
$671,574 
$501,797 
$310,200 
$310,200 





OFFICE OF PUBLIC INSTRUCTION 



37 



DISTRIBUTION TO PUBLIC SCHOOLS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 
Local Assistance 
Grants 
Transfers 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



355,884.04 


352,560 








205.909,897.01 


33,669,498 


33,609,838 


33,519,838 


3,913,930.71 


3.964,879 


3.825,000 


3,825,000 


11,742,938.90 


26,800,248 





10,707,142 



$221,922,650.66 

44,473,783.47 

173,959,817.43 

3,489.049.76 

$221,922,650.66 

221.922.650.66 

$221,922,650.66 



$64,787,185 

58.682.563 

2,139.743 

3.964,879 

$64,787,185 

64,787,185 

$64,787,185 



$37,434,838 

34,762,315 

147,523 

2,525,000 

$37,434,838 

37,434,838 

$37,434,838 



$48,051,980 

45,503.279 

113.701 

2,435.000 

$48,051,980 

48.051.980 

$48,051,980 



Program Description 

The Distribution to Public Schools Program is used by the 
OfTice of Public Instruction to distribute various funds to 
local education agencies. The "pass-through" funds con- 
tained in this budget include the state's share of public 
school support, special education, transportation, school 
lunch, adult basic education, gifted and talented, secondary 
vocational education, and traffic safety funds. 



Issues Addressed/Legislative Intent 

The Distribution Program provides a method for the Office 
of Public Instruction to transfer funds to public schools 
throughout the state. This program is summarized by type 
and category of expenditure and how each expenditure is 
funded in the following tables. 



38 



OFFICE OF PUBLIC INSTRUCTION 



Table 3 

Office of Public Instruction 

Distribution Program 

Fiscal Year 1988 



Expenditure Category 

2000 Operating Expenses 
5000 Local Assistance: 

School Lunch 
Transportation 
Special Ed Contingency 
Gifted and Talented 
Special Ed 

State Impact payments 
Adult Basic Ed 
Traffic Safety 

Local Asst. Subtotal 

6000 Grants 

Federal Pass Through 
(Carl Perkins, JTPA, EHA, Spec Ed) 
Lottery Funds for teachers ret 
Grants Subtotal 

8000 Transfers 
Foundation Program 
(statutorily appropriated) 

Transfers subtotal 

Totals 



Amount 




- - - Fund Type - - 






Gen Fund 


State Special 


Federal 


$355,328 


$355,328 






$594,751 

$6,200,918 

$400,000 

$95,000 

$27,361,646 

$5,000 


$594,751 

$6,200,918 

$400,000 

$95,000 

$27,361,646 

$5,000 






$147,523 
$1,100,000 




$147,523 
$1,100,000 




$35,904,838 


$34,657,315 


$1,247,523 




$2,525,000 
$7,463,225 




$7,463,225 


$2,525,000 


$9,988,225 




$7,463,225 


$2,525,000 


$188,846,000 




$188,846,000 





$188,846,000 
$197,556,748 



OFFICE OF PUBLIC INSTRUCTION 



39 



Table 4 

Office of Public Instruction 

Distribution Program 

Fiscal Years 1988-1989 



Expcndi lur e Category 

2000 Operating Expenses 
5000 Local Assistance: 
School Lunch 
Transportation 
Special Ed Contingency 
Gifted and Talented 
Special Ed 

State Impact payments 
Adult Basic Ed 
Traffic Safety 

Local Asst. Subtotal 

6000 Grants 

Federal Pass Through 

(Carl Perkins, JTPA, EHA, Spec Ed) 

Lottery Funds for teachers ret 

Grants Subtotal 

8000 Transfers 
Foundation Program 
(statutorily appropriated) 

Transfers subtotal 

Totals 



$193,410,142 



$193,410,142 
$241,225,808 



Fund Type 
State Special 



$355,328 


$355,328 






$594,751 

$6,200,918 

$400,000 

$95,000 

$27,361,646 

$5,000 


$594,751 

$6,200,918 

$400,000 

$95,000 

$27,361,646 

$5,000 






$147,523 
$1,100,000 


$33,822 


$113,701 
$1,100,000 




$35,904,838 


$34,691,137 


$1,213,701 




$2,435,000 






$2,435,000 


$9,120,500 




$9,120,500 




$11,555,500 




$9,120,500 


$2,435,000 



$10,707,142 

$10,707,142 
$45,753,607 



$182,703,000 



$182,703,000 
$193,037,201 



40 



OFFICE OF PUBLIC INSTRUCTION 



Operating expenses primarily reflect the cost of the school 
lunch program and the associated freezer costs. 
The $400,000 per year general fund subsidy for the secon- 
dary vocational education program was eliminated in the 
FY88-89 Biennium. 

School transportation was funded at the FY86 statutory 
level. The legislature anticipates that the state's statutory 
responsibility will be fully funded at this level. 



The special education program's budget was held at the 
FY86 level. Special education contingency funding was 
increased above the FY86 level of $400,000 per year to 
$500,000 per year. These funds are used to deliver unantici- 
pated services to children who are not provided for in the 
regular special education budget. 

The following graph and table present funding levels for spe- 
cial education since FY82. 



Special Education Funding 

raul 1982 - S7 



/ 



S3 
Stata Funds 



Special Education Funding 



Fiscal State 


Total 


#of 


Year Funding 


Funds 


children 


82 $23,754,921 


$26,673,921 


13,906 


83 $25,847,864 


$28,840,350 


14,871 


84 $26,697,622 


$30,048,929 


15,132 


85 $27,749,629 


$31,576,293 


15,377 


86 $27,843,564 


$31,883,150 


14,859 


87 $27,206,413 


$31,553,092 


14.765 



The gifted and talented program remained at he FY86 level 

of $95,000 per year. 

State impact payments were reduced to the requested $5,000 

per year. These are payments to school districts in which the 

state has institutions, and are similar to payments in lieu of 

taxes. 



Adult basic education remained at the FY86 level of 
$147,523. This was usually funded from interest derived 
from the educational trust fund. Because a portion of this 
fund was transferred to the general fund, the anticipated 
interest earnings will decline. In FY89, the general fund 
assumes a portion of the lost interest earnings to maintain 
the program at the FY86 level. 

Federal grants passed through to local school districts 
decrease when compared to the FY86 level. This reduction 
occurs because $2.3 million of federal authority is trans- 
ferred to the Commissioner of Higher Education where the 
federal Carl Perkins vocational education funds will be 
received due to the passage of HB39. A more extensive dis- 
cussion of the effects of HB39 can be found in the 
narratives for the Commissioner of Higher Education, and 
the narrative for the vocational technical centers. 



The foundation program, which provides state support for a 
basic education in the K-12 system, is also included in this 
program. The foundation program funding schedules were 
held at FY87 levels. Even with no increase in the scheduled 
amount to be paid per average number belonging (ANB). 
the general fund cost of this appropriation increase from 
$60 million in the 1986-87 biennium to $93 million in the 
1988-89 biennium. This increase is due to the reduction of 
other sources of income that are dedicated to funding the 
school foundation program. 

For more information concerning the foundation program 
please refer to the introductory section of this report. Spe- 
cial narrative, coupled with relevant tables and graphs, give 
a brief overview of this important part ol the state budget. 



VO-TECH CENTERS 



41 



Issues Addressed/Legislative Intent 

The legislature continued to use the formula implemented 
by the Legislative Finance Committee in 1983. However, to 
maintain the reductions made to vo-tech center budgets in 
FY86 and FY87, the legislature funded the centers at 95% 
of the formula amounts. No vacancy savings rate was 
applied to any personal services costs in the vo-tech centers. 
The formula derives funding for each vo-tech center on the 
basis of projected enrollment. The formula results in a given 
dollar amount per full-time student for Instruction program 
personal services and operating expenses. The formula does 
not dictate how many instruction FTE will be funded — 
this decision is left up to the individual center. 
The application of the vo-tech funding formula at the 95% 
level resulted in funding of $1,979.80 per student FTE for 
instruction. 



Equipment costs are also reflected in the instruction compo- 
nent of the budget. The legislature established the rate for 
variable (costing less than $1,000) equipment at 95% of the 
level appropriated in FV87. The amount budgeted in FY88 
and FY89 totalled $32 per student FTE. Capital equipment 
was funded at 95% of the FY87 level for a total of $29,783 
per center. 

The Support program portion of the budget pro\ ides for 
administrative, clerical and student support staff, such as 
counselors and librarians. The funding formula derives a 
level of staffing that will be supported by the state based on 
projected enrollment and the ratios of specific types of sup- 
port staff to the projected enrollment for the center. The 
table below shows the ratios of students to support staff type 
that was used by the legislature. 



Table 1 

Support Staff Standards For Vocational Technical Centers 

1988-89 Biennium 



Support Staff 
Administrative; 
Director 
Asst. Director 
Support: 
Business Mgr 
Counselor 
Librarian 
Custodian 



Approved Ratio 
(Staff: Students) 



1 per center 
1 per center 



1 per center 

1 : 300 Full time students 
1 per center 

1 Head custodian per center 
1 custodian/35,000 gross 
square feet 



State Funded 
Compensation 



$54,094 
$54,086 



$45,743 
$34,228 
$23,407 
$21,347 



Admin. Secretary 
Secretary 



1 per center 

1 : 3 Admin Support Staff 

1 : 5 Support Staff 

(including custodians) 
1: 10 Instruction Staff 



$18,324 
$15,996 



$15,996 
$15,996 



The support staff funded by the legislature is dependent on 
the estimated enrollment. The following table shows what 
positions were funded at each center, how many FTE were 



funded in each position, and the state funded compensation 
levels for the 1989 biennium. 



42 



VO-TECH CENTERS 



Table 2 

Slate Supported Staffing Pattern And Compensation 

1988-89 Biennium 



Position Title 


Billings 


Butte 


Great 
Falls 


Helena 


Missoula 


Director 


1.0 
$54,094 


1.0 
$54,094 


1.0 
$54,094 


1.0 
$54,094 


1.0 
$54,094 


Asst. Director 


1.0 
$54,086 


I.O 
$54,086 


1.0 
$54,086 


1.0 
$54,086 


1.0 
$54,086 


Business Mgr. 


1.0 

$45,743 


1.0 
$45,743 


1.0 
$45,743 


1.0 
$45,743 


1.0 

$45,743 


Counselor 


1.63 

$55,792 


1.35 
$46,208 


1.39 

$47,577 


2.19 
$74,959 


1.95 

$66,745 


Librarian 


1.0 
$23,407 


1.0 
$23,407 


1.0 

$23,407 


1.0 
$23,407 


1.0 
$23,407 


Admin Sec. 


1.0 
$18,324 


1.0 
$18,324 


1.0 
$18,324 


1.0 
$18,324 


1.0 
$18,324 


Clerical Support 
Administrative 


0.67 
$10,717 


0.67 
$10,717 


0.67 
$10,717 


0.67 
$10,717 


0.67 
$10,717 


Support 


1.61 

$25,754 


1.40 
$22,394 


1.55 
$24,794 


1.68 
$26,874 


1.82 
$29,113 


Instructional 


3.32 
$53,107 


2.28 
$36,470 


3.38 
$54,067 


3.68 
$58,865 


4.24 
$67,823 


Total Funded 
Support FTE 


12.23 


10.70 


11.99 


13.22 


13.68 


Total Approved 
Compensation 
Funded @ 95% 


$323,973 


$295,873 


$316,168 


$348,706* 


$351,549 



Underfunded by $10 error in HB2. 



Operating expenses for the Support program are derived by 
multiplying the total funded employee FTE times a support 
rate — $5,350 in FY88 and $5,353 in FY89. 
The vo-tech funding formula establishes a funding level for 
the personal services portion of the Plant program budgets 
in the vo-tech centers. The funding level depends on the size 
of the facility measured in gross square feet. All of the cen- 
ters remained within existing facilities, so the approved FTE 
level for each center remained at the 1986 level. The aver- 
age salary level approved by the legislature was adjusted to 
reflect the pay plan increase in FY87 — $21,347. The fol- 
lowing table shows the approved FTE level at each center 
and the approved level of personal services at 95% of aver- 
age compensation. 



Table 3 

Approved Personal Services Expenditures For Plant Budgets 

1988-89 Biennium 



Billing! 
4.50 



Great 
Falls Helena Missoula 

4.50 4.25 5.25 



Approved 

FTE 

Approved $91,258 $76,048 $91,250 $86, 1 89 $106,468 

Personal 

Services @ 

95% 



The plant operating expenses were held consiiini at the 
FY86 base level. Increases were included only for antici- 
pated inflationary increases in utility costs. 
Enrollment Projections 

The legislature projected the enrollment of each of the vo- 
tech centers by averaging the full year FTE student enroll- 
ment for the past three years. Enrollment for the Butte Cen- 
ter was averaged using the past two years to allow for ad- 
justment to the new facility there. Use of this method did 



VO-TECH CENTERS 



43 



not take into account that enrollments for the Missoula and 
Helena Centers dropped substantially in the Fall and Winter 
quarters of 1987 because FY87 enrollments were not used in 
enrollment projections by the legislature. The table below 



displays the enrollments for each center from FY85 through 
FY89. The FY87 enrollment is shown at both the projected 
level and the level that was funded by the 48th Legislature. 









Table 4 
















Vo-Tech Enrollment 














FY85- 


■ FY 89 








Center 


1985 


1986 


1986 




1987 


1987 


1988 


1989 






Funded 


Act. 




Funded 


Proj. 


Funded 


Funded 


Billings 


497 


511 


489 




511 


421 


490 


490 


Butte 


403 


415 


406 




415 


371 


405 


405 


Great Falls 


408 


423 


391 




423 


418 


416 


416 


Helena 


665 


660 


647 




660 


588 


658 


658 


Missoula 


575 


596 


577 




596 


509 


586 


586 


Total 


2,548 


2,605 


2,510 




2,605 


2,307 


2,555 


2,555 





As can be seen in Table 4, the centers' funded enrollment 
exceeded actual enrollment by 95 students in FY86, or 
approximately $318,000 in excess funding for the system. 
Projections for FY87 indicate that the centers will again 
receive funding in excess of enrollment. This results in 
excess funding of approximately $996,368. Actual 1986 and 
projected enrollments indicate that the trend is for a system- 
wide decrease in enrollment, especially when 1987 
enrollments are considered. 

Use of Federal Funds 

Another major issue in the vo-tcch center budgets was the 
use and availability of federal Carl Perkins funds. The legis- 
lature maintained the use of federal funds in both FY88 and 
FY89 at the $807,474 that had been appropriated in FY87. 
The purpose of these funds was to require that new pro- 
grams be initiated to adjust the curriculum to the changing 



needs of the local labor market. The legislature anticipated 
that the centers would adjust the curriculum at each center 
to allow for the use of these federal funds. 

Funding 

Funding Levels for instruction, support, and plant budgets 
are shown below. Also shown are the revenue sources that 
will make up the budgets for the centers. The revenue 
sources include interest earnings from the education trust 
fund, tuition, federal Carl Perkins funds, and the remainder 
from the general fund. Legislative action reduced the bal- 
ance in the educational trust fund. The result is that interest 
earnings also decline. Tuition was increased from $198 in 
FY86 to $225 in FY88 and to $235 in FY89. This increase 
resulted from a comparison with other states which indi- 
cated that Montana was substantially lower in tuition costs. 



Table 5 
Vo Tech Center Funding 


Fiscal Year 1988 
















Billings 


Butte 


Gr. Falls 


Helena 


Missoula 


1988 Total 


Millage 
Tuition 
Coal Tax 
Federal 
Gen Fund 


$332,403 
$330,750 
$31,302 
$128,910 
$864,250 


$55,682 
$273,375 

$25,031 
$121,613 
$903,090 


$137,798 
$280,800 
$24,241 
$122,221 
$879,733 


$103,392 
$444,150 
$40,673 
$107,743 
$1,404,974 


$171,016 

$395,550 

$35,191 

$326,987 

$1,007,194 


$800,291 

$1,724,625 

$156,438 

$807,474 

$5,059,241 


Total Fund 


$1,687,615 


$1,378,791 


$1,444,793 


$2,100,932 


$1,935,938 


$8,548,069 


Fiscal Year 1989 
















Billings 


Butte 


Gr. Falls 


Helena 


Missoula 


1989 Total 


Millage 
Tuition 
Coal Tax 
Federal 
Gen Fund 


$337,551 
$345,450 

$164,859 
$829,216 


$56,240 
$285,525 

$137,995 
$885,143 


$138,264 
$293,280 

$141,471 
$860,196 


$104,425 

$463,890 



$217,953 

$1,303,744 


$171,814 

$413,130 



$145,196 

$1,199,643 


$808,294 

$1,801,275 



$807,474 
$5,077,942 


Total Fund 


$1,677,076 


$1,364,904 


$1,433,211 


$2,090,012 


$1,929,783 


$8,494,986 





Table 6 and the graph that follows it show vo-tech funding 
sources for FY80 through FY87. They include the voted 
county levy, which is not line-item appropriated in the gen- 



eral appropriations act, but which is appropriated through 
language in that bill. The mandatory mill level is indicated 
under the column "mill levy", or "mill" in the graph. 



44 



VO-TECH CENTERS 



Table 6 

Vo-tech Funding Sources 

FY80 - FY87 



Fiscal 


Voted 


State 


Tuition 


Local 


Federal 


Total 


Year 


Levy 


Share 


Revenues 


Mill Levy 


Funds 


Budget 


1980 


$63,022 


$3,593,896 


$629,234 


$650,497 


$1,113,328 


$6,049,977 


1981 


$71,210 


$3,797,131 


$629,234 


$801,510 


$1,113,328 


$6,412,413 


1982 


$406,220 


$4,371,877 


$782,723 


$765,101 


$1,200,000 


$7,525,921 


1983 


$543,094 


$5,250,455 


$1,174,078 


$804,733 


$843,682 


$8,616,042 


1984 


$847,544 


$5,179,351 


$1,310,760 


$823,751 


$1,178,657 


$9,340,063 


1985 


$1,187,109 


$5,281,424 


$1,503,900 


$842,220 


$1,178,657 


$9,993,310 


1986 


$1,589,423 


$5,689,331 


$1,469,220 


$855,233 


$802,337 


$10,405,544 


1987 


$1,820,316 


$5,831,278 


$1,544,765 


$1,232,482 


$807,474 


$11,236,315 



Governance of the Vo-Tech System 

HB39 transferred the governance of the vo-tech system from 
the Office of the Superintendent of Public Instruction(OSPI) 
to the Board of Regents. The purpose of the action is to 
bring all postsecondary educational facilities under a single 
board for better coordination of higher education in Mon- 
tana. HB39 provides that secondary vo-tech activities 
remain as boardcontracted services in OSPL 
Language in HB2 

Several items were addressed through language in the gen- 
eral appropriations act, HB2. 

Ten percent of the audit costs for Butte, Billings, and Great 
Falls arc lo be paid from non-appropriated funds. At the 
Helena and Missoula centers, 15% of the audit costs are to 
come from non-appropriated sources. 

Federal funds can be budget amended if the center can pro- 
vide the match from funds other than those appropriated in 
HB2. This language was inserted to allow centers to add fed- 
eral spending authority for additional equipment, training 
and programs. 

Language that was used in the past allows the Commissioner 
of Higher Education to transfer the mandatory one and one- 
half mill collections among centers. If the total received by 
the centers through the mill levy exceeds $800,291 in FY88 
or $808,294 in FY89, the excess will be reverted to the gen- 
eral fund. 

To maximize use of federal funds, language is included that 
requires that current unrestricted funding for Instruction 
program equipment must come from federal funds. This 
represents 50% of each center's equipment appropriation. 

All funds generated from the local district voted levy were 
appropriated in language because the amounts that will be 
available are unknown at the time of the legislative session. 



Vo-Tech Funding Sources 

FTBO-FYKWinl 




BILLINGS VO TECH 



45 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,549,418.07 


1,332,752 


1,274,544 


1,274,544 


377,670.21 


368,326 


367,461 


356,922 


73,643.82 


35,915 


45,610 


45,610 



$2,000,732.10 

2.000,732.10 
$2,000,732.10 

2,000.732.10 



$2,( 



$1,736,993 

1,736,993 
$1,736,993 

1.736,993 
$1,736,993 



$1,687,615 

1.687,615 
$1,687,615 

1.687.615 
$1,687,615 



$1,677,076 

1.677.076 
$1,677,076 

1.677.076 
$1,677,076 



Agency Description 

The Billings Vocational Technical Center's primary objec- 
tives are to prepare postsecondary students for employment 



and to provide trained workers for employment opportuni- 
ties. The Billings Center staff provide vocational-technical 
training in agricultural, business, health, home economics, 
office, technical, and trade/industrial occupations. 



INSTRLCIION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



966.048.64 

97.532.53 

73.643.82 

$1,137,224.99 

1.137.224.99 

$1,137,224.99 

1.137.224.99 

$1,137,224.99 



915.739 
114.188 
35,915 



$1,065,842 

1,065,842 
$1,065,842 

1.065.842 
$1,065,842 



859,313 
110,788 
45.610 



$1,015,711 
1.015,711 

$1,015,711 
1,015,711 

$1,015,711 



859.313 
110,788 
45,610 



$1,015,711 

1.015,711 
$1,015,711 

1,015,711 
$1,015,711 



1 Program Description 

The Instruction Program of the Billings Vocational Techni- 
■ cal Center includes all expenditures for personal services, 
operating expenses, and equipment for all activities that are 
part of the institution's instruction program which includes 
related occupational and vocational-technical instruction. 

Issues Addressed/Legislative Intent 

I The Instruction program at the Billings Vo-Tech Center 

j represents 95% of the enrollment-driven formula amount 

using budgeted enrollment of 490 student FTE per year. 



Personal services costs were derived using $1,753.70 per 
student FTE. No vacancy savings rate was applied to per- 
sonal services. The formula does not indicate the number of 
instructional staff funded. The operating expense portion of 
the program was derived using $226.10 per FTE student. 
The instructional equipment portion of the program was 
derived using 95% of the level appropriated in FY87. The 
rate is $32 per FTE student for "variable" equipment (cost- 
ing less than $1,000 per item) and $29,783 per center for 
capital equipment (more than $ 1 .000 per item). One-half of 
the equipment expenditure is funded by general fund, one- 
half with federal funds. 



46 



BILLINGS VO TECH 



PLANT OPERATION & MAINTENANCE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



75,568.05 
175,139.12 

$250,707.17 
250,707.17 

$250,707.17 
250,707.17 



91,175 
197,977 



$289,152 

289,152 



$289,152 

289,152 
$289,152 



91,258 
175,181 



$266,439 

266,439 
$266,439 

266,439 
$266,439 



91,258 
183,940 



$275,198 

275,198 
$275,198 

275,198 
$275,198 



Program Description 

The Plant Operations and Maintenance Program of the Bill- 
ings Vocational Technical Center includes expenditures of 
current operating funds for the operation and maintenance 
of physical plant. It includes all expenditures for operations 
established to provide services and maintenance related to 
the grounds and typically includes facilities, utilities, fire 
protection, property insurance and janitorial services. 

Issues Addressed/Legislative Intent 

The personal services portion of the Plant program is deter- 
mined on the basis of a staffing standard per gross square 



feet of facility space. Because the Billings facility remained 
unchanged from FY86 base level, the staffing pattern 
remains the same as in the 1986-87 biennium. The average 
compensation amount applied to the approved staffing level 
was inflated by the full percent of the pay plan in the 
1986-87 biennium — including the unfunded portion in 
FY87 — and then was discounted to 95%. This results in an 
average compensation of $21,347 discounted to $20,279.65. 
Plant operating expenses were held constant at the base year 
FY86 level adjusted for inflation of utility costs. 



BILLINGS VO TECH 



47 



GAAP ADJUSIMKNTS 
BudKi't Detail Summary 



Full Time Equivalcnl Employees 



Aiiuul 



BiidKi'led 
V\ l<>«7 



Appnipriuled 
W IWH l\ I'] 



Personal Services 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



$114,670.10 
114,670.10 

$114,670.10 
114,670.10 

$114,670.10 



SUPPORT 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



12.23 



Personal Services 
Operating Expenses 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



393,131.28 

104,998.56 
$498,129.84 

498,129.84 
$498,129.84 

498,129.84 
$498,129.84 



325,838 
56,161 



$381,999 

381,999 
$381,999 

381,999 



323,973 
8L492 



$405,465 

405,465 
$405,465 

405,465 



323,973 
62,194 



$386,167 

386,167 
$386,167 

386.167 



Program Description 

The Support Program of the Billings Vocational Technical 
Center provides support services for the institution's pri- 
mary objectives to include library materials, services that 
directly assist the academic functions, audio-visual services, 
administration, personnel development and support for 
course and curriculum development. 

Issues Addressed/Legislative Intent 

Support program staffmg for the Billings Vo-Tech Center is 
based on budgeted student FTE enrollment and the ratios of 



specific types of designated support staff to those 
enrollments. This results in a total funded support staff of 
12.23 FTE employees with funded compensation of 
$322,973 — which represents 95% of the total approved 
compensation levels for the designated support staff. No 
vacancy savings was applied. Operating expenditure level is 
derived by multiplying the authorized employee FTE by 
$5,350 in FY88 and by $5,353 in FY89. Audit costs of 
$21,481 are authorized for the biennium, of which 10% is to 
be paid from funds other than those line-item appropriated 
in HB2. 



48 



BUTTE VO TECH 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



37.03 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,296,375.03 


1,087,948 


1,082,170 


1,082,170 


272,355.83 


246,124 


253,757 


239,869 


14,110.00 


14,940 


42,864 


42,864 



$1,582,840.86 

1,582,840.86 
$1,S82,840.86 

1,582.840.86 
$1,582,840.86 



$1,349,012 

1,349,012 
$1,349,012 

1,349,012 
$1,349,012 



$1,378,791 

1,378,791 
$1,378,791 

1,378,791 
$1,378,791 



$1,364,903 

1,364,903 
$1,364,903 

1,364,903 
$1,364,903 



Agency Description 

The Butte Postsecondary Vocational Technical Center's pri- 
mary objectives are to prepare students for employment and 



to provide trained workers for Montana's employers. The 
Butte Vo-Tech staff provide vocational training in business, 
health, office, technical, and trade/industrial occupations. 



INSTRUCTION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


21.64 


21.64 


22.58 22.58 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



65,980.78 


698,756 


710,249 


710,249 


99,511.31 


102,920 


91,571 


91,571 


14,110.00 


14,940 


42,864 


42,864 



$879,602.09 

879.602.09 
$879,602.09 

879,602.09 



$816,616 

816,616 
$816,616 

816,616 
$816,616 



$844,684 

844,684 
$844,684 

844.684 
$844,684 



Program Description 

The Instruction Program of the Butte Vocational Technical 
Center includes all expenditures for personal services, oper- 
ating expenses, and equipment for all activities that are part 
of the institution's instructional program which includes 
related occupational, and vocational instruction. 

Issues Addressed/Legislative Intent 

The Instruction program at the Butte Vo-Tech Center repre- 
sents 95% of the enrollment-driven formula amount using 
budgeted enrollment of 405 student FIE per year. Personal 



services costs were derived using $1,753.70 per student 
FTE. No vacancy savings rate was applied to personal ser- 
vices. The formula does not indicate the number of instruc- 
tional staff funded. The operating expense portion of the 
program was derived using $226.10 per FTE student. The 
instructional equipment portion of the program was derived 
using 95% of the level appropriated in FY87. The rate is 
$32 per FTE student for "variable" equipment (costing less 
than $1,000 per item) and $29,783 per center for capital 
equipment (more than $1,000 per item). One-half of the 
equipment is funded by general fund, one-half with federal 
funds. 



BUTTE VO TECH 



49 



PLANT OPERATION & MAINTENANCE 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


3.75 


3.75 


3.75 3.75 



Pcrsoiuil Services 
Operating Expenses 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1 10,419.84 

99.197.65 

$209,617.49 


75,979 

94,624 

$170,603 


76,048 

88,471 

$164,519 


76,048 

93,886 

$169,934 


209.617.49 
$209,617.49 


1 70,603 
$170,603 


164,519 
$164,519 


169,9.34 
$169,934 


209,617.49 
$209,617.49 


170,603 
$170,603 


164,519 
$164,519 


169,934 
$169,934 



Program Description 

The Plant Operations and Maintenance Program of the 
Butte Vocational Technical Center includes expenditures of 
current operating funds for the operation and maintenance 
of physical plant. It includes all expenditures for operations 
established to provide services and maintenance related to 
the grounds and typically includes facilities, utilities, fire 
protection, prof>erty insurance, and janitorial services. 

Issues Addressed/Legislative Intent 

The personal services portion of the Plant program is deter- 
mined on the basis of a staffing standard per gross square 



feet of facility space. Because the Butte facility remained 
unchanged from the FY86 base level, the staffing pattern 
remains the same as in the 1986-87 biennium. The average 
compensation amount applied to the approved staffing level 
was inflated by the full percent of the pay plan in the 
1986-87 biennium — including the unfunded portion in 
FY87 — and then was discounted to 95%. This results in an 
average compensation of $21,347 discounted to $20,279.65. 
Plant operating expenses were held constant at the base year 
FY86 level adjusted for inflation of utility costs. 



BUTTE VO TECH 



GAAP ADJUSTMENTS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Personal Services 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



$6,558.92 


$0 


$0 


$0 


6,558.92 











$6,558.92 


$0 


$0 


$0 


6,558.92 











$6,558.92 


$0 


$0 


$0 



SUPPORT 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



413,415.49 

73,646.87 

$487,062.36 

487,062.36 
$487,062.36 

487,062.36 



313,213 
48,580 



$361,793 

361,793 
$361,793 

361,793 



295,873 
73.715 



$369,588 

369,588 
$369,588 

369,588 
$369,588 



295,873 
54,412 



$350,285 
350,285 

$350,285 
350,285 

$350,285 



Program Description 

The Support Program of the Butte Vocational Technical 
Center provides support services for the institution's pri- 
mary objectives to include library materials, services that 
directly assist the academic functions, audio-visual services, 
administration and personnel development, and support for 
course and curriculum development. 

Issues Addressed/Legislative Intent 

Support program staffing for the Butte Vo-Tech Center is 
based on budgeted student FTE enrollment and the ratios of 



specific types of designated support staff to those 
enrollments. This results in a total funded support staff of 
10.70 FTE employees wi'th funded compensation of 
$295,873 — which represents 95% of the total approved 
compensation levels for the designated support staff. No 
vacancy savings rate was applied. Operating expenditure 
level is derived by multiplying the authorized employee FTE 
by $5,350 in FV88 and by $5,353 in FY89. Audit costs of 
$21,481 are authorized for the biennium, of which 10% is to 
be paid from funds other than those line-itemed in HB2. 



GREAT FALLS VO TECH 



51 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
Y 1988 FY 1989 



Full Time Kquivalcnt Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



450,706.39 


1,164,032 


1,136,966 


1,136,966 


242,274.11 


233,233 


264,608 


253,026 


45,365.60 


48,153 


43,219 


43,219 



$1,738,346.10 

1,738,346.10 
$1,738,346.10 

1,738,346.10 
$1,738,346.10 



$1,445,418 

1.445,418 
$1,445,418 

1,445,418 
$1,445,418 



$1,444,793 

1.444,793 
$1,444,793 

1,444,793 
$1,444,793 



$1,433,211 

1,433.211 
$1,433,211 

1,433,211 



Agency Description 

The Great Falls Vocational Technical Center's primary 
objectives are to prepare students for employment and to 



provide trained workers for employment opportunites. The 
Great Falls Vo-Tech staff provide vocational training in 
business, health, home economics, office, technical, and 
trade/industrial occupations. 



INSTRUCTION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



31.00 



31.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



598,294.88 
72,296.31 
45.365.60 



$1,015,956.79 

1.015,956.79 
$1,015,956.79 

1.015,956.79 
$1,015,956.79 



760,540 
66,061 
48.153 



$874,754 
874.754 

$874,754 
874,754 

$874,754 



729.539 
94,058 
43,219 



$866,816 

866,816 
$866,816 

866,816 
$866,816 



729,539 

94,058 

43,219 

$866,816 

866.816 

$866,816 

866.816 

$866,816 



Program Description 

The Instruction Program of the Great Falls Vocational 
Technical Center includes all expenditures for personal ser- 
vices, operating expenses, and equipment for all activities 
thai are part of the institution's instruction program which 
includes related occupational and vocational instruction. 

Issues Addressed/Legislative Intent 

The Instruction program at the Great Falls Vo-Tech Center 
represents 95% of the enrollment-driven formula amount 
using budgeted enrollment of 416 student FTE per year. 



Personal services costs were derived using $1,753.70 per 
student FTE. No vacancy savings rate was applied to per- 
sonal services. The formula does not indicate the number of 
instructional staff funded. The operating expense portion of 
the program was derived using $226.10 per FTE student. 
The instructional equipment portion of the program was 
determined using 95% of the level appropriated in FY87. 
The rate is $32 per FTE student for "variable" equipment 
(costing less than $1,000 per item) and $29,783 per center 
for capital equipment (more than $1,000 per item). One-half 
of the equipment is funded by general fund, one-half with 
federal funds. 



52 



GREAT FALLS VO TECH 



PLANT OPERATION & MAINTENANCE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



91,376.70 
86,757.84 



$178,134.54 

178,134.54 
$178,134.54 

178,134.54 
$178,134.54 



91,175 
102,646 



$193,821 

193.821 
$193,821 

193,821 
$193,821 



91,259 
90,278 



$181,537 

181,537 
$181,537 

181,537 
$181,537 



91,259 
97,995 



$189,254 

189.254 
$189,254 

189,254 



Program Description 

The Plant Operations and Maintenance Program of the 
Great Falls Vocational Technical Center includes expendi- 
tures of current operating funds for the operation and 
maintenance of physical plant. It includes all expenditures 
for operations established to provide services and mainte- 
nance relating to the grounds and typically includes facili- 
ties, utilities, fire protection, property insurance and jani- 
torial services. 

Issues Addressed/Legislative Intent 

The personal services portion of the Plant program is deter- 
mined on the basis of a staffing standard per gross square 



feet of facility space. Because the Great Falls facility 
remained unchanged from FY86 base level, the stafilng pat- 
tern remains the same as in the 1986-87 bicnnium. The 
average compensation amount applied to the approved staff- 
ing level was inflated by the full percent of the pay plan in 
the 1986-87 biennium — including the unfunded portion in 
FY87 — and then was discounted to 95%. This results in an 
average compensation of $21,347 discounted to $20,279.65. 
Plant operating expenses were held constant at the base year 
FY86 level adjusted for inflation of utility costs. 



GREAT FALLS VO TECH 



53 



GAAP ADJUSTMENTS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



$59,249.76 

59.249.76 
$59,249.76 

59,249.76 



$0 



$0 



SUPPORT 

Budget Detail Summary 



Actual Budgeted Appropriated 

FY 1986 FY 1987 FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



401,785.05 

83,219.96 

$485,005.01 

485,005.01 


312,317 

64,526 

$376,843 

376.843 
$376,843 

376,843 
$376,843 


316,168 

80,272 

$396,440 

396,440 
$396,440 

396,440 
$396,440 


316,168 
60,973 

$377,141 
377,141 


$485,005.01 

485,005.01 
$485,005.01 


$377,141 

377,141 

$377,141 



Program Description 

The Support Program of the Great Falls Vocational Techni- 
cal Center provides support services for the institution's pri- 
mary objectives to include library materials, services that 
directly assist the academic functions, audio-visual services, 
administration and personnel development, and support for 
course and curriculum development. 

Issues Addressed/Legislative Intent 

Support program staffing for the Great Falls Vo-Tech Cen- 
ter is based on budgeted student FTE enrollment and the 



ratios of specific types of designated support staff to those 
enrollments. This results in a total funded support staff of 
11.99 FTE employees with funded compensation of 
$316,168 — which represents 95% of the total approved 
compensation levels per designated support staff. No 
vacancy savings rate was applied. Operating expenditure 
level was established by multiplying the authorized 
employee FTE by $5,350 in FY88 and by $5,353 in Fy89. 
Audit costs of $21,481 are authorized for the biennium, of 
which 10% is to be paid from funds other than those line- 
item appropriated in HB2. 



54 



HELENA VO TECH 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


56.48 


56.48 


54.24 54.24 



Personal Services 
Operating Expenses 
Equipment 
Debt Service 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,844,339.36 


1,605,211 


1,588,830 


1,588,830 


454,570.86 


430,159 


461,066 


450,146 


87,019.15 


56,685 


51,036 


51,036 


3,952.60 












$2,389,881.97 

2,389,881.97 
$2,389,881.97 

2,389,881.97 
$2,389,881.97 



$2,092,055 

2,092.055 
$2,092,055 

2,092,055 
$2,092,055 



$2,100,932 

2.100,932 
$2,100,932 

2,100.932 
$2,100,932 



$2,090,012 

2,090,012 
$2,090,012 

2,090.012 
$2,090,012 



Agency Description 

The Helena Vocational Technical Center's primary objec- 
tives are to prepare postsecondary students for employment 



and to provide trained vi'orkers for employment opportuni- 
ties. The Helena Vo Tech staff provide vocational training 
in agricultural, business, health, home economics, office, 
technical, and trade/industrial occupations. 



INSTRUCTION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


39.07 


39.07 


36.77 36.77 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,250,435.80 


1.141,320 


1,153,935 


1,153,935 


122,893.04 


147,048 


148,773 


148,773 


85,934.65 


56,685 


51,036 


51.036 



$1,459,263.49 

1,459.263.49 
$1,459,263.49 

1,459,263.49 
$1,459,263.49 



$1,345,053 

1,345,053 
$1,345,053 

1,345,053 



$1,353,744 
1,353,744 

$1,353,744 
1,353,744 

$1,353,744 



$1,353,744 
1.353,744 

$1,353,744 
1,353,744 

$1,353,744 



Program Description 

The Instruction Program of the Helena Vocational Techni- 
cal Center includes all expenditures for personal services, 
operating expenses and equipment for all activities that are 
part of the institution's instruction program which includes 
related occupational and vocational instruction. 

Issues Addressed/Legislative Intent 

The Instruction program at the Helena Vo-Tcch Center 
represents 95% of the enrollment-driven formula amount 
using budgeted enrollment of 658 student FTE per year. 



Personal services costs were derived using $1,753.70 per 
student FTE. No vacancy savings rate was applied to per- 
sonal services. The formula does not indicate the number of 
instructional staff funded. The operating expense portion of 
the program was derived using $226.10 per FTE student. 
The instructional equipment portion of the program was 
determined using 95% of the level appropriated in FV87. 
The rate is $32 per FTE student for "variable" equipment 
(costing less than $1,000 per item) and $29,783 per center 
for capital cquipmeni (more than $1,000 per item). One-half 
of the equipment is funded with general fund, one-half with 
federal funds. 



HELENA VO TECH 



55 



PLANT OPERATION & MAINTENANCE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Oebt Service 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



82.743.78 


86,109 


86,189 


86,189 


34,917.25 


226,098 


226,843 


234,144 


434.50 











3,952.60 












$322,048.13 

322.048.13 
$322,048.13 

322.048.13 



$312,207 

312.207 

$312,207 

312,207 



$313,032 

313,032 
$313,032 

313.032 
$313,032 



$320,333 

320,333 
$320,333 

320,333 



Program Description 

The Plant Operations and Maintenance Program of the 
Helena Vocational Technical Center includes all expendi- 
tures of current operating funds for the operation and 
maintenance of physical plant. It includes all expenditures 
for operations established to provide services and mainte- 
nance related to the grounds and typically includes facilities, 
utilities, fire protection, property insurance and janitorial 
services. 

Issues Addressed/Legislative Intent 

The personal services portion of the Plant program is deter- 
mined on the basis of a staffing standard per gross square 



feet of facility space. Because the Helena facility remaSned 
unchanged from FY86 base level, the staffing pattern 
remains the same as in the 1986-87 biennium. The average 
compensation amount applied to the approved staffing level 
was inflated by the full percent of the pay plan in the 
1986-87 biennium — including the unfunded portioiv; in 
FY87 — and then was discounted to 95%. This results in an 
average compensation of $21,347 discounted to $20,279i65. 
Plant operating expenses were held constant at the base year 
FY86 level adjusted for inflation of utility costs. 



56 



HELENA VO TECH 



GAAP ADJUSTMENTS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Personal Services 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



$15,490.16 

15.490.16 
$15,490.16 

15.490.16 
$15,490.16 





SUPPORT 

Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


13.16 


13.16 


13.22 13.22 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



495,669.62 


377.782 


348,706 


348,706 


96,760.57 


57.013 


85,450 


67,229 


650.00 












$593,080.19 

593,080.19 
$593,080.19 

593,080.19 
$593,080.19 



$434,795 
434.795 

$434,795 
434.795 

$434,795 



$434,156 

434.156 
$434,156 

434,156 
$434,156 



$415,935 

415,935 
$415,935 

415,935 



Program Description 

The Support Program of the Helena Vocational Technical 
Center provides support services for the institution's pri- 
mary objectives to include library materials, services that 
directly assist the academic functions, audio-visual services, 
administration and personnel development and support for 
course and curriculum development. 

Issues Addressed/Legislative Intent 

Support program staffing for the Helena Vo-Tech Center is 
based on budgeted student FTE enrollment and the ratios of 



specific types of designated support staff to those 
enrollments. This results in a total funded support staff of 
13.22 FTE employees with funded compensation of 
$348,706 — which represents $10 less than 95% of the total 
approved compensation levels for the designated support 
staff (The $10 error is included in HB2.) No vacancy 
savings rate was applied. Operating expenditure level was 
established by multiplying the authorized employee FTE by 
$5,350 in FY88 and by $5,353 in FY89. Audit costs of 
$21,481 are authorized for the biennium, of which 15% is to 
be paid from funds other than those line-item appropriated 
in HB2. 



i 

i 

1 


MISSOULA VO TECH 




57 


Agency Summary 




Actual 


Budgeted 


Appropriated 




Budget Detail Summary 




FY 1986 


FY 1987 


FY 1988 


FY 1989 


Full Time Equivalent Employees 




62.12 


62.12 


59. 1 3 


59.13 


Personal Services 




2,122,907.68 


1,486,596 


1.485,685 


1.485,685 


Operating Expenses 




429,780.63 


430,412 


401,543 


395,388 


Equipment 




51,614.00 


54,381 


48,710 


48,710 


1 Total Agency Costs 




$2,604,302.31 


$1,971,389 


$1,935,938 


$1,929,783 


Current Unrestricted Fund 




2,604,302.31 


1,971,389 


1,935.938 


1,929,783 


Total Funding Costs 




$2,604,302.31 


$1,971,389 


$1,935,938 


$1,929,783 


Current Level Services 




2,604,302.31 


1,971,389 


1,935,938 


1,929,783 


Total Service Costs 




$2,604,302.31 


$1,971,389 


$1,935,938 


$1,929,783 


Agency Description 




and to provide trained workers for employment opportuni- 


The Missoula Vocational Technical Center's primary objec- "es. The Missoula Vo Tech staff provide vocational training 
lives are to prepare postsecondary students for employment '" agricultural, business, health, home economics, office, 

technical, and trade/industries occupations. 


INSTRUCTION 




Actual 


Budgeted 




Bodget Detail Summary 




FY 1986 


FY 1987 


FY 1988 


FY 1989 


Full Time Equivalent Employees 




43.10 


43.10 


40.20 


40.20 


Personal Services 




1,367,634.83 


1,018,885 


1,027,668 


1,027,668 


Operating Expenses 




126,957.39 


147,808 


132,495 


132,495 


Equipment 




51,614.00 


54,381 


48,710 


48,710 


Total Program Costs 




$1,546,206.22 


$1,221,074 


$1,208,873 


$1,208,873 


Current Unrestricted Fund 




1,546,206.22 


1,221,074 


1,208,873 


1,208,873 


Total Funding Costs 




$1,546,206.22 


$1,221,074 


$1,208,873 


$1,208,873 


Current Level Services 




1,546,206.22 


1,221,074 


1,208,873 


1,208,873 


Total Service Costs 




$1,546,206.22 


$1,221,074 


$1,208,873 


$1,708,873 


Program Description 




Persona 


services costs were derived using 


$1,753.70 per 


The.nstruc.,onProgramoftheM.ssoulaVocat.onalTechni- ^:;^\:::^,:'t^:'^l^ZZT^::TrrsS.l^'^^ 
cal C enter includes all expenditures for personal services, „^^j,^^ ^^ instructional staff funded. The ooeratine expense 


operating expenses and equipment 


tor all activities tnat are -^^ 


of the program 


was derived using 


$226.10 per 


part of the institution's instruction 


program which includes student 


FTE. The instructional equipment portion of the 


related occupational and vocational 


instruction. 


program 


was determined 


using 95% of the level appropri- 


Issues Addressed/Legislative Intent 


ated in FY87. The rate is $32 per FTE student for "vari- 
able" equipment (costing less than $1,000 per item) and 


The Instruction program at the Missoula Vo-Tech Center $29,783 


per center for capital equipment (more than $ 1 ,000 


represents 95% of the enrollment-driven formula 


amount per item). One-half of the 


equipment is funded with general 


using budgeted enrollment of 586 student FTE 


f)er year. fund, one-half with federal funds. 





58 



MISSOULA VO TECH 



PLANT OPERATION & MAINTENANCE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



148,000.00 

177,500.99 
$325,500.99 

325,500.99 
$325,500.99 

325,500.99 
$325,500.99 



108,181 
206,769 



$314,950 

314.950 
$314,950 

314,950 
$314,950 



106,468 
18L260 



$287,728 
287,728 

$287,728 
287.728 

$287,728 



106,468 
193,325 



$299,793 

299,793 
$299,793 

299,793 



Program Description 

The Plant Operations and Maintenance Program of the Mis- 
soula Vocational Technical Center includes expenditures of 
current operating funds for the operation and maintenance 
of physical plant. It includes all expenditures for operations 
established to provide services and maintenance related to 
the grounds and typically includes facilities, utilities, fire 
protection, property insurance and janitorial services. 

Issues Addressed/Legislative Intent 

The personal services portion of the Plant program is deter- 
mined on the basis of a staffing standard per gross square 



feet of facility space. Because the Missoula facility remained 
unchanged from FY86 base level, the staffing pattern 
remains the same as in the 1986-87 biennium. The average 
compensation amount applied to the approved staffing level 
was inflated by the full percent of the pay plan in the 
1986-87 biennium — including the unfunded portion in 
FY87 — and then was discounted to 95%. This results in an 
average compensation of $21,347 discounted to $20,279.65. 
Plant operating expenses were held constant at the base year 
FY86 level adjusted for inflation of utility costs. 



MISSOULA VO TECH 



59 



GAAP ADJUSTMENTS 
Budget Detail 



Actual Budgeted Appropriated 

FY 1986 FY 1987 FY 1988 FY 1989 



Full Time Equivalent Employees 



.00 



Personal Services 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



$8,132.78- 


$0 


$0 


$0 


8,132.78- 
$8,132.78- 



$0 



$0 



$0 


8,132.78- 
$8,132.78- 



$0 



$0 



$0 



SUPPORT 

Budget Detail Summary 



Actual Budgeted Appropriated 

FY 1986 FY 1987 FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



615,405.63 

125,322.25 

$740,727.88 

740,727.88 


359,530 

75,835 

$435,365 

435,365 
$435,365 

435,365 
$435,365 


351,549 

87,788 

$439,337 

439,337 
$439,337 

439,337 
$439,337 


351,549 

69,568 

$421,117 

421,117 


$740,727.88 
740,727.88 


$421,117 

421,117 


$740,727.88 


$421,117 



Program Description 

The Support Program of the Missoula Vocational Technical 
Center provides support services for the institution's pri- 
mary objectives to include library materials, services that 
directly assist the academic functions, audio-visual services, 
administration and personnel development and support for 
course and curriculum development. 

Issues Addressed/Legislative Intent 

Support program staffmg for the Missoula Vo-Tech Center 
is based on budgeted student FTE enrollment and the ratios 



of specific types of designated support staff to those 
enrollments. This results in a total funded support staff of 
13.68 FTE employees with funded compensation of 
$351,549 — which represents 95% of the total approved 
compensation levels for the designated support staff No 
vacancy savings was applied. Operating expenditure level 
was established by multiplying the authorized employee FTE 
level by $5,350 in FY88 and by $5,353 in FY89. Audit costs 
of $21,481 are authorized for the biennium, of which 15% is 
to be paid from funds other than those line-item appropri- 
ated in HB2. 



60 



CRIME CONTROL DIVISION 



Agency Suniiiiary 
Budget Detail Summary 


Actnal 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


14.00 


13.00 


17.00 17.00 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Benefits and Claims 
Total Agency Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



408,041.91 


392,077 


486,156 


486,114 


170,470.16 


159,093 


178,522 


169,710 


11,981.08 


500 


6,250 


8,500 


542,700.78 





1,912,963 


1,944,515 


0.00 





509,245 


516,582 



$1,133,193.93 

480,359.74 

0.00 

652,834.19 

$1,133,193.93 

559,368.29 

573,825.64 

$1,133,193.93 



469,170 



82,500 



$551,670 

551,670 



$551,670 



420,742 

482,795 

2,189.599 

$3,093,136 

3,093,136 



$3,093,136 



$3,125,421 

411,834 

480,936 

2,232,651 

$3,125,421 

3,125,421 



Agency Description 



The Board of Crime Control was created by section 
2-15-2006, MCA. Under the supervision of the Board, the 
Crime Control Division provides supportive services and 
technical assistance to state and local criminal justice agen- 
cies. Technical assistance includes such areas as jail 
improvement, management training, statistical analysis. 



Crime-stoppers and crime prevention. Supportive services 
include: the Montana Uniform Crime Reporting system, 
which reports major offenses to the F.B.I, and provides 
management information for local law enforcement; Peace 
Officer Standards and Training, which promulgates stan- 
dards and training for the certification of all peace officers; 
and the criminal justice data base, which provides an auto- 
mated central repository for criminal justice data. 



BOARD OF CRIME CONTROL 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


14.00 


13.00 


17.00 17.00 



Personal Services 

Operating Expenses 

Equipment 

Grants 

Benefits and Claims 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



408,041.91 


392,077 


486,156 


486,114 


165,135.01 


159,093 


178,522 


169,710 


5,965.00 


500 


6,250 


8,500 


0.00 





1,912,963 


1,944,515 


0.00 





509,245 


516,582 



$579,141.92 

480,359.74 

0.00 

98,782.18 



559,368.29 

19,773.63 

$579,141.92 



469,170 



82,500 



551,670 




$551,670 



$3,093,136 

420,742 

482,795 

2,189,599 

$3,093,136 

3,093,136 



$3,093,136 



$3,125,421 

411,834 

480,936 

2.232,651 

$3,125,421 

3,125,421 



$3,125,421 



Program Description 

This program provides supportive services and technical 
assistance to state and local criminal justice agencies. Tech- 
nical assistance includes such areas as jail improvement, 
management training, statistical analysis, Crime-Stoppers 
and crime prevention. Supportive services include: the Mon- 



tana Uniform Crime Reporting system, which reports major 
offenses to the F.B.I, and provides managemenl information 
for local law enforcement; Peace Officer Standards and 
Training, which promulgates standards and training for the 
certification of all peace officers; and the criminal justice 
data base, which provides an automated central repository 
for criminal justice data. 



CRIME CONTROL DIVISION 



61 



Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for ihis program. 
HB2 changes $45,000 of the agency's annual funding from 
general fund to state special revenue - user fees. $20,000 per 
year is to be provided by tuition and fees for juvenile justice 
training programs, and $25,000 per year from fees charged 
for technical assistance provided to local law enforcement 
agencies. 

A statistical clerk position was eliminated as part of the un- 
funded pay plan and the June 1986 Special Session 5% 
reduction. 

The Board of Crime Control administers three federal pass- 
through grant programs: 

1. Juvenile Justice and Delinquency Prevention. 
$142,500 each year of the biennium. 

2. Criminal Justice Block Grant - $396,000 each year of 
the biennium. 

3. Crime Victim Assistance - $224,000 each year of the 
biennium. 

Language has been included in HB2 to provide biennial 
appropriation authority for the federal grants and allows for 
any remaining federal FY87 authority to continue into the 
1989 biennium. This provides for continuing authority for 
the three year federal grant authority period. All federal 
pass-through grant programs are line-itemed. 
The Board of Crime Control will be administering two new 
grants made available through the Anti-Drug Abuse Act of 
1986. Under Subtitle K - grants for Drug Laws Enforce- 
ment, U.S. Department of Justice, they will receive 



$976,948 in FY88 and $1,013,000 in FY89. Under Title IV. 
Subtitle B - grants for Prevention and Education, U.S. 
Department of Education, they will receive $238,651 in 
each year of the biennium. The grants have a 10% limitation 
on administrative funding and a 25% cash match which will 
be passed on to the grant subrecipients. 
$65,136 in FY88 and $69,636 in FY89 has been budgeted 
for the administration of the new grants. This includes 2.0 
FTE a program manager and a secretary plus operational 
costs. 

HB309 moves the Crime Victims program from the Workers 
Compensation Division, Department of Labor and Industry 
to the Board of Crime Control. The budget includes 2.0 
FTE, an administrative officer and a secretary. The budget 
is supported with Federal Crime Victims Benefit funds and 
state special revenue account - Crime Victims Benefit ac- 
count. The state special account is derived from 16.9% of 
highway patrol fines and forfeitures. 

The approved budgets for the Crime Victims program are as 
follows: 





FY88 


FY89 


Personal Services 


$ 43,569 


$ 43,623 


Operating Expenses 


11,231 


11,231 


Equipment 


2,750 


500 


Benefit & Claims 


509,245 


516,582 



$566,795 $571,936 

Table 1 shows historical data on the Crime Victims program 
since 1982. In those years where total expenditures exceed 
revenues, interest earnings on prior year revenue was used 
to cover the difference. 



Table I 

Crime Victims Program - Statistics 

1982- 1989 



FY 

1982 
1983 
1984 
1985 
1986 
1987 
1988 
1989 



Revenue 

$223,913 
403,069 
376,740 
389,703 
373,409 
376,620 
503,954 
509,289 



knefits Paid 


Administrative 


Total 


to Victims 


Costs 


Expenditures 


$287,607 


$41,641 


$329,248 


357,731 


73,529 


431,260 


340,509 


57,113 


397,622 


404,870 


47,267 


452,137 


365,863 


57,077 


422,940 


365,863 


60,545 


426,408 


463,555 


57,550 


521,105 


463,892 


55,354 


519,246 



NOTE: (1) Revenue projections for FY88 and FY89 include federal grant funds of $129,000 and $136,000 respectively. (2) 
FY88 and FY89 benefit payment projections have taken into account increases as a result of HB309 and SB40. 



62 



CRIME CONTROL DIVISION 



BOARD OF CRIME CONTROL ACTION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Equipment 

Grants 

Total Program Costs 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Budget Amended Services 

Total Service Costs 



5,335.15 











6,016.08 











542,700.78 












$554,052.01 

554,052.01 
$554,052.01 

554,052.01 
$554,052.01 



Program Description 

This program was set up to pass federal grants out to local 
entities. The program is deleted for FY88 and FY89. The 



functions are transferred to the Crime Control Program 
(01). 



HIGHWAY TRAFFIC SAFETY 



63 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 
Grants 

Total Agency Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



245,220.76 


251,429 


258,645 


258,273 


315,353.56 


200,815 


197,587 


195,769 


14,887.00 





1,500 


1,900 


0.00 





277,200 


302,400 


933,701.27 


1,100,000 


720,000 


720.000 



$1,509,162.59 

0.00 

70,790.93 

1,438.371.66 

$1,509,162.59 

1,509,162.59 

$1,509,162.59 




68,194 
*84,050 



$1,552,244 

1,552,244 

$1,552,244 



277,200 

72,000 

,105,732 



$1,454,932 

1.454^32 



302,400 

72,000 

1,103,942 

$1,478,342 

1,478.342 



Agency Description 

The Highway Traffic Safety Program was established by 
Title 61, chapter 2, MCA, to promote public safety, health, 
and welfare through efforts directed toward reducing death, 
injury, and property loss resulting from traffic accidents. Di- 
verse projects are developed, initiated and maintained 
throughout various levels of government to ensure that a 
long-term, stable, and thoroughly professional statewide pro- 
gram exists. 

Issues Addressed/Legislative Intent 

No vacancy savings factor was set for this program. 



Federal funding for this program is provided by the 
National Highway Traffic Safety Administration with a re- 
quired 50% state match for administration and planning 
costs ($72,000). Highway Gas Tax State Special Revenue 
Account funds are used as the match. 

HB277 appropriates from the general fund an amount equal 
to the proceeds collected from a drivers' license reinstate- 
ment fee from counties with drinking and driving programs, 
and authorizes the distribution of the funds to those coun- 
ties to support the programs. $277,200 has been budgeted 
for FY88 (eleven months) and $302,400 for FY89. 



HIGHWAY TRAFFIC SAFETY DIV 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 F\ 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



245.220.76 


251,429 


258,645 


258,273 


315,353.56 


200,815 


197,587 


195,769 


14,887.00 





1,500 


1,900 


0.00 





277,200 


302,400 


933,701.27 


1,100,000 


720,000 


720,000 



$1,509,162.59 

0.00 

70,790.93 

1.438,371.66 

$1,509,162.59 

1,509.162.59 

$1,509,162.59 



$1,552,244 


68.194 



.050 



277,200 

72.000 

,105.732 



$1,552,244 
1.552.244 



$1,552,244 



$1,454,932 

1,454,932 
$1,454,932 



302,400 

72,000 

1.103.942 

$1,478,342 

1.478,342 



64 



DEPARTMENT OF JUSTICE 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



543.27 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



15,120, 
4,628, 
1,361, 



798.59 
627.16 
803.44 



$21,111,229.19 

8,852,^ 
11,103, 



419.65 
274.59 
300.51 
234.44 



$21,111, 

20,963. 
147. 



229.19 

660.74 



$21,111,229.19 



14,267,949 

4,805,823 

837,743 

$19,911,515 

5,267,369 

13,378,173 

829,927 

436,046 



19,911,515 



$19,911,515 



15,441,916 

5,318,420 

1,329,893 

$22,090,229 

5,215,514 

14,628,819 

1,752,756 

493,140 

$22,090,229 

22,090,229 



$22,090,229 



15,576,997 

5,257,319 

1,105,712 

$21,940,028 

4,957,783 

14,918,888 

1,569,903 

493,454 

$21,940,028 

21,940,028 



$21,940,028 



Agency Description 

The Department of Justice, under the direction of the Attor- 
ney General, provides the state level leadership and coordi- 
nation necessary for effective law enforcement and public 
safety, as authorized in section 2-15-501, MCA. The goals of 
the department are: 1) to provide the best possible legal 
representation for the state and its political subdivisions in 
criminal appeals; 2) to provide legal services for the state, 
county, and municipal agencies and their officials; 3) to 
enforce Montana traffic laws and register all motor vehicles; 
4) to enforce state fire safety codes and regulations; 5) to 
assist local law enforcement agencies in bringing offenders 
to justice; and 6) to manage a statewide system of death 
investigations and provide scientific analyses of specimens 
submitted by law enforcement officials, coroners and state 
agencies. 

Issues Addressed/Legislative Intent 

Language in HB2 directs that the Department of Justice 
shall develop a cost allocation plan for the purpose of re- 
covering the operational cost of regional dispatch centers 



from all user agencies on an equitable basis and shall submit 
the funding plan to the 51st Legislature within the depart- 
ment's 1991 biennium budget request. It is the intent that 
after FY89 the state highway revenue account which sup- 
ports the Communications Bureau, Highway Patrol Divi- 
sion, be reimbursed for services provided to user agencies 
that are not funded by the state special highway revenue ac- 
count. 

Motor Vehicle Account funds support several programs 
within the Department of Justice and the prison license 
plate factory in the Department of Institutions. Revenue 
projections for the 1989 biennium are shown in Table I and 
reflect action of the 50th Legislature - HB492, HB730 and 
SB212. Table 2 shows the cash flow of the Motor Vehicle 
Account. The revenues froiTi Table 1, FY86 actual expendi- 
tures, FY87 budgeted, appropriated FV88 and FY89, and 
projected ending balance are detailed. A minimum ending 
balance of $125,000 in the Motor Vehicle Account at 
FYE89 was recommended by the subcommittee. The bal- 
ance allows the department a reserve in case of revenue 
shortfalls. 



DEPARTMENT OF JUSTICE 



65 



Table 1 
Motor Vehicle Account - Reven 
1989 Biennium 
(Thousands) 


ue Project 


ons 






Actual 
FY86 


Estimated Projected 
FY87 FY88 


Projected 
FY89 


Registration 

Liens 

Titles 

Personal Plates 

Com. Veh. Oper. 

Lic.(SB212) 

Titling Boats 

(HB730) 

Other 


$1,730 
375 
535 
471 

290 


$1,760 
380 
545 
475 

304 


$2,310 
455 
715 
480 

76 
310 


$2,740 
510 
845 
490 
153 

60 

315 


Total 


$3,401 


$3,464 


$4,346 


$5,113 



NOTE: The Registration, Lien and Title categories increases 
are based upon: 1 ) an approximate 3% volume increase each 
year, and 2) the impact of HB492: $703,500 in FY88 and 
$1,234,000 in FY89. 



I 



Table 2 

Motor Vehicle Account - Cash Flow Summary 

1989 Biennium 



Beginning Balance: 

Revenues: 

Total Funds Available 



Expenditures/Budget: 
Driver Services Bureau 
Communications Bureau 
Registrar's Bureau 
Law Enforcement Academy 
Special Investigations 
Central Services Division 
Data Processing Division 
Forensic Science Division 
Department of Institutions 
Adjustments 
Total 
Expenditure/Budgets 



Ending Balance: 



Actual 
FY86 



$2,012,575 
3,401,138 



$5,413,713 
Actual 
FY86 



$4,146,082 



$1,267,631 



$1,267,631 
3,464,000 



$4,731,631 



$841,698 
4,346,000 



$5,187,698 



$295,440 
5,113,000 



$5,408,440 



$298,962 


$284,668 


$369,955 


$574,238 


113,745 


444,861 








1,929,714 


1,858,062 


1,993,923 


2.064.472 


517,832 


500,862 


516,403 


527.904 








145,864 


129.136 


4,462 





5.809 





305,383 





703,851 


700,503 


603,568 


536.446 


671,964 


629.368 


330,652 


367,532 


484,489 


496.117 


41,764 


(102,498) 









66 



DEPARTMENT OF JUSTICE 



LEGAL SERVICES DIVISION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



679,135.92 


657,060 


668,500 


667,890 


131,592.71 


135,698 


132,188 


129,185 


10,595.56 


861 









$821,324.19 

785,710.84 

20,118.13 

15,495.22 

$821,324.19 

805,828.97 

15,495.22 

$821,324.19 



$793,619 

779,437 
14,182 



$793,619 
793,619 



$793,619 



$800,688 

778,653 
22,035 



$800,688 
800,688 



$800,688 



775,185 

21,890 





$797,075 
797,075 



$797,075 



Program Description 

The Legal Services Program provide the Attorney General 
with legal research and analysis; provides legal counsel for 
state government officials, bureaus, and boards; represent 
Montana's interests in cases before state and federal courts, 
antitrust cases and cases involving property that reverts to 
the state in the absence of legal heirs; interprets laws; pro- 
vide legal assistance to local governments in bond issues and 
in other matters; and, enforces the laws relating to the re- 
porting and collection of unclaimed property belonging to 
persons who cannot be located. 



Issues Addressed/Legislative Intent 

A 1.0 FTE administration secretary position and 25% of the 

funding only for a lawyer position were eliminated as part 

of unfunded pay plan and 5% permanent cuts of the June 

1986 special session. 

$9,500 in each year of the biennium for case related travel 

was line-itemed. 

A 4% vacancy savings factor was applied to all positions in 

this program. 

The state special revenue fund (Escheat Estate) supports 

part of the costs of an attorney and related operational costs 

for assisting the Department of Revenue enforce the state's 

Escheat Law. 



INDIAN LEGAL JURISDICTION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



59,996.41 

48,846.66 

421.95 



$109,265.02 

109,265.02 
$109,265.02 

109,265.02 
$109,265.02 



60,192 

9,284 





$69,476 

69,476 



$69,476 

69,476 



60,258 

105,321 





$69,476 



$165,579 

165,579 
$165,579 

165.579 
$165,579 



60,335 

5,322 





$65,657 
65,657 



$65,657 

65,657 



Program Description 

The Indian Legal Jurisdiction program provides representa- 
tion and coordination of trial and appellate lawsuits involv- 
ing the Stale of Montana and the Indian tribes, supervision 
of private attorneys contracted by the State to assist with 
those cases, and advice to state agencies on questions 
involving Indian legal matters. 



Issues Addressed/ Legislative Intent 

A $100,000 biennial, line-itemed appropriation was 

approved for legal fees, expert witnesses, and other court 

costs. 

Vacancy savings of 4% was set for this program. 



DEPARTMENT OF JUSTICE 



67 



COUN lY PROSKCU TOR SERVICES 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 F^ 1989 


Full Time Equivalent Employees 


3.00 


3.00 


3.00 3.00 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



108,157.02 

22.014.25 

$130,171.27 

130.171.27 
$130,171.27 

130,171.27 



110,079 

24,795 



$134,874 

134.874 

$134,874 

134,874 



112.961 
22,220 



$135,181 

135.181 
$135,181 

135,181 



22,466 
$135,334 

135,334 
$135,334 

135,334 
$135,334 



I 



Program Description 

The County Prosecutor Services program provides legal 
assistance to counties in the prosecution and disposition of 
major felonies and in cases in which county attorneys have 
conflicts of interest. This program also coordinates training 



Personal Services 
Operating Expenses 
Equipment 

lotal Program Costs 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



and continuing legal education for county attorneys and city 
attorneys. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
The approved budget allows the program to maintain cur- 
rent level operations. 



AGENCY LEGAL SERVICES 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


10.00 


10.00 


10.00 10.00 



341,936.55 


334,252 


367,455 


367,965 


105,178.15 


101,794 


125,107 


125,489 


11,524.74 












$458,639.44 

458,639.44 



437.114.70 
21,524.74 



$436,046 

436,046 
$436,046 

436,046 



$492,562 

492,562 



492,562 




$436,0 



$493,454 

493,454 
$493,454 

493,454 



$493,454 



Program Description 

The Agency Legal Services Program (ALS) provides legal 
services, upon request, to state agencies. Agencies are billed 
for attorney time and case-related costs to support the pro- 
gram. 

Issues Addressed/Legislative Intent 

No vacancy savings factor was applied to this program. 
Operating expenses increased by approximately $20,000 
each year of the biennium as compared to FY86 actual. 



Expert witness fees increased by $15,000, maintenance con- 
tracts on computer equipment purchased in FY86 added 
$4,100, and travel increased by $2,300. 
The program is proprietary account funded. The 1985 Legis- 
lature established the hourly rate of $46 for attorney time 
and $25 for investigator time. During the June 1986 Special 
Session, the attorneys' hourly rate was reduced to $45. 
Attorney rates will increase for the 1989 biennium to $47.80 
per hour. 



68 



DEPARTMENT OF JUSTICE 



DRIVER SERVICES BUREAU 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



1,624,794.09 


1,587,905 


1,814,512 


1,849,738 


517,779.77 


511,232 


645,310 


602,689 


83,466.43 


16,858 


159,456 


100,200 



$2,226,040.29 

1,811,208.29 

373,979.00 

40,853.00 

$2,226,040.29 

2,185,187.29 

40,853.00 

$2,226,040.29 



$2,115,995 

1,755,526 
360,469 



$2,115,995 



15,995 




1,897,971 
446,307 
275,000 



$2,619,278 

2,619,278 



$2,619,278 



1,756,674 

650,953 

145,000 

$2,552,627 

2,552,627 





Program Description 

The Driver Licensing program is responsible for implement- 
ing and administering the laws relating to the examination, 
issuance, cancellation, suspension, revocation, and reinstate- 
ment of drivers' licenses and driving privileges. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
This program budget reflects the combining of the Motor 
Vehicle Division Administrator's program with the Driver 
Services Bureau during the 1987 Biennium. 

The equipment budget includes the replacement of three 
vehicles each year of the biennium for current level opera- 
tions. $25,956 in FY88 and $27,000 in FY89. $6,000 for re- 
placement of word processing equipment was also included. 
Operating costs include $8,000 each year for special type- 
writer ribbons and $7,000 in FY89 for printing donor cards. 
It is estimated that SB181 (the administration of suspended 
drivers' licenses and reinstatement fees) will generate general 
fund revenues of $45,100 in FY88 and $49,250 in FY89 
from the driver's license reinstatement fee, and it would 



take an equal amount to administer the act. This budget is 
shown on Table 3. 



Table 3 
■ Administrative Budget 
1989 Biennium 





FY88 


FY89 


FTE 


2.25 


2.85 


Personal Services 


$35,850 


$45,600 


Operating Expenses 


2,750 


3,650 


Equipment (Computers & 


6,500 





Office) 






Total 


$45,100 


$49,250 



SB212 provides for a classified commercial vehicle opera- 
tor's licensing program. Federal funds from the Commercial 
Motor Vehicle Act ($260,000 in FY88, $130,000 in FY89) 
and Motor Vehicle Account funds ($55,900 in FY89, 
$129,800 in FY89) will support the program. The budget for 
this activity is shown in Table 4. 



DEPARTMENT OF JUSTICE 69 





Table 4 




SB212 


- Administrative Budget 
1989 Biennium 






FY88 


FY89 


FTE 


3.75 


5.00 


Personal Services 


$90,590 


$116,756 


Operating Expenses 


104,310 


69,844 


Equipment: 






Automobiles 


38,000 





Computers 


72,000 


73,200 


Law Enforcement 


8.000 





Office 


3,000 





Total 


$315,900 


$259,800 





The total funding for this Driver Services Bureau and divi- 
sion administration budget is outlined on Table 5. 
HB181 and SB212 added a total of 6.0 FTE in FY88 and 
7.85 FTE in FY89, operating expenses of $107,060 in FY88 
and $73,494 in FY89, and equipment of $119,500 in FY88 
and $73,200 in FY89. 



Table 5 






Driver Services 


Funding 




1989 Bienn 


lum 






FY88 


FY89 


General Fund 


$1,987,971 


$1,756,674 


Driver License Collections 


47,358 


47,721 


Driver Rehabilitation 


27,500 


27,500 


Highway Patrol ID Card 


1,494 


1,494 


Motor Vehicle Account 


369,955 


574,238 


Highway Traffic Safety Grant 


15,000 


15,000 


U.S. Department of 






Transportation Grant 


260,000 


130,000 


Total 


$2,619,278 


$2,552,627 





70 



DEPARTMENT OF JUSTICE 



HIGHWAY PATROL DIVISION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



6,919,325.78 


7,111,814 


7,691,509 


7,698,075 


1,609,271.66 


1,784,669 


1,665,993 


1,706.438 


1,107,851.40 


799,358 


919,855 


913,250 



$9,636,448.84 

2,581,378.24 

6,754,158.75 

300,911.85 

$9,636,448.84 

9,631,548.62 

4,900.22 

$9,636,448.84 



$9,695,841 



9,207,581 

488,260 

$9,695,841 

9,695,841 



$9,695,841 



$10,277,357 



9,653,646 

623,711 

$10,277,357 

10,277,357 





9,735,252 

582,511 

$10,317,763 

10,317,763 



$10,317,763 



Program Description 

The Highway Patrol Program is responsible for patrolling 
the highways in Montana, enforcing traffic laws and investi- 
gating traffic accidents. The Patrol gives assistance and 
information to motorists, firstaid to those injured in traffic 



accidents, and transports blood and medical supplies in 
emergency situations. 

Issues Addressed/Legislative Intent 

Following is a breakdown of the Highway Patrol Division 
budget by function/control account as approved by the legis- 
lature: 



DEPARTMENT OF JUSTICE 



71 



Uniformed 






FTE 


200.0 


200.0 


Personal Services 


$6,425,551 


$6,433,255 


Operating Expenses 


1,449,086 


1,489,417 


Equipment 


868,355 


913,250 


Total 


$8,742,992 


$8,835,922 


Funding Sources: 






Highway State Special Reve- 


$8,709,992 


$8,802,922 


nue 






Highway TrafTic Safety Grant 


33,000 


33,000 


Total 


$8,742,992 


$8,835,922 




FY88 


FY89 


65 MPH Squad 






FTE 


4.0 


4.0 


Personal Services 


$104,868 


$104,808 


Operating Expenses 


53,632 


53,692 



$158,500 



14.6 

$296,762 

9,041 



25.05 

$463,556 

20,811 



FY88 

12.0 

$339,447 

112,897 

51,000 



$503,844 
$71,633 
432,211 



$503,844 



$158,500 



14.6 

$296,534 

9,027 



$305,803 


$305,561 


FY88 


FY89 


3.75 

$61,358 

20,493 


3.75 

$61,254 

20,480 



Total 

Funding Source: 100% High- 
way Traffic Safety Grant. 

Non-Uniformed 
FTE 

Personal Services 
Operating Expenses 
Total 

Funding Source: 100% High- 
way Stale Special Revenue. 

Highway Patrol Cadets 
FTE 

Personal Services 
Operating Expenses 
Total 

Funding Source: 100% High- 
way State Special Revenue. 

Communications 
FTE 

Personal Services 
Operating Expenses 
Total 

Funding Source: 100% High- 
way State Special Revenue. 

MCSAP 
FTE 

Personal Services 
Operating Expenses 
Equipment 
Total 

Funding Sources: 
Highway State Special Reve- 
nue 

Federal - MCSAP - Truck 
Inspection 
Total 
Uniform 

Vacancy savings of 4% was set for this function/control ac- 
count. 

The FTE level of 200.0 has not changed from the 1987 
biennium. 



25.05 

$462,908 

20,794 



$483,702 



FY89 

12.0 

$339,447 

112,897 





$452,344 
$61,333 
391,011 



$452,344 



Operating expenses decrease from FY86 actual due to the 
removal of one time expenses, termination of a contract for 
service, adjustments for unusually high expenses in FY86. 
and the deflation of gasoline costs. There were some slight 
increases to rent, insurance and bonds, and prisoner per 
diem paid to local jails. 

The equipment approved for the 1989 Biennium is outlined 
in Table 6. 



Table 6 

Highway Patrol Uniform- Equipment Budget 

1989 Biennium 



65 Vehicles* 

10 Highband 

Radios 

4 Base Station 

Repeaters 

7 Siren Control 

Heads 

2 Typewriters 

1 Copy Machine 

Total 



FY88 

$810,095 

25,160 

20,000 

3,500 

2,100 
7,500 



FY89 

$891,150 



20,000 



2,100 




The price of $12,463 per vehicle in FY88 and 
$13,710 per vehicle in FY89 was used. 



The budget is supported with Highway State Special Reve- 
nue funds except for $33,000 each year of the biennium of 
federal grant funds. The federal funds. Highway Traffic 
Safety grants, support advanced training for patrolmen. 

65 MPH Squad 

No vacancy savings was applied to this function/control ac- 
count. 

The approved budget for 4.0 FTE and operating expenses is 
supported by an annual federal grant of $158,500 from the 
National Highway Traffic Safety Administration. 

Language in the 1985 General Appropriations Act had 
sunset the 55 MPH enforcement squad at the end of the 
1987 biennium. The approved budget will continue the ac- 
tivity through the 1989 biennium. 

Non-Uniformed 

Vacancy savings of 4% was set for this function/control ac- 
count. 

There was no change in the FTE level from the 1987 bien- 
nium. 

Operating expenses increase in the communication cost cate- 
gory because traffic loops have been installed in various 
high risk/high speed areas to monitor vehicle speeds. The 
traffic data is transmitted from the loops to Helena through 
telephone lines. 

Funding is Highway Patrol State Special Revenue. 
Highway Patrol Cadets 

Vacancy savings of 4% was set for this function/control ac- 
count. 

The number of cadets increase from eight in the 1987 bien- 
nium to fifteen because a higher turnover of patrolmen is 
anticipated in the 1989 biennium. Each cadet represents a 
0.25 FTE. Previously cadets were paid from contracted ser- 
vices, but because of independent contractor regulations 
they were placed on the state payroll system. 



72 



DEPARTMENT OF JUSTICE 



The training program increased from 12 to 13 weeks. 

Funding is from the Highway State Special Revenue Ac- 
count. 

Communications 

Vacancy savings of 4% was set for this function/control ac- 
count. 

Reorganization during the 1987 biennium mergered the 
11.05 FTE Communications Bureau with the 14.0 FTE of 
the Highway Patrol Communications Unit. The Criminal 
Justice Information Network (CJIN) was transferred to the 
Data Processing Division - 2.0 FTE and approximately 
$480,000 in operating expenses. The total adjusted 1987 
biennium FTE level is 23.05. 

1987 legislative action approved the transfer of a 1.0 FTE 
programmer analyst position from the Data Processing Divi- 
sion to this program. The position had remained vacant for 
over a year and will be reclassified to a communications 
program supervisor in the Helena center. 

The intent of the legislature is to 1) convert the Glendive 
Dispatch Center to a remote site serviced out of the Billings 
Dispatch Center and 2) open a new dispatch center in Mis- 
soula to service the Montana area west of the Continental 
Divide. The 4.0 FTE in Glendive, plus an approved addi- 
tional 1.0 FTE grade 8 dispatcher position would be utilized 
in the new Missoula Center. The statewide highband radio 
network was completed in the 1987 biennium, the Missoula 
Dispatch Center will complete the statewide dispatch net- 
work. 

The transfer of the programmer analyst position and the 
new Missoula dispatcher position bring the program FTE 
level to 25.05 for the biennium. 

Communication costs increase approximately $8,000 from 
FY86 actual. Due to the installation of telephone radio 



loops Helena/Missoula and Billings/Glendivc - and the 
installation of the statewide emergency telephone number 
525-5555. 

The Department of Justice is directed by language included 
in HB2 to prepare a cost allocation plan in order to recover 
the cost of communication and dispatch services provided 
other state agencies. The plan is to be submitted to the 51st 
Legislature within the agency's 1991 biennium budget 
request. Similar language was included in the 1987 bien- 
nium appropriation bill. 

Funding is from the Highway State Special Account. 
Motor Carrier Safety Assistance Program (MCSAP) 
A 2% vacancy savings factor was applied to the original 6.0 
FTE and no vacancy savings was applied to the additional 
6.0 FTE approved for 1989 biennium. 

MCSAP was transferred to the department from the Public 
Service Commission by the 1985 Legislature. The activity 
was not fully staffed and operational until approximately six 
months into FY86, therefore, FY86 actual expenditures are 
understated. 

The Department of Justice was notified that additional fed- 
eral funds are available for the 1989 biennium. Approval 
was given to increase the FTE level from 6 to 12, increase 
operating expenses by approximately $66,000 each year, and 
allow $51,500 in FY88 for equipment including three med- 
size cars, one van, and four highband radios. 

Funding is provided by the National Highway Traffic Safety 
Administration, U.S. Department of Transportation, and re- 
quires a 20% match. In the past a soft match of highway pa- 
trolmen's time was used. To continue the practice would sig- 
nificantly affect the time officers have for regular patrol 
duties. The subcommittee approved a hard match to come 
from the Highway State Special Revenue Account. 



REGISTRAR'S BUREAU 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


70.00 


70.00 


70.00 73.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,212,408.66 


1,171,113 


1,256,844 


1,300,921 


678,434.86 


685,969 


790,039 


794,811 


38,870.36 


980 


33,040 


28,740 



$1,929,713.88 

1,929,713.88 

0.00 

$1,929,713.88 

1,929,713.88 
$1,929,713.88 



$1,858,062 

1,858,062 



$1,858,062 

1.858,062 
$1,858,062 



1,993,923 

86,000 

$2,079,923 

2,079,923 
$2,079,923 



$2,124,472 

2,064,472 

60,000 

$2,124,472 
2,124,472 

$2,124,472 



Program Description 

The Vehicle Registration program provides a system of 
motor vehicle registration, a certificate of ownership, lien 
filing, and licensing of automobile dealers and manufac- 
turers. This program also processes registration for boats 
and snowmobiles. 



Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 

Operating expenses increased by approximately $30,000 per 
year of the biennium over FY86 actual. The differences are 
due to increased disk storage charges ($11,175 per year), 
$2,380 each year for SORG paper, $6,000 for new vehicle 
registration decals annually, $3,000 per year in data process- 
ing costs, $3,000 for increased freight charges to handle cen- 



DEPARTMENT OF JUSTICE 



73 



lennial plate issues, $1,000 for a new maintenance contract 
for computer equipment, and other minor increases - infla- 
tion adjustments. Boiler inspection fees of $3,300 were 
deleted - the boiler has been removed. HB730 and SB200, 
as described below, added $80,000 in FY88 and $87,233 in 
FY89 to the operating expenses budget. 
$88,000 in each year of the biennium has been line itemed 
for the printing and distribution of motor vehicle renewal 
notices. 

The equipment budget authorizes the purchase of six com- 
puter terminals per year ($7,740), a computer printer each 
year ($5,300), office equipment of $5,000 per year, and 
$9,000 in FY88 for the pay off on a contract to purchase a 
microfiche reader printer. 

HB730 requires certification of ownership for motorboats 
and vessels. Revenues generated by the bill will be deposited 
in the Motor Vehicle Account. The agency anticipates that it 
will cost $26,000 in FY88 and $82,900 in FY89 to adminis- 
ter the program. The approved budget is outlined on Table 
7. 



HB730 - 


Table 7 
Certificates of Ownership, 
1989 Biennium 


Boats 


FTE 

Personal Services 

Operating 

Expenses 

Equipment 



$20,000 

6,000 


FY89 

3 

$44,967 

27,233 

10,700 


Total 


$26^)00 


$82,900 


Funding 
Coast Guard 
Motor Vehicle Ac 
count 


$26,000 




$82,900 





SB200 replaces the fee in lieu of tax on light motor vehicles 
with a property tax. $60,000 in each year of the biennium is 
included in the budget for implementation. The source of 
funding is the Education Trust Fund Account. 
Funding for the program is the Motor Vehicle Account 
except $26,000 in FY88 of federal Coast Guard funds for 
the requirements of HB730 and $60,000 per year of Educa- 
tion Trust Fund Account for implementation of SB200. 



LAW ENFORCEMENT SERVICES DIV 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



67,991.98 

8,765.67 

0.00 


65,402 

10,420 




68,279 

9,618 

765 


68,150 

9,734 




$76,757.65 


$75,822 


$78,662 


$77,884 


76,757.65 


75,822 
$75,822 


78,662 
$78,662 


77,884 


$76,757.65 


$77,884 


76,757.65 


75,822 
$75,822 


78,662 
$78,662 


77,884 


$76,757.65 


$77,884 



Program Description 

The Law Enforcement Services Division program adminis- 
ters three bureaus: Criminal Investigation, Fire Marshal and 
Identification. These bureaus provide a broad spectrum of 
services vital to local, county, state, and federal law enforce- 
ment criminal justice agencies throughout Montana. 



Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
The approved budget allows the program to maintain opera- 
tions at current level. 



74 



DEPARTMENT OF JUSTICE 



COUNTY ATTORNEY PAYROLL 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



$1,587,735.00 
1.587,735.00 

$1,587,735.00 
1.587.735.00 

$1,587,735.00 



$922,336 

922,336 
$922,336 

922,336 



924.317 



$924,317 

924.317 
$924,317 

924.317 
$924,317 



$937,463 

937,463 
$937,463 

937,463 
$937,463 



Program Description 

The County Attorney Payroll Program pays one-half the 
salary and benefits of the 56 county attorneys from state 
general fund. 

Issues Addressed/Legislative Intent 

No vacancy savings was applied to this program. 

The 49th Legislature authorized an increase in salary for 
part-time county attorneys, paying half of deputy county 
attorneys, and providing longevity pay for no more than two 
deputy attorneys per county. Fines were increased to pay for 



the increased costs. The June, 1986, Special Session elimi- 
nated the state's obligation for deputy attorneys' salaries and 
allowed counties to retain the increased fines to pay for the 
increased local costs. Further reductions in the number of 
FTE for the 1989 biennium reflect a change in the method 
of calculating county attorney payroll. There is no impact on 
the number of county attorney positions or the amount of 
pay. 

County Commissioners by statute, have the authority to 
increase or freeze county attorney salaries. Thirty-one coun- 
ties chose to freeze salaries at 1987 levels. 



COMMUNICATIONS BUREAU 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



422,802.67 

12,484.90 

$435,287.57 

241,562.06 

193,725.51 
$435,287.57 

435,287.57 
$435,287.57 



219,671 
489, 18C 



$708,851 




708,851 



$708,851 

708,851 
$708,851 



Program Description 

The Communications Program provides 24-hour, seven day 
a week communication and radio dispatch from three 
regional dispatch centers for the Highway Patrol for all of 
Montana except the area west of Ihc Continental Divide. 
The program also provides communication and radio dis- 
patch service for other slate agencies including the Attorney 



General, Fire Marshal, Criminal Investigators, Department 
of Livestock, Fish, Wildlife and Parks, Disaster and Emer- 
gency Services and the Highway Department. 

Issues Addressed/Legislative Intent 

This program has been combined with the Highway Patrol 
Division. 



DEPARTMENT OF JUSTICE 



75 



LAW ENFORCEMENT ACADEMY DIV 
Budget Detail Summary 



Actual Budgeted Appropriated 

FY 1986 FY 1987 FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



277.032.44 

304,723.22 

6,587.00 

$588,342.66 


275.323 

288,049 



$563,372 


274.782 

344,509 

6,500 

$625,791 


274,365 

366,891 

3,000 

$644,256 


583,584.16 

4,758.50 

$588,342.66 


563,372 



$563,372 


625,791 



$625,791 


644,256 



$644,256 


583,584.16 

4,758.50 

$588,342.66 


563,372 



$563,372 


625,791 
$625,791 


644,256 



$644,256 



Program Description 

The Law Enforcement Academy Division Program provides 
a professional education and training program in criminal 
justice for Montana law enforcement officers and other 
criminal justice personnel, as specified by sections 
44-10-101 through 44-10-103, MCA. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
A .42 of an attorney position was deleted as part of the pay 
plan shortfall and 5% permanent cuts of the June 1986 Spe- 
cial Session. The legislature deleted the balance of the posi- 
tion. 

HB2 directs that the Department of Justice shall purchase 
the modular facilities in Bozeman that currently house the 
academy. The department is authorized to expend appropri- 
ated funds in the program budget. 



A $3,500 biennial, line-itemed appropriation for handguns 
has been included in the budget. 

A First Responder/Emergency Vehicle training course has 
been approved. The course would provide 48 hours of certi- 
fied emergency medical training in lifesaving skills to entry- 
level officers in the Basic Course. Emergency Vehicle Opera- 
tion is a 20 hour course for Highway Patrol instructors, 
increasing skills. $18,583 in FY88 and $24,778 in FY89 of 
tuition fees have been authorized. 

$25,310 per year of tuition funds were authorized to fund a 
series of six executive level seminars each year of the bien- 
nium. These seminars will address contemporary issues of 
concern to criminal justice administrators. 

The passage of HB492 allowed for an additional Basic 
Course in FY89. $15,984 of Motor Vehicle Account funds 
were authorized. 

The program is supported by $516,403 in FY88 and 
$527,904 in FY89 of Motor Vehicle Account funds and 
$109,388 in FY88 and $1 16,352 in FY89 from tuition/fees. 



76 



DEPARTMENT OF JUSTICE 



FIRE MARSHAL BUREAU 
Budget Detail Summary 



Actual 
FY 1986 



Appropriated 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



247,895.10 

77,134.90 

14,399.93 

$339,429.93 

326,269.32 

13.160.61 

$339,429.93 

326,269.32 

13.160.61 

$339,429.93 



225,459 
80,452 
10,142 



$316,053 

316,053 



$316,053 

316.053 




237,280 
71,195 
9,852 



$318,327 
318,327 



$318,327 



318,327 




237,547 
71,936 
9,852 



$319,335 

319,335 



$319,335 

319,335 



$319,335 



Program Description 

The Fire Marshal's Program is responsible for reducing the 
loss of life and property from fire, explosion, and arson. Ser- 
vices offered by this program are fire and arson investiga- 
tion, inspection of state-owned buildings, fire code interpre- 
tation and enforcement, and the collection of fire data 
through the fire incident reporting system. 



Issues Addressed/Legislative Intent 

A $6,000 reduction in operating expenses was taken as part 
of the pay plan shortfall and 5% permanent cuts of the June 
1986 Special Session. 
Vacancy savings of 4% was set for this program. 

Equipment approved includes the replacement of one vehi- 
cle for $8,652 each year and $1,200 each year for replace- 
ment of a flammable gas detector. 



IDENTIFICATION BUREAU 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



166,663.06 


161,184 


164,152 


164,002 


66,489.74 


69,748 


67,003 


68,507 


563.04 


908 


5,579 


579 



$233,715.84 

233,715.84 
$233,715.84 

233,715.84 
$233,715.84 



$231,840 

231,840 
$231,840 

231,840 
$231,840 



$236,734 

236,734 

$236,734 

236,734 
$236,734 



$233,088 

233,0 
$233,088 

233.088 
$233,088 



Program Description 



The Identification program is responsible for collecting, pre- 
serving and disseminating accurate criminal history record 
information in the state and nationally, and providing latent 
print services and related training to criminal justice agen- 
cies throughout the stale. The program also serves as a 
clearinghouse and central repository for information about 
missing and unidentified persons. 



Issues Addressed/Legislative Intent 

Vacancy savings was set at 4% for this program. 

A full-time fingerprint technician position was eliminated as 

part of the pay plan shortfall and 5% permanent cuts of the 

June 1986 Special Session. 

Equipment approved include $5,000 in FV88 for a fume 

cabinet for processing latent fingerprints and $579 each year 

to purchase file cabinets. 



DEPARTMENT OF JUSTICE 



77 



CRIMINAL INVESTIGATION BUREAU 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


6.00 


6.00 


7.00 7.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



155,292.94 


177,788 


210,930 


210.881 


46,914.37 


47,613 


56,425 


56,994 


3,945.91 





30,066 






156,835.37 

49,317.85 

$206,153.22 

199,153.22 

7,000.00 

$206,153.22 



155,109 
70,292 



$225,401 

225,401 



$225,401 



$297,421 



80,805 
16,616 



$297,421 



297,421 




$297,421 



165,527 
102.348 



$267,875 
267,875 



$267,875 



Program Description 

The Criminal Investigation Program, directed by the Crimi- 
nal Investigation Bureau, General Investigation Section, 
assists "city, county, state and federal law enforcement agen- 
cies at their request by providing expert and immediate aide 
in investigation and solution of felonies committed in Mon- 
tana" (Section 44-2-115(1), MCA) and investigates "any 
apparent violation of penal statutes disclosed by the audit of 
a state agency: conducted by the Legislative Auditor and 
reported by him to the Attorney General and the Governor 
(Section 5-13-304(4), MCA). The program also collects, ana- 
lyzes, and disseminates criminal investigative information 
throughout the law enforcement community in Montana and 
other states. 

Issues Addressed/Legislative Intent 

Vacancy savings was set at 4% for this program. 

A customs investigator (1.0 FTE) to work with U.S. Cus- 
toms special agents on border interdiction along the 
Montana/Canadian border was approved contingent upon 
availability of federal funds. The revenue to support the 
authorized $56,993 in FY88 and $42,809 in FY89, would 
be proceeds from a felony bust forfeiture in which the state 
participated. The budget is outlined in Table 8. 



Table 8 

Customs Investigator 

1989 Biennium 





FY88 


FY89 


Personal Services 


$30,610 


$30,557 


Operating 


12.252 


12.252 


Expenses 






Equipment 


14.131 





Total 


$56,993 


$42,809 



$9,000 in FY88 was approved for the purchase of vehicles, 
either new or used, based upon the needs of the bureau. In 
addition, $1,935 for tape recorders and $5,000 for a photo- 
graphic image computer were approved in FY88. 
The program (excepting the customs investigation activities) 
is supported by general fund and federal funds of $59,623 in 
FY88 and $59,539 in FY89. The federal funds are from the 
Rocky Mountain Information System (RMIN), an eight state 
regional intelligence sharing network of local, state and fed- 
eral intelligence agencies. RMIN funding supports 2.0 FTE 
and operational expenses. 

The 1985 Legislature authorized $408,959 of general fund to 
establish a 7.0 FTE Special Investigation Section in FY87. 
The funding was withdrawn by the June 1986 Special 
Session. 



78 



DEPARTMENT OF JUSTICE 



SPECIAL INVESTIGATION SECTION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



164,808.23 

86,155.79 

16,618.62 

$267,582.64 

0.00 

267,582.64 

$267,582.64 

231,927.32 

35,655.32 

$267,582.64 



145,709 

125,666 





$271,375 



271,375 

$271,375 

271,375 



$271,375 



435,738 
256,678 
103.280 



145.864 
649,832 



$795,696 

795,696 



$795,696 



473,334 

299,255 

36,591 



$809,180 



129,136 
)80,044 



$809,180 

809,180 



$809,180 



Program Description 

The Criminal Investigation directed by the Criminal Investi- 
gation Bureau, Special Investigation Section, provides 
undercover criminal investigative services, primarily in ille- 
gal drugs and stolen property, to the Eastern Coal Counties 
Task Force The program is funded by grants from the Mon- 
tana Coal Board and the Montana Board of Crime Control. 
The counties served are Yellowstone. Big Horn, Rosebud, 
Treasure, Powder River, Custer, Musselshell, Stillwater and 
Carbon . 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
Spending authority for a 5 FTE special investigative unit 
was provided contingent upon a grant from the Montana 
Coal Board to the Eastern Coal Counties Task Force. How- 
ever, the Coal Board does not have appropriation authority 
to grant the funds to the Task Force during the 1989 bien- 
nium. 

Approval for an additional 1.0 FTE investigator position 
and operating expenses was given contingent upon availabil- 
ity of either coal board funds or anti-drug enforcement 
funds. The anti-drug enforcement funds would require a 
25% match. Approved spending authority is $68,140 in 
FY88 and $68,067 in FY89. 

The legislature authorized the establishment of a statewide 
investigation program to combat trafficking in illegal drugs 



and stolen property, dependant upon availability of federal 
anti-drug enforcement funds and the required 25% match. 
The approved spending authority as shown in Table 9 would 
support 8.75 FTE in FY88 and 10.0 FTE in FY89 plus 
operating expenses. 

Table 9 

Criminal Investigation/Undercover Unit 

Federal Anti-Drug Enforcement 

1989 Biennium 





FY88 


FY89 


FTE 


8.75 


10.0 


Personal Services 


$258,339 


$295,937 


Operating 


134,855 


178,770 


Expenses 






Equipment 


. 103,280 


36,591 


Total 


$496,474 


$511,298 


Funding: 






Anti-Drug Enforce- 


$350,610 


$382,162 


ment 






Motor Vehicle Ac- 


145,864 


129,136 


count 






Total 


$496,474 


$511,298 





DEPARTMENT OF JUSTICE 



79 



CENTRAL SERVICES DIVISION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



269.882.22 

98,533.34 

7,348.25 

$375,763.81 


271,422 

87,233 

8,241 

$366,896 


260,048 

116,694 

11,000 

$387,742 


259.926 

85,199 

1 1 ,000 

$356,125 


353,680.59 

21,488.22 

0.00 

595.00 

$375,763.81 


360,765 

6,131 





$366,896 


351,964 
33,603 

1,597 

578 

$387,742 


344,299 

11,826 





$356,125 


375,763.81 
$375,763.81 


366,896 
$366,896 


387,742 
$387,742 


356,125 
$356,125 



Program Description 

The Central Services Division provides the administrative, 
budgetary, accounting, and fiscal support for the Depart- 
ment of Justice. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
A .85 FFE accounting technician position was eliminated as 
part of the pay plan shortfall and 5% cuts of the June 1986 
Special Session. 



1989 biennium audit costs of $31,935, for the department, 
are reflected in this program budget. Non-general fund sup- 
ported agencies are allocated a share of the total costs. 
These include $5,205 Motor Vehicle Account. $14,457 
Highway Special Revenue, $1,446 Highway Traffic Safety 
Grants, and $578 from Agency Legal Services' proprietary 
account. 

The equipment budget of $1 1,000 each year of the biennium 
is for the replacement of Department of Justice insurance 
reimbursed equipment. Funding is from the Department's 
Insurance Clearing Account. 



DATA PROCESSING DIVISION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
State Special Revenue Fund 

I'otal Funding Costs 
Current Level Services 

Total Service Costs 



337,336.95 


292,563 


396,979 


396,583 


456,685.49 


14,716 


492,372 


489,420 


10,153.47 


395 


2,500 


2.500 



310,793.10 

493,382.81 

$804,175.91 

804,175.91 



307,674 




$307,674 

307,674 
$307,674 




891,851 



$891,851 

891,851 
$891,851 




888.503 



$888,503 

888,503 
$888,503 



Program Description 

The Data Processing Program provides a full range of auto- 
mated data processing and telecommunication services for 
the Department of Justice including; system development 
and maintenance of the motor vehicle registration system, 
driver history, criminal history record information system, 
and Montana Uniform Crime Report; computer operator 
support for the Armory computer center; and system devel- 
opment and support for the Criminal Justice Information 
Network (CJIN). CJIN links law enforcement/criminal jus- 



tice agencies with information sources at local, state and 
national levels by interfacing with the National Law 
Enforcement Telecommunications System (NLETS), the 
National Crime Information Center (NCIC) and numerous 
State of Montana files. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 

The program was originally authorized 10.0 for the 1987 

biennium, but through reorganization, 5.0 additional FTE 



DEPARTMENT OF JUSTICE 



were added. The increase is the result of the following ac- 
tion: 

Original FTE authorized 10.0 

Criminal Justice Information 2.0 

Network (CJIN) 

Driver Services Bureau 3.0 

Authorized 1987 Biennium 15.0 

A 1.0 FTE programmer analyst position will be transferred 
to the Communications Bureau, Highway Patrol Division, 
leaving an FTE level of 14 for the 1989 biennium. 
$12,000 for electricity expenses in each year of the bien- 
nium is reflected in the program budget. These expenses are 



associated with the operation of the computer located at the 
Armory. 

The pay plan shortfall and 5% cuts of the June 1986 Special 
Session were taken from operating expenses. Communica- 
tions were reduced by $16,900 - CJIN toll free line. $7,500 
savings; backup communications line to the National Crime 
Information Center, $9,400 savings - in addition $2,500 of 
repair and maintenance and $818 of miscellaneous reduc- 
tions were taken. 

The $2,500 annual equipment budget is for maintenance of 
the current data processing system. 



EXTRADITION & TRANSP PRISONERS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Total Program Costs 

General Fund 

Total Funding Costs 

Current Level Services 
Total Service Costs 



147.337.06 



147.337 



$147,337.06 


$158,457 


$147,321 


$147,337 


147,337.06 
$147,337.06 


158,457 
$158,457 


147.321 
$147,321 


147,337 
$147,337 


147,337.06 
$147,337.06 


158,457 
$158,457 


147,321 
$147,321 


147,337 
$147,337 



Program Description 

The Extradition and Transportation of Prisoners Program 
reviews and processes claims to reimburse sheriffs for 
expenses of extraditing criminals, and transporting prisoners 
to state prison. 



Issues Addressed/Legislative Intent 

The approved budget allows the program to maintain cur- 
rent level operations. 

Expenditures for this program are uncontrollable and there- 
fore difficult to project. 



FORENSIC SCIENCE DIVISION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



477,603.57 

210.284.62 

49.456.78 

$737,344.97 

733,124.13 

4,220.84 

$737,344.97 

733,124.13 

4,220.84 

$737,344.97 



478,677 

180,848 





659,525 




$659,525 

659,525 



$659,525 



497,372 
270,427 
48.000 



$815,799 

815.799 



$815,799 
815,799 

_0 

$815,799 



496,954 

275.646 





772.600 




$772,600 

772,600 




$772,« 



Program Description 

The Forensic Science Program, which includes the Labora- 
tory of Criminalistics and the State Medical Examiner, pro- 
vides for a statewide system of death investigations, forensic 



science training, scientific criminal analysis. The program 
provides for the determination of the cause of death in cer- 
tain cases and the scientific examination of specimens sub- 
mitted by law enforcement officials, coroners, and state 
agencies. The division tests firearms, toolmarks, hair, fiber. 



DEPARTMENT OF JUSTICE 



81 



drugs, blood, analyzes blood, breath, and urine samples in 
connection with Driving Under the Influence of Alcohol or 
Drugs (DUI) and provides the certification, maintenance, 
and training of all law enforcement personnel on breath test- 
ing instruments. The laboratory also performs drug and 
alcohol screens for the State Department of Institutions. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
The program is supported with Alcoholism Treatment- 
Rehabilitation Account funds and Motor Vehicle Account 
funds. Alcoholism Treatment contributes $143,835 in FY88 
and $143,232 in FY89 while Motor Vehicle contributes 
$671,964 in FY88 and $629,368 in FY89. 



The equipment budget of $48,000 is a biennial, line-itemed 
appropriation. $38,000 was approved for gas chromatograph 
equipment and $ 1 0,000 for fume hoods. 
Operating expenditures in the areas of rent and repair and 
maintenance were increased significantly from FY86 actual. 
The Architecture and Engineering Division recommended 
moving the Forensic Lab after determining the Front Street 
facility was unsafe. The new location has increased square 
footage and a higher per square foot charge. The rent 
includes utilities as well as the remodeling charges. The 
annual rent increase is $52,900. The increased maintenance 
contracts are for toxilizers purchased throughout the 1987 
biennium. The increases are approximately $23,000 in FY88 
and $27,000 in FY89. 



82 



PUBLIC SERVICE REGULATION 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Bndgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,275,580.28 

310,231.62 

39,423.61 

5,000.00 

$1,630,235.51 


1,327,263 

374,998 

26,396 



$1,728,657 


1,360,582 

423,271 

33,885 



$1,817,738 


1,359,144 

348,047 

22,705 



$1,729,896 


1,591,501.64 

0.00 

30,033.20 

8,700.67 

$1,630,235.51 




1,662,738 

50,919 

15,000 

$1,728,657 


1,769,247 



33,491 

15,000 

$1,817,738 


1,679,762 



35,134 

15,000 

$1,729,896 


1,630,235.51 
$1,630,235.51 


1,728,657 
$1,728,657 


1,817,738 
$1,817,738 


1,729,896 
$1,729,896 



Agency Description 

The purpose of the Department of Public Service Regulation 
is to regulate the public utility, motor carrier, and railroad 
industries to provide safe, reliable, and adequate services at 
the lowest achievable cost to the consumers while concur- 
rently providing the regulated industries with a fair and 
reasonable return on their investment for the services 
rendered. The department is provided for in sections 
2-15-2601 and 69-1-102, MCA. The department operates 
under one program - Public Service Commission. 

Issues Addressed/Legislative Intent 

The Public Service Commission had proposed a budget 
which included reductions' to meet their obligation of the 
unfunded pay plan as well a 4% vacancy savings reduction. 
However, these reductions were not included in the accepted 
biennial budget for the PSC. As such, 1.0 FTE attorney 
which had been vacant for most of FY 86 and 87 was 
approved for FY88 and FY89 and an additional $36,783 
per year over the executive budget for travel was added 
back into the budget. 

The number of FTE authorized for FY88 remains at the 
same level as was authorized in FY86. 

In FY88, $12,480 is appropriated for audit costs. 
Operating expenses increase over 36% in FY88 from FY86. 
Increases include: $31,300 for contracted services, $12,000 
in travel, $1,500 in supplies, $3,400 in rent and $1,400 in 
repairs and maintenance. 

PSC is authorized $14,608 for office equipment in FY88 
and $1,778 in FY89. 

One vehicle ($12,277) in FY88 and two vehicles ($20,927) 
in FY89 are authorized. 

The appropriation for pipeline safety increases $9,738 in 
FY88 from the actual FY 86 expenditure and utilizes 50% 
federal funds and 50% utilitv tax revenues. The railroad 



safety program increases $22,268 in FY88 from FY86 and is 
financed with 19% federal funds and 81% utility tax reve- 
nues. 

A modification in FY88 for a data processing consultant 
($50,000) to develop a data base for the PSC case manage- 
ment system and, in addition, $7,000 is included for an 
uninterrupted power supply for the PSC computer. Funding 
for this modification is line itemed with the legislative 
intent that the Commission not use the funds for anything 
other than the original intent of the legislature. Further, if 
the Governor should choose to reduce the authorized appro- 
priation during the biennium this item is not to be reduced. 

The legislature also authorized a biennial appropriation of 
$11,967 for the PSC to hire consultants for: I) situations 
when the Consumer Counsel is unable or declines to 
develop certain issues and; 2) to protect the state's interest 
in regard to federal regulatory bodies. The funding for this 
modification is derived from remaining funds from a 
$20,000 appropriation in the 1987 biennium which enabled 
the commission to participate in the Montana-Dakota Utili- 
ties Company cases before the Federal Energy Regulatory 
Commission. 

HB 583 approves the funding of PSC with utility taxes. The 
bill also provides that revenue from the tax will flow into 
the general fund and be distributed to the PSC as general 
fund revenue. 

HB861 appropriates $500 general fund in FY87 to the PSC 
(with PSC to receive $250) and the Attorney General's 
office for administration of certain information from the 
buyer and seller of a line of railroad. 

Federal funds are derived from the U.S. Transportation 
Department for the Rail Safety Program and the Pipeline 
Safety Program. 

The proprietary funds are the revenues the state receives 
from out of state utilities for reimbursable auditing 
expenses. 



BOARD OF PUBLIC EDUCATION 



83 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


2.00 


2.00 


3.00 3.00 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



65,321.57 

37.928.52 

2,420.00 

$105,670.09 

105,670.09 


67,094 

32,707 



$99,801 

99,801 


122,035 

55,506 



$177,541 

177,541 

$177,541 

177,541 

$177,541 


121,892 

56,617 



$178,509 

178,509 


$105,670.09 

105,670.09 
$105,670.09 


$99,801 

99,801 
$99,801 


$178,509 

178,509 
$178,509 



Agency Description 

The Board of Public Education, created by Article X, 
Section 9 of the 1972 Montana Constitution, consists of 
seven voting members appointed by the Governor and con- 
firmed by the Senate. The board is charged with exercising 
"general supervision over the public school system." The 
board is also designated by statute as the governing board of 
the Montana School for the Deaf and Blind and the Mon- 
tana Fire Services Training School. Together with the Board 
of Regents, the board does the general planning, coordi- 
nating and evaluation of the state's educational system. 
(Title 20, Chapter 2, MCA). 

The Board accredits all schools, certifies all teachers, adopts 
policies for special education, administers and orders the 
distribution of state equalization aid, and sets standards for 
school buses and drivers. The Board's standards are the 
basis for eligibility for local school districts to receive state 
funds. Also, the Board hears cases regarding denial, suspen- 
sion and revocation of teacher certificates and reviews 
teacher education programs leading to interstate reciprocity. 
Board staff administers Board meetings, researches policy, 
collects reports and reviews and writes policy for consist- 
ency with statutes and rules, keeps records of the Board's 
actions, provides testimony to the Legislature, determines 
fiscal notes for any changes in standards which impact local 
schools, and maintains liaison with the Superintendent of 
Public Instruction, the Commissioner of Higher Education, 
professional organizations and the public at large. 



Issues Addressed/Legislative Intent 

The legislature made several adjustments to the Board of 
Public Education's budget, including the addition of 1.0 
FTE and responsibility for a study of accreditation stan- 
dards. 

Personal services were increased approximately $8,700 in 
FY88 and $8,600 in FY89 for additional per diem expenses. 
This allows board members to receive the $50 per day 
allowed by statute, and to allow additional days for mem- 
bers who require travel days to attend the board meetings. 
No vacancy savings was applied against this budget. 

Adjustments to operating expenses included audit costs of 
$2,400 in FY88 only, elimination of dues totalling $4,420 
for the National Association of School Boards of Education 
(NASBE). Also, travel was increased by $1,805 for addition- 
al board travel, legal expenses were reduced $2,982 per year 
due to the conclusion of a lawsuit, and temporary secretarial 
service costs of $1,425 per year were removed from the bud- 
get as a one-time expenditure in FY86. 

Other Legislation 

The legislature passed HB871 which requires the Board of 
Public Education to adjust certified or licenced faculty at 
the School for the Deaf and Blind. Funds totalling $23,029 
per year are appropriated to the Board of Public Education 
to be transferred to the School for the Deaf and Blind. 

The legislature also passed SB344 which provides for an ac- 
creditation standards study. Funding of approximately 
$98,000 for the biennium is provided in HB2 to conduct the 
study. 



84 



COMMISSIONER OF HIGHER ED 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


26.50 


26.50 


33.85 33.85 



Personal Services 

Operating Expenses 

Equipment 

Local Assistance 

Grants 

Benefits and Claims 

Transfers 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



825,123.20 


812,655 


1,106,953 


1,106,220 


796,079.68 


1,308,230 


1,375,662 


1,455,119 


22,149.75 


10,307 


8,500 


14.000 


3,237,163.68 


3,158,520 


3,110,014 


3,103,798 


4,693,527.86 


4,572,369 


6,992,738 


6,830,475 


0.00 





8,316,000 


8,731,800 


97,115,968.00 


94,811,155 


103,497,650 


103,524,951 


$106,690,012.17 


$104,673,236 


$124,407,517 


$124,766,363 


88,729,604.87 


81,431,571 


96,531,656 


96,908,760 


16,805,328.00 


21,671,074 


14,504,093 


13,968,623 


1,155,079.30 


1,570,591 


4,632,159 


4,683,642 


0.00 





8,739,609 


9,205,338 



106,572,434.95 
117.577.22 



104,673,236 




124,407,517 




$106,690,012.17 $104,673,236 $124,407,517 $124,766,363 



124,766,363 




$106,690,012.17 $104,673,236 $124,407,517 $124,766,363 



Agency Description 

The Commissioner of Higher Education is the chief admin- 
istrative officer of the Montana University System. Article 
X, Section 9 of the Montana Constitution provides that the 
regents appoint the Commissioner and prescribe the powers 
and duties of the office. The Commissioner's responsibilities 
include the following: academic planning and curriculum 
review, budgetary planning and control, provision of legal 
services to campuses, facilities planning, establishment of 
labor negotiation policies and procedures, and coordination 
of community colleges and vocational technical centers in 
accordance with state law and regent policies. The Commis- 
sioner also administers programs pertaining to student aid. 



Issues Addressed/Legislative Intent 

The major changes in the Commissioner's Office between 
the 1986-87 and the 1988-89 biennia are the addition of vo- 
tech governance to the administrative responsibilities of the 
commissioner for the Board of Regents and the inclusion of 
$17 million of proprietary fund authority for the bicnnium 
for the Montana university system group insurance program. 
The vo-tech addition results in increased administrative 
costs of $482 thousand for the biennium and grants and 
state appropriation transfers totalling $14.8 million for the 
biennium. 



ADMINISTRATION PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

I'otal Funding Costs 
Current Level Services 

Total Service Costs 



567,231.75 


557,043 


570,361 


570,209 


210,845.05 


213,251 


231,777 


203,895 


17,518.39 


307 









$795,595.19 

795,595.19 
$795,595.19 

795,595.19 



$770,601 

770,601 
$770,601 

770,601 
$770,601 



$802,138 

802,138 
$802,138 

802,138 
$802,138 



$774,104 
774,104 

$774,104 
774,104 



Program Description 

The staff of the Administration program: provide academic 
planning and curriculum review; make budgetary recom- 



mendations and provide for budgetary review; perform facil- 
ities planning and make recommendations; set policies and 
procedures relating to labor negotiations; maintain and pro- 
vide legal services for the campuses; coordinate community 



COMMISSIONER OF HIGHER ED 



85 



colleges in accordance with state law and regent policies; 
and promulgate and review management information sys- 
tems, including accounting. 

Issues Addressed/Legislative Intent 

General fund 1988-89 biennial support of the administra- 
tion program decreases by 2% over base level expenditures. 
This reflects a reduction of 1.20 FTE from general fund sup- 
port in order to respond to the impact of the unfunded 
FY87 pay plan — .50 FTE attorney position was eliminated 
and .70 fiscal and clerical FTE were transferred to other 
funding sources within the office. Personal services costs 
still increase over base year expenditures due to vacancy 
savings in the base and increased benefits in the 1988-89 
biennium. A 4% vacancy savings rate was applied to per- 
sonal services. 

Operating expenses increase slightly due to increases in 
audit and insurance costs. The legislature approved prorat- 
ing some of the administrative costs in this program to 
federally-supported programs in the office — reducing this 
operating base by approximately $3,200. 



The legislature decided to appropriate $ 1 50,000 of general 
fund for the biennium to support a study of the funding 
mechanism for the university system. The commissioner's 
office is appropriated $ 1 5.000 of that sum to help defray 
costs of participating in that study. HB2 language specifies 
the intent and scope of the study: 

"The Montana legislature recognizes the need to review the 
adequacy of the current method for funding the university 
system. The study shall be conducted by an eight-member 
legislative committee comprised of four members appointed 
by house leadership and four members appointed by the 
senate committee on committees. The study shall be coordi- 
nated by the office of the legislative fiscal analyst in con- 
junction with the commissioner of higher education and ac- 
tive participation of the office of budget and program plan- 
ning. The scope of the study will encompass a review of 
higher education expenditures and funding, and an analysis 
of the adequacy and consistency of the university financing. 
The study shall also address cost-effective methods of devel- 
oping uniform personnel and class enrollment systems and 
consistent statewide budgeting and accounting system proce- 
dures and reports." 



STUDENT ASSISTANCE PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Local Assistance 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



53,000.00 
4,579,395.00 
$4,632,395.00 


56,000 
4,572,369 
$4,628,369 


59,000 
4,611,102 
$4,670,102 


62,000 

4,448,839 

$4,510,839 


2,017,878.00 

2,421,328.00 

193,189.00 


796,295 

3,622,074 

210,000 


3,726,938 
683,164 
260,000 


3,996,510 
254,329 
260,000 


$4,632,395.00 


$4,628,369 


$4,670,102 


$4,510,839 


4,632,395.00 


4,628,369 


4,670,102 


4,510,839 


$4,632,395.00 


$4,628,369 


$4,670,102 


$4,510,839 



Program Description 

The Student Assistance Program consists of: the Western 
Interstate Commission on Higher Education (WICHE) 
Student Exchange Program which provides education oppor- 
tunities for Montana students in the fields of medicine, den- 
tistry, veterinary medicine, optometry, public health, 
occupational therapy, podiatry; the Washington, Alaska, 
Montana, Idaho (WAMI) program - a cooperative agreement 
for medical education; the cooperative dental education 
agreement with the University of Minnesota; the State 
Student Incentive Grant (SSIG) program which provides 
loan funds to needy students - 50% from federal funds and 
50% matching state funds; the National Direct Student Loan 
(NDSL) program which provides loan funds to students by 
the schools matching a basic amount appropriated by the 
legislature; and the slate's share of Montana's Workstudy 
Program (Title 20, chapter 25, part 7, MCA). 

Issues Addressed/Legislative Intent 

The total 1988-89 biennium appropriation for this program 
decreases 2% over base year expenditures due to further 
decreases in number of students supported. Two slots for 



new medical students in the WICHE program were elimi- 
nated beginning in FY88 — for a total reduction of two 
slots in FY88 and four in FY89 and a cost savings of 
$136,000 for the biennium. Language in HB2 continues to 
allow the commissioner the fiexibility of transferring appro- 
priation authority between the WICHE and Minnesota 
Rural Dentistry programs. 

"In each fiscal year, the commissioner of higher education is 
allowed to transfer appropriation authority between the 
amounts included in the WICHE appropriation for den- 
tistry, which is $120,534 in fiscal 1988 and $122,668 in 
fiscal 1989, and the Minnesota rural dentistry appropria- 
tion." 

An appropriation of $35,000 of general fund was added to 
the WAMI appropriation in FY88 only to support the 
family practice program, designed to recruit doctors to prac- 
tice in Montana. Language in HB2 states: "General fund 
support of the family practice program does not extend 
beyond fiscal 1 988." 

General fund biennial support for students attending insti- 
tutions of higher education in Montana increased 91% over 
base year level. This results from a combination of revenue 



86 



COMMISSIONER OF HIGHER ED 



changes and federal matching requirements. There is an 81% 
decrease in coal trust interest earning available to the local 
impact/education trust account, which in the base year in 
the 1986-87 biennium represented 52% of the total student 
assistance appropriation, instead of only 10% in the 1988-89 
biennium. (This revenue decrease has resulted from various 
appropriations of education trust balances to balance the 
statewide budget and changes in percentages of coal trust 
distribution.) General fund increases $35,000 per year to 



fully match all available federal funding for the SSIG pro- 
gram. Support for the general funded College Work Study 
program remained at 1986-87 biennium level of $276,450 
per year. This program was initiated when it was believed 
that federal support for college work study was going to 
terminate. The following table shows federal and state-sup- 
ported college work study funds and students involved for 
the 1986-87 biennium and projected for the 1988-89 biep- 
nium. 



Table 1 

Federal and State Work Study 

Support Levels and Participants 

Six Units and Three Community Colleges 

1986-87 and 1988-89 Biennia 



Federal Program: 
Support 
Federal 
Institution 


FY86 
$3,078,256 
2,154,779 
923,477 


FY87 
$3,164,233 
2,214,963 
949,270 


FY88 
$2,936,206 
$2,055,344 
880,862 


FY89 

$2,936,206 

2,055,344 

880,862 


Participants 


2,820 


2,727 


2,531 


2,531 


State Program: 










Support 
State 
Institution 
Other Employer 
Total 


$ 286,201 
85,399 
38,060 

$ 409,660 


$ 256,124 
76,837 
32,930 

$ 365,891 


$ 276,450 
82,935 
35,544 

$ 394,929 


$ 276,450 
82,935 
35,544 

$ 394,929 



654 



563 



609 



609 



Participants 

NOTE: FY87 shows the impact of the appropriation authority recision of general fund in the state program in that year. The 
federal work study program support goes directly to the units of higher education and neither the federal support nor the state 
match is appropriated. 



Carl Perkins federal scholarship funds amounting to $50,000 
per year were appropriated to support outstanding high 
school students to encourage them to pursue careers as 
teachers. These funds and the $210,000 of federal SSIG 
funds represent the total federal funds appropriated in the 
student assistance program because the federal match sup- 



port of the NDSL program ($550,000 per year) is allocated 

directly to the units and is not appropriated through the 

state. 

The following table lists the programs and funding sources 

for the 1988-89 biennium for student assistance. 



Table 2 

Funding Support and Slots for Student Assistance 

1988-89 Biennium 



Program 
WICHE Admin 
WICHE Support 

WAMI 

Family pract. 
MR I) Support 
SSKi niakh 



Funding 

Coal 

Coal 

GF 

Coal 

GF 

GF 

(iF 

(;i 

Federal 

GF 

GF 



FY88 




FY89 




Amount 


Slots 


Amount 


Slots 


59,000 





$ 62,000 


_ 


624,164 


117 


150,537 


103 


1,161,470 




1,436,131 







60 


41,792 


60 


1,898,618 




1,949,929 




35,000 


— 





— 


90,400 


8 


69,000 


6 


210,000 


l,(.8() 


2I0,()(>() 


l,f.K() 


210,000 




210,000 




55,000 


— 


55,000 


— 


276,450 


609 


276,450 


609 



NOSl. malch 

Work Study* 

* GF supports 70% of the total work study program costs — participating units support 21% and other employers, such as 

private non-profits organizations, supply the remaining 9% on a system-wide basis. The slots listed represent estimated student 

participants in the total program, not just the proportion that would be served by the general fund support. 



COMMISSIONER OF HIGHER ED 



87 



ED. FOR ECON. SECURITY GRANT 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 F\ 1989 



Full Time Equivalent Employees 



.00 



Operating Expenses 
Grants 

Total Program Costs 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



3.444.36 
4,1.32.86 



$117,577.22 

117,577.22 

$117,577.22 

0.00 

117,577.22 
$117,577.22 



1 .364 

56,636 

$58,000 

58,000 



$58,000 

58,000 




1,364 
56,636 



$58,000 

58,000 



58,000 




Program Description 

The federal Education for Economic Security Act provides 
funds to be used to upgrade the teaching skills of teachers in 
the mathematics and science disciplines. Grants are awarded 
to all institutions of higher education within the state on a 
competitive basis. Priorities for the grants are: 

1. Inservice training for elementary, secondary and voca- 
tional school teachers to improve their teaching skills in 
the fields of mathematics and science. 

2. Retraining teachers who are currently teaching without 
proper certification in mathematics and science. 



3. Retraining teachers who are currently teaching in other 
disciplines so they will specialize in teaching mathemat- 
ics and science. 

4. Traineeship programs for new teachers who will 
specialize in mathematics and science. 

Issues Addressed/Legislative Intent 

The legislature accepted the federally funded Education for 
Economic Security program as recommended in the Execu- 
tive Budget. 



COMMUNITY COLLEGE ASSISTANCE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Local Assistance 

Total Program Costs 
Cicncral Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



3,184,163.68 
$3,184,163.68 

3,184,163.68 
$3,184,163.68 

3,184,163.68 
$3,184,163.68 



3,102,520 
$3,102,520 

3,102,520 
$3,102,520 

3,102,520 
$3,102,520 



3,051,014 
$3,051,014 

3.051,014 
$3,051,014 

3,051,014 
$3,051,014 



$3,041,798 

3,041.798 
$3,041,798 

3,041.798 
$3,041,798 



Program Description 

The Community College Program distributes funds appro- 
priated by the legislature for the support of Montana's three 
community colleges: Miles City Community College, Flat- 
head Valley Community College, and Dawson Community 
College. The 1981 Legislature implemented a funding for- 
mula developed by the Legislative Finance Committee, 
which is addressed in sections 20-15-310 and 20-15-312, 
MCA. 

Issues Addressed/Legislative Intent 

General fund support of the three community colleges' cur- 
rent unrestricted fund budgets, including audits, had been 
originally appropriated at 52% in the 1986-87 biennium, but 



appropriation authority recisions in FY87 effectively 
reduced the support to 49%. The 1987 Legislature decided 
to reduce general fund support by another percentage to 
48% for the 1988-89 biennium. Language concerning com- 
munity colleges was included in HB2 that requires that 52% 
of approved audit costs must be paid from other than gen- 
eral fund and other current unrestricted funds and that 
audit costs may not exceed $18,000 for each unit in the 
biennium. 

The following factors were used to derive the total unre- 
stricted budgets for the three community colleges. Support 
cost-per-FTE student was based on inflationary adjustments 
for operating costs and on inclusion of the full pay plan in 
FY87 on personal services costs. 



88 



COMMISSIONER OF HIGHER ED 



Community 

College 
Dawson 

Flathead 
Valley 
Miles 
TOTAL 



Support 
Factor 

$3,622 
$3,622 

$3,622 



Student FTE 
Enrollment 
400 
928 



Total Approved 

Operating Budget* 

$1,466,800 

$3,379,216 



$1.510,264 
$6,356,280 



General 
Fund 

$ 704,064 



$ 724,926 



$3,051,014 



Student FTE 
Enrollment 
450 



412 



Community Support 

College Factor 
Dawson $3,642 

Flathead $3,642 

Valley 
Miles $3,642 

TOTAL 



* Includes biennial audit costs of $18,000 per college. 
The following table summarizes community college 
headcount and fall full-time equivalent student enrollment 
and budgeted enrollment for FY82 through projected FY89. 
Percent of actual FTE to budgeted FTE is also included. 



Total Approved 

Operating Budget* 

$1,456,800 

$4,379,776 



$1,500,504 



General 
Fund 
$ 699,264 
$1,622,292 

$ 720,242 



$6,337,080 





Table 1 






Community College Enrollments and Percent of FTE 




Supported 






Fiscal Years 1982 through 1989 






Fall 


Fall 


Percent 




Community 1 


rieadcount 


FTE 


Budgeted 


FTE 


College Enroll- Enroll- Enroll- Si 


upported 




ment 


ment 


ment 




Dawson 










FY82 


608 


340 


310 


91% 


FY83 


690 


388 


310 


80% 


FY84 


749 


406 


380 


94% 


FY85 


761 


462 


400 


87% 


FY86 


786 


500 


400 


80% 


FY87 


589 


411 


400 


97% 


FY88 








400 


— 


FY89 








400 


— 


Flathead 










FY82 


1,663 


815 


674 


83% 


FY83 


1,808 


792 


651 


82% 


FY84 


1,874 


770 


792 


103% 


FY85 


1,956 


853 


827 


97% 


FY86 


2,031 


899 


850 


95% 


FY87 


2,004 


916 


850 


93% 


FY88 








928 


— 


FY89 


— 


— 


928 


— 


Miles 










FY82 


1,091 


610 


466 


76% 


FY83 


1,035 


595 


450 


76% 


FY84 


1,146 


634 


580 


91% 


FY85 


867 


467 


580 


124% 


FY86* 


720 


424 


464 


109% 


FY87 


717 


403 


464 


115% 


FY88 








412 


— 


FY89 


— 


— 


412 


— 



Approved enrollments decreased when unapproved 
enrollments removed. 



COMMISSIONER OF HIGHER ED 



89 



MUS GROUP INSURANCE PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 




Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 




.00 






.00 


2.50 


2.50 


Personal Services 
Operating Expenses 
Benefits and Claims 




0.00 
0.00 
0.00 

$0.00 
0.00 

$0.00 
0.00 

$0.00 


— 








$0 


$0 


$0 


74.500 

349,109 

8,316,000 

$8,739,609 

8,739,609 

$8,739,609 

8,739,609 

$8,739,609 


74.429 

399,109 

8,731,800 


Total Program Costs 

Proprietary Fund 

Total Funding Costs 
Current Level Services 

Totol Service Costs 


$9,205,338 

9.205.338 
$9,205,338 

9.205.338 
$9,205,338 



Program Description 

The Montana University System Group Insurance program 
provides a partially self-insured insurance plan for univer- 
sity system employees, including all authorized affiliated 
group employees. 

Creation of the plan was authorized by the Board of Regents 
in June, 1984. 



Issues Addressed/Legislative Intent 

This program was transferred from an auxilliary fund ac- 
count at the Montana College of Mineral Sciences and Tech- 
nology into a proprietary fund account within the commis- 
sioner's office. The staff level for administering this program 
was authorized at 2.50 FTE. Staff support from the commis- 
sioner's administration program was transferred to this pro- 
gram in an aggregate of .65 FTE of that total. No vacancy 
savings was applied to personal services in this program. 



TALENT SEARCH 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



120,620.93 
37,173.07 



$157,794.00 
157.794.00 

$157,794.00 
157,794.00 

$157,794.00 



116,112 
49,360 



$165,472 
165,472 

$165,472 
165,472 



121,822 
52,532 



$174,354 
174.354 

$174,354 
174.354 

$174,354 



121.731 
51,886 



$173,617 

173,617 
$173,617 

173.617 
$173,617 



Program Description 

Talent Search is a federally funded program to provide 
career and financial aid counseling to students who are 
either low-income, physically handicapped, or culturally 
deprived. The program's objectives are to decrease the high 
school dropout rate in targeted high schools and to increase 
enrollment of disadvantaged students in Montana's post- 
secondary institutions. 

Issues Addressed/Legislative Intent 

The appropriation authority for this federally-funded pro- 
gram increases 10% due to an increase in benefits, transfer 



of some agency support costs to this program and the addi- 
tion of appropriation authority of $12,236 in FY88 and 
$12,188 in FY89 for recording indirect cost recovery within 
the state's budgeting and accounting system. (These indirect 
costs had been included in a separate program in the Execu- 
tive Budget, but were combined into this program by legis- 
lative action. They may still be accounted separately within 
the program.) A 4% vacancy savings rate was applied to per- 
sonal services costs of this program. 



90 



COMMISSIONER OF HIGHER ED 



VO-TECH APPROP. DISTRIB. 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



.00 



Transfers 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



0.00 
$0.00 
0.00 
0.00 
0.00 
$0.00 
0.00 
$0.00 



5,059,241 

956,729 

807,474 

$6,823,444 

6,823,444 

$6,823,444 



6,693,710 

$6,693,710 

5,077,942 

808,294 

807,474 

$6,693,710 

6,693,710 



Program Description 

This program serves as the vehicle for transfer of state gen- 
eral fund, Carl Perkins federal funds, state millage and coal 
trust interest earnings appropriations to the vocational tech- 
nical centers. 

Issues Addressed/Legislative Intent 

HB2 includes the following language: 



"The office of budget and program planning may 
establish transfer appropriations for vocational-tech- 
nical centers and university units within the appro- 
priate agency distribution program. This provision is 
to allow compliance with proper accounting of cur- 
rent unrestricted operations using the CUBA fund 
structure at individual units of education." 

(Refer to the Vo-Tech Center narrative for a breakout of 
State appropriated support by funding source.) 



VO-TECH ADMIN. 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



.00 



5.00 



5.00 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 

General Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



0.00 
0.00 
0.00 
0.00 

$0.00 
0.00 
0.00 

$0.00 
0.00 

$0.00 



167,837 

63,801 

4,000 

2,325,000 

$2,560,638 

82,319 

2,478,319 

$2,560,638 

2,560,638 

$2,560,638 



167,635 

74,695 

4.000 

2.325,000 

$2,571,330 

93,165 

2,478,165 

$2,571,330 

2,571,330 

$2,571,330 



Program Description 

The 50th Legislature transferred governance of the voca- 
tional technical centers to the Board of Regents from the 
Superintendent of Public Instruction. HB39 also designates 
the Board of Regents as Ihc sole slate agency for federal 
vocational education requirements. The board shall contract 
with the Superintendent of Public Instruction for the admin- 
istration and supervision of K-12 vocational education pro- 
grams, services and activities allowed by the 1984 Carl D. 
Perkins Vocational Education Act. The board may contract 
with other agencies for the administration and supervision 
of other vocational education programs allowed by the same 
federal act. This program within the Office of the Commis- 
sioner of Higher Education contains the staff and operating 
costs to provide administrative service to the board to carry 



out Vo-Tech center governance activities. It also includes 
the grant allocations. 

Issues Addressed/Legislative Intent 

House Bill 39 requires Ihc Board of Regents to report to the 
51st Legislature on the following concerns: 

1. A plan for reorganization of the delivery system for 
all postsecondary education in Montana; 

2. A long-term plan for achieving high quality) voca- 
tional-technical programs at the vocational-technical 
centers through the possibility of program specializa- 
tion at each center; 

3. The feasibility and appropriateness of closure of one 
or) more of the vocational-technical facilities; 



COMMISSIONER OF HIGHER ED 



91 



4. A plan for elimination of programs that serve few 
students; 

5. A plan for consolidation of administrative functions 
of the individual centers which could result in cost 
savings and more efficient operations; and 

6. The feasibility of consolidating postsecondary voca- 
tional-technical facilities and staff with nearby units 
of the university system. 

HB39 also provides the Board of Regents $1,454,690 for a 
biennial appropriation of local impact and education trust 



funds to support the vo-tech centers. These funds are to be 
used for vo-tech center bond and interest payments in the 
1988-89 biennium. 

Five FTE have been funded to provide administrative sup- 
port to the commissioner for vo-tech governance activities 
— 4.00 FTE exempt professional positions and 1.00 FTE 
administrative assistant. A 4% vacancy savings rate was 
applied. 



APPROPRIATION DISTRIBUTION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Transfers 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



$97,115,968.00 

82,731,968.00 
14,384,000.00 

$97,115,968.00 
97,115,968.00 

$97,115,968.00 



$94,811,155 

76,762,155 
18,049,000 

$94,811,155 
94.811,155 

$94,811,155 



$96,674,206 

83,810,006 
12.864,200 

$96,674,206 
96,674,206 

$96,674,206 



$96,831,241 

83,925,241 
12,906,000 

$96,831,241 
96,831,241 

$96,831,241 



Program Description 

The Distribution Program serves as the vehicle for transfer 
of general fund and millage appropriations to all units of the 
Montana University System. 

Issues Addressed/Legislative Intent 

HB 2 includes the following language: 



"The office of budget and program planning may 
establish transfer appropriations for vocational-tech- 
nical centers and university units within the appro- 
priate agency distribution program. This provision is 
to allow compliance with proper accounting of cur- 
rent unrestricted operations using the CUBA fund 
structure at individual units of education." 
(Refer to the University System narrative for a breakout of 
State appropriated support by funding source.) 



GUARANTEED STUDENT LOAN PGM 
Budget Detail Summary 



Actual Budgeted Appropriated 

FY 1986 FY 1987 FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



137,270.52 

544,617.20 

4,631.36 


139,500 

1,045,619 

10,000 


172,433 

677,079 

4,500 


172,216 

724,170 

10,000 


$686,519.08 


$1,195,119 


$854,012 


$906,386 


686,519.08 
$686,519.08 


1,195,119 
$1,195,119 


854,012 
$854,012 


906,386 
$906,386 


686,519.08 


1,195,119 
$1,195,119 


854,012 
$854,012 


906,386 


$686,519.08 


$906,386 



Program Description 



The staff of the Guaranteed Student Loan Program provide 
administrative coordination of the state's authorized student 



loan program. The program began July 1. 1980. to make 
improved opportunities for education available to students 
by guaranteeing loans from private lending institutions. 



92 



COMMISSIONER OF HIGHER ED 



Issues Addressed/Legislative Intent 

Staff level increases by 1.05 FTE due to transfer of .05 FTE 
from the commissioner's administration program and the 
addition of a program consultation and assessment specialist 
who will assist in the review of schools and lenders in the 
GSL program and provide workshops and training sessions 
for school and lender financial aid personnel. A 4% vacancy 
savings rate was applied to personal services costs of this 
program. Operating expenses increase due to increased 
insurance and overhead charges as well as to increased 
travel, printing and data processing costs associated with 



expanded loan volume. Service fees for loans increased by 
approximately $100,000 from base year expenditures. Fees 
are calculated on the basis of .003 of the outstanding loan 
value. The following are the 1986-87 biennium and pro- 
jected loan values, in million dollars, for the program: 

FY86 FY87 FY88 FY89 

Loan Value $150 $160 $175 $200 

Equipment purchases funded in the 1988-89 biennium 
include computer equipment, a copy machine and office fur- 
nishings. This program is totally federally funded. 



UNIVERSITY SYSTEM 



93 



The 1988-89 biennium current unrestricted fund appropria- 
tions for the university system were derived by using both 
the incremental budgeting process and the formula budget 
method developed by the Legislative Finance Committee in 
1982. The formula method was employed for the two pro- 
grams that are directly influenced by student enrollment — 
Instruction and Support. The instruction program funds a 
computational average for faculty salaries and the personal 
services and operational costs of their direct support staff. 
The support program combines three subprograms used by 
all six university system units: academic support, institu- 
tional support, and student services. The scholarships and 
fellowships program, which compensates the units for 
student fee revenue forgone to meet mandatory and discre- 
tionary waiver criteria, is derived on the basis of projected 
resident and non-resident enrollment patterns. The programs 
of the six units that were budgeted incrementally off base 
year expenditures are: operation and maintenance of physi- 
cal plant, organized research, and public service. The Bureau 
of Mines and Geology and three other university system 
research and service agencies were also budgeted using the 
incremental method: the Agricultural Experiment Station, 
the Cooperative Extension Service and the Montana Forest 
and Conservation Experiment Station. 

Issues Addressed/Legislative Intent 

EXPENDITURES 

Incremental Budgets 

Incremental programs and agency budgets were established 
by including specific inflation factors for selected budget 
items, such as utilities, state mainframe computer costs, and 
some communication costs. There were no general annual 
inflation factors applied to operating costs as a whole. Per- 
sonal services costs were inflated by the full amount of the 
1987 biennium pay plan. Vacancy savings of 4% were 
applied to personal services costs of all incremental 
agencies/programs with 20 or more FTE, with the exception 
of 90 faculty on the staff of the Agricultural Experiment Sta- 
tion, for whom a 2% rate was applied. 



Enrollment Projections 

Because the formula programs are enrollment-driven, enroll- 
ment projections for the 1988-89 biennium are critical to 
the budget process. For all agencies with the exception of 
Montana College of Mineral Science and Technology 
(TECH), the Legislative Fiscal Analyst projections for 
student enrollment on a fiscal year basis (fiscal year full- 
time equivalent, FYFTE) were adopted. The legislature 
approved the establishment of a set student enrollment for 
TECH of 1,550 FYFTE per year in order to provide a stable 
base of funding for the specially engineering programs pro- 
vided by the institution. (This represents an increase of 66 
FYFTE in FY88 and 194 in FY89 over projected 
enrollments.) The following table shows budgeted 
enrollments for the 1986-87 and 1988-89 biennia and the 
biennial change. 







Table 


1 








Funded Student FYFTE Enrollments 






1986-87 and 1988-89 Biennia 














Biennial 


UNIT 


FY86 


FY87 


FY88 


FY89 


Change 


MSU 


10,382 


10,211 


9,403 


9,248 


-9.4% 


UM 


8,183 


8,099 


7,996 


8,008 


-1.7% 


EMC 


3,516 


3,494 


3,199 


3,198 


-8.7% 


NMC 


1,737 


1,737 


1,702 


1,730 


-1.2% 


WMC 


875 


873 


916 


905 


+ 4.2% 


TECH 


1,843 


1,837 


1,550 


1,550 


-15.8% 




26,536 


26,251 


24,766 


24,639 


-6.4% 



Historically, student enrollments have risen sharply through 
the I950's and 1960's. There was a marked decline in 
enrollment during the early 70's and an upturn for ten years 
from 1973 to 1983. Since that time, enrollments have con- 
tinued to decline on a system-wide basis. The following 
table and graph show total student enrollment from 1955 
through 1986. 



94 



UNIVERSITY SYSTEM 





Table 2 






Montana University System Enrollment 




Fall Term, 


1955- 1986 




Calendar 


Headcount 


Calendar 


Headcount 


Year 


Enrollment 


Year 


Enrollment 


1955 


7,554 


1971 


23,562 


1956 


8,091 


1972 


21,946 


1957 


8,504 


1973 


21,768 


1958 


9,608 


1974 


22,518 


1959 


10,115 


1975 


24,044 


1960 


10,478 


1976 


24,195 


1961 


11,806 


1977 


24,863 


1962 


12,570 


1978 


25,100 


1963 


13,324 


1979 


25,514 


1964 


14,797 


1980 


27,543 


1965 


16,882 


1981 


28,547 


1966 


17,882 


1982 


29,371 


1967 


19,105 


1983 


30,348 


1968 


21,077 


1984 


29,288 


1969 


22,832 


1985 


28,503 


1970 


24,112 


1986 


27,684 



Data from Office of the Commissioner of Higher Education, 
January 15, 1987 



Montana University System Enrollment 




Formula Budgets 

The formula budget process for the instruction and support 
programs considers student enrollment, type of course work 
and resultant faculty demand, and a cost-pcr-student for the 
academic, institutional and student services provided by the 
units. The formula budgets represent approximately 81% of 
the units' total budgets in the 1988-89 biennium. 
The legislature approved the instruction program at 99% of 
the formula-generated amount for both years of the bien- 
nium. No vacancy savings was applied to personal services 



in the program. The instruction program accounts for 54% 
of the units' appropriation in FY88 and 53% in FY89. 
Due to a 6.4% budgeted enrollment decline, the number of 
budgeted faculty supported by the funded formula in the 
1988-89 biennium is 6% lower than the number supported 
in the 1986-87 biennium. The number of budgeted faculty 
(which includes academic year and summer session faculty 
and graduate teaching assistants) is determined by applying 
a course-driven student/faculty ratio to the approved enroll- 
ment projections. The number of budgeted faculty supported 
by the formula may or may not correspond to the actual 
number of faculty employed at the units. Table 3 compares 
the level of budgeted faculty in the 1986-87 and 1988-89 
biennia. 







Table 3 








Comparison of Budgeted Faculty 






1986-87 and 1988-89 Biennia 














Biennial 


UNIT 


FY86 


FY87 


FY88 


FY89 


Change 


MSU 


572.64 


563.21 


528.26 


519.55 


-7.8% 


UM 


433.88 


429.43 


423.29 


423.93 


-1.9% 


EMC 


183.03 


181.88 


166.53 


166.48 


-8.7% 


NMC 


116.66 


116.66 


111.68 


113.52 


-3.5% 


WMC 


57.15 


57.02 


59.67 


58.96 


+ 3.9% 


TECH 


114.19 


104.73 


88.77 


88.77 


-18.9% 



L477.55 1,452.93 1,378.20 1,371.21 



It should be noted that, due to the financial commitment of 
existing individual employment contracts with faculty, the 
lack of funding for the full pay plan in the 1986-87 bien- 
nium and the absence of a pay plan for the 1988-89 bien- 
nium, even these budgeted "faculty numbers may be higher 
than can actually be supported, despite the fact that the for- 
mula for instruction is funded at 99% going into the 
1988-89 biennium. 

Faculty compensation used in formula computations were 
derived by inflating 1986-87 biennium average faculty sal- 
aries by the amount of the full 1986-87 biennium pay plan, 
despite the fact that the full pay plan was not funded in 
FY87. The faculty salary base for MSU and UM is $30,986 
per year; $27,722 for EMC; $27,495 for NMC and WMC; 
and $29,996 for TECH. Separate benefit rates were used for 
each institution, for faculty salaries in summer session and 
graduate assistant benefits. The following support rates were 
multiplied times student enrollments to derive the level of 
instructional support staff, operating and equipment bud- 
gets: 

UNIT FY88 FY89 



MSU 


$633..30 


$633.92 


UM 


$494.68 


$495.16 


EMC 


$409.75 


$410.15 


NMC 


$466.97 


$467.42 


WMC 


$531.69 


$532.21 


TECH 


$633.30 


$63.^92 



The legislature approved the support program at 9 1 % of the 
formula-generated amount in FY88 and 92% in FY89. No 
vacancy savings was applied to personal services. The sup- 
port program accounts for 28% of the units' appropriation 
in FY88 and 29% in FY89. 



UNIVERSITY SYSTEM 



95 



Support cosls-pcr-student were designed to provide 
comparability of support subsidization in the university sys- 
tem with its "peer" institutions. The "comparable" support 
costs on which the formula for the support program is based 
were initially set in 1980 and have been merely inflated 
each year since. The support rates used for each year of the 
1988-89 biennium are: $1,396 for MSU and UM; $1,387 for 
EMC, NMC and WMC; and $1,650 for TEfH. 
High headcount adjustments are made to the support pro- 
gram to provide additional support for provision of stan- 
dard minimum services to less than full-time students, e.g.. 
registration services, student counseling, etc. The adjust- 
ments arc calculated on the basis of part-time to full-time 
enrollees. All units except NMC had sufficiently high pro- 
portions of part-time students to warrant the adjustments. 
The following lists the high headcount adjustments added to 
the support program for the 1988-89 biennium: 



FY89 



MSU 


$ 63,370 


$ 62,422 


UM 


101,271 


101,610 


EMC 


71,370 


71,494 


NMC 








WMC 


12,692 


12,564 


TECH 


31,345 


31,406 



$ 280,048 $ 279,496 



Support is provided for a portion of each unit's biennial 
audit costs, including their portions of the statewide audit. 
Fifty percent of audit costs for MSU and UM are supported 
with current unrestricted funds — the other 50% must come 
from other sources. Current unrestricted funds support 75% 
of the audit costs of the other four units. 
The legislature approved limited modifications to current 
level expenditures for the units. A total of $369,369 in 
FY88 and of $375,426 was added for new space costs at 
MSU, UM and TECH, security personnel at NMC and for a 
system-wide hazardous waste management program. Startup 
costs for a spring wheat breeding and biotechnology pro- 
gram at Agricultural Experiment Station were funded with 
$160,000 of general fund for the biennium. Several addi- 
tional appropriation bills were passed to provide funding for 
the UM's Yellow Bay biological station on Flathead Lake, 
startup of the satellite extension of the UM's MBA program 
to EMC, and a Montana travel research program at UM. 
These bills add an additional $163,000 of general fund, 
$ 1 50,000 of state special revenue, and 2.45% of total accom- 
modations tax collections on an annual basis. 
FUNDING 

General Fund 

General fund support of the six major units of the univer- 
sity system is $146.4 million for the biennium — approxi- 
mately 20% of the total general fund in the General Appro- 
priations Act of 1987. (Higher education as a whole received 
25% of the state general fund budget.) General fund support 
of current unrestricted fund is 64% of the total — up 1% 
over the 1986-87 biennium. This results from the decrease 
in the percent of indirect cost recovery funds supporting 
current unrestricted fund. 



Tuition and Fees 

The tuition levels approved by the Board of Regents in 1987 
generated the tuition levels and the costs of the scholarships 
and fellowships for the 1988-89 biennium enrollments. This 
includes the $2 surcharge enacted in 1987. Tuition and fee 
revenues account for 23.5% of current unrestricted fund for 
the biennium. This is roughly the level of tuition and fee 
support appropriated in FY87. 

Because projected nonresident enrollment may not 
materialize at the level projected in deriving tuition and fee 
revenues, both the UM and MSU have language included in 
the General Appropriations Act of 1987 that permits them 
to request a supplemental appropriation in the biennial 
interim if tuition and fee revenues do not reach the levels 
specified. 



Millage 

The six mill levy on the total Montana taxable valuation 
that is statutorily dedicated to supporting higher education 
was appropriated for $12,864,200 in FY88 and for 
$12,906,000 in FY89. Any revenues collected in excess of 
those amounts will cause a reversion of general fund of a 
like amount. A referendum to continue the levy beyond its 
January, 1989, sunset is to be submitted to the electorate. 



Indirect Cost Recovery 

Revenues received by the units from federal and state 
research contracts to defray institutional costs of supporting 
those research activities have been appropriated at 50% of 
projected receipts for support of the current unrestricted 
fund. This is down from the 85% that had been appropri- 
ated in the 1983 and 1985 legislative sessions. Indirects now 
account for just about 1% of total current unrestricted fund 
appropriation. 

Specific language is included in the General Appropriations 
Act of 1987 that requires each unit to report in writing to 
the Legislative Finance Committee by October 14, 1988, on 
how all indirect cost recovery revenues in excess of the 
amounts appropriated to the current unrestricted operating 
subfund account were spent in FY88. 

The following is a listing of the indirect cost recovery pro- 
jections and appropriated amounts (in million dollars) for 
the 1986-87 and 1988-89 biennia: 

FY86 FY87 FY88 FY89 
Projected Total $1,887 
Appropriated 1.604 
Percent approp. 85% 

Other Funds 

Miscellaneous revenues available to the units for general 
operating expenses were appropriated for current unre- 
stricted fund support. These revenues account for less than 
1% of the current unrestricted fund appropriations. 
The following table and graph compares the proportionate 
support by revenue sources of current unrestricted fund 
between the 1986-87 and 1988-89 biennia. 



1.887 


$2,272 


$2,272 


1.604 


1.136 


1.136 


85% 


50% 


50% 



96 



UNIVERSITY SYSTEM 



Table 4 
Comparison of Revenue Sources Supporting 

the Six University System Units' 

Current Unrestricted Fund Appropriations 

1986-87 and 1988-89 Biennia 

(In million dollars) 



Revenue 
Source 

General Fund 
Millage 
Tuition/fees 
Indirect Costs 
Other 
Total 

NOTE: 1986-87 biennium general fund figures reflect recision of budget authority: 2% in FY86, 7% in FY87 plus the 2% of 
millage that was rescinded that the system chose to take from general fund authority. 











Biennial 


FY86 


FY87 


FY88 


FY89 


Change 


$ 71.899 


$ 71.376 


$ 73.102 


$ 73.255 


+ 3.1% 


14.384 


14.669 


12.864 


12.906 


-11. .3% 


25.335 


27.154 


27.050 


26.911 


+ 2.8% 


1.604 


1.604 


1.136 


1.136 


-29.2% 


.929 


.662 
$115,465 ^ 


.480 


.470 
$114,678 


-40.3% 


$114,151 


$114,632 


-0.3% 



Revenue Sources - Six Units 

19«fl 




biennia (information from tables 1 and 4) and graph 2 
depicts that information in stacked bar graph form. Total 
state support per budgeted FYFTE student (general fund 
and millage) increases 7% between the 1986-87 biennium 
and the 1988-89 biennium. 

Table 5 

Support per Budgeted FYFTE Student by Funding Source 

1986-87 and 1988-89 Biennia 



Revenue 
Source 
General 
Fund 
Millage 
Tuition/fees 
Indirect 
Costs 
Other 
Total 



FY86 FY87 



Biennial 
FY88 FY89 Change 



$2,709 $2,719 $2,952 $2,973 + 9.2% 



542 
955 
60 



559 

1,034 

64 



519 524 

1,092 1,092 

46 46 



-5.3% 
+ 9.8% 
-24.0% 



$4,302 $4,398 $4,628 $4,654 + 6.7% 



The table on the following page details the revenue sources 
for all of higher education with the exception of the Board 
of Regents and the programs funded through the Office of 
the Commissioner of Higher Education. It include only HB2 
appropriated amounts. 



Table 5 lists appropriated dollars per budgeted FYFTE 
student by funding sources for the 1986-87 and 1988-89 



UNIVERSITY SYSTEM 



97 



UNIT 

MSU 

UM 

EMC 

NMC 

WMC 

TECH 



FY88 

GENERAL STATE SPECIAL FEDERAL/ICR TUITION/FEES OTHER 
FUND 

$27,869,274 $5,081,359 $726,471 $10,311,269 $260,000 

$22,849,160 $3,910,717 $270,588 $9,309,679 $110,000 

$8,403,004 $1,672,347 $61,765 $3,200,081 $25,000 

$5,511,019 $771,852 $14,118 $1,562,965 $5,000 

$3,084,480 $411,654 $10,588 $877,452 $5,000 

$5,385,332 $1,016,271 $52,941 $1,788,913 $75,000 



TOTAL 

$44,248,373 

$36,450,144 

$13,362,197 

$7,864,954 

$4,389,174 

$8,318,457 



Subsum 


$73,102,269 


$12,864,200 


$1,136,471 


$27,050,359 


$480,000 


$114,633,299 


AES 


$6,204,968 


$710,954 


$1,673,303 


$0 


$0 


$8,589,225 


CES 


$2,526,384 


$0 


$1,829,268 


$0 


$0 


$4,355,652 


FCES 


$643,535 


$0 


$0 


$0 


$0 


$643,535 


BM&G 


$1,232,850 


$53,000 


$0 


$0 


$0 


$1,285,850 


Subsum 


$10,607,737 


$763,954 


$3,502,571 


$0 


$0 


$14,874,262 


TOTAL 


$83,710,006 


$13,628,154 


$4,639,042 
FY89 


$27,050,359 


$480,000 


$129,507,561 


UNIT 


GENERAL 
FUND 


STATE SPECIAL 


FEDERAUICR 


TUITION/FEES 


OTHER 


TOTAL 


MSU 


$27,620,172 


$5,097,870 


$726,471 


$10,143,440 


$250,000 


$43,837,953 


UM 


$23,112,841 


$3,923,424 


$270,588 


$9,323,650 


$110,000 


$36,740,503 


EMC 


$8,464,391 


$1,677,780 


$61,765 


$3,199,081 


$25,000 


$13,428,017 


NMC 


$5,607,269 


$774,360 


$14,118 


$1,588,678 


$5,000 


$7,989,425 


WMC 


$3,048,273 


$412,992 


$10,588 


$866,915 


$5,000 


$4,343,768 


TECH 


$5,402,516 


$1,019,574 


$52,941 


$1,788,913 


$75,000 


$8,338,944 


Subsum 


$73,255,462 


$12,906,000 


$1,136,471 


$26,910,677 


$470,000 


$114,678,610 


AES 


$6,257,135 


$710,954 


$1,673,303 


$0 


$0 


$8,641,392 


CES 


$2,534,167 


$0 


$1,829,268 


$0 


$0 


$4,363,435 


FCES 


$644,954 


$0 


$0 


$0 


$0 


$644,954 


BM&G 


$1,233,523 


$53,000 


$0 


$0 


$0 


$1,286,523 



Subsum $10,669,779 $763,954 $3,502,571 $0 $0 $14,936,304 

TOTAL $83,925,241 $13,669,954 $4,639,042 $26,910,677 $470,000 $129,614,914 

Tuition/fee revenue includes $174,000/yr from law and pharmacy fees at UM and $130,000/yr from architecture fees at MSU. 



98 



UNIVERSITY OF MONTANA 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


872.98 


891.80 


776.45 776.45 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Debt Service 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



26,546,838.46 


24,888,607 


26,714,700 


26,721,943 


8,500,925.43 


9,000,885 


8,892,313 


9,014,852 


881,879.39 


1,687,514 


993,131 


1,003,708 


896.00 


35,289 








26,020.08 












$35,956 

35,956 



,559.36 

559.36 



$35,956 

35,956 



,559.36 

559.36 



$35,612,295 

35,612,295 
$35,612,295 

35,612,295 



$35,956,559.36 



$36,600,144 

36,600,144 
$36,600,144 

36,600,144 
$36,600,144 



$36,740,503 

36,740,503 
$36,740,503 

36.740,503 



Agency Description 

The University of Montana was chartered by the Montana 
Legislature in 1893. It now offers more than 40 major pro- 
grams of study, about 1 5 inter-disciplinary programs at the 
undergraduate level, master's degree programs in more than 
40 fields, and the Ph.D degree in ten: botany, chemistry 
(including biochemistry), forestry, geology, history, mathe- 
matics, microbiology, psychology, sociology and zoology. It 
also offers the Doctor of Education degree and a graduate 
professional degree (Juris Doctor) in law. 
The core of the university is its College of Arts and Sci- 
ences. Complementing the college's programs are the grad- 
uate school and seven professional schools: Business Admin- 
istration, Education, Fine Arts, Forestry, Journalism, Phar- 
macy and Allied Health Sciences, and Law. 
In addition to research facilities within the schools and 
departments, the university maintains a number of special- 
ized laboratories, institutes and research facilities: the 
Yellow Bay Biological Station; Montana Forest and Conser- 
vation Experiment Station; Animal Behavior Laboratory; 
Institute for Social Research; Lubrecht Forest facilities for 
research and teaching; Wood Chemistry Laboratory; Bureau 
of Government Research; Bureau of Business and Economic 
Research; Bureau of Educational Research and Services; 
Stella Duncan Memorial Institute for Biomedical Research; 
Water Resources Research Program; Geology Field and 
Research Station at Dillon; the Speech, Hearing and Lan- 
guage Clinic; Montana Criminal Law Information Research 
Center and Montana Defender Project; Earthquake Labora- 
tory; the Computer Center; the Environmental Studies Lab- 
oratory of the Botany Department; and the Wilderness Insti- 
tute. 

The University of Montana has primary responsibility for 
graduate instruction in business, the arts, humanities, social 
science and behavioral science, and shares this responsibility 
in the physical and biological sciences and the allied health 
professions. The programs in law, forestry, pharmacy, 
journalism, physical therapy and communication disorders 
are unique in the University System. 

Issues Addressed/Legislative Intent 

The current unrestricted fund biennial support of the Uni- 
versity of Montana (UM) increased 2% over the base year 
expenditure level, despite a 2% decrease in budgeted student 



enrollment. General fund support of current unrestricted 
fund is 63% per year, up 1% over the 1986-87 biennium, 
exclusive of its pay plan. Staff levels show a decline for this 
agency due to a combination of some FTE reductions of the 
1986-87 biennium continued into the 1988-89 biennium and 
of listing only the funded level of FTE in the instruction 
and support programs, rather than an estimate of actual 
FTE for those formula programs. 

The Board of Regents decided to administratively merge 
Western Montana College with the University of Montana 
effective July 1, 1988. Both units will maintain separate 
budgets and appropriations throughout the 1988-89 bien- 
nium. 

Language was included in HB2 concerning potential tuition 
and fee revenue support of the appropriated expenditure 
level for the UM: 

"If gross actual nonresident incidental fee revenues, reduced 
by 18.45 percent for nonresident waivers, are less than 
$1,748,796 for fiscal 1988 and less than $1,751,420 for 
fiscal 1 989, the university of Montana may request a supple- 
mental for the difference." 

This language addressed the unit's concern that the tuition 
and fee revenue had been overstated due to anticipated 
decline in nonresident enrollments during the 1988-89 bien- 
nium greater than accounted for in the revenue projections. 

The legislature appropriated 50% of the unit's projected 
indirect cost recovery for support of the current unrestricted 
fund in the 1988-89 biennium, down from 85% in the 
1986-87 biennium. Language is included in HB2 concerning 
the remaining collections: 

"All indirect cost reimbursement not expended in the cur- 
rent unrestricted operating subfund account must be clearly 
identified and separately accounted for during llu- l')89 
biennium. Each university system unit shall subniii a writ- 
ten report to the legislative finance committee by October 
14, 1988, of the activities supported and accomplishments 
achieved with all indirect cost reimbursements expended in 
funds other than the current unrestricted operating subfund 
for fiscal 1988." 

The legislature decided to no longer support the Montana 
Criminal Law Information Research Center 
(MONTCLIRC), which had been funded in UM's research 
program for the 1986-87 biennium. Support was added for 



UNIVERSITY OF MONTANA 



99 



new instructional and administrative space in renovated 
Corbin Hall. Funds were also appropriated to support the 
UM's share of the system-wide hazardous waste manage- 
ment project. The effect of these adjustments to the 
expenditure base is a net increase of $58,281 in FY88 and 
$62,832 in FY89. 

Other Appropriation Bills 



HB787 funded satellite extension of the UM's MBA pro- 
gram at Eastern Montana College. HB599 provides funds 
for the biological station at Yellow Bay on Flathead Lake. 
HB84 includes funding for a Montana travel research pro- 
gram. The biennial increase from these bills is $313,000 and 
2.45% of total accommodations tax collections. 



INSTRUCTION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 



FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Debt Service 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



17,456,248.63 


15,983,836 


17,595,851 


17,650,885 


1,349,764.58 


1,791,274 


1.447,270 


1,451,800 


71,685.15 


380,781 


100,665 


101,024 


17,143.20 












$18,894,841.56 

18,894,841.56 
$18,894,841.56 

18,894,841.56 
$18,894,841.56 



$18,155,891 

18,155,891 
$18,155,891 

18,155,891 
$18,155,891 



$19,143,786 

19,143,786 
$19,143,786 

19.143,786 
$19,143,786 



$19,203,709 

19,203,709 
$19,203,709 

19,203.709 
$19,203,709 



Program Description 

The objective of the Instruction Program is to provide edu- 
cational activities directed primarily at the production of 
credits which satisfy the various curricula requirements lead- 
ing toward a post-secondary degree. The category also 
includes expenditures for academic administration where the 
primary assignment is administration (academic deans). 

Issues Addressed/Legislative Intent 

The instruction program is funded at 99% of the formula- 
generated level of state support. No vacancy savings was 
applied to any personal services. The number of budgeted 
faculty supported by the formula in the 1988-89 biennium 
may or may not correspond to the actual FTE employed by 
the agency in the program. 

The number of budgeted FYFTE students is 7,996 in FY88 
and 8,008 in FY89. The average faculty salary used in calcu- 
lation of faculty compensation is $30,986, which includes 
the unfunded pay plan in FY87 in the base. The rate per 
FYFTE student used to calculate instructional support costs 



is $494.68 in FY88 and $495.16 in FY89. Additional cur- 
rent unrestricted fund authority was allowed in the instruc- 
tion program in the amount of $174,000 per year to 
incorporate the special fees paid by students in the schools 
of law and of pharmacy. This authority has been line-itemed 
in HB2. The authority for the special fees is based on pro- 
jected enrollments generating an additional $673 per year 
per student in law and an additional $300 per year per 
student in pharmacy. It does not include the raises in those 
special fees to $1,200 in law and $1,000 in pharmacy or the 
new $1,000 per year special fee added to the physical thera- 
py program for juniors and seniors which were approved by 
the Board of Regents at their April 28, 1987, meeting. 

Other Appropriation Bills 

HB787 appropriates $163,000 of general fund in FY88 to 
the Board of Regents to fund the extension by satellite of 
the university's Master of Business Administration program 
to the Billings, Montana, area in cooperation with Eastern 
Montana College. The funds will be transferred from the 
board to UM in FY88. 



100 



UNIVERSITY OF MONTANA 



ORGANIZED RESEARCH 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



437,511.42 

166,954.01 

26,938.45 

$631,403.88 

631,403.88 
$631,403.88 

631.403.88 
$631,403.88 



297,482 
187,533 
11,682 



$496,697 

496,697 
$496,697 

496,697 



449,901 
134,553 
10,800 



$595,254 
595,254 

$595,254 
595,254 

$595,254 



311,202 
124,532 
10,800 



$446,534 

446,534 
$446,534 

446,534 



Program Description 

This program includes all funds expended for activities spe- 
cifically organized for research purposes and commissioned 
either by an agency outside of the institution or separately 
budgeted by an organizational unit within the institution. 

Issues Addressed/Legislative Intent 

The current unrestricted fund support of the research pro- 
gram at UM decreases by approximately 29% from base 
year expenditures. This results from the removal from the 
base of about $1 10,000 for expenditures above the appropri- 
ated level for FV86 and the decision of the legislature to no 
longer fund the Montana Criminal Law Information 
Research Center (MONTCLIRC) program — a reduction of 
2.00 FTE and $72,925 per year. No vacancy savings was 
applied to personal services. 



Other Appropriation Bills 

HB84 establishes an accommodation tax and statutorily 
appropriates 2.5% of 98% of quarterly collections to the uni- 
versity system for the establishment and maintenance of a 
Montana travel research program. The Board of Regents 
designated UM as the recipient of those funds to conduct 
the required activities. 

HB599 provides a $150,000 biennial appropriation to fund 
the acquisition of equipment and the hiring of scientific and 
administrative personnel for the UM's biological station at 
Yellow Bay on the Flathead Lake. This will fund an aggre- 
gate 3.00 FTE contract professional and graduate research 
assistants and operating expenses. Funding is $100,000 gen- 
era! fund and $50,000 from license fee revenues of the 
Department of Fish, Wildlife and Parks. 



PUBLIC SERVICE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



69,774.35 


149,530 


161,043 


161,043 


40,487.38 


45,555 


34,079 


34,091 


1,021.53 





770 


770 



$211,283.26 

211,283.26 
$211,283.26 

211,283.26 
$211,283.26 



$195,085 

195,085 
$195,085 

195,085 
$195,085 



$195,892 

195,892 
$195,892 

195,892 
$195,892 



$195,904 

1 95,904 
$195,904 

195,904 
$195,904 



Program Description 

The objective of the Public Service Program is to assist the 
community and state in community planning and develop- 
ment, urban planning, professional certification, natural 
resources, business, education, agriculture, industry, health 
and recreation. This program includes all funds budgeted 
specifically for extension and public service and expended 
for activities established primarily to provide 
noninstructional services to groups outside the institution. 



Such activities include seminars, projects, and support of 
various organizations established to provide services to the 
community. 

Issues Addressed/Legislative Intent 

The current unrestricted fund support for UM's public ser- 
vice program declines by 7% over the base year expenditure 
level. This results from a reduction of .75 FTE and removal 
of a program transfer of $20,490 from the base year 



UNIVERSITY OF MONTANA 

expenditure. No vacancy savings was applied to this pro- 



101 



OPKRAIION & MAIN I OF 1 
RudKel Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
F\ 1988 F\ 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Debt Service 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



,577,168.99 


1.205,995 


1,490,785 


1.493,819 


,656,016.54 


3,572,672 


3,833,198 


3.972,004 


68,987.93 


249,537 


65,000 


65,000 


896.00 


35,289 








3,689.88 












$5,306,759.34 

5,306,759.34 
$5,306,759.34 

5,306,759.34 
$5,306,759.34 



$5,063,493 

5.063.493 
$5,063,493 

5,063,493 
$5,063,493 



$5,388,983 

5,388,983 
$5,388,983 

5,388,983 
$5,388,983 



$5,530,823 
5,530,823 

$5,530,823 
5,530,823 

$5,530,823 



Program Description 

This program includes all expenditures of current funds for 
the operation and maintenance of the physical plant, except 
for amounts charged to auxiliary enterprises and hospitals. 
It docs not include expenditures made from the institutional 
plant fund accounts. It includes all expenditures for opera- 
tions established to provide services and maintenance 
related to campus grounds and facilities, utilities, property 
insurance, fire protection, and similar items. 

Issues Addressed/Legislative Intent 

The 1988-89 biennium current unrestricted fund support of 
UM's physical plant program increases by approximately 3% 
over the base level of expenditure. Base adjustments were 



made for inflation on utilities, to meet a $22,000 water rate 
increase and an increase of $19,075 in insurance costs. A 
4% vacancy savings rate was applied to personal services. 
Staff increases by 3.37 new FTE over budgeted FY87 base 
level. (NOTE: FY86 personal services figures are inflated by 
$81,297 of non-budgeted sick and annual leave payout lia- 
bility.) 

General fund support of $103,31 1 in FY88 and $107,862 in 
FY89 was provided for maintenance, utilities and 2.62 FTE 
for remodeled space in Corbin Hall that has been converted 
to instructional and support offices. 

UM's share of the system-wide hazardous waste manage- 
ment activities is supported by general fund of $27,895 per 
year and the addition of .75 FTE. 



SCHOLARSHIPS & FELLOWSHIPS PGM 
Budget Detail Summary 



Actual 
FY 1986 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Total Program Costs 

Current Unrestricted Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 



$897,737.66 
897,737.66 

$897,737.66 
897,737.66 

$897,737.66 



$996,102 

996,102 
$996,102 

996,102 
$996,102 



$983,741 

983,741 
$983,741 

983,741 
$983,741 



$985,218 

985,218 
$985,218 

985,218 
$985,218 



Program Description 

This program applies only to funds given in the form of out- 
right grants and trainee stipends to individuals enrolled in 
formal course work. Scholarships include: outright grants-in- 
aid; trainee stipends; tuition and fee waivers; and prizes to 
undergraduate students. Fellowships include outright grants- 
in aid and trainee stipends to graduate students, but not 



funds for which services to the institution must be rendered 
(e.g., payments for teaching). 

Issues Addressed/Legislative Intent 

The level of funded fee waivers for UM was determined on 
the basis of projected enrollments of 7,996 FYFTE students 
in FY88 and 8,008 m FY89. Anticipated in-state registra- 



102 



UNIVERSITY OF MONTANA 



tion and incidental fees to be waived are based on an 
assumption of 5.75% of total in-state student collections; 



non-resident fees waived assumes 
collections. 



8.45% of non-resident fee 



SUPPORT 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
I>ebt Service 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



6,906,135.07 


7,251,764 


7,017,120 


7,104,994 


2,389,965.26 


2,407,749 


2,459,472 


2,447,207 


713,246.33 


1,045,514 


815,896 


826,114 


5,187.00 












$10,014,533.66 

10,014,533.66 
$10,014,533.66 



10,014,533.66 
$10,014,533.66 



$10,705,027 
10,705,027 

$10,705,027 
10,705,027 

$10,705,027 



$10,292,488 

10,292,488 
$10,292,488 

10,292,488 



$10,292,4 



$10,378,315 
10,378,315 

$10,378,315 
10,378,315 

$10,378,315 



Program Description 

The Support Program includes funds for activities designed 
to support three functions of the institution: academic pro- 
grams, student services and administrative services. 
Academic support - These activities include the retention, 
preservation and display of materials and the provision of 
services that directly assist the academic functions of the 
institution. This category includes libraries, museums and 
galleries, audio/visual services, academic administration and 
personnel development, and course and curriculum develop- 
ment. 

Student services - These activities include admissions, regis- 
trar activities, counseling and career guidance, helping stu- 
dents obtain financial aid, student admissions and records, 
and supplementary educational services. 



Administrative services - These activities include the opera- 
tional support for the day-to-day functioning of the institu- 
tion and include executive and fiscal management, general 
administrative services, logistical services, and community 
relations. 

Issues Addressed/Legislative Intent 

The support program is funded at 91% of the formula- 
generated level of state support in FY88 and at 92% in 
FY89. No vacancy savings was applied to personal services. 
The support cost per FYFTE student used to calculate pro- 
gram expenditure levels is $1,396 per year. Biennial audit 
costs, including the institution's portion of the statewide 
audit, are supported at 50% general fund and current unre- 
strirted funds and 50% from' other than current unrestricted 
funds. 



MONTANA STATE UNIVERSITY 



103 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Transfers 
Debt Service 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



34,647,695.55 

9,112,750.89 

1,245,948.50 

50,775.43 

13,354.00 

57,247.06 

$45,127,771.43 


33.539,078 

9.239,659 

1,670,601 

185,920 





$44,635,258 


32,999,269 

9,829,594 

1,319,510 



100,000 
$44,248,373 


32,619.224 

9,906,369 

1,312,360 







$43,837,953 


45,127,771.43 
$45,127,771.43 


44,635,258 
$44,635,258 


44,248,373 
$44,248,373 


43,837,953 
$43,837,953 


45,127,771.43 
$45,127,771.43 


44,635,258 
$44,635,258 


44,248,373 
$44,248,373 


43,837,953 
$43,837,953 



Agency Description 

Montana State University was founded in 1893 as the Agri- 
cultural College of the State of Montana. 

Instruction leading to the bachelor's degree is offered in 45 
fields, with graduate instruction in 34 fields at the master's 
level and in 19 fields at the doctoral level. The academic 
program emphasizes the professions of agriculture, architec- 
ture, business, engineering, education and nursing, along 
with strong support from the arts, humanities, biological, 
physical and social sciences. Degree programs in biological, 
physical and social sciences are offered and in addition con- 
tribute significantly to the professional curricula. The uni- 
versity has a major role in the integration and development 
of health professional education and research. The profes- 
sional programs in agriculture, nursing, architecture and 
medicine are unique in the University System. 
The research programs and specialized facilities of the uni- 
versity include the Agricultural Experiment Stations at eight 
locations in the state; the Engineering Experiment Station; 
Computing Center; Museum of the Rockies; Institute of 
Applied Research; Foothills Nature Area; Statistical Center; 
Montana University Joint Water Resources Research Cen- 
ter; and the Bureau of Educational Research and Field Ser- 
vices. Major research areas include agriculture, engineering, 
and the biomedical and physical sciences with large pro- 
grams in land reclamation and magnetohydrodynamics 
(MHD). 

The Cooperative Extension Service is attached to the uni- 
versity. Financial support for its operation comes from 
county, state and federal governments. County agents and 
specialists channel information to Montanans to aid in solv- 
ing home, farm and community problems. The Continuing 
Education Program extends the educational facilities of the 
university to the citizens of the state by providing off- 
campus instruction in the form of courses, institutes and 
conferences for individuals not regularly enrolled at Mon- 
tana State University. 

Issues Addressed/Legislative Intent 

The current unrestricted fund biennial support of Montana 
State University (MSU) increased 2% over the base year 



expenditure level, despite a 9% decrease in budgeted student 
enrollment. General fund support of current unrestricted 
fund is 63% per year, up 1% over the 1986-87 biennium. 
Staff levels show a decline due to a combination of FTE 
reductions of the 1986-87 biennium continued into the 
1988-89 biennium and of listing only the funded level of 
FTE in the instruction and support programs, rather than an 
estimate of actual FTE for those formula programs. 

Language was included in HB2 concerning potential tuition 
and fee revenue support of the appropriated expenditure 
level for MSU: 

"If gross actual nonresident incidental fee revenues, reduced 
by 18.45 percent for nonresident waivers, are less than 
$1,631,995 for fiscal 1988 and less than $1,605,092 for 
fiscal 1989, Montana state university may request a supple- 
mental for the difference." 

This language addressed the unit's concern that the tuition 
and fee revenue had been overstated in the revenue projec- 
tions, which did not project as great a decline in nonresident 
enrollments as projected by the unit. 

The legislature appropriated 50% of the unit's projected 
indirect cost recovery for support of the current unrestricted 
fund in the 1989 biennium, down from 85% in the 1986-87 
biennium. Language is included in HB2 concerning the 
remaining collections: 

"All indirect cost reimbursement not expended in the cur- 
rent unrestricted operating subfund account must be clearly 
identified and separately accounted for during the 1989 
biennium. Each university system unit shall submit a writ- 
ten report to the legislative finance committee by October 
14, 1988, of the activities supported and accomplishments 
achieved with all indirect cost reimbursements expended in 
funds other than the current unrestricted operating subfund 
for fiscal 1988." 

Adjustments to the expenditure base were made to support 
new space in the Health and Physical Education building, to 
fund MSU's share of the system-wide hazardous waste man- 
agement activities, and to support the Museum of the 
Rockies in the 1988-89 biennium. The adjustments total 
$188,816 in FY88 and $90,322 in FY89. 



104 



MONTANA STATE UNIVERSITY 



INSTRUCTION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



718.69 



659.00 



537.81 



537.81 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Debt Service 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



22,989,740.00 

2,040,304.84 

144,478.11 

6,418.06 

10,435.70 

$25,191,376.71 

25,191.376.71 

$25,191,376.71 

25,191,376.71 

$25,191,376.71 



21,902,151 

2,199,435 

405,157 





$24,506,743 

24,506,743 

$24,506,743 

24,506,743 

$24,506,743 



22,745,308 

2,114,852 

4,947 





$24,865,107 

24,865,107 

$24,865,107 

24,865,107 



22,404,051 

2,082,939 

4,873 





$24,491,863 

24,491,863 

$24,491,863 

24,491,863 

$24,491,863 



Program Description 

The objective of the Instruction Program is to provide edu- 
cational activities directed primarily at the production of 
credits which satisfy the various curricula requirements lead- 
ing toward a post-secondary degree. The category also 
includes expenditures for academic administration where the 
primary assignment is administration (academic deans). 

Issues Addressed/Legislative Intent 

The instruction program is funded at 99% of the formula- 
generated level of state support. No vacancy savings was 
applied to any personal services. The number of budgeted 
faculty supported by the formula in the 1988-89 biennium 



may or may not correspond to the actual FTE employed by 
the agency in the program. 

The number of budgeted FYFTE students is 9,403 in FY88 
and 9,248 in FY89. The average faculty salary used in calcu- 
lation of faculty compensation is $30,986, which includes 
the unfunded pay plan in FY87 in the base. The rate per 
FYFTE student used to calculate the instructional support 
costs is $633.30 in FY88 and $633.92 in FY89. Additional 
current unrestricted fund authority was allowed in the 
instruction program in the amount of $ 1 30,000 per year to 
incorporate the special fees of $760 per year paid by each 
student in the architecture program and $460 per year paid 
by each interior design student. This authority has been 
line-itemed in HB2. 



ORGANIZED RESEARCH 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



i47,608.50 


547,408 


449,156 


450,156 


27,379.71 


14,315 


145,569 


144,569 


3,221.69 





3,200 


3,200 



$578,209.90 

578,209.90 
$578,209.90 

578,209.90 



$561,723 
561,723 

$561,723 
561,723 



$597,925 

597,925 
$597,925 

597,925 
$597,925 



$597,925 

597,925 
$597,925 

597,925 
$597,925 



Pntgrain Description 

This program includes all funds expended for activities spe- 
cifically organized for research purposes and commissioned 
either by an agency outside of the institution or separately 
budgeted by an organizational unit within the institution. 

Issues Addressed/Legislative Intent 

The current unrestricted fund support for MSU's research 
program remains essentially funded at current level although 



the composition of the expenditures willun the program has 
shifted. Staff level has decreased because some existing per- 
sonal services costs will be switched to other sources of 
research funding. The operating and equipment have corre- 
spondingly increased to provide essential research equip- 
ment and operating support. No vacancy savings was 
applied to this program. 



MONTANA STATE UNIVERSITY 



105 



PUBLIC SERVICE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



5,603.04 

4,083.43 

370.00 


7,477 

2,464 



$9,941 


6,300 

4,000 



$10,300 


6.300 

4,000 




$10,056.47 


$10,300 


10,056.47 . 
$10,056.47 


9,941 
$9,941 


10,300 
$10,300 


10,300 
$10,300 


10,056.47 _ 
$10,056.47 


9.941 
$9,941 


10.300 
$10,300 


10,300 
$10,300 



Program Description 



The objective of the Public Service Program is to assist the 
community and state in community planning and develop- 
ment, urban planning, professional certification, natural 
resources, business, education, agriculture, industry, health 
and recreation. This program includes all funds budgeted 
specifically for extension and public service and expended 
for activities established primarily to provide 
noninstructional services to groups outside the institution. 
Such activities include seminars, projects, and support of 



various organizations established to provide services to the 
community. 

Issues Addressed/Legislative Intent 

The current unrestricted fund support for MSU's public ser- 
vice program remains essentially at current level. This pro- 
gram supports a portion of the compensation of the director 
of the Cooperative Extension Service. No vacancy savings 
was applied. 



OPERATION & MAINT OF PLANT 
Budget Detail Summar> 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Debt Service 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,555,577.74 


1,685,585 


1,672,567 


1,678,844 


3,210,641.71 


3.114.788 


3,767,452 


3.954.412 


57,665.95 


142,640 


63.066 


63.066 


19,649.31 


185,920 








9,319.94 












$4,852,854.65 

4,852,854.65 
$4,852,854.65 

4,852,854.65 
$4,852,854.65 



$5,128,933 

5,128,933 
$5,128,933 

5,128,933 
$5,128,933 



$5,503,085 

5.503,085 
$5,503,085 

5,503,085 



$5,696,322 

5,696,322 
$5,696,322 

5,696,322 



Program Description 

This program includes all expenditures of current funds for 
the operation and maintenance of the physical plant, except 
for amounts charged to auxiliary enterprises and hospitals. 
It does not include expenditures made from the institutional 
plant fund accounts. It includes all expenditures for opera- 
tions established to provide services and maintenance 
related to campus grounds and facilities, utilities, property 
insurance, fire protection, and similar items. 

Issues Addressed/Legislative Intent 

The 1988-89 biennium current unrestricted fund support of 
MSU's physical plant program increases by 15% over the 



base level of expenditure. Base adjustments were made to 
reflect inflationary increases on utilities, retention of 
$146,253 of natural gas energy savings from reduced Mon- 
tana Power Company rates, addition of $75,679 for 
increased water and sewer rates, inclusion of $229,535 to 
adjust the base for a full year's operation of the Controlled 
Environment Facility opened in FY87, and adjustment of 
$27,862 for insurance costs. A 4% vacancy savings rate was 
applied to personal services. Staff increases by 2.19 new 
FTE over the budgeted FY87 base level. 

General fund of $24,528 in FY88 and $26,034 in FY89 was 
included to fund maintenance, utilities and .44 FTE for ad- 



106 



MONTANA STATE UNIVERSITY 



ditional instructional space in the Health and Physical Edu- 
cation building. 

The university system received general fund support for a 
system-wide effort to address hazardous waste management 



among the six units. MSU will coordinate the implementa- 
tion of the system-wide activities at each of the units. This 
adds 1.75 FTE and $64,288 per year to the plant program at 
MSU. 



SCHOLARSHIPS & FELLOWSHIPS PGM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



.00 



Operating Expenses 

Total Program Costs 

Current Unrestricted Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 



896,879.00 
$896,879.00 

896,879.00 
$896,879.00 

896,879.00 



954,922 



$954,922 

954,922 
$954,922 

954,922 



$1,125,273 
1,125,273 

$1,125,273 
1,125.273 

$1,125,273 



$1,106,723 
1,106,723 

$1,106,723 
1,106.723 

$1,106,723 



Program Description 

This program applies only to funds given in the form of out- 
right grants and trainee stipends to individuals enrolled in 
formal course work. Scholarships include: outright grants-in- 
aid; trainee stipends; tuition and fee waivers; and prizes to 
undergraduate students. Fellowships include outright grants- 
in aid and trainee stipends to graduate students, but not 
funds for which services to the institution must be rendered 
(e.g.. payments for teaching). 



Issues Addressed/Legislative Intent 

The level of funded fee waivers for MSU was determined on 
the basis of projected enrollments of 9,403 FYFTE students 
in FY88 and 9,248 in FY89. Anticipated in-state registra- 
tion and incidental fees to be waived are based on an 
assumption of 5.75% of total in-state collections; non- 
resident fees waived assumes 1 8.45% of non-resident fee col- 
lections. 



SUPPORT 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Debt Service 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



9,549,166.27 


9,396,457 


8,125,938 


8,079,873 


2,933,462.20 


2,953,735 


2,672,448 


2,613,726 


1,040,212.75 


1,122,804 


1,248,297 


1,241,221 


24,708.06 











37,491.42 





100,000 






$13,585. 

13,585. 



040.70 

040.70 



$13,585. 

13,585. 



040.70 

040.70 



$13,585,040.70 



$13,472,996 

13,472,996 
$13,472,996 

13,472,996 
$13,472,996 



$12,146,683 

12,146,683 
$12,146,683 

12,146,683 



$11,934,820 

11.934,820 
$11,934,820 

11.934,820 
$11,934,820 



Program Description 

The Support Program includes funds for activities designed 
to support three functions of the institution: academic pro- 
grams, student services and administrative services. 
Academic support - These activities include the retention, 
preservation and display of materials and the provision of 
services that directly assist the academic functions of the 
institution. This category includes libraries, museums and 
galleries, audio/visual services, academic administration and 



personnel development, and course and curriculum develop- 
ment. 

Student services - These activities include admissions, regis- 
trar activities, counseling and career guidance, helping stu- 
dents obtain financial aid, student admissions and records, 
and supplementary educational services. 
Administrative services - These activities include the opera- 
tional support for the day-to-day functioning of the institu- 
tion and include executive and fiscal management, general 



MONTANA STATE UNIVERSITY 107 

administrative services, logistical services, and community stricted funds and 50% from other than current unrestricted 

relations. funds. 

ijj j/T •i.L- »*x The university received general fund support of $100,000 

Issues Addressed/Legislative Intent for the biennium to help fund 4.00 FTE at the Museum of 

The support program is funded at 91% of the formula- the Rockies — a planetarium director, a dinosaur 

generated level of state support in FY88 and at 92% in preparator, a planetarium technician and a curator or 

FY89. No vacancy savings was applied to personal services. archeology. Language was added to HB2 concerning contin- 

The support cost per FYFTE student used to calculate pro- uation of general fund support of this operation: 

gram expenditure levels is $1,396 per year. Biennial audit "General fund support of the museum of the rockies does 

costs, mcluding the mstitution's portion of the statewide ^^j g^tend beyond the 1989 biennium. It is expected that 

audit, are supported at 50% general fund and current unre- private funds will replace general fund support beginning in 

the 1991 biennium." 



108 



MONT COLLEGE OF MIN SC & TECH 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


265.53 


236.43 


221.03 221.03 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



7,361,456.49 

2,679,516.80 

237,013.90 

8,500.00 

$10,286,487.19 

10,286,487.19 

$10,286,487.19 

10,286,487.19 

$10,286,487.19 



7,487,520 

2,271,637 

478,855 



$10,238,012 

10,238,012 

$10,238,012 

10,238,012 



6,878,017 

2,554,921 

171,369 



$9,604,307 

9,604,307 

$9,604,307 

9,604,307 

$9,604,307 



6,905,576 

2,545,483 

174,408 



$9,625,467 

9,625,467 

$9,625,467 

9,625,467 



Agency Description 

Montana College of Mineral Science and Technology was 
established in 1 893 as the Montana School of Mines. From 
the beginning, special emphasis has been placed upon the 
four main branches of mineral technology — exploration, 
production, processing and refining. The faculty of the col- 
lege and the Montana Bureau of Mines and Geology, a 
department of the college, also contribute to basic research 
and innovative approaches to problem solving in the min- 
eral industry. 

Bachelor's and Master's programs are offered in engineering 
science and geological, geophysical, metallurgical, mineral 
processing, mining and petroleum engineering. A bachelor's 
program is offered in environmental engineering, and a mas- 
ter's degree is offered in geochemistry (in collaboration with 
the universities), geology metallurgy and mineral processing. 
Bachelor's degree programs are also offered in chemistry, 
mathematics, occupational safety and health, and society 
and technology. 

The college provides services to state government and the 
citizens of the state by developing, gathering, analyzing, cat- 
aloging and disseminating information concerning the loca- 
tion and development of the mineral and energy resources 
and related resources of the state. This mission is the major 
responsibility of the Montana Bureau of Mines and Geol- 
ogy. In addition to research activities of individual faculty 
members, the college is a major participant in the state's 
magnctohydrodynamics (MHD) research and has been desig- 
nated one of 20 national Mining and Mineral Resource 
Research Institutes. 



Issues Addressed/Legislative Intent 

Current unrestricted fund support of Montana College of 
Mineral Science and Technology (TECH), including the 
Bureau of Mines and Geology, decreases by 7%, correspond- 
ing to a 16% decline in budgeted student enrollment. Gen- 
eral fund support of current unrestricted fund is 64%, down 
approximately 2% from the 1986-87 bicnnium. Staff levels 
show a decline due to a combination of FTE reductions of 
the 1986-87 biennium continued into the 1988-89 bicnnium 
and of listing only the funded level of FTE in the instruc- 
tion and support programs, rather than an estimate of actual 
FTE for those formula programs. 

The legislature appropriated 50% of the unit's projected 
indirect cost recovery for support of the current unrestricted 
fund in the 1988-89 biennium, down from 85% in the 
1986-87 biennium. Language is included in HB2 concerning 
the remaining collections: 

"All indirect cost reimbursement not expended in the cur- 
rent unrestricted operating subfund account must be clearly 
identified and separately accounted for during the 1989 
biennium. Each university system unit shall submit a writ- 
ten report to the legislative finance committee by October 
14, 1988, of the activities supported and accomplishments 
achieved with all indirect cost reimbursements expended in 
funds other than the current unrestricted operating subfund 
for fiscal 1988." 

An adjustment was made to the expenditure base to support 
TECH's share of the system-wide hazardous waste manage- 
ment activities. This added $88,840 per year. 



MONT COLLEGE OF MIN SC & TECH 



109 



INSTRUCTION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


124.10 


112.80 


87.46 87.46 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



,721,665.56 


3.794.623 


3,527,190 


3.533.181 


500,833.60 


353,896 


528,120 


529,017 


78,782.31 


64,543 


22,838 


22,876 



$4,301,281.47 

4,301,281.47 
$4,301,281.47 

4,301,281.47 
$4,301,281.47 



$4,213,062 

4,213,062 
$4,213,062 

4,213,062 



$4,078,148 

4,078,148 
$4,078,148 

4,078J48 



$4,085,074 

4,085,074 
$4,085,074 

4,085.074 



Program Description 

The objective of the Instruction Program is to provide edu- 
cational activities directed primarily at the production of 
credits which satisfy the various curricula requirements lead- 
ing toward a post-secondary degree. The category also 
includes expenditures for academic administration where the 
primary assignment is administration (academic deans). 

Issues Addressed/Legislative Intent 

The instruction program is funded at 99% of the formula- 
generated level of state support. No vacacny savings was 
applied to any personal services. The number of budgeted 
faculty supported by the formula in the 1988-89 biennium 



may or may not correspond to the actual FTE employed by 
the agency in the program. 

The number of budgeted FYFTE students was raised to 
1,550 per year over the projected enrollment for the 
1988-89 biennium in order to provide stability of funding 
for the institution's specialized engineering programs during 
a period of fluctuating enrollments. This is an increase of 66 
FYFTE in FY88 and 194 in FY89. The average faculty 
salary used to calculate faculty compensation is $29,996, 
which includes the unfunded pay plan in FY87 in the base. 
The rate per FYFTE student used to calculate instructional 
support costs is $633.30 in FY88 and $633.93 in FY89, the 
same rate used at Montana State University which also 
includes engineering programs. This is an increase of 
$168.73 in FY88 and of $167.95 in FY89. 



ORGANIZED RESEARCH 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 F\ 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



44,758.65 

5,019.76 

106.28 


23,060 

16,801 

1,103 

$40,964 


34,210 

9,428 

80 


34,210 

9,457 

80 


$49,884.69 


$43,718 


$43,747 


49,884.69 


40,964 


43,718 


43,747 


$49,884.69 


$40,964 


$43,718 


$43,747 


49,884.69 
$49,884.69 


40,964 
$40,964 


43,718 
$43,718 


43,747 
$43,747 



Program Description 

This program includes all funds expended for activities spe- 
cifically organized for research purposes and commissioned 
either by an agency outside of the institution or separately 
budgeted by an organizational unit within the institution. 



Issues Addressed/Legislative Intent 

The current unrestricted fund support for TECH's research 
program fell by 12% over base year expenditures. This 
results from the net effect of a decrease in personal services 
due to a decision to lower compensation for research partici- 
pants (even though the aggregate FTE increases) and an 
increase in operating costs. No vacancy savings was applied 
to this program. 



no 



MONT COLLEGE OF MIN SC & TECH 



OPERATION & MAINT OF PLANT 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


37.27 


35.00 


36.58 36.58 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



749,111.92 

553,764.13 

8,175.73 

8,500.00 

$1,319,551.78 

1,319,551.78 

$1,319,551.78 

1,319,551.78 

$1,319,551.78 



753,620 

557,903 

15,762 





$1,327,285 
1,327,285 

$1,327,285 
1,327.285 

$1,327,285 



877,262 

700,491 

17,300 





$1,595,053 

1,595.053 
$1,595,053 

1,595,053 
$1,595,053 



881,819 

727,021 

17,300 





$1,626,140 

1,626,140 
$1,626,140 

1,626,140 



Program Description 

This program includes all expenditures of current funds for 
the operation and maintenance of the physical plant, except 
for amounts charged to auxiliary enterprises and hospitals. 
It does not include expenditures made from the institutional 
plant fund accounts. It includes all expenditures for opera- 
tions established to provide services and maintenance 
related to campus grounds and facilities, utilities, property 
insurance, fire protection, and similar items. 

Issues Addressed/Legislative Intent 

The 1988-89 biennium current unrestricted fund support for 
TECH's physical plant program increase by 23% over the 
base level of expenditures. This partially results from the 
fact that the physical plant program incurred disproportion- 
ate impact of the 1986-87 biennium budget recisions due to 
contractual obligations in other programs which prohibited 
cuts in those areas. Therefore, the base level of expenditure 



was unusually low. Base adjustments were made to reflect 
inflation of utility rates, retention of $ 1 1 5,000 of extraor- 
dinary expenses, inclusion of $180,000 of a modification 
approved in FY87 that had not been implemented due to 
budget recisions and $13,570 of increased insurance costs. A 
4% vacancy savings rate was applied to personal services. 
Staff increases by a net of 1.58 FTE over budgeted FY87 
base level — a cut of .57 FTE to continue the unfunded pay 
plan in FY87 into the 1988-89 biennium offset by the addi- 
tion of 2. 1 5 new FTE. 

General fund support of 1.90 FTE and $67,500 per year for 
maintenance and utilities for new instructional space in the 
Health, Physical Education and Recreation building. Addi- 
tional support was not given for requested support of the 
previous conversion of the old gymnasium to office space. 
TECH's share of the system-wide hazardous waste manage- 
ment activities supports .25 FTE, operating and some equip- 
ment at $21,340 per year. 



SCHOLARSHIPS & FELLOWSHIPS PGM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Total Program Costs 

Current Unrestricted Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 



$294,067.50 

294,067.50 
$294,067.50 

294.067.50 
$294,067.50 



$273,073 
273,073 

$273,073 
273,073 

$273,073 



$202,189 

202,189 
$202,189 

202,189 
$202,189 



$202,189 

202,189 
$202,189 

202,189 



Program Description 

This program applies only to funds given in the form of out- 
right grants and trainee stipends to individuals enrolled in 
formal course work. Scholarships include: outright grants-in- 
aid; trainee stipends; tuition and fee waivers; and prizes to 
undergraduate students. Fellowships include outright grants- 
in aid and trainee stipends to graduate students, but not 
funds for which services to the institution must be rendered 
(e.g.. payments for teaching). 



Issues Addressed/Legislative Intent 

The level of funded fee waivers for TECH was determined 
on the basis of projected enrollment of 1.550 FYFTE stu- 
dents per year. Anticipated in-state registration and inci- 
dental fees to be waived are based on an assumption of 
5.75% of total in-state student collections; non-resident fees 
waived assumes 18.45% of non-resident fee collections. 



MONT COLLEGE OF MIN SC & TECH 



INDEPENDENT OPERATIONS 
Budget Detail Summar> 


Actual 
FY 1986 


Budgeted 
FY 1987 


FY 1988 FY 1989 


Full Time Equivalent Employees 


31.91 


26.43 


26.43 26.43 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



957.620.02 


916,923 


894,624 


894,624 


549,684.86 


542,326 


369,151 


368,024 


18,868.16 


20.830 


22,075 


23,875 



$1,526,173.04 

1.526,173.04 
$1,526,173.04 

1,526,173.04 
$1,526,173.04 



$1,480,079 

1,480,079 
$1,480,079 

1,480,079 
$1,480,079 



$1,285,850 

1,285,850 
$1,285,850 

1,285,850 
$1,285,850 



$1,286,523 

1,286,523 

$1,286,523 

1,286,523 



Program Description 

This program consists of the Bureau of Mines and Geology, 
which conducts the only Montana agency work in the 
geological, mineral, mineral-fact, geothermal, and 
groundwater resource fields. The research involves data col- 
lection and interpretation, and dissemination of research 
results to the public, and to state and federal agencies. 

Issues Addressed/Legislative Intent 

The Bureau of Mines and Geology appropriation reflects a 
reduction of staff in order to decrease personal services by 
the amount of the unfunded pay plan in FY87. The agency 
reported an actual staff level of 31.76 FTE in FY86 and a 
budgeted level of 26.43 FTE for FY87. Reductions occurred 
in contract professional, classified and part-time positions. 



Vacancy savings was applied at 4% for all personal services 
costs except for 15.56 FTE contract faculty costs, which 
received no vacancy savings. 

The level of the Bureau's approved operating expenses 
decreased by approximately one-third due to the reduction 
of approved indirect cost recovery expense paid to the Mon- 
tana College of Mineral Science and Technology for the 
college's support of the Bureau. This administrative charge 
had been established by the office of the legislative fiscal 
analyst in past biennia and had been inflated during each 
budget cycle without examination of actual support costs. 
The authorized charge for the 1988-89 biennium is approxi- 
mately 5% of the bureau's expenses — the average of the 
administrative costs charged other supported functions 
within the university sytem. 



SUPPORT 

Budget Detail Summary 


Actual 
FY 1986 


FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


71.43 


60.90 


69.30 69.30 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,888,300.34 

776,146.95 

131,081.42 

$2,795,528.71 


1,999,294 

527,638 

376,617 

$2,903,549 


1,544,731 

745,542 

109,076 

$2,399,349 


1.561.742 

709,775 

110,277 

$2,381,794 


2,795,528.71 
$2,795,528.71 


2,903,549 
$2,903,549 


2,399,349 
$2,399,349 


2,381,794 
$2,381,794 


2,795,528.71 
$2,795,528.71 


2,903,549 
$2,903,549 


2,399,349 
$2,399,349 


2,381,794 
$2,381,794 



Program Description 

The Support Program includes funds for activities designed 
to support three functions of the institution: academic pro- 
grams, student services and administrative services. 
Academic support - These activities include the retention, 
preservation and display of materials and the provision of 
services that directly assist the academic functions of the 
institution. This category includes libraries, museums and 
galleries, audio/visual services, academic administration and 



personnel development, and course and curriculum develop- 
ment. 

Student services - These activities include admissions, regis- 
trar activities, counseling and career guidance, helping stu- 
dents obtain financial aid, student admissions and records, 
and supplementary educational services. 
Administrative services - These activities include the opera- 
tional support for the day-to-day functioning of the institu- 
tion and include executive and fiscal management, general 



112 MONT COLLEGE OF MIN SC & TECH 

administrative services, logistical services, and community FY89. No vacancy savings was applied to personal services, 

relations. The support cost per FYFTE student used to calculate pro- 

. gram expenditure levels is $1,650 per year. Biennial audit 

Issues Addressed/Legislative Intent costs, including the institution's share of the statewide audit. 

The support program is funded at 91% of the formula- ^re supported at 75% general fund and current unrestricted 

generated level of state support in FY88 and at 92% in funds and 25% from other than current unrestricted funds. 



EASTERN MONTANA COLLEGE 



113 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



9.735,025.10 

3.770,599.61 

274,202.27 

$13,779,826.98 


10.017.823 

3,472,423 

245,000 

$13,735,246 


9.378,266 

3,784,840 

199,091 

$13,362,197 


9.416.200 

3,811,150 

200,667 

$13,428,017 


13,779,826.98 
$13,779,826.98 


13,735,246 
$13,735,246 


. 13,362,197 
$13,362,197 


13,428,017 
$13,428,017 


13,779,826.98 
$13,779,826.98 


13,735,246 
$13,735,246 


. 13,362,197 
$13,362,197 


13,428,017 
$13,428,017 



Agency Description 

Eastern Montana College was established in 1927 with an 
initial authorization to prepare teachers for the elementary 
schools. The establishment of the college was in response to 
needs expressed by citizens in the eastern part of the state, 
because all the existing institutions of higher education were 
in the western half Eastern Montana College is a compre- 
hensive state college with programs in the liberal arts, 
teacher training, business and human services. Graduate 
programs through the master's level are offered in teacher 
training, special education and related areas. The programs 
in special education and rehabilitation are unique in the 
University System. The Continuing Education Program 
gives the student an opportunity to learn the newest 
developments in his field of study and to explore newly 
emerging areas of interest and concern. 

Issues Addressed/Legislative Intent 

The current unrestricted fund biennial support of Eastern 
Montana College (EMC) decreased 3% over the base year 
expenditure level, reflecting base reductions and a 9% 
decrease in budgeted student enrollment. General fund sup- 
port of current unrestricted fund is 63% per year, approxi- 



mately the same level of support as the 1986-87 biennium. 
Staff levels show a decline due to a combination of FTE 
reductions of the 1986-87 biennium continued into the 1989 
biennium and of listing only the funded level of FTE in the 
instruction and support programs, rather than an estimate of 
actual FTE for those formula programs. 

The legislature appropriated 50% of the unit's projected 
indirect cost recovery for support of the current unrestricted 
fund in the 1988-89 biennium, down from 85% in the 
1986-87 biennium. Language is included in HB2 concerning 
the remaining collections: 

"All indirect cost reimbursement not expended in the cur- 
rent unrestricted operating subfund account must be clearly 
identified and separately accounted for during the 1989 
biennium. Each university system unit shall submit a writ- 
ten report to the legislative finance committee by October 
14, 1988, of the activities supported and accomplishments 
achieved with all indirect cost reimbursements expended in 
funds other than the current unrestricted operating subfund 
for fiscal 1988." 

Adjustments to the expenditure base were made to support 
EMC's share of the system-wide hazardous waste manage- 
ment activities. This added $12,345 per year. 



114 



EASTERN MONTANA COLLEGE 



INSIRIK HON 
BudKet Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


218.22 


204.73 


170.54 170.54 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



5,916,160.36 

693,861.62 

66,300.51 

$6,676,322.49 

6,676,322.49 

$6,676,322.49 

6,676,322.49 

$6,676,322.49 



6,023,073 

550,000 

30,000 

$6,603,073 

6,603,073 

$6,603,073 

6,603,073 

$6,603,073 



5,858,000 

695,856 

48,195 

$6,602,051 

6,602,051 

$6,602,051 

6,602,051 

$6,602,051 



5,866,942 

696,918 

48.269 

$6,612,129 

6,612,129 

$6,612,129 

6,612,129 

$6,612,129 



Program Description 

The objective of the Instruction Program is to provide edu- 
cational activities directed primarily at the production of 
credits which satisfy the various curricula requirements lead- 
ing toward a post-secondary degree. The category also 
includes expenditures for academic administration where the 
primary assignment is administration (academic deans). 

Issues Addressed/Legislative Intent 

The instruction program is funded at 99% of the formula- 
generated level of state support. No vacancy savings was 



applied to any personal services. The number of budgeted 
faculty supported by the formula in the 1988-89 bicnnium 
may or may not correspond to the actual FTE employed by 
the agency in the program. 

The number of budgeted FYFTE students is 3,199 in FY88 
and 3,198 in FY98. The average faculty salary used in calcu- 
lation of faculty compensation is $27,722, which includes 
the unfunded pay plan in FY87 in the base. The rale per 
FYFTE student used to calculate the instructional support 
costs is $409.75 in FY88 and $410.15 in FY89. These rates 
were raised to incorporate support costs on a par with the 
two university units' education programs. 



PUBLIC SERVICE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



83,018.68 


186,652 


39,165.17 


31,100 


2,619.00 






$224,802.85 

224,802.85 
$224,802.85 

224,802.85 
$224,802.85 



$217,752 
217,752 

$217,752 
217,752 



39,317 
2,510 



$231,435 

231,435 

$231,435 

231,435 



189,608 

39.329 
2,510 



$231,447 
231,447 

$231,447 
231,447 

$231,447 



Program Description 



The objective of the Public Service Program is to assist the 
coniinuiiiiy anil slate in comnuinily planning and develop- 
ment, urban planning, professional certification, natural 
resources, business, education, agriculture, industry, health 
and recreation. This program includes all funds budgeted 
specifically for extension and public service and expended 
for activities established primarily to provide 
noninslructional services to groups outside the institution. 
Such activities include seminars, projects, and support of 



various organizations established to provide services to the 
community. The 1983 Legislature included funding for the 
Montana Center for Handicapped Children. 

Issues Addressed/Legislative Intent 

Current unrestricted fund support for EMC's public service 
program increased by approximately 3% over base year 
expenditures from application of inflation to base expendi- 
tures. No vacancy savings was applied. 



EASTERN MONTANA COLLEGE 



115 



OPERATION & MAINT OF PLANT 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



589,389.78 


571,189 


622,514 


622,514 


352,537.19 


1.358,952 


1.399,753 


1,454,204 


8,076.50 


15,000 


8,076 


8,076 



$1,950,003.47 

1.950,003.47 
$1,950,003.47 

1,950,003.47 
$1,950,003.47 



$1,945,141 

1,945,141 
$1,945,141 

1,945,141 
$1,945,141 



$2,030,343 

2,030,343 
$2,030,343 

2,030,343 



$2.084794 

2,084,794 

$2,084,794 

2,084,794 



Program Description 

This program includes all expenditures of current funds for 
the operation and maintenance of the physical plant, except 
for amounts charged to auxiliary enterprises and hospitals. 
It does not include expenditures made from the institutional 
plant fund accounts. It includes all expenditures for opera- 
tions established to provide services and maintenance 
related to campus grounds and facilities, utilities, property 
insurance, fire protection, and similar items. 

Issues Addressed/Legislative Intent 

The 1988-89 biennium current unrestricted fund support of 
EMC's physical plant program increases by approximately 



6% over the base level of expenditure. Base adjustments 
were made for inflation on utilities and for $17,817 of 
insurance costs. A 4% vacancy savings rate was applied to 
personal services. Staff decreases by a net of 1.21 FTE from 
the budgeted FY87 base — 1.46 FTE cut to maintain the 
impact of the unfunded FV87 pay plan in the 1989 bien- 
nium offset by .25 new FTE. 

Eastern's share of the system-wide hazardous waste manage- 
ment activities is supported by general fund of $12,345 per 
year and the addition of .25 FTE. 



SCHOLARSHIPS & FELLOWSHIPS PGM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Total Program Costs 

Current Unrestricted Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 



$312,905.40 

312,905.40 
$312,905.40 

312,905.40 
$312,905.40 



$342,954 

342.954 
$342,954 

342,954 
$342,954 



$353,209 

353,209 
$353,209 

353,209 
$353,209 



$353,099 

353.099 
$353,099 

353,099 



Program Description 

This program applies only to funds given in the form of out- 
right grants and trainee stipends to individuals enrolled in 
formal course work. Scholarships include: outright grants-in- 
aid; trainee stipends; tuition and fee waivers; and prizes to 
undergraduate students. Fellowships include outright grants- 
in aid and trainee stipends to graduate students, but not 
funds for which services to the institution must be rendered 
(e.g., payments for teaching). 



Issues Addressed/Legislative Intent 

The level of funded fee waivers for EMC was determined on 
the basis of projected enrollments of 3,199 FYFTE students 
in FY88 and 3.198 in FY89. Anticipated in-state registra- 
tion and incidental fees to be waived are based on an 
assumption of 5.75% of total in-state student collections; 
non-resident fees waived assumes 18.45% of non-resident fee 
collections. 



16 



EASTERN MONTANA COLLEGE 



SUPPORT 

Budget DeCail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalcnl Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



3,046,456.28 


3,236,909 


2,708,144 


2,737,136 


1,372,130.23 


1,189,417 


1,296,705 


1,267,600 


197,206.26 


200,000 


140,310 


141,812 



$4,615,792.77 
4,615.792.77 

$4,615,792.77 
4.615.792.77 

$4,615,792.77 



$4,626,326 

4,626,326 
$4,626,326 

4,626,326 
$4,626,326 



$4,145,159 

4.145.159 
$4,145,159 

4,145,159 
$4,145,159 



$4,146,548 

4,146,548 
$4,146,548 

4.146.548 
$4,146,548 



Program Description 

The Support Program includes funds for activities designed 
to support three functions of the institution: academic pro- 
grams, student services and administrative services. 

Academic support - These activities include the retention, 
preservation and display of materials and the provision of 
services that directly assist the academic functions of the 
institution. This category includes libraries, museums and 
galleries, audio/visual services, academic administration and 
personnel development, and course and curriculum develop- 
ment. 

Student services - These activities include admissions, regis- 
trar activities, counseling and career guidance, helping stu- 
dents obtain financial aid, student admissions and records, 
and supplementary educational services. 



Administrative services - These activities include the opera- 
tional support for the day-to-day functioning of the institu- 
tion and include executive and fiscal management, general 
administrative services, logistical services, and community 
relations. 

Issues Addressed/Legislative Intent 

The support program is funded at 91% of the formula- 
generated level of stale support in FY88 and at 92% in 
FY89. No vacancy savings was applied to personal services. 
The support cost per FYFTE student used to calculate pro- 
gram expenditure levels is $1,387 per year. Biennial audit 
costs, including the institution's share of the statewide audit, 
are supported at 75% general fund and current unrestricted 
funds and 25% from other than current unrestricted funds. 



NORTHERN MONTANA COLLEGE 



117 



Auency Summary 
BodKcl IKlail Summary 


Actual 
FY l')«6 


Budgeted 
FY 1987 


Appropriated 
FY 1988 


h'\ 1989 


Full 1 itm- Ixiuivaknl Kniployccs 


215.19 


187.60 


189.74 


189.74 


Personal Services 
Operating Expenses 
Equipment 

lotal Agency Costs 
Current Unrestricted Fund 

1 «tal Funding Costs 
Current Level Services 

Total Service Costs 


5,274.516.48 

1,979,191.32 

314,121.30 

$7,567,829.10 

7,567,829.10 
$7,567,829.10 

7,567,829.10 
$7,567,829.10 


5,832,731 

1.354,403 

379,380 

$7,566,514 

7,566,514 


5,796,191 

1.9.34.524 

1 .34,239 

$7,864,954 

7,864,954 
$7,864,954 

7,864,954 
$7,864,954 


.S.908.269 

1.94.^858 

137,298 

$7,989,425 

7,989,425 


$7,566,514 

7,566,514 
$7,566,514 


$7,989,425 

7,989,425 
$7,989,425 



Agency Description 

Northern Montana College wa<: ^uthori/ed by the legislature 
in 1913, but did not open Pr r instruction until 1929. North- 
ern has been a regional, multi-purpose institution from its 
inteplion, ofTcring prc-profcssional and professional courses 
of study in the libcrr.j arts and sciences, teacher education, 
and vocational technical studies. Northern has sole responsi- 
bility in the Montana University System for vocational-tech- 
nical education, primary responsibilities for vocational 
kacher training, and offers the Bachelor of Technology 
degree for students who vkfish to combine a liberal arts back- 
ground with vocational training. Further, Northern has the 
,s()ic responsibility for meeting the certification needs of the 
slate through an itinerant vocational teacher-education pro- 
gram. Northern offers master's degrees in elementary educa- 
tion, vocational-technical education, and industrial arts as 
well as bachelor's degrees in elementary, secondary and vo- 
cal ional-technical education. 

Issues Addressed/Legislative Intent 

( urrent unrestricted fund support of Northern Montana 
( ollcge (NMC) decreases by 5%, refiecting a 1% decline in 
budgeted student enrollments. General fund support of cur- 
rent unrestricted fund is 70% per year, approximately the 



same as the proportion in the 1986-87 bicnnium. StatT levels 
show a decline due to the combination of continuing 
1986-87 biennium FTE reductions into the 1988-89 bien- 
nium and of listing only the funded level of FTE in the 
instruction and support programs, rather than an estimate of 
actual FTE for those formula programs. 

The legislature appropriated 50% of the unit's projected 
indirect cost recovery for support of the current unrestricted 
fund in the 1988-89 bicnnium. down from 85% in the 
1986-87 biennium. Language is included in 11B2 concerning 
the remaining collections: 

"All indirect cost reimbursement not expended in the cur- 
rent unrestricted operating subfund account must be clearly 
identified and separately accounted for during the 1989 
biennium. Each university unit shall submit a written report 
to the legislative finance committee by October 14, 1988, of 
the activities supported and accomplishments achieved with 
all indirect cost reimbursements expended in funds other 
than the current unrestricted operating subfund for fiscal 
1988." 

Adjustments were made to the expenditure base to support 
NMC's share of the system-wide hazardous waste manage- 
ment activities and the fund two additional security person- 
nel. This added $41,081 per year. 



118 



NORTHERN MONTANA COLLEGE 



INSIRUniON 
Kiidget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



F'lill Time Equivalent Employees 



IVrsonal Services 
Operating Expenses 
l'c|uipnienl 

Iota! I'rogram Costs 
Current Unrestricted Fund 

'I'otnl Funding Costs 
Current Level Services 

Total Service Costs 



3,198,074.93 
400,229.80 
167,593.07 


3,832,157 
236,630 
67,953 


3,788,810 

464,032 

23,950 


3,857,816 

472,483 

24,387 


$3,765,897.80 


$4,136,740 


$4,276,792 


$4,354,68* 


3,765,897.80 


4,136,740 
$4,136,740 


4,276,792 
$4,276,792 


4.354,686 


$3,765,897.80 


$4,354,686 


3,765,897.80 


4,136,740 


4,276,792 


4,354,686 


$3,765,897.80 


$4,136,740 


$4,276,792 


$4,354,686 



Program Description 

The objective of the Instruction Program is to provide edu- 
cational activities directed primarily at the production of 
credits which satisfy the various curricula requirements lead- 
ing toward a post-secondary degree. The category also 
includes expenditures for academic administration where the 
primary assignment is administration (academic deans). 

Issues Addressed/Legislative Intent 

The instruction program is funded at 99% of the formula- 
generated level of state support. No vacancy savings was 



applied to any personal services. The number of budgeted 
faculty supported by the formula in the 1988-89 biennium 
may or may not correspond to the actual FTE employed by 
the agency in the program. 

The number of budgeted FYFTE students is 1,702 in FY88 
and 1,730 in FY89. The average faculty salary used to calcu- 
late faculty compensation is $27,495, which includes the un- 
funded pay plan in FY87 in the base. The rate per FYFTE 
student used to calculate the instructional support costs is 
$466.97 in FY88 and $467.42 in FY89. 



PUBLIC SERVICE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



8,643.35 

418.76 

0.00 

$9,062.11 

9,062.11 


6,000 

157 

2,741 

$8,898 

8,898 


7,896 

995 



$8,891 

8,891 

$8,891 

8,891 

$8,891 


7,896 

995 



$8,891 

8,891 


$9,062.11 

9,062.11 


$8,898 

8,898 


$8,891 

8,891 


$9,062.11 


$8,898 


$8,891 



Program Description 



The objective of the Public Service Program is to assist the 
conimuniiy and state in community planning and develop- 
ment, urban planning, professional certification, natural 
resources, business, education, agriculture, industry, health 
and recreation. This program includes all funds budgeted 
specifically for extension and public service and expended 
for activities established primarily to provide 
noninstructional services to groups outside the institution. 
Such acinities include seminars, projects, and support of 



various organizations established to provide services to the 
community. 

Issues Addressed/ I^egislative Intent 

Current unrestricted fund support of NMC's public service 
program decreases by approximately 2% due to continuation 
of the cut of .04 FTE made in FY87. A requested increase 
in out-of-state travel was not funded. No vacancy savings 
was applied. 



NORTHERN MONTANA COLLEGE 



119 



OPERATION & MAINT OF PLANT 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



402,487.21 


398,286 


440,097 


440,097 


663,713.85 


484,851 


666.009 


691,142 


15,337.93 


14,632 


15,338 


15,338 



$1,081,538.99 

1,081,538.99 
$1,081,538.99 

1,081,538.99 
$1,081,538.99 



$897,769 

897,769 
$897,769 

897,769 
$897,769 



$1,121,444 

1,121.444 
$1,121,444 

1,121,444 



$1,146,577 
1,146,577 

$1,146,577 
1.146,577 



Program Description 

This program includes all expenditures of current funds for 
the operation and maintenance of the physical plant, except 
for amounts charged to auxiliary enterprises and hospitals. 
It does not include expenditures made from the institutional 
plant fund accounts. It includes all expenditures for opera- 
tions established to provide services and maintenance 
related to campus grounds and facilities, utilities, property 
insurance, fire protection, and similar items. 

Issues Addressed/Legislative Intent 

The 1988-89 biennium current unrestricted fund support of 
NMC's physical plant program increases by approximately 



5% over the base level of expenditures. Base adjustments 
were made for inflation on utilities, restoration of $ 1 25,000 
of emergency expenditures in the base and $10,979 of insur- 
ance costs. No vacancy savings was applied to this program. 
Staff increases by 2.25 new FTE over budgeted Fy87 base 
level. 

General fund of $34,000 per year was added to fund 2.00 
FTE security personnel for the campus. In addition, .25 
FTE and $7,081 per year was added for Northern's share of 
the system-wide hazardous waste management activities. 



SCHOLARSHIPS & FELLOWSHIPS PGM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Total Program Costs 

Current Unrestricted Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 



238,368.40 


272,590 
$272,590 


274,815 
$274,815 


271,722 


$238,368.40 


$271,722 


238,368.40 


272,590 
$272,590 


274,815 
$274,815 


271,722 


$238,368.40 


$271,722 


238,368.40 


272,590 


274,815 


271,722 



$238,368.4 



$272,590 



$274,815 



$271,722 



Program Description 

This program applies only to funds given in the form of out- 
right grants and trainee stipends to individuals enrolled in 
formal course work. Scholarships include: outright grants-in- 
aid; trainee stipends; tuition and fee waivers; and prizes to 
undergraduate students. Fellowships include outright grants- 
in aid and trainee stipends to graduate students, but not 
funds for which services to the institution must be rendered 
(e.g., payments for teaching). 



Issues Addressed/Legislative Intent 

The level of funded fee waivers for NMC was determined 
on the basis of projected enrollments of 1,702 FYFTE stu- 
dents in FY88 and 1,730 in FY89. Anticipated in-stale 
registration and incidental fees to be waived are based on an 
assumption of 5.75% of total in-state student collections; 
non-resident fees waived assumes 18.45% of non-resident fee 
collections. An additional adjustment was made for NMC 
fee waivers to provide non-resident waivers at an historical 
level of about 60% of non-resident enrollment during the 
1989 biennium. This added $29,511 in FY88 and $23,383 
in FY89. 



120 



NORTHERN MONTANA COLLEGE 



SUPPORT 

Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


56.05 


60.40 


54.98 54.98 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,665,310.99 

676,460.51 

131,190.30 

$2,472,961.80 

2,472,961.80 


1,596,288 

360.175 

294,054 

$2,250,517 

2.250,517 

$2,250,517 

2,250.517 

$2,250,517 


1,559,388 

528,673 

94.951 

$2,183,012 

2,183,012 

$2,183,012 

2,183.012 

$2,183,012 


1.602.460 

507,516 

97,573 

$2,207,549 

2,207,549 


$2,472,961.80 

2,472,961.80 


$2,207,549 

2,207,549 


$2,472,961.80 


$2,207,549 



Program Description 

The Support Program includes funds for activities designed 
to support three functions of the institution: academic pro- 
grams, student services and administrative services. 

Academic support - These activities include the retention, 
preservation and display of materials and the provision of 
services that directly assist the academic functions of the 
institution. This category includes libraries, museums and 
galleries, audio/visual services, academic administration and 
personnel development, and course and curriculum develop- 
ment. 

Student services - These activities include admissions, regis- 
trar activities, counseling and career guidance, helping stu- 
dents obtain financial aid. student admissions and records, 
and supplementary educational services. 



Administrative services - These activities include the opera- 
tional support for the day-to-day functioning of the institu- 
tion and include executive and fiscal management, general 
administrative services, logistical services, and community 
relations. 

Issues Addressed/Legislative Intent 

The support program is funded at 91% of the formula- 
generated level of state support in FY88 and at 92% in 
FY89. No vacancy savings was applied to personal services. 
The support cost per FYFTE student used to calculate pro- 
gram expenditure levels is $1,387 per year. Biennial audit 
costs, including the institution's share of the statewide audit, 
are supported at 75% general fund and current unrestricted 
funds and 25% from other than current unrestricted funds. 



WESTERN MONTANA COLLEGE 



121 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 h\ 


1989 


Full Time Equivalent Employees 


112.18 


112.99 


103.42 


103.42 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



3,009,831.32 
824,533.57 
85,824.40 


2,974,117 
783,680 
202,781 


3,422,093 
909,784 

57,297 


3,398,413 
888,132 

57,223 



$3,920,189.29 

3,920,189.29 
$3,920,189.29 

3,920,189.29 
$3,920,189.29 



$3,960,578 

3,960,578 
$3,960,578 

3,960,578 
$3,960,578 



$4,389,174 

4,389,174 
$4,389,174 

4,389,174 



$4,343,768 

4,343,768 
$4,343,768 

4,343,768 
$4,343,768 



Agency Description 

Western Montana College was established in 1893 as the 
State Normal School. The first session of school opened in 
September, 1897. Throughout its history, Western Montana 
College has been a teacher training institution and it has 
continued this emphasis while broadening its curricular 
base. 

Western offers graduate work leading to the master's degree 
and fifth-year professional certificate in education. Bache- 
lor's degrees are offered in elementary education, secondary 
education, and natural heritage. Associate degree and trans- 
fer programs are offered in several areas. 

Issues Addressed/Legislative Intent 

Current unrestricted fund biennial support of Western Mon- 
tana College increases 11% over the base expenditure level. 
This reflects the impact of a 4% increase in budgeted 
student enrollments on a relatively small institutional bud- 
get. General fund support of the current unrestricted fund is 
70% per year, an increase of about 1% over the 1986-87 
biennium. Staff levels decrease due to continuation of 
1986-87 biennium reductions into the 1988-89 biennium 
and to listing only the funded level of FTE in the instruc- 
tion and support programs, rather than an estimate of actual 
FTE for those formula programs. 



The Board of Regents decided to administratively merge 
Western Montana College with the University of Montana 
effective July 1, 1988. Despite the administrative changes, 
both units will maintain separate budgets and appropria- 
tions throughout the 1988-89 biennium. Cost savings that 
may result from the merger have not been removed from 
either unit's appropriation. Phase out of some degree pro- 
grams at Western will not be finalized until 1 990. 
The legislature appropriated 50% of the unit's projected 
indirect cost recovery for support of the current unrestricted 
fund in the 1988-89 biennium, down from 85% in the 
1986-87 biennium. Language is included in HB2 concerning 
the remaining collections: 

"All indirect cost reimbursement not expended in the cur- 
rent unrestricted operating subfund account must be clearly 
identified and separately accounted for during the 1989 
biennium. Each university unit shall submit a written report 
to the legislative finance committee by October 14, 1988, of 
the activities supported and accomplishments achieved with 
all indirect cost reimbursements expended in funds other 
that the current unrestricted operating subfund for fiscal 
1988." 

An adjustment was made to the expenditure base to support 
Western's share of the system-wide hazardous waste man- 
agement activities. This added $7,081 per year. 



122 



WESTERN MONTANA COLLEGE 



INSTRUCTION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


68.05 


61.36 


61.69 61.69 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



,631,326.98 
138,116.17 
20,951.48 


1,419,983 

204,554 

37,334 


2,187,055 
176,964 

4,975 


2,164,345 

175,126 

4,923 



$1,790,394.63 
1,790,394.63 

$1,790,394.63 
1,790.394.63 

$1,790,394.63 



$1,661,871 

1,661,871 
$1,661,871 

1,661,871 
$1,661,871 



$2,368,994 

2,368,994 
$2,368,994 

2,368.994 
$2,368,994 



$2,344,394 

2,344,394 
$2,344,394 

2,344,394 
$2,344,394 



Program Description 

The objective of the Instruction Program is to provide edu- 
cational activities directed primarily at the production of 
credits which satisfy the various curricula requirements lead- 
ing toward a post-secondary degree. The category also 
includes expenditures for academic administration where the 
primary assignment is administration (academic deans). 

Issues Addressed/Legislative Intent 

The instruction program is funded at 99% of the formula- 
generated level of state support. No vacancy savings was 



applied to any personal services. The number of budgeted 
faculty supported by the formula in the 1988-89 biennium 
may or may not correspond to the actual FTE employed by 
the agency in the program. 

The number of budgeted FYFTE students is 916 in FY88 
and 905 in FY89. The average faculty salary used to calcu- 
late faculty compensation is $27,495, which includes the un- 
funded pay plan in FY87 in the base. The rate per FYFTE 
student used to calculate the instructional support costs is 
$531.69 in FY88 and $532.21 in FY89. 



OPERATION & MAINT OF PLANT 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



14.35 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



67,407.23 


401,904 


379,582 


379,582 


87,548.33 


271,658 


323,007 


338,360 


33,186.17 


14,042 


32.588 


32,588 



$688,141.73 

688,141.73 
$688,141.73 

688.141.73 
$688,141.73 



$687,604 

687,604 
$687,604 

687,604 
$687,604 



$735,177 
735,177 

$735,177 
735,177 

$735,177 



$750,530 

750.530 
$750,530 

750,530 
$750,530 



Program Description 

This program includes all expenditures of current funds for 
the operation and maintenance of the physical plant, except 
for amounts charged to auxiliary enterprises and hospitals. 
It docs not include expenditures made from the institutional 
plant fund accounts. It includes all expenditures for opera- 
tions established to provide services and maintenance 
related to campus grounds and facilities, utilities, property 
insurance, fire protection, and similar items. 

Issues Addressed/Legislative Intent 

The 1988-89 biennium current unrestricted fund support of 
WMC's physical plant program increases by approximately 



8% over the base level of expenditures. Base adjustments 
were made for inflation on utilities, restoration of $25,370 
of a modification approved for FY87 that was not included 
in the agency request and a negative adjustment of $994 of 
insurance costs incorrectly included in this program. No 
vacancy savings was applied to personal services. Staff level 
decreases by a net of .55 FTE due to a .80 FTE cut to main- 
tain the impact of the unfunded FY87 pay plan in the 
1988-89 biennium and the addition of .25 new FTE. 
Western's share of the system-wide hazardous waste man- 
agement activities funds .25 FTE and $7,081 per year. 



WESTERN MONTANA COLLEGE 



123 



SCHOLARSHIPS & FELLOWSHIPS PGM 
Budget Detail Summary 



Actual Budgeted Appropriated 

FY 1986 FY 1987 FY 1988 ¥\ 1989 



Full Time Equivalent Employees 



Operating Expenses 

Total Program Costs 

Current Unrestricted Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 



$75,057.19 


$82,630 


$83,472 


$82,469 


75,057.19 


82,630 


83,472 


82.469 


$75,057.19 


$82,630 


$83,472 


$82,469 


75,057.19 


82,630 


83,472 


82,469 


$75,057.19 


$82,630 


$83,472 


$82,469 



Program Description 

This program applies only to funds given in the form of out- 
right grants and trainee stipends U> individuals enrolled in 
formal course work. Scholarships include: outright grants-in- 
aid; trainee stipends; tuition and fee waivers; and prizes to 
undergraduate students. Fellowships include outright grants- 
in aid and trainee stipends to graduate students, but not 
funds for which services to the institution must be rendered 
(e.g., payments for teaching). 



Issues Addressed/Legislative Intent 

The level of funded fee waivers for WMC was determined 
on the basis of projected enrollment of 916 FYFTE in FY88 
and 905 in FY89. Anticipated in-state registration and inci- 
dental fees to be waived are based on an assumption of 
5.75% of total in-state student collections; non-resident fees 
waived assumes 1 8.45% of non-resident fee collections. 



SUPPORT 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,011,097.11 


1,152,230 


855,456 


854,486 


323,811.88 


224,838 


326,341 


292,177 


31,686.75 


151,405 


19,734 


19,712 



$1,366,595.74 
1,366,595.74 

$1,366,595.74 
1,366,595.74 

$1,366,595.74 



$1,528,473 
1,528,473 

$1,528,473 
1,528,473 

$1,528,473 



$1,201,531 

1,201,531 
$1,201,531 

1,201,531 
$1,201,531 



$1,166,375 

1.166,375 
$1,166,375 

1.166,375 



Program Description 

The Support Program includes funds for activities designed 
to support three functions of the institution: academic pro- 
grams, student services and administrative services. 

Academic support - These activities include the retention, 
preservation and display of materials and the provision of 
services that directly assist the academic functions of the 
institution. This category includes libraries, museums and 
galleries, audio/visual services, academic administration and 
personnel development, and course and curriculum develop- 
ment. 

Student services - These activities include admissions, regis- 
trar activities, counseling and career guidance, helping stu- 
dents obtain financial aid, student admissions and records, 
and supplementary educational services. 



Administrative services - These activities include the opera- 
tional support for the day-to-day functioning of the institu- 
tion and include executive and fiscal management, general 
administrative services, logistical services, and community 
relations. 

Issues Addressed/Legislative Intent 

The support program is funded at 91% of the formula- 
generated level of state support in FY88 and at 92% in 
FY89. No vacancy savings was applied to personal services. 
The support cost per FYFTE student used to calculate pro- 
gram expenditure levels is $1,387 per year. Biennial audit 
costs, including the institution's share of the statewide audit, 
are supported at 75% general fund and current unrestricted 
funds and 25% from other than current unrestricted funds. 



124 



AGRICULTURAL EXPER STATION 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Debt Service 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



6,857,593.68 


7,200,421 


6,988,297 


7,019,097 


1,478,861.06 


1,902,802 


1,471,375 


1,494,420 


206,809.70 


1,800 


129,553 


127,875 


714.06 











15,578.20 












$8,559,556.70 

8,559,556.70 
$8,559,556.70 

8,559,556.70 
$8,559,556.70 



$9,105,023 

9,105,023 
$9,105,023 

9,105,023 
$9,105,023 



$8,589,225 

8,589,225 
$8,589,225 

8,589,225 
$8,589,225 



$8,641,392 

8,641,392 
$8,641,392 

8,641,392 
$8,641,392 



Agency Description 

The Agricultural Experiment Station was established at 
Montana State University in 1893 by the Montana Legis- 
lature under authorization provided by the U.S. Congress of 
1887 (Hatch Act). The station is composed of fourteen 
research and service departments and laboratories located at 
Bozeman, and seven research centers located around the 
state. 

The goal of the Agricultural Experiment Station is to con- 
tribute to the welfare of the state, national and international 
communities through relevant research programs on agricul- 
tural problems. Research is conducted to improve the com- 
petitive position of Montana crop and livestock producers, 
and to develop agricultural production principles and tech- 
niques applicable to semi-arid and intermountain regions 
throughout the world. 

In their December, 1986, meeting the Board of Regents 
approved the administrative consolidation of the Agricul- 
tural Experiment Station and the Cooperative Extension 
Service (Item 54-204-R1286). The merger is effective begin- 
ning in the 1988-89 biennium. 

Issues Addressed/Legislative Intent 

The Board of Regents authorized an administrative merger 
of the Agricultural Experiment Station and the Cooperative 
Extension Service effective July 1, 1987. Although the 
administrative services of the two agencies have been 
merged, the programmatic services of the agencies will con- 
tinue to be individually identified, at least through the 
1988-89 biennium. Therefore, each agency was appropriated 
a separate budget. The staff reductions that resulted from 



the merger occurred among the personnel of the Cooperative 
Extension Service. 

Agency staff of the Agricultural Experiment Station is 
reduced by 32 FTE — a net total of the reduction of 13.57 
FTE from the main station and the seven regional stations, 
a reduction of 19.43 FTE from the U.S. Range Station, and 
the addition of 1.00 FTE and $80,000 per year of general 
fund support for the spring wheat and biotechnology pro- 
gram that was added to the main station program. The 
reductions resulted from decreased grants from the federal 
government, decreased revenue from sales of agricultural 
products and livestock and the impact of the budget 
recissions in the 1986-87 biennium. A vacancy savings rate 
of 4% was applied to the non-faculty personal services costs 
of the main station and the research centers, a 2% rate was 
applied to the 90 FTE contract faculty and no vacancy 
savings was applied to the range station. Despite the reduc- 
tion in FTE, personal service's costs of the agency increase 
over the base year of FY86 because of pay raises in the 
1986-87 biennium, increased costs of benefits and the 
impact of vacancy savings on the expenditure level in the 
base year. The agency anticipates some potential extraor- 
dinary retirement benefit payouts in the 1988-89 biennium. 
These were not funded in the agency's appropriation, but 
the Joint Appropriations Education Subcommittee expressed 
its intent that a supplemental appropriation could be sought 
in the interim if the retirement payouts become a reality. 

General fund support of the agency increases by approxi- 
mately 4% due to the reduction of federal and state special 
revenues and the addition of the spring wheat breeding pro- 
gram. (NOTE: Agency current unrestricted fund expendi- 
tures are overstated by $12,883 due to the net effect of ac- 
counting for non-budgeted expenditures.) 



AGRICULTURAL EXPER STATION 



125 



AG EXPERIMENT STATION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


255.57 


243.91 


242.00 242.00 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Debt Service 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



6,414,812.87 


6,464,145 


6,611,043 


6,641,843 


1,445,558.94 


1,706,386 


1,465,675 


1.488,720 


204,359.70 





126,553 


124,875 


714.06 











15,578.20 












$8,081,023.77 

8,081.023.77 
$8,081,023.77 

8,081,023.77 
$8,081,023.77 



$8,170,531 

8,170,531 
$8,170,531 

8,170,531 
$8,170,531 



$8,203,271 

8,203,271 
$8,203,271 

8,203,271 
$8,203,271 



$8,255,438 

8,255,438 
$8,255,438 

8,255,438 
$8,255,438 



Program Description 

The Agricultural Experiment Station conducts research to 
improve the competitive position of Montana crop and live- 
stock producers. The station has eight research centers, 
including the headquarters at Montana State University. 

Issues Addressed/Legislative Intent 

The staff level of the Main station, comprised of the Mon- 
tana State University campus offices and the seven regional 
research centers around the state, was reduced by a net of 
12.57 FTE — a cut of 13.57 FTE and the addition of 1.00 
FTE for the new spring wheat breeding and biotechnology 
program. The staff reductions resulted from decreased reve- 
nues from sales of agricultural products and livestock at the 
research centers, recissions of general fund during the 
1986-87 biennium and reduced federal grants. A 4% vacancy 
savings rate was applied to all but the 90 faculty positions 
on staff, which received a 2% rate. Personal services costs 
increase despite a reduction in FTE due to the raises that 
were given in the 1986-87 biennium, increased workers 
compensation and social security rates, and the impact of 
vacancy savings in the base year. 



The agency anticipates having a substantial potential faculty 
retirement payout liability in the 1988-89 biennium — 
about $250,000 in FY88 and $87,000 in FY89. This poten- 
tial liability was not incorporated in the appropriation, but 
the Joint Appropriations Education Subcommittee recom- 
mended to the agency that a supplemental appropriation be 
sought in the interim if the liability materializes. 
Due to the budget constraints, the legislature authorized an 
equipment budget for the 1988-89 biennium that is roughly 
two-thirds of the base expenditure level. This includes 
$10,000 per year for the spring wheat breeding program. 

General fund support for this program increases due to the 
decline in sales revenue and federal grant levels and the 
annual addition of $80,000 for the spring wheat breeding 
program. Language is included in HB2 concerning on-going 
support of the spring wheat breeding program: 
"General fund support for startup of the spring wheat breed- 
ing and biotechnology program at the agricultural experi- 
ment station is for the 1989 biennium only. Other funds will 
be required to continue the program beyond the 1989 bien- 
nium." 



126 



AGRICULTURAL EXPER STATION 



us RANGE STATION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


36.13 


35.74 


16.70 16.70 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



442,780.81 


736,276 


377,254 


377,254 


33,302.12 


196,416 


5,700 


5,700 


2,450.00 


1,800 


3,000 


3,000 



$478,532.93 
478,532.93 

$478,532.93 
478,532.93 

$478,532.93 



$934,492 

934,492 
$934,492 

934,492 
$934,492 



$385,954 

385,954 
$385,954 

385,954 
$385,954 



$385,954 

385,954 
$385,954 

385,954 
$385,954 



Program Description 



Issues Addressed/Legislative Intent 



The USDA Livestock and Range Research Station at Miles The staff level of state supported positions at the range sta- 



City is a joint state-federal operation. The station is the larg- 
est beef cattle research facility in the nation. Current 
research includes: beef cattle breeding, reproduction and 
nutrition; range management and range renovation. 



tion decreases by 19.43 FTE as the direct result of decreases 
in revenue from livestock sales. Total operating and equip- 
ment budgets reflect the level the agency projects being able 
to support with anticipated sales revenue in the 1988-89 
biennium. There is no general fund support for this pro- 
gram. 



COOPERATIVE EXTENSION SERVICE 



127 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 F\ 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Debt Service 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



3,450,869.12 


3.532,038 


3,843,839 


3.850,150 


545,755.82 


689,170 


498,984 


500.456 


19,495.48 


14,881 


12,829 


12.829 


722.40 












$4,016,842.82 

4,016,842.82 
$4,016,842.82 

4,016,842.82 
$4,016,842.82 



$4,236,089 

4,236,089 
$4,236,089 

4,236,089 
$4,236,089 



$4,355,652 
4.355,652 

$4,355,652 
4,355.652 

$4,355,652 



$4,363,435 

4,363,435 
$4,363,435 

4,363,435 
$4,363,435 



Agency Description 

The Cooperative Extension Service was created in 1914. 
The role of the Cooperative Extension Service is educa- 
tional; the service disseminates and encourages practical use 
of knowledge gained primarily from research and experi- 
mentation performed at Montana State University. The 
objective of the Extension Service is to conduct a program 
of education relating to efficient agricultural production, 
marketing of agricultural products, human resource develop- 
ment, and farm and home safety. The Service also provides 
special nutrition programs for low-income people and pro- 
motes a development program for Montana communities 
incorporating economic, natural, and human resources. 
In their December, 1986, meeting the Board of Regents 
approved the administrative consolidation of the Agricul- 
tural Experiment Station and the Cooperative Extension 
Service (Item 54-204-R1286). The merger is effective begin- 
ning in the 1988-89 biennium. 

Issues Addressed/Legislative Intent 

The combined effect of budget recissions in the 1986-87 
biennium and the administrative merger of the Agricultural 
Experiment Station and the Cooperative Extension Service 



resulted in a loss of 19.53 FTE from the actual FY86 FTE 
level. The administrative merger eliminated 6.15 FFE. A 4% 
vacancy savings rate was applied to all FTE of the agency. 

The total net personal services savings associated with the 
administrative merger was approximately $171,000 per year. 
The agency was allowed to retain about $61,000 of that 
savings as part of the line-item for increased mandated fed- 
eral retirement benefits. 

Language was included in HB2 regarding the line-item 
appropriation $659,420 in FY88 and S665.73I in FY89 for 
professional retirement benefit increases mandated by Con- 
gress: 

"The total money appropriated in item 2 may only be spent 
if a federal district or appellate court determines that coop- 
erative extension service employees are federal employees 
within the meaning of Public Law 99-335. In the event these 
employees are not federal employees within the meaning of 
Public Law 99-335, up to $221,300 in fiscal 1988 and up to 
$277,611 in fiscal 1989 of the funds appropriated in item 2 
may be spent for social security coverage and retirement 
benefits for 124 professional employees. There may be no 
transfers in or out of this item." 



128 



FORESTRY & CONS EXPER STATION 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


19.21 


16.54 


16.09 16.09 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 

Total Agency Costs 
Current Unrestricted Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



515,808.87 


495,825 


493,009 


493,009 


133,472.78 


132,817 


137,026 


1 38,445 


19,062.40 


16,667 


13,500 


13,500 


3,468.00 












$671,812.05 

671,812.05 
$671,812.05 

671,812.05 
$671,812.05 



$645,309 

645,309 
$645,309 

645,309 



$643,535 

643,535 
$643,535 

643,535 



$644,954 

644,954 
$644,954 

644,954 
$644,954 



Agency Description 

The Montana Forest Conservation and Experiment Station's 
purposes include the study of relationships between forests 
and other dimensions of the environment, the discovery of 
ways to improve the products of forest lands and the com- 
pletion and publication of reports about forestry research. 
Research is carried on at Lubrecht Experimental Forest and 
at other locations in Montana in cooperation with private, 
state and federal agencies. 

Issues Addressed/Legislative Intent 

The appropriation for general fund support of the Montana 
Forest and Conservation Experiment Station reflects contin- 
uation of the reduction of staff from the Fy86 level due to 
the recission of budget authority in the 1 986-87 biennium. 



The agency reported an actual staff level of 18.57 FTE for 
FY86 and a budgeted number of 16.54 FTE for FY87. Cuts 
have been made in classified employees and graduate 
research assistants to reach the appropriated level of support 
for the 1988-89 biennium. No vacancy savings rate was 
applied because the agency has less than 20 FTE. 
Operating expenses increase by almost 3% from including 
some insurance and utility costs of the Lubrecht Forest 
operation in the MFCES appropriation. These costs had 
previously been paid from the University of Montana's 
auxilliary fund. 

This program is 100% funded from general fund. (Resource 
Indemnity Trust funds had been appropriated to support 
MFCES in FY86 only.) 



SCHOOL FOR THE DEAF & BLIND 



129 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 

General Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



,916,667.43 


2.017,631 


1,973,951 


1.974,026 


1,084,962.84 


472,853 


464,172 


460,957 


51,267.19 


31,517 


1 2,000 


12,000 



$3,052,897.46 


$2,522,001 


$2,450,123 


$2,446,983 


2,639,471.06 
413,426.40 


2,060,846 
461,155 


2.064,753 
385,370 


2,062.057 
384,926 


$3,052,897.46 


$2,522,001 


$2,450,123 


$2,446,983 


3,051,147.46 
1,750.00 


2,522,001 



2,450,123 



2,446,983 




$3,052,897.46 



$2,522,001 



Agency Description 

The Montana School for the Deaf and Blind is a boarding 
school for a maximum of 80 children and adolescents who 
are deaf and/or blind or whose hearing or sight is so defec- 
tive thai they are unable to receive a proper education in 
the public schools of the state. Additionally, the school pro- 
vides for a minimum of 50 day students from the Great 
Falls area. The school serves over 230 students in local edu- 
cation agencies through a resource consultant program. The 
statutory authority for the school is contained in Title 20, 
chapter 8, part I , MCA. The purpose of the school is to pro- 
vide, by the use of specialized methods and systems, an 



ordinary public school education and to teach trades and 
vocations that will enable children attending the school to 
become independent and self-sustaining citizens. 

Issues Addressed/Legislative Intent 

The legislature adopted two major policy options concerning 
the Montana School for the Deaf and Blind. HB871 pro- 
vides additional funding to adjust salary levels of certified 
and licensed faculty at the school. In addition, the legis- 
lature transferred the audiology program to the Office of 
Public Instruction. This action reverses a previous legislative 
decision which placed the program at the school. 



ADMINISTRATION PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted Appropriated 

FY 1987 FY 1988 FY 1989 



Full Time Equivalent Employees 



5.00 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



137,410.62 

46,830.63 

$184,241.25 

184,241.25 
$184,241.25 

184,241.25 
$184,241.25 



138,154 
39,876 



$178,030 

178,030 
$178,030 

178,030 



135,609 
62,284 



$197,893 

197,893 
$197,893 

197,893 



135,516 

44,322 

$179,838 

1 79.838 
$179,838 

179,838 



Program Description 

The Administration Program staff provide purchasing, ac- 
counting, and personnel functions and management of busi- 
ness affairs for the school. 

Issues Addressed/Legislative Intent 

The legislature approved a budget for the Administration 
Program at the FY86 level with increases for insurance 



totalling $1,245 per year, and for audit costs totalling 
$13,081 in FY88 only. The FTE level falls by 0.25 FTE due 
to a transfer of this position to the Student Services Pro- 
gram. Vacancy savings of 4% was applied against this pro- 
gram. 



130 



SCHOOL FOR THE DEAF & BLIND 



GENERAL SERVICES PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



118,434.73 

150,910.64 

3,508.90 

$272,854.27 

272,854.27 
$272,854.27 

272,854.27 
$272,854.27 



121,443 

196,230 





$317,673 
317,673 

$317,673 
317,673 

$317,673 



91,014 

157,711 





$248,725 
248,725 

$248,725 
248,725 



91,542 

167,994 





$259,536 

259,536 
$259,536 

259,536 
$259,536 



Program Description 

The General Services Program staff are responsible for the 
repair and maintenance of the school's eight (8) buildings 
and 18.5 acre campus. 

Issues Addressed/Legislative Intent 

The legislature approved a budget for this program that is 
reduced from the 1^86 level. The reasons for the reduction 



result from approval of the agency request to transfer 2.5 
FTE from this program to the Student Services Program. 
The deleted FTE were a 0.75 FTE groundskeeper and a 1.75 
FTE custodial worker. Operating expenses increase to reflect 
anticipated inflation for utilities in the 1989 biennium. 
Vacancy savings of 4% was applied against this program. 



STUDENT SERVICES 
Budget Detail Summary 


Actual 
FY 1986 


FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


30.20 


27.47 


31.95 31.95 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



i26,660.74 


523,586 


590,984 


590,485 


99,040.19 


122,701 


-126,112 


1 30,470 


16,850.74 


1,710 


4,000 


5,850 



$642,551.67 

612,551.67 

30,000.00 

$642,551.67 

642,551.67 
$642,551.67 



$647,997 

617,997 

30,000 

$647,997 

647,997 
$647,997 



$721,096 

686,096 

35,000 

$721,096 

721,096 
$721,096 



$726,805 

691,805 

35,000 

$726,805 

726,805 
$726,805 



Program Description 

The Student Services Program exists to provide residential 
care for a maximum of 80 children living at the school. 

Issues Addressed/Legislative Intent 

The FTE level in this program increases by 4.48 FTE which 
reflects the agency request to transfer positions into this pro- 
gram and reclassify them as cottage life attendants to meet 
the needs of staffing the cottages on the school's campus. 
Vacancy savings was budgeted at 1% for this program. 

Operating expenses increase by $25,246 in FY88 and by 
$26,651 in FY89 for additional travel expenses that will be 
incurred for sending students home for weekends with their 
families during the school year. The legislature approved a 
proposal by the Board of Public Education to stop trans- 



porting students in school-owned vans due to potential lia- 
bility problems. The school has begun transporting students 
strictly by commercial carrier. The increases in the budget 
are attributable to the anticipated increases for air charter 
service. Legislation that supports this change in policy was 
contained in SB370 of the 1987 Legislative Session. 

The legislature did not approve specific items of equipment 
for the school. Rather, $12,000 per year was approved for 
use across all programs according to the priorities estab- 
lished by the school. At the time of the hearings, it appeared 
that the expenditure level in this program would be approxi- 
mately $4,000 in FY88 and $5,850 in FY89. 
Funding for this program is from the general fund and from 
the school lunch program. It was anticipated by the legis- 
lature that the school will receive $35,000 per year from the 
federal school lunch program. 



SCHOOL FOR THE DEAF & BLIND 



131 



EDUCATION 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipmcnl 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



134,161.34 
116,607.34 
30,907.55 



$1,281,676.23 

898,249.83 

383,426.40 

$1,281,676.23 

1,279,926.23 

1,750.00 

$1,281,676.23 



234,448 
114,046 
29,807 



947,146 
431,155 



1,378,301 



$1,378,301 



.156.344 

I 1 8,065 

8,000 



$1,282,409 

932,039 

350,370 

$1,282,409 

1,282,409 



$1,282,409 



.156.4S.< 

118.171 

6,150 



$1,280,804 

930,878 

349,926 

$1,280,804 

1,280,804 



Program Description 

The Education Program exists to provide an education for 
children with a hearing and/or sight loss which prevents 
them from receiving an adequate education in their regular 
hometown public or private school. The program also pro- 
vides "mainstream" programs for certain students in a joint 
effort with Great Falls Public School System. 

Issues Addressed/Legislative Intent 

The FTE level in this program was reduced reflecting the 
absorbtion of the FYS 7 unfunded pay plan and reductions 
in FY86 and FY87. In total, 3.92 FTE were reduced but 
budgeted personal services expenditures increase because the 
remaining positions are fully funded. A 1% vacancy savings 
factor was applied against this budget. 

The legislature reduced the 1986 base for educational sup- 
plies by $2,236 in FY88 and $2,335 in FY89. Additional 
funds totalling $9,750 in each fiscal year was appropriated 
for replacement of outdated textbook series. 
The legislature did not identify specific equipment pur- 
chases. Rather, $ 1 2,000 was appropriated for all programs at 
the school. The actual expenditure of the equipment funds 



was left to the priorities established by the school. At the 
time of the legislative hearings, it appeared that the school 
would spend $8,000 in FY88 and $6,150 in FY89 in this 
program. 

Funding for this program comes from the general fund; fed- 
eral chapter I funds at $168,870 in FY88 and $168,426 in 
FY89; $3,000 per year from athletic events; $1,500 per year 
from federal chapter II funds; and $177,000 per year from 
interest and income earnings. It is anticipated that interest 
and income earnings will decline from the FY86 level of 
$210,673 due to the declining interest rates. 
The legislature did not approve a modified budget request 
to replace federal chapter I funds with general fund. If the 
federal funds do decline as is now anticipated, reductions of 
approximately $3,100 in FY88 and $24,000 in FY 89 will 
be necessary. 

The legislature passed HB871 which requires the Board of 
Public Education to adjust salary schedules for certified or 
licensed faculty of the School for the Deaf and Blind. The 
legislation will result in increased expenditures for personal 
services totalling $23,029 in each year of the 1989 Bien- 
nium. 



AUDIOLOGY PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Total Program Costs 

General Fund 

Total Funding Costs 

Current Level Services 
Total Service Costs 



$671,574.04 
671,574.04 

$671,574.04 
671,574.04 

$671,574.04 



Program Description 

The Audiology Program provides hearing screening services 
to all public schools in Montana. The services are carried 



out by providers contracting with the Office of Public 
Instruction Special Services Division. Appropriate referrals 
are made for students identified as having a hearing loss. 



132 SCHOOL FOR THE DEAF & BLIND 

Issues Addressed/Legislative Intent Deaf and Blind to the office of Public Instruction, Special 



The audiology program was moved by the legislature from 
the the Board of Public Education and the School For the 



Services Division. 



MONTANA ARTS COUNCIL 



133 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


5.50 


4.00 


7.')7 7.97 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



102,469.88 

292,796.39 

1,544.00 

670.163.08 

$1,066,973.35 
118,707.00 
530,716.35 
417,550.00 

$1,066,973.35 
1,066,973.35 

$1,066,973.35 



113,255 

222,117 



168,600 



$503,972 

111,174 


392,798 
$503,972 

503.972 
$503,972 



205,996 

260,386 



1,283,000 

$1,749,382 

125,315 

1,222,217 

401,850 

$1,749,382 

1.749,382 

$1,749,382 



174.667 

186,161 



160.703 



120,154 



401,377 



$521,531 

521,531 
$521,531 



Agency Description 

As authorized by section 22-2-101, MCA, the Montana Arts 
Council exists to encourage the expansion of opportunities 
for all Montana citizens to create, participate in, and appre- 
ciate the arts, regardless of age, sex, race, income, place of 
residence, or physical condition. The Montana Arts Council 
encourages the study and presentation of the arts throughout 
the state. It stimulates public interest and participation in 
arts activities and cooperates with public and private insti- 
tutions engaged in artistic and cultural activities. It also pro- 
vides grants for technical assistance, distribution of art 
resources, special project assistance, and pilot project devel- 
opment. 

Issues Addressed/Legislative Intent 

The legislature consolidated the three programs of the Arts 
Council into one program entitled Promotion of the Arts. 



This program now includes the Grants Program and the 
Special Projects Program. 

The executive recommended to the legislature the conver- 
sion of contracted service employees to state employees. The 
latest audit from the Office of the Legislative Auditor 
recommended that the Arts Council convert these con- 
tracted service employees to state employees because they 
did not meet the definition of independent contractors as 
defined in Section 39-71-120, MCA. Also, there was a con- 
cern as to employer responsibility regarding taxes, unem- 
ployment compensation and workers' compensation respon- 
sibilities if these employees are incorrectly classified as inde- 
pendent contractors. 

The program narratives discuss the conversion of contracted 
services employees to state employees and the program con- 
solidation in greater detail. 



134 



MONTANA ARTS COUNCIL 



PROMOTION OF THE ARTS 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


2.10 


2.10 


7.97 7.97 



Personal Services 
Operating Expenses 
Equipment 
Cirants 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



61,067.60 

73,472.40 

299.00 

0.00 


72,723 

40,597 



12,489 


205,996 
260,386 

1,283,000 
$1,749,382 

125,315 

1,222,217 

401,850 

$1,749,382 

1,749,382 

$1,749,382 


174,667 

186,161 



160,703 


$134,839.00 

60,399.00 

0.00 

74,440.00 

$134,839.00 

134,839.00 


$125,809 

54,390 



71,419 

$125,809 

125,809 


$521,531 

120,154 



401,377 

$521,531 

521,531 


$134,839.00 


$125,809 


$521,531 



Program Description 

The promotion of the Arts program provides for the core 
administrative function of the Council, including the Execu- 
tive Director, Executive Secretary, office manager, account- 
ing support, public communication and coordination, docu- 
ment processing, clerical support. Council operations, and 
audit. 

Issues Addressed/Legislative Intent 

The legislature consolidated the three programs of the Arts 
Council into one program. The Promotion of the Arts Pro- 
gram now includes the Grants Program and the Special 
Projects Program. 

The legislature adopted the executive's recommendation to 
convert 3.47 FTE overall from contracted services to per- 
sonal services. The net cost of converting these employees 
was $18,424 in FY88 and $18,186 in FY89. These positions 
have been budgeted under grants from federal sources. As 
state employees, they will continue to be federally funded. 
The agency contracted for these employees through the 
Montana Institute of the Arts Foundation. 
The FY86 actual reflects 2.10 FTE appropriated during the 
49th Legislature when the Promotion of the Arts Program 
was one of three programs within the Arts Council. The 
consolidation of the programs and the placing of contracted 
services employees into personal services as state employees 
has increased the FTE level shown in FY88 and FY89. The 
total FTE authorized in HB 2 is 6.84 FTE in FY88 and 6.86 
FTE in FY89. The FY88 FTE reflects an additional 1.13 
administrative FTE and FY*( includes an additional 1.11 
FTE funded by HB 4 state special revenue to administer the 
cultural and aesthetic projects. Thus, 7.97 FTE are shown in 
FY88 and 6.86 in FY89. 



A vacancy savings factor was not applied to the Arts Coun- 
cil budget. The legislature chose not to apply a vacancy 
savings to this agency because it has less than 20 employees. 
The operational portion of the budget increases in FY88 
and FY89 primarily because of the consolidation of the pro- 
grams and the inclusion of operational funds from HB 4 
allocated in FY88. The FY86 reflects operational expendi- 
tures for the Promotion of the Arts Program prior to the 
consolidation of the programs. 

The FY88 grants from state sources includes $20,000 in gen- 
eral fund for local special projects and $1,222,217 from HB 
4. FY89 includes the $20,000 general fund grants as pro- 
vided in the appropriations bill. The allocation of HB 4 coal 
tax funds is not reflected in FY89. 

The council is appropriated $125,315 of general fund in 
FY88 and $120,154 in FY89. As in FY86, there is $20,000 
of general fund included to fund special projects. The rest of 
the general fund is used to support a portion of the general 
operations. 

The total federal and private funds appropriated are 
$401,850 in FY88 and $401,377 in FY89. Included in these 
funds are community matching funds of $69,450 each year. 
The community matching funds for dance and drama and 
the Artist-in-the-Schools Program were not previously 
appropriated. The legislative auditors recommended that 
these funds be included in the 1989 biennium. 
The legislature passed HB 4 which appropriates cultural and 
aesthetic funds for granting to successful applicants for vari- 
ous projects. It also appropriates funds to the Montana Arts 
Council for the administration of these grants as discussed 
in this narrative and the agency narrative. 



MONTANA ARTS COUNCIL 



135 



GRANTS 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Grants 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



20,000.00 
481,498.08 
168.665.00 

$670,163.08 
670,163.08 

$670,163.08 



$148,171 



20,000 


128,171 



$148,171 

148,171 
$148,171 



$0 



Program Description 

The Grants Program includes: 1) Council-initiated projects, 
2) Council grants and fellowships, and 3) Cultural and aes- 
thetic projects grants. 

The definitions of these various types arc as follows: 
Council-initiated projects: These projects, carried out at the 
initiation of the Council, may or may not be on-going, are 
administered by existing staff, and are charged only for the 
direct costs incurred with no administrative costs allocated 
to them. 

Council grants and fellowships: Applications are made by 
nonprofit organizations and individual artists and compete 
with all other applications submitted. Grants are reviewed 
by staff, evaluated by advisory panels, which in turn make 



their recommendations to the full Council which make the 
final awards. 

Cultural and aesthetic projects grants: Applications arc 
made by governing units and compete with all other Cul- 
tural and Aesthetic projects proposals submitted. Grants are 
reviewed by staff, evaluated by the Cultural and Aesthetic 
Projects Advisory Committee, which makes its recom- 
mendations to the joint sub committee on Education and 
Culture. The final allocations are legislated by the House 
and Senate. 

Issues Addressed/Legislative Intent 

The legislature transferred the entire Grants Program into 
the Promotion of the Arts Program. 



SPECIAL PROJECTS 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



3.40 



.90 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



41,402.28 

219,323.99 

1,245.00 

0.00 

$261,971.27 

38,308.00 

49,218.27 

174,445.00 

$261,971.27 

261,971.27 



40,532 

181,520 



7,940 



$229,992 

36,784 



193.208 

$229,992 

229,992 

$229,992 



Program Description 

The special projects program carries out the on-going pro- 
grams of the Council, including Organizational Services, 
Artists Services and Artists in Schools, the Montana Folklife 



Project, Coal Tax Administration, data processing. Advisory 
Panels, and Public Art. 

Issues Addressed/Legislative Intent 

The legislature transferred the entire Special Projects Pro- 
gram into the Promotion of the Arts Program. 



136 



LIBRARY COMMISSION 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


26.60 


25.50 


27.50 27.50 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Agency Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



588,687.86 


569,239 


654,963 


654,327 


430,316.29 


301,751 


408,361 


393,683 


114,084.32 


97,494 


114,457 


95,014 


686,077.34 


588,483 


569,309 


538.876 



$1,819,165.81 

542,293.89 
528,390.61 
748,481.31 

$1,819,165.81 
1,819,165.81 

$1,819,165.81 



$1,556,967 

524,096 
423,866 



$1,747,( 



609,005 



548,652 
429,461 
768,977 



$1,556,967 

1,556,967 
$1,556,967 



$1,747,090 

1,747,090 



520,199 
418,979 

742,722 



$1,681,900 

1,681,900 



Agency Description 

As authorized in Title 22, Chapter 1, MCA, the Montana 
State Library is responsible for providing assistance and 
advice to all tax supported libraries and to citizens and local 
governments which may wish to establish and improve 
libraries. It administers all slate and federal funding to 
public libraries throughout Montana. It administers the 
State Library which (a) provides information service to state 
government; (b) provides referral and backup service to all 
libraries in the state; (c) provides direct library service to all 
blind and physically handicapped Montana residents; (d) is 
responsible for distribution centers of state documents, and 
(e) is responsible for the Natural Resource Information Sys- 
tem and the Natural Heritage Program under MCA 
90-15-101. It also oversees the six federations of libraries 
and does policy development, long range planning and coor- 
dination of library service throughout the state. 

Issues Addressed/Legislative Intent 

The total current level FTE budgeted for FY86 and FY87 
for the Slate Library was 25.50. An additional 2.00 FTE 
were created for the Natural Resources/Heritage Program as 
authorized in HB 860 of the 49th Legislature. This brought 
the library to a total of 27.50 FTE. The FY86 actual FTE of 



26.60 reflects the agency's current level of 25.50 plus 1.10 
FTE utilized by the Natural Resources/Heritage Program 
when FTE were hired for only a portion of FY86. 

The State Library made numerous position transfers 
between its programs in FV86. These actions were an eflbrl 
to provide the most efficient supervision and staff coverage 
for the various functions of the library in view of difficult 
fiscal conditions. 

This transferring of positions accounts for the various levels 
of program FTE reflected in FY86. Overall, the library 
remained within its authorized level of positions. 
The legislature consolidated the seven programs of the State 
Library into two programs. The Reference and Information 
Services Program now includes the Library Development 
Program, the Institutional Library Services Program, the 
Library Services for Physically Handicapped Program, the 
Administration Program, and the Technical Services Pro- 
gram. 

The Natural Resources/Heritage program is the other pro- 
gram within the State Library. This program did not have 
any major changes as a result of the consolidation. 
The legislature consolidated the State Library programs to 
provide greater management flexibility. 



LIBRARY COMMISSION 



137 



REFERENCE/INFORMATION SERVICES 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


6.58 


6.50 


25.50 25.50 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



155,799.76 

137,975.71 

83.860.24 

0.00 


129,759 

152,053 

85.691 




601. .'^69 
324,994 
114,457 
569,309 


6()o.si: 

316,582 
95,014 
538,876 


$377,635.71 


$367,503 


$1,610,129 


$1,551,284 


269,310.01 

19,045.28 

89,280.42 

$377,635.71 


251,813 

21,874 

93,816 

$367,503 


548,652 

299,000 

762,477 

$1,610,129 


520,199 

311.000 

720.085 

$1,551,284 


377,635.71 


367,503 


1,610,129 


1.551,284 


$377,635.71 


$367,503 


$1,610,129 


$1,551,284 



Program Description 

Under MCA 22-l-103(2)(4)(7), the Reference and Informa- 
tion Services program provides staff, services and collections 
of materials to make available information service for all 
state agencies and state employees. It also provides referral 
and backup services for all libraries within the state. The 
collections of materials provide an information base for 
state government and special items which local libraries are 
not able to provide. Services include interlibrary loan for all 
state employees, database searching for both state employees 
and citizens in Montana, circulation and collection develop- 
ment. 

Issues Addressed/Legislative Intent 

The legislature consolidated the seven programs of the State 
Library into two programs. The Reference and Information 
Services program now includes the following former pro- 
grams: 1) Library Development, 2) Institutional Library Ser- 
vices, 3) Library Services for the Blind and Physically Hand- 
icapped, 4) Administration, and 5) Technical Services. The 
other program is the Natural Resources/Heritage which con- 
tains no other previous programs. The legislature chose to 
reduce the number of programs at the library in order to 
simplify administrative functions. The services provided 
remain intact. The FY86 and FY87 figures reflect the refer- 
ence and information program prior to this consolidation of 
programs. 

The Reference and Information program is budgeted for 
25.50 FTE each year of the 1989 biennium. In order to 
meet unfunded pay increases and other actions of the 49th 
Legislature, a 1.00 FTE library clerk position was deleted 
saving $14,182 in FY88 and $14,157 in FY89. This level of 
personal services includes 1.00 FTE Librarian approved in 
the Kellogg modification as approved by the legislature. A 
1% vacancy savings factor was applied to personal services 
each year. 

The approved Kellogg modification allows the library to 
receive and expend private funds from the Kellogg Founda- 
tion as part of a four state grant for information delivery to 
rural communities. The Kellogg grant was approved for 
FY86 and FY87 by the budget amendment process. The 
legislature authorized the continuation of the project in the 



1989 biennium. It does include one position which is to 
conduct formal programs for rural resident needs in infor- 
mation education and training programs. The total amount 
of funds approved is $48,500 each year. 
The legislature adopted the executive recommendation to 
discontinue the Butte film service contract saving $11,572 
of general fund each year. This action was taken in order to 
meet the necessary reductions from the June Special Session 
of the 49th Legislature. 

The operational budget increases by $6,245 each year 
because of a price increase imposed by the Western Library 
Network for usage of their system. 

Equipment is authorized at $114,457 in FY88 and $95,014 
in FY89. Included in this equipment is $18,527 in FY88 for 
the purchase of a high speed cassette duplicator. The 
remainder of the equipment funds is to be used for books 
and materials. 

The library is funded with general fund, a portion of the 
earmarked coal severance tax, and federal funding from the 
Library Services and Construction Act (LSCA). The general 
fund expended in FY86 was $542,298 as compared to the 
authorized general fund of $548,652 in FY88 and $520,199 
in FY89. 

The library is faced with a 31% decline in coal severance 
tax. This state special revenue decreased from the FY86 ac- 
tual expenditure level of $430,613 in FY86 to the budgeted 
$299,000 in FY88 and $311,000 in FY89. This decline is 
attributable to lower coal production and prices. The LSCA 
funds will increase by 1% in FY88 but decline by 5.9% or 
$42,392 from the FY88 level to the FY89 level. The 
$48,500 for the approved Kellogg modification is included 
in the federal and private account. The library is authorized 
$3,000 each year for miscellaneous reimbursements. 
The legislature placed specific language in the appropria- 
tions bill which allows LSCA funds to be transferred 
between FY88 and FY89. The language reads: 

"The amounts included in item 1 in the federal spe- 
cial revenue column represent Library Services and 
Construction Act funds that may be transferred 
between fiscal 1988 and 1989." 



138 



LIBRARY COMMISSION 



IJBKAKY DK.VELOPMENT 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Grants 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



70,584.16 
43,687.55 
686,077.34 



34,657.24 
368,534.12 
397,157.69 

$800,349.05 
800,349.05 

$800,349.05 



92,223 
33,648 
588,483 



$714,354 

36,737 
361,153 
316,464 

$714,354 
714,354 

$714,354 



Program Description 

Under MCA 22-l-103(l)(3)(5)(8)(9). this program provides 
staff and services to give assistance and advice to all tax 
supported libraries and to local government and citizens 
who wish to establish and improve libraries. It oversees the 
six federations of libraries throughout Montana. It provides 
both automation planning and links Montana with computer 
networks throughout the region and the nation. This 



includes development and coordination of library service, 
long range planning and public information about library 
services in the state. 

Issues Addressed/Legislative Intent 

The legislature transferred the entire Library Development 
Program and budget to the Reference and Information Ser- 
vices Program. 



INSTITUTIONAL LIBRARY SERVICES 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



32,519.27 
11,946.54 
9,049.19 



$53,515.00 

13,022.75 
40,492.25 

$53,515.00 
53,515.00 

$53,515.00 



47,064 
9,399 
10,873 



$67,336 

20,222 



$67,336 

67,336 



$67,336 



Program Description 

Under MCA 22-1-103(7), this program provides staff and 
services for library service to Montana residents who are in 
stale i;irc m coircclional, psychiatric or other institutions. It 
provides a staff member and library at Montana State 
Hospital. Warm Springs. It provides money to purchase 
materials and for contracts with local public libraries to 
serve the Veterans' Home, Columbia Falls; Center for the 
Aged, Lewistown; Eastmont Human Services Center, 



Glendive; Pine Hills School, Miles City, and Swan River 
Youth Forest Camp, Swan Lake. Institutions close to Helena 
are served directly by the State Library. It also provides 
money for materials for the State Prison, Deer Lodge. 

Issues Addressed/Legislative Intent 

The legislature transferred the entire Institutional Library 
Services Program and budget to the Reference and Informa- 
tion Services Program. 



LIBRARY COMMISSION 



139 



PHYSIC ALLY HANDICAPPED SKRVICE 
Budget Detail Summary 



Actual 
FY 198« 



Budgeted 
FY 1987 



Appropriated 
FY 1988 F^ 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



102,790.73 
36,865.87 



$139,656.60 



97,939 
39,311 



$137,250 



$139,656.60 


$137,250 


$0 


$0 


54,545.07 

85,111.53 

$139,656.60 


54,041 

83,209 

$137,250 






$0 




$0 


139,656.60 


137,250 









Program Description 

Under MCA 22-1-103(6), this program provides staff, ser- 
vices and materials for direct library service to all people in 
Montana who are unable lo use conventional print. It ad- 
ministers the Talking Book Program from the Library of 
Congress, with both books and talking book machines. 



Coordination of volunteers who work with the blind or 
physically handicapped is part of this program. 

Issues Addressed/Legislative Intent 

The legislature transferred the entire Library Services For 
the Physically Handicapped Program and budget to the Ref- 
erence and Information Services Program. 



ADMINISTRATION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



104,221.12 

42,441.02 

202.40 



101,249 

31,696 

930 



$146,864.54 


$133,875 


$0 


$0 


109,018.49 

37,846.05 

$146,864.54 


99,158 

34,717 

$133,875 






$0 






$0 


146,864.54 


133,875 









$146,864.54 



$133,875 



Program Description 

Under MCA 22-1-103, this program administers the State 
Library and administers all state and federal funds appropri- 
ated for public libraries and library services. It provides sup- 
port services for the Montana State Library Commission 
and the Montana Library Services Advisory Council. 



Issues Addressed/Legislative Intent 

The legislature transferred the entire Administration Pro- 
gram and budget to the Reference and Information Services 
Program. 



140 



LIBRARY COMMISSION 



TECHNICAL SERVICES 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



96,950.07 
34,279.98 
9,029.95 



$140,260.00 

61,740.33 

43,034.69 

35,484.98 

$140,260.00 

140.260.00 



101,005 

35,644 





$136,649 

62,125 
40,839 
33,685 

$136,649 
136,649 

$136,649 



Program Description 

Under MCA 22-1-103(4) and 22-1-211 through 22-1-214, 
this program provides services related to the State Library 
materials collections and the state documents depository 
center. It is responsible for the purchase, cataloging and pre- 
paration of books, periodicals and other materials. It con- 
lams a federal documents depository program and is the 



program within which the state documents depository center 
is operated. 

Issues Addressed/Legislative Intent 

The legislature transferred the entire Technical Services Pro- 
gram and budget to the Reference and Information Services 
Program. 



NATURAL RESOURCES/HERITAGE 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


1.10 


.00 


2.00 2.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



25,822.75 

123,119.62 

11,942.54 

$160,884.91 

97,776.52 

63,108.39 

$160,884.91 

160.884.91 

$160,884.91 



53,594 

83,367 





30,461 
6.500 



$136,961 

136.961 



53.515 

77.101 





$130,616 

107.979 

22.637 

$130,616 

130,616 
$130,616 



Program Description 

Under MCA 90-15-101, this program provides the Natural 
Resource Information System to streamline the management 
of the state's natural resource data and provide a standard 
system for the acquisition, storage and retrieval of data 
statewide. It inventories existing data, provides access to 
data, and assists other state agencies in managing data. The 
program is also responsible for administering the Montana 
Natural Heritage Program, a data base on special plants, 
animals, communities and geological features. 

Issues Addressed/Legislative Intent 

The legislature authorized 2.00 FTE in FY88 and FY89 in 
the library's second program which is the Natural 
Resources/Heritage program. The FV86 actual shows less 



FTE because during the program start up time less FTE 
costs were expended. It is the legislature's intent for these 
two positions to now be a part of the personal services bud- 
get. The positions are a 1.00 FTE program manager and a 
1.00 FTE library technician. The heritage project is author- 
ized $51,603 in FY88 and $56,835 in FV89 to contract for 
necessary work requiring special expertise. 
The legislature approved a modified request for federal and 
private funds of $1 1,500 to manage an inventory of riparian 
habitats as part of the Montana Rivers Study for the man- 
agement of a data base on bald eagles, and for inventories of 
special resources to be conducted by the Heritage program. 
The Natural Resources/Heritage program is funded with 
state special revenue and federal and private funds. There is 
funding of $100,926 from unused resource indemnity trust 



LIBRARY COMMISSION 



141 



fund carried forward to FY88. The library has not received 
any of these grant funds due to the priority listing for these 
funds. Nonetheless, these grants are for two years and can 
be spent within a two year period from the time they are 
received. Funding of $52,140 is included from Fish, Wild- 
life, and Parks license fees in FY89. There is also $24,535 in 
FY88 and $55,839 in FY89 of carryover funds from the 
Department of State Lands. The Nature Conservancy orga- 
nization provides funding of $22,637 in FY89 for the opera- 
tion of the program. 



The legislature passed HB 7 which provides a grant of 
$97,712 for the development of a Montana Water Resources 
Data Management Study. 

They also passed HB 6 which provides a resource indemnity 
trust grant of $177,970 to continue the operation of this 
program during the next biennium. 

There is language in SB 373 which addresses the continued 
eligibility of this program for resource indemnity trust 
funds. The effect of SB 373 is to maintain consideration for 
funding for natural resource information programs in future 
bienniums. 



142 



COUNCIL ON VOCATIONAL EDUCATION 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


2.00 


2.00 


2.00 2.00 



Personal Services 
Operating Expenses 

Total .\gency Costs 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



41,575.52 


60,368 


60,998 


60,318 


42,380.95 


56,970 


59,002 


59,682 


$83,956.47 


$117,338 


$120,000 


$120,000 


83,956.47 


117,338 


120,000 


120,000 


$83,956.47 


$117,338 


$120,000 


$120,000 


83,956.47 


117,338 


120,000 


120,000 


$83,956.47 


$117,338 


$120,000 


$120,000 



Agency Description 

The Montana Advisory Council on Vocational Education 
was created in 1985 by Executive Order No. 3-85 to comply 
with the Carl D. Perkins Vocational Education Act of 1984 
(P.L.98-524). The role of the thirteen (13) member council 
lies in assessing and monitoring the coordination of pro- 
grams provided by the Vocational Education Act, the Job 
Traming Partnership Act, and the private sector as they ful- 
fill mandated responsibilities. Additional responsibilities 
include advising and working with the superintendent of 
Public Instruction on the development of a State Plan, tech- 
nical committees, evaluation criteria, adult training and 
retraining programs, and industry-education partnership. 
The council meets several times each year to conduct evalu- 
ations of vocational education programs, review articulation 
among various education and training programs, and par- 



ticipate in state planning for vocational education. The 
administrative staff conducts research, prepares research and 
annual reports, plans council meetings and travel, manages 
council fiscal activity, maintains all council records, super- 
vises the accomplishment of council goals, and represents 
the council when directed to by council members. 

Issues Addressed/Legislative Intent 

The budget for the Advisory Council was substantially 
increased over the FY 86 level for two reasons. First, the 
FY86 expenditure level is not representative of a normal 
year as the council was without a director for several 
months in FY86. Secondly, the council will receive addition- 
al federal funding expected to total $120,000 per year in the 
1989 biennium. The budget established by the legislature 
represents a more normal level of activity for the council. 



HISTORICAL SOCIETY 



143 



Agency Summary 
Budget Detail Summary 



l-'ull Time l'!i|uivalcnl limployccs 



Personal Services 

Operating Expenses 

Equipment 

Grants 

Transfers 

Debt Service 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 1 

47..^S 


V\ 1989 


55.50 


51.00 


47. 3S 


1,202,851.76 
653,602.91 
509,101.71 
255,388.61 
41,320.00 
60,666.66 


1,154,544 

708.357 

22,308 

610,000 






1,172,344 

857,716 

19,900 

610,000 

41,320 




1,172,405 

839,910 

9,900 

610,000 

41,320 




$2,722,931.65 


$2,495,209 


$2,701,280 


$2,673,535 


1,204,072.79 
188,366.97 
900,338.95 
430,152.94 


1,072,839 



1,060,461 

361,909 

$2,495,209 


1,121,413 



1,093,780 

486,087 

$2,701,280 


1,111,737 



1,041,918 

519.880 


$2,722,931.65 


$2,673,535 


2,691,849.34 
31,082.31 


2,495,209 



$2,495,209 


2,701,280 



2.673.535 



$2,722,931.65 


$2,701,280 


$2,673,535 



Agency Description 

The Montana Historical Society exists for the use, learning, 
culture, and enjoyment of the citizens of the state and for 
the collection, preservation and interpretation of Montana's 
material culture including artifacts, art, documents and 
records. The society maintains a library, an art gallery, a 
museum, historical exhibits, publishes the state historical 
magazine, a newsletter and other historical works, and pro- 
vides educational information for travelers and the general 
public. The agency also administers the National Historic 
Preservation Act and the State Antiquities Act. The Histori- 
cal Society was established in 1865 and is provided for in 
section 22-3-101, MCA. 



Issues Addressed/Legislative Intent 

The legislature deleted the capitol tours function that has 
been provided by the Historical Society. This action was 
taken in an effort to continue the reductions made during 
the June Special Session of the 49th Legislature. The general 
fund savings realized is $14,084 each year of the 1989 bicn- 
nium. 

A 4% vacancy savings factor was applied to only general 
fund positions within the various programs of the Historical 
Society. The legislature did not apply a vacancy savings 
factor to non-general fund positions of this agency. 



144 



HISTORICAL SOCIETY 



ADMINISTRATION PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



12.50 



12.50 



11.88 



11.88 



Personal Services 
Operating Expenses 
Equipment 
Debt Service 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



280,274.13 

122,398.80 

486,176.46 

60,666.66 

$949,516.05 
508,432.49 
1 50,000.00 
291,083.56 

$949,516.05 
949,516.05 

$949,516.05 



276,908 

172,383 







$449,291 

377,232 



72,059 

$449,291 

449,291 



283,782 

215,901 







$499,683 



$449,291 



439,873 



59,810 

$499,683 

499.683 

$499,683 



283,836 

207,508 







$491,344 

431,418 



59,926 

$491,344 

491,344 

$491,344 



Program Description 

The Administration Program provides supervision, adminis- 
tration, and coordination of the eight programs in the His- 
torical Society. Program staff are responsible for the effec- 
tive management, planning, direction and leadership of the 
society as a whole. Activities include public relations, 
payroll/personnel, fund raising, financial reporting, business 
management, security and building management. 

Issues Addressed/Legislative Intent 

The legislature applied a 4% vacancy savings factor to gen- 
eral fund positions only. The legislature deleted .62 FTE in 
order to continue the actions of the June Special Session of 



the 49th Legislature. The positions deleted were a .50 FTE 
stock clerk and a .12 FTE publicity specialist. 
Operational costs increase by $76,586 in FY88 and $81,751 
in FY89 for additional rent on the new addition to the His- 
torical Society which was completed in FY86. The FY88 
operational budget includes $14,113 for the society's bien- 
nial audit. The FY86 expenditures for equipment and non- 
operating reflect the one-time purchase of the Russell collec- 
tion. There is no equipment authorized in the Administra- 
tion Program budget for the 1989 biennium. 
This program is funded primarily with general fund which is 
authorized at $439,873 in FY88 and $431,418 in FY89. Pri- 
vate revenue consists of $32,696 in FY88 and $32,638 in 
FY89 of donated funds. Federal historic site preservation 
funds total $27,1 14 in FY88 and $27,288. 



LIBRARY PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


7.00 


5.00 


5.00 5.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



155,682.28 


116,496 


128,014 


128,371 


40,000.53 


43,261 


32,354 


31,954 


12,763.66 


20,917 


19,900 


9,900 



$208,446.47 

150,649.54 

57,796.93 

$208,446.47 

208,446.47 



$180,674 

147,041 

33,633 

$180,674 

180,674 
$180,674 



$180,268 



154,194 
26,074 



$180,268 



$180,268 



154,151 
16,074 



$170,225 

170,225 



Program Description 

The Library Program's purpose is to acquire, organize, pre- 
serve and make accessible to the public published materials 
illustrative of the history of Montana, the surrounding 
region, and the Trans-Mississippi West and to assist 



researchers seeking information in these areas. The program 
is provided for in section 22-3-103, MCA. 

Issues Addressed/Legislative Intent 

In FY86, the Library Program had 2.00 FTE funded from 
the National Endowment for the Humanities. These modi- 



HISTORICAL SOCIETY 



145 



fied positions were responsible for the newspaper 
cataloguing project. This project is complete and 5.00 FTE 
are authorized in FY88 and FY89. 

A 4% vacancy savings factor was applied to general fund 
positions. 

Operational expenses decline by 19% because a one-time 
newspaper cataloguing project was completed in FY86. Fed- 
eral grant funding terminated when the newspaper 
cataloguing project was completed. 



The legislature approved equipment of $19,900 in FY88 and 
$9,900 in FY89. Included in the authorized equipment is 
$9,900 each year for books and $10,000 in FY88 for up- 
grading the micro computer system. 

The $10,000 microcomputer upgrade is funded from 
donated funds and was approved as a modified request in 
FY88. 

This program has private donation funding of $3,200 each 
year. It also receives $12,874 each year from fees for copy 
services. 



MUSEUM PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



164,737.74 

95,282.48 

5,588.46 

$265,608.68 


213,037 

113,910 



$326,947 


203,130 

169,691 



$372,821 


203,058 

135,588 



$338,646 


211,846.40 

53,762.28 

$265,608.68 


216,633 

110,314 

$326,947 


207,379 

165,442 

$372,821 


207,342 

131,304 

$338,646 


265,608.68 


326,947 
$326,947 


372,821 
$372,821 


338,646 


$265,608.68 


$338,646 



Program Description 

The Museum Program was established to collect, preserve, 
and interpret the history of Montana through its material 
culture. The museum collects fine arts and historical, 
archeological, and ethnological artifacts from Montana and 
the general geographic region. The program interprets its 
collections through exhibits and educational programs. 

Issues Addressed/Legislative Intent 

A curator position was deleted from current level to meet 
FY87 unfunded pay plan increases. This reduction of 1.00 
FTE saves $24,455 in FY88 and $24,408 in FY89. The 
FY88 and FY89 personal services increases even with the 
reduction of this position. The reason for the increase is that 
a 1.00 FTE carpenter position and a .50 FTE graphic arts 



position was left vacant throughout FY86. Also, a research 
aide position was vacant for half of the year. These vacan- 
cies generated $46,497 in FY86. The legislature applied a 
4% vacancy savings factor to the general fund positions of 
this program in FY88 and FY89. 

The legislature approved a modified request for $40,000 of 
donated funds to complete museum exhibit renovations. 
Also approved was a modified request of $3,000 from 
donated funds to provide photos to the public on a cost 
recovery basis. A modified request of $4,160 in FY88 was 
approved for artifact conservation work. 
Consulting and professional services were authorized to 
increase by $18,333 in FY88 primarily for needed art con- 
servation expertise, a centennial historian and audiovisual 
consultant services for the new Montana history exhibition. 



146 



HISTORICAL SOCIETY 



MAGAZINE PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 

General Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



135,932.69 


135,974 


139,417 


139,135 


292,033.20 


265,893 


346,670 


380,745 


2,187.05 











41,320.00 





41,320 


41,320 



$471,472.94 


$401,867 


$527,407 


$561,200 


41,320.00 
430,152.94 


39,958 

361,909 

$401,867 


41,320 
486,087 
$527,407 


41,320 
519,880 


$471,472.94 


$561,200 


440,390.63 
31,082.31 


401,867 



527,407 



561,200 




$471,472.94 



$527,407 



$561,200 



Program Description 

The Publications Program exists to fulfill one of the primary 
roles of the Society - "to promote the study of Montana His- 
tory by lectures and publications" (section 22-3-108(15), 
MCA). The program publishes Montana the Magazine of 
Western History and the Montana Post , the official news- 
letter of the Society, on a quarterly schedule. It also pub- 
lishes books under the Montana Historical Society Press 
imprint. The program is also responsible for the operation 
of the retail and mail order museum store operation. 

Issues Addressed/Legislative Intent 

The legislature did not apply a vacancy savings factor to the 

Magazine Program. 

The operations increase primarily because of the following 

approved modified requests: 

Magazine Promotion - The legislature authorized 
$5,000 year of proprietary funds, generated from the 
sale of magazines, for printing costs to promote 
Montana the Magazine of Western History. 



Centennial Increase - Approved is $30,000 in FY88 
and $40,000 in FY89 of proprietary funds from the 
sale of goods to meet the demands of anticipated 
increased gift shop sales during the centennial. 

Centennial Press Expansion - Proprietary funds of 
$15,000 in FY88 and $40,000 in FY89 were 
approved to provide new special publications for the 
centennial celebration. These funds are to be gener- 
ated from the sale of publications. 

Expanded Subscriptions - Authority of $18,700 in 
FY88 and FY89 is approved to provide for 2,000 ad- 
ditional subscribers based upon a budget amendment 
which was approved in FY87. 

The Magazine Program has $41,320 of general fund in 
FY88 and FY89 which is the same level as FY86. The gen- 
eral fund constitutes 23% of the programs funding. The rest 
of the funding is from proprietary operations of the maga- 
zine, the press and the gift shop. The magazine sales funds 
are estimated at $231,057 in FY88 and $230,466 in FY89. 
The publications funds are provided at $84,994 in FY88 
and $109,805 in FY89. The merchandizing funds are antici- 
pated at $179,609 in FY88 and FY89. 



HISTORICAL SOCIETY 



147 



PHOTOGRAPH ARCHIVES PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 V\ 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



81,912.67 
10,032.07 
1,184.57 



80,984.98 
12,144.33 

$93,129.31 
93.129.31 

$93,129.31 



85,554 

10,902 





78,482 
17,974 



$96,456 

96,456 



87.538 

16,381 





$96,456 



$103,919 

81,319 

22,600 

$103,919 

103.919 

$103,919 



87,578 

11,383 





$98,961 

81,961 
17,000 



$98,961 

98,961 



Program Description 

The Photograph Archives Program exists to collet, organize, 
preserve and make accessible to the public photographic 
images and other iconographic material pertinent to the 
study of Montana history, and to provide support for 
exhibitions and publications of the Society and others using 
such images. 

Issues Addressed/Legislative Intent 

The Photograph Archives Program was established in FY87. 
This program is the photograph archives function previously 
contained in the Archives Program. The legislature author- 
ized the 3.50 FTE in this new program. These positions are 



a 1.00 FTE archivist, 1.00 FTE photographer, 1.00 FTE 
library technician and a .50 FTE library clerk. A 4% 
vacancy savings factor was applied to general fund positions 
only. 

The general fund supports most of this program. The 
$22,600 in FY88 and the $17,000 in FY89 of federal and 
private revenue is derived from donations contributed to the 
society. 

The legislature approved a modified request to receive a L.J. 
Skaggs grant of $5,000 in FY88. These funds will be used to 
photograph Work Projects Administration (WPA) murals in 
post offices. These funds are part of the federal and private 
revenue account. 



HIST SITES PRESERVATION PROG 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



169.536.88 


165,176 


172,871 


172.663 


49.565.74 


57,817 


47,313 


43.326 


914.91 











255,388.61 


610.000 


610.000 


610,000 



$475,406.14 

74,646.78 
400,759.36 

$475,406.14 
475,406.14 

$475,406.14 



$832,993 

72,340 

760.653 

$832,993 

832,993 



$830,184 

66,379 

763.805 

$830,184 

830.184 



$825,989 

64,359 
761,630 

$825,989 
825,989 

$825,989 



Program Description 

The staff of the Historical Sites Preservation Program ad- 
minister the federal Historic Preservation Act and the fed- 
eral grants-in aid for historic preservation. They also review 
all federally proposed projects within the state to determine 
their effect on historical properties listed in the National 
Register of Historic Places and those eligible for listing. The 
office certifies historic structures and rehabilitation projects 
for the federal lax credit offered in the Tax Reform Act of 



1976 and oversees Montana's State Antiquties Act. The pro- 
gram is authorized by section 22-3-421. MCA. 

Issues Addressed/Legislative Intent 

The legislature authorized the reduction of a .50 FTE his- 
toric preservation officer to continue the actions of the 49th 
Legislature during the June Special Session. This action 
saved $14,513 in FY88 and $14,485 in FY89. A 4% vacancy 
savings factor was applied to general fund positions only. 



148 



HISTORICAL SOCIETY 



The legislative audit fees increase to $4,060 in FY88 from 
$853 in FY86. Operational costs decrease by $2,783 in 
travel in FY88 and $2,711 in FY89. 

The grants in this program increased by $354,611 to the 
requested level of $610,000. The legislature authorized this 
level of grants that provide for regrants to local governments 



for historic site preservation. The level of grants authorized 
for FY88 and FY89 coincides with the FY87 level of grants. 
The general fund decreases by 11% but the federal funds 
increase by 91% over the FY86 levels. The increase in fed- 
eral funds reflects the agency's estimate of funds that can be 
granted to local and other jurisdictions for historic site 
preservation projects. 



ARCHIVES PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



69,465.26 


119,273 


123,918 


124,155 


23,619.49 


6,100 


9,531 


9,531 


286.60 


1,391 









118,404.29 
38,366.97 
36,600.09 
$193,371.35 
193,371.35 
$193,371.35 



$126,764 

126,764 


_0 

$126,764 

126,764 

$126,764 



$133,449 

1 30,949 



2,500 

$133,449 

133,449 



$133,686 



131,186 



2,500 



$133,686 

133,686 
$133,686 



Program Description 

The Archives Program was created as a separate program of 
the society on July I, 1977. Its major functions are to ac- 
quire, preserve, and assure public access to historically valu- 
able private manuscripts and state records. Authority for its 
activities is provided for in section 22-3-202, MCA. 

Issues Addressed/Legislative Intent 

The Archives Program was budgeted for 8.50 FTE in FY86 
and FY87. This program was split in FY86 and 3.5 FTE 
were transferred to a newly established Photograph Archives 
Program. The legislature authorized 5.00 FTE in FY88 and 
FY89 in this program. A 4% vacancy savings factor was 
applied to general fund positions. 

The FY86 actual level of 7.50 FTE includes the 5.00 FTE 
plus 1.5 FTE from the cultural and aesthetic funds granted 



in HE 933 of the 49th Legislature for the oral history 
project. It also includes 1.00 FTE which was privately 
funded for the now complete Holter Collection project. 
The legislature passed HB4 which will continue cultural and 
aesthetic state special revenue to fund the 1.50 FTE for the 
Oral History project. HB4 provides a biennial appropriation 
of $95,000 for this project. 

The 31% decrease in this program and its funding from 
FY86 reflects the transfer of the Photograph Archives Pro- 
gram and the fact that funds appropriated in HB4 are not 
included in the appropriations act. 

The legislature approved a federally funded modified 
request of $2,500 each year for the Montana Historical 
Records Advisory Committee to attend three required meet- 
ings each year. 



HISTORICAL SOCIETY 



149 



EDUCATION PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 


1989 


Full lime Ikiuivalcnt Employees 


2.50 




2.. 50 


1.00 

33,674 

19,875 

$53,549 


53,549 


1.00 


Personal Services 
Operating Expenses 

Total Program Costs 

General Fund 

Federal & Other Spec Rev Fund 


45,310.11 

20,670.60 

$65,980.71 

17,788.31 
48,192.40 

$65,980.71 
65,980.71 

$65,980.71 


— 


42,126 
38,091 

$80,217 
14,389 
65,828 

$80,217 
80,217 

$80,217 


33,609 

19,875 

$53,484 



53,484 


Total Funding Costs 

Current Level Services 


$53,549 

53,549 


$53,484 

53,484 


Total Service Costs 


$53,549 


$53,484 



Program Description 

The Education Program staff provide the interested public 
with access to Historical Society resources through thematic 
presentations using reproductions or facsimiles of its collec- 
tions. The program's activities include interpretation of 
exhibits within the building or on historical sites, coordina- 
tion of volunteer programs, provision of professional assis- 
tance to other cultural organizations in Montana, develop- 
ment and implementation of school programs, sponsorship 
of lectures and traveling exhibits, and coordination of the 
capital tours program. 



Issues Addressed/Legislative Intent 

The legislature deleted a .75 FTE administrative assistant 
and a .75 FTE tour guide, in order to continue the reduc- 
tions made by the June Special Session of the 49th legis- 
lature. This action eliminates the capitol tours. There was 
no vacancy savings applied to this program. 
Several base adjustments reduced the operational costs by 
$796. 

The general fund in this program was to support the capitol 
tours function which has been eliminated. 
The other funding for this program is provided through pri- 
vate donations of $47,203 in FY88 and $47,140 in FY89. 
Also, there is $5,000 each year of federal funds. 



150 



BOARD OF REGENTS 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Transfers 

Total Agency Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



5,600.00 


4,046 


11,200 


11,200 


6,985.50 


18,246 


16,751 


16,808 


0.00 





1,617,690 






$22,585.50 

22,585.50 

0.00 

$22,585.50 

22,585.50 
$22,585.50 



22,292 




$22,292 
22,292 



$1,645,641 



190,951 
,454,690 



$22,292 



$1,645,641 

1,645,641 
$1,645,641 



$28,008 

28,008 




$28,008 

28,008 



Agency Description 

The Montana Constitution gives the Board of Regents the 
authority to supervise, coordinate, manage, and control the 
Montana University System (Article X, Section 9). The 
Regents also supervise and coordinate the three community 
colleges (Flathead Valley, Miles City, and Dawson) and the 
vocational technical centers. To carry out these duties, the 
regents review existing programs, explore new program 
needs, establish new programs, and relocate or terminate 
programs. The regents also evaluate university presidents, 
make system-wide budget recommendations to the Executive 
and Legislature, supervise federal higher education pro- 
grams, and operate a guaranteed student loan program. 

Issues Addressed/Legislative Intent 

The appropriation for general fund support of the Montana 
Board of Regents reflects the correct per diem rate of $50, 
rather than the incorrect rate of $25 that was used for the 
1987 biennium appropriation. Approximately 220 days of 
annual meetings of the seven-member board have been bud- 
geted. 

The legislature chose not to fund the Governor's recom- 
mended Management Council of private sector task force 
members to review and make suggestions concerning mana- 
gerial accountability and administrative control of the Mon- 
tana university system. 



The legislature did appropriate $ 1 50,000 of general fund in 
HB2 for the biennium to support an analysis of the current 
methods of funding the university system. Of that amount, 
$15,000 will help defray the costs of staff in the Office of 
the Commissioner of Higher Education and throughout the 
system to participate in that analysis. (Sec the Commission- 
er's Office administration program for more details.) 

Other Appropriation Bills 

HB787 appropriates $163,000 of general fund to the Board 
of Regents for the extension by satellite of the University of 
Montana's Master of Business Administration program to 
the Billings, Montana, area to be offered in cooperation with 
programs at Eastern Montana College, but with a degree 
from the University of Montana. The appropriation is for 
FY88 only. The appropriation authority will be transferred 
from the Board of Regents to the University of Montana. 
HB39 transfers governance of the Vocational Technical Cen- 
ters from the Office of the Superintendent of Public Instruc- 
tion to the Board of Regents. The actual administration of 
the program is handled in the Office of the Commissioner 
of Higher Education, but language is included in HB39 that 
appropriates $1,454,690 of local impact and education trust 
fund account authority to the board to "operate" the vo- 
tech centers in the 1988-89 biennium. 



FIRE SERVICES TRAINING SCHOOL 



151 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


FY 1988 FY 1989 


Full Time Equivalent Employees 


6.00 


6.00 


5.00 .VOO 



Personal Services 
Operating Expenses 
Equipment 

Total Agency Costs 
General Fund 

Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



183,293.34 


170,019 


162,571 


162,964 


53.215.00 


53,758 


50,821 


48,476 


5,553.03 


4,000 





2,000 


$242,061.37 


$227,777 


$213,392 


$213,440 


227,941.06 


213,777 


199,392 


199,440 


12,500.00 


2,000 


2,000 


2,000 


1,620.31 


12,000 


1 2,000 


1 2,000 


$242,061.37 


$227,777 


$213,392 


$213,440 


242,061.37 


227,777 


213,392 


213,440 


$242,061.37 


$227,777 


$213,392 


$213,440 



Agency Description 

As authorized in section 20-31-102, MCA, the Fire Services 
Training School exists to organize, supervise, and coordinate 
training and education for fire service personnel in the state 
in accordance with local needs and the standards established 
by the State Board of Public Education, and develop and 
deliver public fire safety education programs in the state. 



The board provides general supervision of the school, which 
is located in Great Falls at the Vocational-Technical Center. 
The Fire Services Training School administers and main- 
tains a resource center for use by localities; provides region- 
al, local, and state-wide training programs for fire services 
personnel; develops courses and training materials; main- 
tains a network of unsalaried field instructors and offers a 
fire service professional certification program. 



FIRE SERVICES TRAINING SCHOOL 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



183,293.34 

53,215.00 

5,553.03 

$242,061.37 


170,019 
53,758 
4,000 

$227,777 


162,571 

50,821 



$213,392 


162,964 

48.476 

2,000 

$213,440 


227,941.06 

12,500.00 

1,620.31 

$242,061.37 


213,777 
2,000 
12,000 

$227,777 


199,392 

2.000 

12,000 

$213,392 


199,440 

2,000 

1 2.000 

$213,440 


242,061.37 
$242,061.37 


227,777 
$227,777 


213,392 
$213,392 


213,440 
$213,440 



Issues Addressed/Legislative Intent 

The budget for the Fires Services Training School was 
reduced from the FY86 level of operations by approximately 
$29,000 per year. Reductions include the elimination of 1.0 
FTE trainer that was stationed in Miles City, with the work- 
load expected to be picked up by the remaining trainers on 
the staff. Consequently, travel expenditures were budgeted 
$1,676 higher per year to account for additional travel for 



the remaining four staff trainers. Vacancy savings was not 

taken against this budget. 

Funding reflects a continuation of the proprietary authority 

totalling $12,000 per year that the school was directed to 

generate from its services. Currently, the school charges for 

the use of resource materials such as training films and 

videos. 



152 



DEPT OF FISH, WILDLIFE & PARKS 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Grants 
Transfers 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietar\ Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



13,934,746.39 

9,382,590.30 

905,673.20 

2,539,349.31 

517.339.39 

1,829,034.19 

$29,108,732.78 


12,839,989 

8,397,143 

1,011,067 

28,000 

3,015,729 

543,644 

$25,835,572 


13,539,893 
10,351,391 
1,344,382 
3,549,500 
633,870 
2,318,474 
$31,737,510 


13,553,001 

9,207,912 

1,286,191 

4,000 

583,870 

2,368,790 

$27,003,764 


405,052.81 

18,793,694.31 

8,189,848.79 

1,720,136.87 

$29,108,732.78 




16,773,038 

6,869,024 

2,193,510 

$25,835,572 




22,388,807 

7,164.622 

2,184,081 

$31,737,510 




17,598,521 

7,058.088 

2,347.155 

$27,003,764 


27,075,996.64 

2,032,736.14 

$29,108,732.78 


25,835.572 



$25,835,572 


31,737,510 



$31,737,510 


27,003,764 



$27,003,764 



Agency Description 

The purpose of the Department of Fish, Wildlife and Parks 
is to preserve, protect, enhance, maintain and make avail- 
able to present and future generations all forms of Montan- 
a's wildlife, their habitat and the natural and cultural 
resources of aesthetic, scenic, historic, scientific and archae- 
ological significance. The department's statewide responsi- 
bility in service to wildlife and habitat preservation reaches 
back over 83 years to the establishment in 1901 of a state 
game warden and early departmental structure. Since 1965, 
the department has also been responsible for the administra- 
tion of the State Parks System in Montana. The Nongame 
and Endangered Species Conservation Act charges the 
department with the management of nongame wildlife for 
human enjoyment, for scientific purposes, and to ensure 
their perpetuation as members of ecosystems. The depart- 
ment is provided for in section 2-15-3401, MCA, and is 
regulated by Title 87, MCA. 

Issues Addressed/Legislative Intent 

A four percent vacancy savings factor is applied to all 
department programs. 

The department requested a reorganization of the Parks 
Division and the Field Services Division which was adopted 
by the legislature. 14.0 FTE and the corresponding operating 
costs are transferred from the Parks Division to the Field 
.Services Division. The functions transferred are: sign shop, 
land agcnl oHkc, design and construclion bureau, and corre- 
sponding administration functions. The intent of the reor- 
ganization is to consolidate support functions in the Field 
Services Division. 



The following house and senate bills were passed and 
directly impact the Department of Fish, Wildlife and Parks. 
HB658 - This bill provides for a fee in lieu of property tax 
for motorboats 10 feet in length and sailboats 12 feet in 
length or longer and increase the decal fee from $1 to $2. 
The increase in expenditures for enforcement of the statute 
is $3,500 in FY89. 

HB136 - This bill will increase gasoline license and diesel 
fuel taxes from .17 to .20 cents a gallon. The increase to the 
snowmobile gas tax is estimated to be $56,843 in FY88 and 
$61,000 in FY89. The increase to boat gas tax is estimated 
to be $102,599 in FY88 and $1 10,000 in FY89. 

HB406 - This bill transferred the administrative duties for 
the Outfitter Council from FWP to the Department of Com- 
merce. 

HB535 - This bill revises the number and allocation of non- 
resident combination licenses. 

HB64 - This bill requires competency training for persons 
under 18 years of age before purchasing a bow and arrow 
hunting license, and increasing the license fee $1. Revenue 
increases approximately $20,000 per year. 
HB526 - This bill provides for the lease or purchase of land 
or easements for wildlife habitat with funding to come from 
non-resident fee increases. The new revenue generated is 
estimated at $3,600,000 for the biennium. 
SB331 - This bill establishes a pheasant enhancement pro- 
gram. Funding is derived through the usage of the revenue 
from bird license fees. New revenues are established al 
$1,00(),()()() for the bicnnium. 

SB219 - This bill provides a landowner preference for a 
class A-7 anterless elk license and special elk permits. 



DEPT OF FISH, WILDLIFE & PARKS 



153 



CENTRALIZED SERVICES DIVISION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Grants 
Transfers 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



97.3,411.89 

2.250.861.35 

4.899.78 

0.00 

0.00 

$3,229,173.02 

1,473.849.96 

209,620.83 

1,545,702.23 


1.035.843 

2.052.682 

573.295 

40.000 

136,000 

$3,837,820 

1.608,224 

291.597 

1,937,999 

$3,837,820 

3,837,820 



$3,837,820 


1.102.642 

2.332.885 

610,953 



25,000 

$4,071,480 

1,857,509 

303,235 

1.910,736 

$4,071,480 

4.071,480 



$4,071,480 


1.102.043 

2.332.957 

783,789 



25,000 

$4,243,789 

1.867.282 

294.821 

2,081,686 


$3,229,173.02 

3,229,169.22 
3.80 


$4,243,789 

4,243,789 



$3,229,173.02 


$4,243,789 



Program Description 

The Centralized Services Division is an administrative and 
support unit for the department. 

The Accounting and Finance Bureau provides for the func- 
tions of budgeting; property accounting; deposit of funds; 
payment of vendor invoices and purchasing, payroll; and 
monitors the finances of the department's vehicle fleet, print 
shop and warehouse operations. 

The License Bureau conducts the drawings for licenses and 
permits for moose, sheep, goat, antelope, elk and deer, and 
administers the sale of hunting and fishing licenses through 
license dealers. 



n the division include federal aid and word 



Other duties 
processing. 

Issues Addressed/Legislative Intent 

The Centralized Services Division maintained 47.52 in 
FY86 and is appropriated 47.28 in both years of the 1989 
biennium. The appropriation for personal services increases 
approximately 12% from FY86 to FY89. Increases are the 
result of: I) 5.18 positions were vacant for part of FY86. 
These same positions are funded in FY88 and FY89. 2) 
HB298 (this bill requires that a person have an elk license 
before entering the elk permit drawing) and SB219 (this bill 
establishes a landowner preference for elk drawings) add ad- 
ditional responsibilities which require .45 FTE clerical sup- 
port. 3) .60 FTE was eliminated to fund the pay plan. 
Operating expenses increased in the following areas: 

1) insurance costs increase $49,626. These costs were previ- 
ously budgeted in all divisions; now consolidated in central- 
ized services. 

2) gasoline costs increase $25,695 - inflation adjustment 

3) supplies and repair costs increase $24,900 with the 
financing coming from increased gas tax revenues 

4) appropriation of $85,000 to transfer indirect charges to 
the general fund. (FWP charges federal programs for support 
services provided by other agencies that are general funded. 
These reimbursements are deposited in the general fund.) 

5) minor adjustments plus inflation equaling $9,202 



Operating adjustments between FY88 and FY89 include: 

1) elimination of $53,000 in audit costs 

2) increase in computer access charges equaling $7,800 

3) increase for consulting fees equaling $6,300 

HB298 resulted in a biennial increase to operating costs of 
7,800 and HB535 requires an additional $20,000 to imple- 
ment. HB535 creates nonresident deer licenses and estab- 
lishes a procedure for selling these licenses. 

The equipment budget for centralized services includes the 
following: 

1) Vehicles, $525,628 in FY88 and $579,047 in FY89 

2) Office, $5,821 in FY88 and $654 in FY89 

3) Aircraft rebuilds, $99,000 in FY89 

4) Print Shop. $22,400 in FY89 

5) Equipment added through modifications. $79,504 in 
FY88 and $82,688 in FY89 

Legislative contract authority (LCA) is included in the non- 
operating budget. The agency uses LCA to handle the 
numerous federal grants it receives during the biennium. 
which cannot be anticipated or budgeted for during the bud- 
get process. 

Funding for the division is from general license funds and 
other state special and federal revenue accounts. Also, the 
print shop, warehouse, and equipment proprietary funds 
finance the respective services with charges to users within 
the agency. Legislative contract authority is financed with 
federal funds. 

Vehicle Fund Transfer - allows the transfer of $1 18.327 in 
FY88 and $150,660 in FY89 from the hunting and fishing 
license account to the equipment revolving account. This 
transfer provides adequate cash to cover vehicle operating 
costs and equipment purchases. 

Internal Service Fund - To correspond to other budget 
modifications in other programs, the internal service fund 
account in centralized services reflects the vehicle operations 
costs of the agency. To the extent that a budget modification 
involves travel the internal service fund must be increased a 
like amount. In FY88, the increase is $181,811 and in FY89 
the increase is $188,633. 



154 



DEPT OF FISH, WILDLIFE & PARKS 



FIELD SERVICES DIVISION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


33.96 


31.00 


47.71 47.71 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Grants 
Transfers 

Total Program Costs 
Slate Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 

Current Level Services 
Budget Amended Services 
Total Service Costs 



875,531.21 


825,252 


1,310,439 


1,309,903 


486,595.61 


455,300 


729,620 


678.230 


41,661.79 


9,330 


146,245 


36,430 


4,810.00 


28,000 


7,500 





0.00 


45,000 








0.00 





45,000 


45,000 



$1,408,598.61 

1,062,175.45 

346,423.16 

$1,408,598.61 

1,364,096.71 

44,501.90 

$1,408,598.61 



$1,362,882 

1,019.892 

342,990 

$1,362,882 

1,362,882 



$2,238,804 

1,919,537 

319,267 

$2,238,804 

2,238,804 



$2,238,804 



$2,069,563 

1,762,237 

307,326 

$2,069,563 

2,069,563 



$2,069,563 



Program Description 

The Field Services Division staff provide liaison between 
the Directors Office and Regional Supervisors, perform ail 
department personnel activities, coordinate the statewide 
game damage control program and manage all aircraft activ- 
ities. 

Issues Addressed/Legislative Intent 

The Field Services Division maintained 33.96 FTE in FY86. 
The budget recommended for the 1989 Biennium included 
the elimination of .75 FTE to finance the FY87 pay plan. In 
FY88 and FY89 47.71 FTE are approved. The increases are 
do to the following actions: 

1) 14.0 FTE are transferred from the Parks Division to 
Field Services. These 14.0 FTE positions are in the sign 
shop, land agent office, design and construction bureau, and 
corresponding administration personnel. 2.31 FTE, which 
were formally contractual employees, are added to current 
level. This action is the result of an internal revenue service 
audit which concluded that the employees did not meet the 
criteria to be classified "contractual". 

While the increase to personal services between FY86 and 
FY88 is significant (54.31%), there is a decrease in the Parks 
Division, which gave up 14.0 FTE to this division. 



The most significant increases to the operating budget arc 
the result of the corresponding operational costs of the 14.0 
FTE transferred from the Parks Division ($ 1 1 7,000) and a 
biennial appropriation of $72,000 for rent of private space 
at Kalispell to house FWP employees while a new regional 
headquarters is being constructed. Cost is based on the 
agency needing 7,000 square feet of rental space plus 
moving costs. 

In the 1989 Biennial budget, funding for the repair and 
maintenance of microcomputers is consolidated into this 
budget. Total agency cost is $14,019 in FY88 and $14,419 
in FY89. 

Legislative contract authority in the amount of $45,000 per 
fiscal year is included in the transfer portion of the budget. 
Funding for this program is primarily from hunting and 
fishing fees and from federal funds. 

Block Management Program - An additional $40,000 per 
year increase to the block management program is 
approved. Funding is from hunting and fishing license funds 
and will be used to contract with individuals to supervise 
hunting on private land. 

Increased Operations and Maintenance - $30,959 in FY88 
and $47,795 in FY89 is appropriated for increased oper- 
ating and maintenance costs at regional offices. Funding is 
from hunting and fishing license funds. 



DEPT OF FISH, WILDLIFE & PARKS 



155 



KISIIERIKS DIVISION 
Budget Detail Summary 



Actual 
FV 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 


FY 1989 


137.62 


99.29 


100.24 


100.49 


3,180,719.13 

1,560,368.75 

195,210.13 

376.30 

16,000.00 

20,000.00 

$4,972,674.31 

2,847,827.67 

2,124,846.64 


2.539,768 

1,127,482 

87,730 



1,217,000 



$4,971,980 

2,796,800 

2,175,180 


2,670.063 

1,213.062 

134,950 



68,500 

920,000 

$5,006,575 

2,806,308 

2.200,267 

$5,006,575 

5,006,575 



$5,006,575 


2.678.414 

1.182,595 

103,670 



18.500 

920,000 

$4,903,179 

2.782.335 
2,120,844 


$4,972,674.31 

3,822,533.58 

1,150,140.73 

$4,972,674.31 


$4,971,980 

4.971,980 



$4,971,980 


$4,903,179 

4,903,179 



$4,903,179 



Full Time Equivalent Employees 

Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Grants 
Transfers 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



Program Description 

The staff of the Fisheries Division manage Montana's fish- 
eries resources to provide optimum sport fishing for Mon- 
tana's resident and nonresident anglers. They also regulate 
commercial use of nongame fish and fishing areas where 
commercial operations are compatible with sport fishing. 

Issues Addressed/Legislative Intent 

The Fisheries Division eliminated 3.21 FTE to fund the un- 
funded portion of the FY87 pay plan. This reduction is 
reflected in the 1989 Biennial budget. .90 FTE is returned 
from Parks to Fisheries where it was originally budgeted. 
Also, .66 FTE which were contractual employees, are con- 
verted to state employees due to an IRS audit finding which 
stated that these employees did not meet the definition for 
"contractual." 

Changes to operating costs between FY86 and FY88 are as 
follows: 

1) $14,000 reduction in consulting and professional services 

2) $44,000 reduction in contracted computer services 

3) $24,000 reduction in travel 

4) $7,000 reduction in utilities 

5) $6,000 reduction in repairs and maintenance 

In FY89, printing costs are reduced $42,000 from FY88. 
Budget modifications increased operating costs by $167,716 
in FY88 and $185,018 in FY89. 
Major equipment authorized for the biennium includes: 



Agricultural and Landscaping 


$ 9,300 


$ 11.550 


Autos and Trucks 


20,000 





Household 


1,450 


4,400 


Marine Equipment 


58,650 


42,300 


Office 


900 


1.000 


Shop.Plant, Industrial 


4,100 


4,575 


Photographic 


2,000 





Laboratory 


1,700 


600 


Snow Removal 





800 


Trailers and Campers 





4,800 


Field Monitoring Equipment 


21,850 


18,645 


Other Equipment 


15,000 


1 5,000 


TOTAL 


$134,950 


$103,670 



Also included in the budget is $920,000 per year of legis- 
lative contract authority which includes a $20,000 grant to 
the Department of Health for in-stream flow work. In addi- 
tion, $18,500 per year is provided for a grant to the cooper- 
ative fisheries research unit at Montana State University. 

HB599 which appropriates $150,000 ($50,000 license fees. 
$100,000 general fund) to the University of Montana for 
Yellow Bay Experiment Station was amended during the 
Free Conference Committee on HB2 to reduce the general 
fund appropriation and replace it with FWP license 
funds.The impact of this amendment was that FWP would 
have to transfer a total of $ 1 50,000 license fees to Yellow 
Bay via HB2, rather than grant $50,000 in funds to the 
experiment station as specified in HB599. Upon review of 
this situation with the federal Department of Fish and 
Game, the conclusion was made that a transfer of $ 1 50,000 
to Yellow Bay could be construed as a diversion. Conse- 
quently, the language as it appears in HB2 concerning this 
issue was line-itemed vetoed by the Governor. HB599 
remains in effect; thus, FWPs will grant to Yellow Bay 
$50,000. 

The division is funded with general license funds and fed- 
eral Dingell-Johnson funds. Dingell-Johnson funds are 
derived from a federal excise tax on fishing equipment. 
These funds require a 25% state match. 
Missouri River Reservations - .25 FTE and $23,834 in 
FY88 and $23,835 in FY89 is approved to continue the 



156 



DEPT OF FISH, WILDLIFE & PARKS 



Missouri River water reservations process. 1.25 FTE is 
already in ihc current level for this project. Funding is 
$18,000 in FY88 and $18,001 in FY89 from federal funds 
and $5,834 license fee revenue in each year. 

Expanded Fish Hatchery Operations - .50 FTE is approved 
along with authorization for expansion of four fish hatch- 
eries located at Giant Springs, Yellowstone River, Big 
Springs and Miles City. Funding is $60,000 of federal funds 
yearly and general license funds of $20,868 in FY88 and 
$21,146 in FY89. 

Central Montana Fisheries Enhancement - Increased funding 
is approved for the fishery management program on the 
Missouri, Smith, and Dearborn Rivers along with temporary 
help for central Montana farm pond and reservation man- 



agement. The modification includes 1.0 FTE and $25,000 in 
federal funds in FY88, $24,000 in FY89, $7,658 in license 
fees in FY88 and $7,151 in FY89. 

Fish Disease Prevention - Increased funding is appropriated 
to better monitor and control trout and salmon diseases. 
$6,925 in FY88 and $7,247 in FY89 of general license funds 
will be used. 

Co-op Fish Monitoring - This modification gives approval 
for a cost share program with Bonneville Power Authority, 
U.S. Forest Service, and other agencies to monitor and plan 
for development activities in the Flathead/Kootenai Basin 
waters. Funding is from general license funds of $22,931 in 
FY88 and $41,639 in FY89. .50 FTE is added in FY88 and 
.75 FTE in FY89. 



LAW ENFORCEMENT DIVISION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



88.73 



87.33 



;.67 



;.67 



Personal Services 
Operating Expenses 
Equipment 
Grants 
Transfers 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



2,873,778.95 

869,201.52 

116.857.37 

0.00 

0.00 

$3,859,837.84 

3,772,455.94 

87.381.90 

$3,859,837.84 

3,772,455.94 

87.381.90 

$3,859,837.84 



2,636.205 

817.786 

48.000 

84.000 

290.000 

$3,875,991 

3.791,991 

84,000 

$3,875,991 

3,875.991 



$3,875,991 



2.786,778 

849.046 

82.411 



138.474 

$3,856,709 

3.702,088 

154.621 

$3,856,709 

3.856.709 



$3,856,709 



2.790,328 

873,449 

55,789 



138.790 

$3,858,356 

3,703.724 

154.632 

$3,858,356 

3,858,356 



$3,858,356 



Program Description 

The Enforcement Division staff are responsible for protect- 
ing fish and wildlife and their habitat and for protecting 
recreation, historical, and archaeological sites from willful or 
negligent destruction. They maintain field administration of 
license agents and administer the provisions of special pur- 
pose licenses and permits. The 1981 Legislature established 
the Conservation Officer Program to increase enforcement 
of game laws by using non-enforcement personnel. 

Issues Addressed/Legislative Intent 

To fund the FY87 pay plan, the Enforcement Division elim- 
inated .33 FTE. This reduction is carried into the 1989 
Biennium. Also. .17 FTE is transferred from the Adminis- 
tration Division to the Law Enforcement Program and 1.5 
FTE arc added through budget modifications. There is a 
reduction to personal services between FY86 and FY88 
because the appropriation of fines and fees to wardens is 
eliminated. The fines and fees are appropriated statutorily. 
House Bill 406 transfers responsibility for the administra- 
tion of the Outfitters Council from this division to the 
Department of Commerce. The effective date of transfer is 
October 1, 1987. The reduction to the operating budget 
because of this transfer is $36,058 in FY88 and $48,078 in 
FY89. 



An additional $35,000 is added in FY89 to implement the 
fee in lieu of property tax on motorboats. as provided in 
HB658. 

There is a $50,300 per year increase for warden travel. The 
FY86 actual travel expenses were low because of eight 
vacant positions. In the 1989 Biennium, wardens are con- 
verted to a 28 day month rather than a 40 hour week. It is 
anticipated that this change will increase travel. 
Equipment authorized for the Law Enforcement Division 



includes the following: 






Equipment 


FY88 


FY89 


Communications 


$16,000 


$16,000 


Law Enforcement 


22,550 


11.789 


Marine 


16.961 


15.000 


Shop, Plant & Industrial 


2.000 


2.000 


Scientific 


300 





Trailers & Campers 


1 5.000 


6.000 


Horses 


4,000 





Equipment in Approv. Mods 


5,600 


5.000 



TOTAL 



$82,411 



$55,789 



Non-operatimg costs is a federal grant for a boating safety 
program. 

Funding for the division is primarily from the general li- 
cense fund; however, earmarked revenue including snow- 



DEPT OF FISH, WILDLIFE & PARKS 



157 



mobile registration fees, motorboat certification identifi- 
cation fees and fuel tax is also used. 

Increased Warden Support - 1.0 FTE is approved for 
increased warden support in the Billings region. $32,294 in 
FY88 and $31,684 in FY89 is appropriated for this purpose. 



Warden/Biologist, Thompson Falls - .50 FTE is approved to 
assist the biologist and game warden in Thompson Falls. 
This new position will handle existing routine duties of the 
warden and biologist. Funding is from general license funds 
of $16,570 in FY88 and $16,562 in FY89. 



WILDLIFE DIVISION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


109.98 


94.49 


95.24 95.24 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Grants 
Transfers 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



2,951,650.95 

2,185,060.13 

263,695.25 

449.00 

6,830.79 

0.00 


2,638,094 

2,105,281 

77,618 


1,004,729 




2,750,449 
3,035,923 
162,281 
3,542,000 
30,370 
1,165,000 


2,751,651 

1,977,959 

120.721 

4,000 

30,370 

1,165,000 


$5,407,686.12 


$5,825,722 


$10,686,023 


$6,049,701 


2,551,210.55 
2,856,475.57 


2,655,257 

3,170,465 

$5,825,722 


7,264,150 

3,421,873 

$10,686,023 


2,627,810 
3,421,891 


$5,407,686.12 


$6,049,701 


4,697,218.25 
710,467.87 


5,825,722 



10,686,023 



6,049,701 



$5,407,686.12 


$5,825,722 


$10,686,023 


$6,049,701 



Program Description 

The division is responsible for the department's survey, 
inventory, and research of the state's wildlife resource and 
its habitat. This work provides a biological basis for game 
and fur season recommendations to the commission each 
year. The staff maintain cooperation with federal and state 
agencies, organizations, landowners, and sportsmen in pro- 
grams affecting wildlife in the state. The division staff also 
operate and maintain the department's wildlife management 
areas in the state, which total 270,000 acres. 

Issues Addressed/Legislative Intent 

The personal services budget for the 1989 Biennium 
includes the elimination of 3.20 FTE first deleted in the 
1987 Biennium to fund the FY87 pay plan. The budget also 
includes the transfer of .17FTE from other divisions, a .20 
FTE correction which the department requested, ( this 
request is for FTE only, funding is derived from funds 
already included in the budget) and the creation of 1.28 
FTE which were formally contractual employees, but did 
not meet the criteria of "contractual" according to an IRS 
audit. Approved modifications add an additional 3.05 FTE. 

Senate Bill 109 adds an additional $12,000 for the biennium 
to implement this bill which allows one moose permit to be 
auctioned and the revenues earmarked for moose manage- 
ment. 

Changes to the operating budget in the 1989 Biennium 
include: $20,700 in appraisal fees, $15,000 per year increase 
for the non-game program, and a $16,000 per year increase 
for printing of hunting regulations. 

The department recommended other reductions adding up 
to $28,500. There is also a $8,750 reduction in rent for 
FY89. 



Included in the Wildlife Division's budget is the big horn 
sheep program, funded through the auction of one sheep li- 
cense per year, valid anywhere in the stale, to the highest 
bidder. Because the program was not fully operational until 
FY87, the expenditure base in FY86 was too low to reflect 
accurate spending. Consequently, there is a base adjustment 
from $13,500 per year to $21,400 per year. (For FY87, the 
license was sold for $109,000, with FWPs receiving 90%) 
Authorized equipment for the 1989 Biennium is listed 
below. 



Equipment 


FY88 


FY89 


Agricultural 


$ 3,000 


$ 1,250 


Auto and Truck 


14,000 





Marine 





10,000 


Office 


3,320 





Shop, Plant & Industrial 


15,000 


4,850 


Trailers 


18,000 


2,000 


Scientific 


5,475 


7,390 


Field Monitoring 


61,800 


61,000 


General 


12,118 


11,131 


Horses 


3,000 





Equipment in Approved 


26,568 


23,100 


Modifieds 






TOTAL 


$162,281 


$120,721 



Legislative contract authority in the amount of $1,165,000 
per year is authorized and is part of non-operating costs. 
Non-operating costs also include grants of $30,370. 
The division is funded from general license funds, Pittman- 
Robertson federal funds, non-game state revenues, sheep 
and moose auction proceeds, waterfowl stamp license fees, 
collectors stamps and artwork. 
Legislative Intent: 



158 



DEPT OF FISH, WILDLIFE & PARKS 



Boilerplate language is added to HB2 which prohibits the 
use of parks coal tax trust earnings revenues and state parks 
revenues for acquisition of wildlife habitat. 
Statewide Enhancement Enforcement Survey - The legis- 
lature approved 1.05 FTE and operating funds to upgrade 
the department's capabilities to curtail illegal activities, pro- 
vide public information and collect the biological data 
necessary to determine allowable harvest rates for elk, deer, 
and antelope. The funding is from general license funds, 
$49,500 in FY88 and $49,513 in FY89. 
Wildlife Mitigation Plans - .50 FTE is approved to imple- 
ment a wildlife mitigation plan at Hungry Horse and Libby 
Dams. $24,502 in FY88 and $24,503 in FY89 is appropri- 
ated. 

Statewide Effects / Archery Hunting - Funding is approved 
to evaluate the statewide effects of archery hunting on elk. 



The funding source is general license funds: $27,900 in 
FY88 and $19,000 in FY89. 

Minimize Grizzly Conflicts - This modification approves 1.0 
FTE and $44,563 in FY88 and $44,594 in FY89 of general 
license funds to capture and relocate problem bears, test 
aversive conditioning, and keep the public informed on 
potential bear problems. 

Non-game Program - Continuation of the non-game state 
income tax checkoff is approved for $7,000 in FY88 and 
$7,000 in FY89. 

Landowner/Hunter Assistance - .50 FTE biologist/warden 
position in Thompson Falls is approved to help biologist 
personnel in the area. The funding source is general license 
funds: $16,230 in FY88 and $16,259 in FY89. 
Expanded Weed Control - This modification appropriates 
$10,000 of general license funds in each year of the bien- 
nium to increase the department's weed control efforts. 



RECREATION & PARKS DIVISION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


100.51 


100.57 


83.87 83.87 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Grants 
Transfers 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,943,005.19 

1,229,585.03 

102,078.74 

4,393.81 

414,508.60 

0.00 


2,019,498 

1,050,058 

199,890 



500,000 

117,644 


1,747,101 

1,295,992 

177,290 



445,000 




1,748,946 

1,284,219 

164,590 



445,000 




$3,693,571.37 


$3,887,090 


$3,665,383 


$3,642,755 


405,052.81 

2,685,597.18 

428,486.74 




3,130,079 

501,500 




2,947,038 

445,000 




2,932,286 

445,000 


174,434.64 


255,511 


273,345 


265,469 


$3,693,571.37 


$3,887,090 


$3,665,383 


$3,642,755 


3,693,571.37 


3,887,090 


3,665,383 


3,642,755 


$3,693,571.37 


$3,887,090 


$3,665,383 


$3,642,755 



Program Description 

The staff of the Recreation and Parks Division are responsi- 
ble for the operation and maintenance of the State Parks 
System, including state parks, recreation areas, monuments, 
recreational waterways, recreational roads and trails, and 
fishing access sites. They are also responsible for: conserva- 
tion of the scenic, historic, archaeological, scientific and 
recreational resources of the state; the administration of the 
Federal Land and Water Conservation Fund in Montana; 
and the administration of snowmobile recreation in Mon- 
tana, l>v providiiin for niainlenaniv and inslallalion of snow- 
mobile lacilitics. 

Issues Addressed/Legislative Intent 

The 1989 Biennium budget includes the continuation of the 

deletion of 3.20 FTE first eliminated to fund the FY87 pay 

plan. 

Also included in the budget is the transfer of 2.55 FTE to 

other programs and an increase of .36 FTE for capitol com- 



plex mapping and coal tax operations (approved for FY87) 
The department's request to transfer 14.0 FTE to the Field 
Services Division, the creation of 2.0 FTE positions for 
increased park maintenance and the increase of .75 FTE 
state employees from contracted services was approved. 
Overall, these changes resulted in a decrease to personal ser- 
vices of approximately 10%. 

Operating expenses deviated from the FY86 level in the fol- 
lowing areas; 

1) House Bill 136, which increased the tax on gas, resulted 
in an increased appropriation of $42,()(>() for snowmobile 
trail iinprovcinenls and $85,000 lor boat access site 
improvements. 

2) The transfer of 14.0 FTE to Field Services reduced oper- 
ating expenses by $1 17,000. 

3) an additional $60,500 for park maintenance 

4) one-time appraiser fees in FY86 were eliminated, saving 
$48,300. 

The equipment budget includes the following: 



DEPT OF FISH, WILDLIFE & PARKS 



159 



Equipment 
Agricultural 
Communicalions 
Construction 

omcc 

Engineering 

Other 

Field Monitoring 

Snowmobile 

TOTAL 



$445,000 per year of federal land and water conservation 
funds which are awarded to county municipal governments, 



$ 67,260 


$ 47,140 





1,250 





1,400 


2,030 


3,700 








X,()0() 


5,800 





5,300 


100,000 


100,000 


$177,290 


$164 590 



town governments, and school districts is included in non- 
operating costs. 

Funding for the division is derived from snowmobile regis- 
trations, snowmobile fuel lax. coal tax. motorboal fuel tax. 
state park revenue, and fishing license revenue. Capitol 
grounds maintenance is supported through charges to all 
state agencies. 

Increased Snowmobile Program - $61,000 in I ^ 88 and 
$61,000 in FY89. from the snowmobile fuel tax. is appropri- 
ated and than distributed to snowmobile organizations to 
improve trail signing, and to maintain and add mileage to 
trails. 



CAPITAL OUTLAY 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 
Capital Outlay 
Transfers 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



11,266.43 
2,529,320.20 
1,734,034.19 

$4,274,620.82 
2,435,363.51 
1,839,257.31 

$4,274,620.82 
4,274,620.82 

$4,274,620.82 



Program Description 

The Capital Outlay Program supports the Department in 
land acquisition and development and maintenance activi- 
ties. 

Issues Addressed/Legislative Intent 

Capital outlay project funds for FWP are expended through 
this program. The table above shows actual expenditures for 
FY86. 



HB5, Long Range Building Projects, authorizes funds for 
capital projects for the 1989 Biennium. Projects for Fish, 
Wildlife and Parks are listed individually in the special long 
range building narrative presented in the front part of this 
report. 

Fish, Wildlife and Parks is also given the authority to accept 
donations of labor and materials to reconstruct boating facil- 
ities on Flathead Lake. 



160 



DEPT OF FISH, WILDLIFE & PARKS 



CONSERVATION EDUCATION DIV 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


21.50 


21.50 


22.05 22.05 



Personal Services 
Operating Expenses 
Equipment 
(irants 

Total Program Costs 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



639,105.88 


641,700 


670,014 


669,323 


473,846.65 


485,164 


553,163 


537,942 


66,912.19 


14,604 


27,452 


21,202 


0.00 


30,000 









$1,179,864.72 

1,064,535.12 

115,329.60 

$1,179,864.72 

1,139,624.78 

40,239.94 

$1,179,864.72 



$1,171,468 

1,066,155 

105,313 

$1,171,468 

1,171,468 



$1,171,468 



$1,250,629 

1,111,104 

139,525 

$1,250,629 

1,250,629 



$1,250,629 



$1,228,467 



)88,942 
139,525 



$1,228,467 

1,228,467 



$1,228,467 



Program Description 

The Conservation Education Division exists to assist the 
department in reaching its overall goals through well- 
designed public information and education programs. The 
program informs the public about fish and wildlife laws, 
administrative rules and policies that are designed to regu- 
late outdoor recreation activities; creates a public awareness 
of the responsibilities of the Department of Fish, Wildlife 
and Parks in state government and in the management of 
fish, wildlife and parks; educates the public about the needs 
of fish and wildlife and the importance of other natural and 
cultural resources associated with outdoor recreation; 
informs citizens of issues that may affect fish, wildlife, parks 
and various forms of outdoor recreation; fosters good will 
and support for the department and its programs; and 
encourages communication and cooperation among sports- 
men, landowners, and the department; coordinates training 
in the areas of hunter, boat & snowmobile safety. 

Issues Addressed/Legislative Intent 

The increase of .55 FTE is a transfer of .20 FTE from the 
Parks Division and .35 FTE from the Administration Pro- 
gram. 



The major adjustments in operating expenses from FY86 to 
FY88 include: 

1) $26,000 transfer of LCA to the base for hunter safety. 

2) $5,600 increase for snowmobile safety education. This 
increase is the result of the .3 cent increase in the gas tax, as 
stipulated in HBI36. 

3) HB64 provides for a bow hunting safety education pro- 
gram increases operating expenses by $29,592 in FY88 and 
$10,400 in FY89. 

The total biennial equipment budget includes: 
1)$1 1,050 for educational equipment 

2) $8,600 for photographic equipment 

3) $18,996 for video equipment 

4) $5,000 per year for equipment related to boat safety edu- 
cation. 

Funding is from the general license revenue and federal Pitt- 
man-Robertson funds. 

Bear Education - $7,500 in both years of the biennium is 
appropriated from the general license funds for the printing 
of informational materials for bear education. 
Boater Safety - $30,000 in both years of the biennium is 
appropriated to increase public information through the 
printing of informational materials for boating safety. Fund- 
ing is from federal funds. 



DEPT OF FISH, WILDLIFE & PARKS 



161 



ADMINISTRATION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


13.36 


14.01 


13.10 13.10 



Personal Services 
Operating Expenses 
Equipment 
Grants 
Transfers 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



497,543. l^J 


503.629 


502,407 


.502,393 


315,804.83 


303,390 


.W 1,700 


.340,561 


114,357.95 


600 


2.800 





80,000.00 


95,000 


90,000 


90,000 


75,000.00 





25,000 


75,000 



$1,082,705.97 

900,678.93 

182,027.04 

$1,082,705.97 

1,082,705.97 

$1,082,705.97 



704,640 
197,979 



$902,619 

902,619 
$902,619 



781,073 
180,834 



$961,907 

961,907 
$961,907 



$1,007,954 

833,905 

1 74,049 

$1,007,954 

1,007,954 

$1,007,954 



Program Description 

The staff of the Administration Program provide the execu- 
tive leadership functions of the Fish and Game Commis- 
sion, the Director's Office, and associated staff services. The 
commission sets department policies and priorities and regu- 
lates the harvest of fish, game and furbearers through regula- 
tions establishing seasons and bag limits. The Director's 
Office provides executive direction for the department's 
overall program and implements policies established by the 
Legislature, Governor, and the Fish and Game Commission. 

Issues Addressed/Legislative Intent 

The following personal services recommendations were 
approved by the legislature: the transfer of 1.60 FTE to 
other divisions, the transfer in of 1.70 FTE from the Parks 
Division and the elimination of .36 FTE to finance the 
FY87 pay plan. The net result of these changes is a .26 
reduction in FTE from FY86 to FY88. 
The major adjustments in operating expenses between Fy86 
and FY88 is the reduction of $42,800 in contracted services 



and a $20,000 per year appropriation for Cooney Dam and 
$50,000 per year was added for the purchase and planting of 
conservation reserve trees and shrubs. 

The only equipment requested and approved was $2,800 for 
office equipment in FY88 only. 

Included in the non-operating costs is: 

1) $90,000 grant to the Department of Livestock for preda- 
tor control. This is a $10,000 per year increase over FY86. 

2) $25,000 per year for legislative contract authority 

3) $50,000 in FY89 to the State Library for the Natural 
Heritage Program. 

Legislative Intent: 

The following boilerplate language is approved: "No funds 
shall be used for lawsuits between state agencies in which 
the Department of Fish, Wildlife, and Parks is a plaintiff, 
unless it has been approved in written consent by the Gov- 
ernor." 

Funding for the division is from general license funds and 
an overhead charge for administering federal funds received 
by the department. 



162 



DEPT HEALTH & ENVIRON SCIENCES 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


240.79 


236.25 


247.09 246.84 



Personal Services 

Operating Expenses 

Equipment 

Grants 

Benefits and Claims 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



6,379,639.59 
4,762,663.96 
252,266.40 
6,143,752.00 
4,437,246.36 
$21,975,568.31 
3,853,776.54 
1,774,244.74 
16,347,547.03 


6,359,803 

11,143,793 

12,705 

5,919,758 



$23,436,059 

3,350,205 

2,241,961 

17,843,893 

$23,436,059 

23,436,059 



$23,436,059 


7,017,267 
10,911,969 
312,189 
3,952,760 
7,299,325 
$29,493,510 
4,273,548 
2,800,278 
22,419,684 


6,832,305 
11,005,262 
1 54,467 
3,986,641 
7,491,298 
$29,469,973 
3,588,021 
2,226.262 
23,655,690 


$21,975,568.31 

21,838,597.78 

136,970.53 

$21,975,568.31 


$29,493,510 

29,493,510 



$29,493,510 


$29,469,973 

29,469,973 



$29,469,973 



Agency Description 

The Department of Health and Environmental Sciences was 
created to protect and promote the health of the people of 
Montana through the implementation of beneficial public 
health programs and the enforcement of public health laws 
and regulations. It is the responsibility of the department 
staff to assess health care needs and problems in coopera- 
tion with local and private sources, to develop and imple- 
ment programs designed to meet health needs and alleviate 
problems, and to continually evaluate current public health 
programs. 

The department administers the maternal and child health 
block grant and the preventive health block grant and cate- 
gorical grants from the federal government. 

The department is provided for in section 2-15-2101, MCA, 
and its general powers and duties are specified in section 
50-1-202, MCA. 

Issues Addressed/Legislative Intent 

The legislature added a new program to the Department of 
Health and Environmental Sciences (DHES), eliminated one 
program, reauthorized two programs due to sunset at FY87 
year end, approved a new bonding authority to allow the 
department to match federal superfund monies for hazard- 
ous waste cleanup, and authorized the sale of up to $10 mil- 
lion of such bonds. The annual appropriation for the depart- 
ment increases about $7.4 to $7.5 million over FY86 actual 
expenditures. Almost all the growth is in federal funds when 
actual FY86 funding is compared to FY88 and FY89 appro- 
priations. 

Departnu-nl functions expanded when the legislature insti- 
tuted slate regulation of health maintenance organizations 
(HMOs). SB 353 requires the department to determine 
whether an applicant for a certificate of authority to operate 
an HMO has the ability to provide accessible health care 
services; has a quality assurance program concerning availa- 
bility, accessibility, and continuity of service; and has a 
procedure to develop, compile, evaluate, and report statistics 
relating to the cost, utilization, accessibility, and availability 
of its services. The bill allows the department to assess fees 



to fund the new program and establishes a statutory appro- 
priation for expenditure of such fees. The fiscal note for the 
bill indicated that DHES would hire 1.0 FTE and incur 
expenses of about $110,000 in FY88 and $107,000 in FY89 
to administer the program. 

Legislation was enacted that reauthorized two programs due 
to sunset at the end of FY87. SB 246 extended the certifi- 
cate of need (CON) process until June 30, 1989 and HB 716 
funded the statewide voluntary genetics program through the 
1989biennium. 

Federal health planning monies, that partially funded the 
Health Planning Bureau, were eliminated. Bureau staff and 
expenses were reduced and the legislature approved 100% 
state funding for the program. Part of the state funding 
increase is offset by the CON application and hearing fees 
established in SB 246 which are expected to increase general 
fund revenues by about $86,250 annually. 
The voluntary statewide genetics program is funded by a 
$520,000 biennial general fund appropriation. The program 
was instituted by the 1985 Legislature and funded with a 
$.40 tax on insurance companies for each Montana resident 
insured under an individual or group disability or health 
insurance policy on February 1 of each year. The 1987 
Legislature continued the program and funding, but lowered 
the tax to $.35 per insured resident. 

The Governor's initiative was adopted to fund the state 
match for federal superfund and underground storage tank 
trust fund monies to cleanup hazardous waste sites. HB 777 
allocates 12% of the resource indemnity trust (RIT) interest 
income to the department. No more than one-half of the 
biennial income may be appropriated by the legislature for 
operating costs in certain department programs. The remain- 
ing income from the 1 2% allocation can be used to fund the 
state match for hazardous waste cleanup. The bill also add- 
ed a new bonding mechanism to fund the stale cleanup 
match if necessary. The bonds will be repaid with RIT funds 
from the 12% allocation or other revenues deposited to the 
state special revenue account established in HB 777. HB 
760 authorized the issuance of up to $10 million worth of 
such bonds. 



DEPT HEALTH & ENVIRON SCIENCES 



163 



The total agency appropriation increases about $7.4 million 
in FY88 above actual FY86 expenditures. Increases in fed- 
eral authority account for almost all the expansion (see 
Tabid). Federal funds budgeted in FY88 are $5,922 million 



greater than FY86 actual federal expenditures and $7,308 
million greater in FY89. Most of the growth in federal 
authority is in the superfund program. 



Table 1 

Federal Funds Budgeted for the FX-partment of Health 

FY86 Actual and 1989 Bicnnium 



Fund 

Department Wide Funds 
Maternal and Child 

Health Block Grant 
Preventive Health 
Block Grant 

Director's Office 

Legal Fees 
Centralized Services Division 

Indirect Cost Recovery 

National Center for Health Statistics 

Data Processing Fees 

Film Library Fees 
Environmental Sciences Division 

Superfund 

Air Quality 

Water Pollution Control 

Safe Drinking Water 

Construction Grants 

Hazardous Waste 

Underground Storage Tank 

Water Quality Management 

State Lands 
Health Services and Medical Facilities Division 

Women. Infants and Children 

Child Nutrition 

Title XX Family Planning 

Title XVIII Medicare 

Immunization 

Title XIX Medicaid 

Sexually-Transmitted Diseases 

AIDS 

Health Planning 

Cabin Creek 

Rabies Vaccine 

Behavioral Risk Survey 

Total Federal Funds 



FY86 


FY88 


FY89 


$1,980,761 


$1,897,421 


$1,897,421 


604,511 


632,187 


632,187 




15,164 


4,080 


460,351* 


390,000 


390.000 


59,022 


69,435 


69,435 


26,090 


39,014 


36,016 


22,371 


16,998 


17,996 


1,049,773 


5,643,301 


6,833,965 


530,281 


775,944 


626,262 


533,194 


577,675 


560,814 


290,983 


516,739 


516,929 


298,019 


357,344 


356,756 


231,251 


286,565 


287,324 


21,477 


172,395 


140,468 


106,864 


100,000 


100,000 


50,268 


54,506 


53,999 


5,889,097 


6,389.610 


6,659,807 


2,374,086 


2,664,406 


2.662.436 


893,878 


808.244 


808.244 


266,018 


307,052 


306,340 


160,641 


267,810 


267,918 


121,116 


207,566 


207,078 


71,219 


76,267 


76,356 


15,461 


94,380 


84,030 


192,634 








39,837 








47,528 


48,661 


48,828 


10,817 


11,000 


1 1 ,000 


$16,347,548 


$22,419,684 


$23,655,689 



* The FY86 indirect cost recovery expenditures include $75,094 of audit costs, pay plan allocation, and small miscellaneous 
grants. 

General fund authority increases above FY86 expenditures 
in FY88, but is below FY86 actual general fund expendi- 
tures in FY89. The FY88 general fund appropriation 
includes the $520,000 biennial appropriation for the 
genetics program. General fund also increases due to the ad- 
ditional state funding added to replace the loss of federal 
health planning funds. 



The department receives two block grants which are distrib- 
uted to various programs. The preventive health block grant 
(PH) does not require a state match and up to 10% of the 
grant may be used for administration. The PH block grant 
may not be used for inpatient services, cash payments to 



recipients, major medical equipment or capital improve- 
ments to facilities, or funding of "for profit" organizations. 
PH block grant funds may not be used to supplant state 
funds. 

Table 2 shows the distribution of the PH block. The same 
amount of block grant is budgeted for FY88 and FY89 that 
is expected in FY87. Language in HB 2 directs that if the 
level of PH block grant funding received by the department 
is less than the budgeted amount, the director is to make 
program reductions. If grant funds are greater than budgeted 
the director is to distribute additional funds based on iden- 
tifiable needs. 



164 



DEPT HEALTH & ENVIRON SCIENCES 



Table 2 

Appropriation of Preventive Health Block Grant 

1987 and 1989 Bienniums 





Actual 


Budgeted 


Budgeted 


Budgeted 


Program 


FY86 


FY87 


FY88 


FY89 


Director 










Adrtiinistration 


$ 43,557 


$ 48,645 


$ 48,645 


$ 48,645 


Rape Crisis 


11,970 


11,970 








Centralized Services 










Microbiology Lab. 


32,950 


34,000 


54,655 


55,834 


Health Services/ Medical Facilities Division 










Division Admin. 


9,878 


10,168 


10,168 


10,168 


Dental 





15,000 


18,318 


18,455 


Risk Reduction 


47,869 


49,257 


48,218 


48,315 


Perinatal 


96,529 


56,205 


70,012 


68,670 


Family Plannmg 


193,430 


201,961 


202,015 


202,017 


Rape Crisis 








11,970 


11,970 


Emergency Medical Services 


168,418 
$604,601 


204,855 


168,186 


168.113 


Total 


$632,061 


$632,187 


$632,187 



Note: FY86 amounts are expenditures of the PH block by program as of fiscal year end. Administration of the rape crisis 
funds was moved from the Director's Office to the Preventive Health Bureau. 



The maternal and child health block grant (MCH) must be 
matched by state or local funds. State and local governments 
must match every $4 in federal funds with at least $3 in 
local funds. The MCH block grant must be used for low- 
income children and mothers and to reduce infant disease 
and mortality. Services that can be funded include: immuni- 
zations, rehabilitation services for blind and disabled chil- 
dren up to the age of 16 years old receiving Medicaid bene- 
fits, hospitalization, and medical services. 



Table 2 shows the distribution of the MCH block for the 
1987 and 1989 bienniums. About 35% of the MCH block 
grant is allocated to grants to counties in FY88 with a small 
increase budgeted in FY89. The amounts appropriated for 
administration are held constant. HB 2 directs the depart- 
ment to increase grants to counties if the level of the MCH 
block grant is higher than $1,897,421 in either fiscal year. If 
the amount is lower, language in HB 2 directs that grants to 
counties must be reduced. 



Table 3 

Appropriation of Maternal and Child Health Block Grant 

1987 and 1989 Bienniums 



Director 
Administration 
Grants to Counties 

Health Services 
Division Admin. 
Nursing 
Dental 

Clinical Admin. 
MCH Bureau Admin. 
Grants to Counties 
Family Planning 
Handicapped Children 
Perinatal 



$ 30,000 


$ 30,000 


$ 30,000 


$ 30,000 


824,000 


685,599 








23,047 


23,727 


23,727 


23,727 


27,314 


28,000 








57,997 


43,000 


43,000 


43,000 


98,789 


80,634 











105,000 


105,000 










662,587 


667,245 


27,268 


29,000 


29,000 


29,000 


797,536 


843,691 


866,119 


865,215 


94,144 


157,028 


137,988 


134,234 



$1,920,679 



$1.897,421 



Total $1,980,091 

Note: FY86 amounts are expenditures of the MCH block by program as of fiscal year end. Due to reorganization of the 
department. Clinical Bureau administration was moved to the MCH Bureau administration. Administration of MCH block 
grants to counties was moved from the Director's Office to MCH Bureau administration. 



Indirect cost funds pay a portion of the centralized services 
and administration costs of the department. Every year 



department and federal representatives negotiate an agree- 
ment regarding the indirect cost rate to be assessed against 



DEPT HEALTH & ENVIRON SCIENCES 



165 



personal services costs paid by federal and siale special reve- 
nue funds, except for block grants and the National Center 
for Health Statistics funds. A portion of the indirect costs 
recovered is retained by the department and a portion is 
deposited to the general fund as reimbursement for state- 
wide centralized services (statewide cost allocation plan). 
The estimated indirect cost rate for the department is 13% 
each year of the coming biennium, with about 1.638% of the 
total rale being comprised of the statewide cost allocation 
general fund deposit. 

Table 4 shows the estimated indirect cost recovery by pro- 
gram for the 1989 biennium. Language in HB 2 directs that 
if the department recovers more than $390,000 in any year 
that such funds will offset general fund. The subcommittee 
intended that the offset not be required if excess indirect 
cost recoveries are for new programs or additional duties. 
During the 1989 biennium, indirect cost revenue funds the 
Centralized Services Division (CSD) administration program 
and part of the fiscal program within CSD. 
Previous to FY88, indirect cost recoveries were treated as 
revenue or income. Beginning in FY88, indirect costs are 
treated as expenditures and included as cost items in pro- 
gram budgets. The subcommittee calculated the indirect cost 
expenditures for each program assuming fully funded per- 
sonal services. Indirect cost recovery is based on total per- 
sonal services costs before vacancy savings is applied. The 
total indirect cost revenue was then reduced to reflect the 
impact of a 4% vacancy savings factor. The subcommittee 
intended that each program have enough expenditure 
authority for indirect costs if no vacancies were to occur, 
but did not budget the Centralized Services Division as if 
no vacancies were to occur. 



Table 4 

Estimated Indirect Cost Assessments by 

Division and Program 

1989 Biennium 



Division and Program 


FY88 


FY89 


Centralized Services Division 






Support Services 


$ 5,127 : 


S 5,112 


Records and Statistics 


9,498 


7,850 


Chemistry Laboratory 


16,085 


16,145 


Microbiology Laboratory 


22,837 


22,984 


Environmental Sciences Division 






Administration 


13,151 


13,157 


Solid and Hazardous Waste 


72,994 


73,023 


Superfund Modified Budget 


10,685 


10,658 


Underground Storage Tank 






Modified Budget 


5,552 


5,544 


Air Quality 


49,749 


49,426 


Water Quality 


114,998 


115,237 


Wastewater Operators 






Modified Budget 


737 


1,473 


Permit Tracking Modified 






Budget 


1,090 





Health Services and Medical 






Facilities 






Family/Maternal and Child 






Health 


54,524 


54,522 


Women, Infants and Children 






Modified Budget 


2,212 


2.208 


Preventive Health 


19,115 


19.141 


AIDS Modified Budget 


7.092 


7.082 


Licensing and Certification 


29,991 


30.000 


Licensing and Certification 






Modified Budget 


16,500 


16,479 


Emergency Medical Services 


2,189 


2,195 



Totallndirect Cost Assessments $454,126 $452,236 



Estimated Available to DHES 
Estimated Deposit to General 
Fund 



Note: A rate of 13% was estimated by DHES as ihe indirect 
cost rate for the 1989 biennium. Of the total amount paid 
by federal and state special revenue funds, 12.16% is depos- 
ited to the general fund as negotiated with the federal gov- 
ernment for the statewide cost allocation plan. The remain- 
der is used to fund the Centralized Services Division in 
DHES. 

The legislature granted a supplemental appropriation of 
$35,713 to the department to continue the Health Planning 
Bureau through fiscal year end. Federal health planning 
funds for this program were discontinued. 
The department reorganized in FY86. The Management Ser- 
vices Division was eliminated and its functions and pro- 
grams transferred to other divisions. Table 5 shows the reor- 
ganization and previous configuration. The Director's Divi- 
sion and the Environmental Sciences Division are not 
included as programs within those divisions and were not 
changed substantially. Three programs were transferred from 
the Director's Office to the Preventive Health Bureau 
including: rape crisis grants, MCH block grants to counties. 
and the end stage renal disease program. The Nursing 



166 



DEPT HEALTH & ENVIRON SCIENCES 



Bureau was eliminated by the legislature and not due to 
reorganization. 



Table 5 

Reorganization of Department of Health and Environmental Sciences 

FY86 to FY88 



Original Organization 
Financial Management Division: 

Administration 

Fiscal Services 

Records and Statistics 

Management Services Division: 
Administration 
Microbiology Laboratory 
Chcmislry Laboratory 
Film Library 
Data Processing 
Word Processing 
Health Services and Medical 
Facilities Division: 
Clinical Bureau: 

Administration 

Perinatal Program 

Genetics Program 

WIC 

Child Nutrition 

Handicapped Children's Services 
Dental Bureau: 

Dental 

Health Education and Risk Reduction 
Nursing Bureau: 

Administration 

Communicable Disease 

Rabies Vaccine 

Immunization 

Sexually-transmitted Disease 

Family Planning 
Licensing and Certification 
Emergency Medical Services 
Health Planning Bureau 



New Organization 
Centralized Services Division: 
Administration 
Support Services: 

Fiscal 

Film Library 

Data Processing 

Word Processing 
Microbiology Laboratory 
Chemistry Laboratory 
Records and Statistics: 

Tumor Registry 

Health Services and Medical 
Facilities Division: 
Preventive Health Bureau: 

Perinatal Program 

Sexually-transmitted Disease 

Genetics Program 

Communicable Diseases 

Immunization 

Dental 

Health Education and Risk 
Reduction 

Rape Crisis Grants 

End Stage Renal Disease 
MCH Bureau: 

Administration 

WIC 

Child Nutrition 

MCH Grants to Counties 

Family Planning 

Handicapped Children 
Licensing and Certification 
Emergency Medical Services 
Health Planning Bureau 



DEPT HEALTH & ENVIRON SCIENCES 



167 



DIRECTOR'S OFFICE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



(88,924.34 


470,563 


451,975 


361.251 


69,106.37 


179,676 


160,735 


56,031 


1,024.00 





17,116 


1,200 


0.00 


697,569 









$459,054.71 

385,497.71 

0.00 

73,557.00 

$459,054.71 

459,054.71 



$1,347,808 

523,771 

6,491 

817,546 

$1,347,808 

1,347,808 

$1,347,808 



$629,826 

336,017 

200,000 

93,809 

$629,826 

629,826 



$418,482 

335,757 



82,725 

$418,482 

418.482 

$418,482 



Program Description 

The Director's program provides for the overall manage- 
ment and policy development of the department. Included 
in this program aic the deputy director, personnel, public 
information, and planning funcations. 

The Board of Health is a quasi-judicial board appointed by 
the Governor to advise the Department of Health and 
Evniromental Sciences in public health matters. 

The Legal Services program staff have primary responsibil- 
ity to provide legal representation for the department. They 
also enforce several federal statutes, such as the Federal 
Clean Air Act, the Resource and Recovery Act, and Clean 
Water Act, and respective implementing regulations. 

Issues Addressed/Legislative Intent 

The budget for the Director's Division falls 7% overall, 
largely due to decreases in operating expenses from the pre- 
vious biennium. Legal expenses of $14,151 for the family 
planning lawsuit were deleted from the base expenditure 
level as were contracted services costs of $7,875. 
Most other operating expenses for the Director's Division 
were budgeted at actual FY86 expenditure levels; however, 
annual travel was increased $3,068 for the Board of Health 
and $1,186 for the director. Contracted services was 
increased $2,880 each year to purchase 2 hours per month 
of Westlaw, a computerized data base of court decisions and 
other legal data available through the state law library. 
Westlaw is to be federally funded in the 1989 biennium; 
however, the subcommittee intent was that DHES could 
request that one hour of Westlaw per month be general 
funded in the 1991 biennium. 

Equipment purchases include four personal computers and 
software for the legal unit. The equipment is to be entirely 
federally funded. Some training, in-house computer pro- 
gramming costs and maintenance costs associated with the 
computer purchases are to be federally funded also. The 
Executive budget request presented to the legislature, noted 
that in the 1991 biennium request, automation costs will be 
attributed to the funding source of the staff using the com- 
puters and Westlaw. Such an allocation would involve gen- 
eral fund support in the legal unit and some other programs. 



Table 1 

Appropriations for the Director's Division by Subprogram 

1989 Biennium 



Item 

Director's Office 

FTE 

Personal Services 

Operating 

Total Cost 

General Fund 
Federal Funds 
Total Funds 

Board of Health 
Personal Services 
Operating 
Total Cost 

Total General Fund 

Legal Unit 
FTE 

Personal Services 
Operating 
Equipment 
Total Cost 



Fy86 
Actual 



8.0 

$293,596 

54,018 

$347,614 

274.057 
73,557 



$6,978 
$6,978 



FY88 
Budgeted 

7.0 

$257,714 

36,346 



FY89 
Budgeted 

7.0 

$257,813 

36,510 



$294,060 


$294,323 


215.415 
78,645 


215.678 
78,645 


$294,060 


$294,323 


$ 3,150 
6,895 


$3,150 
6,895 


$10,045 


$10,045 



$6,978 $10,045 $10.045 



3.0 4.5 4.5 

$93,728 $191,111 $100,288 

9,701 117,494 12,626 

1.024 17.116 1,200 



$104,454 $325J21 $114, 



General Fund $104,454 $110,557 $110,034 

Federal Funds 15,164 4,080 

State Special Revenue 200,000 

Total Funds $104,454 $325,721 $114,114 



FTE in the Director's Division fall by one full-time position. 
In order to pay the unfunded portion of the FY87 pay plan 
and absorb the five percent cut in FY87, an information 
officer position was deleted. 



168 



DEPT HEALTH & ENVIRON SCIENCES 



Federal funding increases, as about $5,000 additional pre- 
ventive health block grant is allocated to the Director's 
Office. The amount of the maternal child health (MCH) 
block grant budgeted is $30,000 per year, the same as in 
FY86. Funding for MCH block grants to counties was trans- 
ferred to the administration of the Maternal Child Health 
Bureau in the Health Services and Medical Facilities Divi- 
sion. Funding for rape crises grants and the end stage renal 
disease program was transferred to the Preventive Health 
Bureau. 

The Legal program has 2.0 FTE attorney positions, two .5 
FTE clerical positions, and 1.5 positions added for the 1989 
bicnnium to pursue the natural resources lawsuit authorized 
in HB 777. The 1988 appropriation for the Legal program 
contains $200,000 in state Special Revenue to fund the pro- 
gram. The 1985 Legislature transferred two attorneys and 



two .5 FTE support staff within the Legal program to other 
programs within the department. The staff that were trans- 
ferred are funded by those programs and must spend their 
time working on issues for the respective program. One full- 
time attorney was transferred to the Water Quality Bureau, 
and one full-time attorney position was apportioned to the 
Air Quality, hazardous waste, junk vehicle and solid waste 
programs. 

Other Appropriation Bills 

HB 777 contained a biennial appropriation for $200,000 so 
that the department can evaluate or pursue a lawsuit under 
section 107 of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980. Hired to evaluate 
such a lawsuit are placed in the Director's Division. The 
Solid and Hazardous Waste Bureau narrative more fully de- 
scribes HB 777. 



CENTRAL SERVICES 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,310,353.99 
437,075.09 
128,558.33 



1,296,141 

495,419 





1,356,916 
651,200 
151,231 



,311,279 
530,366 




$1,875,987.41 


$1,791,560 


$2,159,347 


$1,841,645 


868,195.78 

391,596.62 

616,195.01 

$1,875,987.41 


733,097 

445,589 

612,874 

$1,791,560 


884,202 

705,043 

570,102 

$2,159,347 


776,763 

495,601 

569,281 

$1,841,645 


1,875,987.41 


1,791,560 


2,159,347 


1,841,645 



$1,875,987.41 



$2,159,347 



$1,841,645 



Program Description 

The Centralized Services Division administration is respon- 
sible for overall division administration, establishing goals 
and objectives for the individual bureaus to accomplish, 
review and approve all departmental contracts and grants. 
The division also provides the department with all budget- 
ing and financial data and reporting. The administrator 
reports on the achievement of the department and the status 
of its work to higher authorities, including the director. 
Governor, appropriate legislative groups, federal agencies 
and the general public. 

The Support Services Bureau provides support services for 
the Department of Health and Environmental Sciences. The 
following units are included in the bureau. 

The Fiscal unit of Support Services Bureau is responsible for 
producing accounts receivables, cash receipting, procure- 
ment of goods and services, delivery and pickup of mail, 
assistance m grant preparation and reporting, payment of all 
claims and processing of all maintenance problems with the 
building. 

The major objective of the data processing unit is to assist 
all units of the dcpartmcnl in programming. This unit also 
coordinates the programming and equipment needs of the 
dcpartmcnl, and is supported by user fees. 
The film library provides film library services to the Depart- 
ment of Health, the Department of Institutions and health 



professionals throughout the state. Films and equipment are 
provided on an as-available basis. 

The word processing unit is responsible for producing larger 
word processing jobs than can be handled by bureau person- 
nel. This unit also handles the over-flow of work from other 
bureaus. 

The Bureau of Records and Statistics operates Montana's 
vital statistics system. This bureau provides services to per- 
sons and agencies in providing information regarding certain 
legal certificates for individuals and also produces statistical 
tabulations and analysis based on vital records and other 
public health data. Statistical and consultative services are 
provided to the department and local health agencies. The 
bureau also houses the Montana central tumor registry 
which provides statewide cancer data for use in studying the 
diagnosis and treatment of cancer patients. 
The Chemistry Laboratory Bureau provides analytical and 
consulting services in the following areas: 
Water - Determines the concentrations of metals, organic 
and inorganic compounds in drinking water, wastewater and 
in surface and groundwater in Montana. These analyses are 
run for the programs of the Water Quality Bureau, Montana 
Fish, Wildlife and Parks Department, Environmental Pro- 
lection Agency, and Solid Waste Management Bureau. Pri- 
vate water samples are also analyzed. 



DEPT HEALTH & ENVIRON SCIENCES 



169 



Air - Analyzes air-related samples for metals, organic and 
inorganic compounds and particulates in support of the pro- 
grams of the Air Quality Bureau and the Occupational 
Health Bureau. Air samples from private sources are also 
analyzed. 

Hazardous waste/superfund - Analyzes wastes for metals and 
organic compounds and classifies wastes as hazardous or 
nonha/ardous in support of programs of the Solid and 
Hazardous Waste Bureau. 

Food and consumer safety - Analyzes food and other com- 
mercial products for adulterants at the request of the Food 
and Consumer Safety Bureau. Recent examples include EDB 
in cereal products and coumarin in Mexican vanilla. 
Occupational health - Analyzes body fluids for toxic metals 
and organic compounds at the request of the Occupational 
Health Bureau. Examples are lead in blood or 
pentachlorophenol in urine. 

The Microbiology Laboratory provides the following public 
health services to department programs, hospitals, physi- 
cians, and public health facilities in Montana: 

- Testing and consultation in support of communicable 
disease and environmental programs; 
Investigation of disease outbreaks; 

- Statewide registration of laboratory personnel; 

- Approval of laboratories providing prenatal and pre- 
marital serologies (rubella and syphilis); 
Reference laboratory for hospitals and other labora- 
tories within the state; 



Certification of laboratories performing 
microbiological analysis of drinking water; and 

Testing each newborn child in the state for metabolic 
diseases, including galactosemia, phenylketonuria 
and congenita! hypothyroidism. 

Issues Addressed/Legislative Intent 
Division Administration 

The appropriation for administration of the Centralized Ser- 
vices Division (CSD) increases about $32,000 above current 
level in FY86 due to the cost of liability insurance which 
more than doubles and due to an upgrade of one FTE. 
Division administration is funded almost entirely by indi- 
rect costs assessed on the portion of personal services paid 
by federal and state special revenues (see agency overview). 
The small general fund appropriation is the amount neces- 
sary for the department-wide adjustment to equalize changes 
in data processing rates charged by the Department of 
Administration (see Table 1). This program is to apportion 
the general fund between programs experiencing cost 
increases due to rate changes. 

Language in HB 2 directs the department to revert a like 
amount of general fund if indirect cost revenue is more than 
$390,000 either year of the biennium. The subcommittee 
intent was that the department would not offset general 
fund if the increase in indirect cost recovery was due to the 
addition of a new program that increased the responsibility 
of Centralized Services. The fiscal program in the Support 
Services Bureau within CSD is funded also with indirect 
cost revenue. 



170 



DEFT HEALTH & ENVIRON SCIENCES 



Table 1 

Appropriations for the Centralized Services Division 

FY86 and 1989 Biennium 



FTE, Budget 
and Funding 
Division Administration 

FTE 

Personal Services 

Operating 

Total Cost 

General Fund 
Federal Funds 
Total Funds 

Support Services Bureau 
FTE 

Personal Services 
Operating 
Equipment 
Total Cost 

General Fund 
State Spec. Rev. 
Fed/Spec. Rev. 
Total Funds 



FY86 
Actual 


FY88 
Budgeted 


FY89 
Budgeted 


3.0 

$104,865 

50,531 

$155,396 


3.0 

$ 94,847 

92,854 

liSLTOi 


3.0 

$94,711 

93,203 

118L914 


$ 

155,396 

1155^ 


$ 1,781 

185,920 

llSLTOi 


$ 2,216 

185,698 

118L914 



$421,251 $373,479 $374,015 

125,784 128,978 85,866 

7^47 3,300 



$554,282 $505,757 $459,881 



$145,877 $245,665 $201,567 
41,721 
366,684 260,092 258,314 



$554,282 $505,757 $459,881 



Records and Statistics Bureau 
FTE 15.0 



Personal Services 
Operating 
Equipment 
Total Cost 

General Fund 
State Spec. Rev. 
Fed/Spec. Rev. 
Total Funds 

Chemistry Lab Bureau 
FTE 

Personal Services 
Operating 
Equipment 
Total Cost 

General Fund 
State Spec. Rev. 
Total Funds 

Microbiology Lab Bureau 
FTE 

Personal Services 
Operating 
Equipment 
Total Cost 

General Fund 
State Spec. Rev. 
Fed/Spec. Rev. 
Total Funds 



5.0 

$327,233 $336,864 

76,897 96,778 

28,857 7,131 

$432,' 



15.0 

$336,480 

89,549 





$440,773 $426,029 



$301,920 $272,326 $279,363 
69,806 99,012 77,231 
61,261 69,435 69,435 



$432,987 $440,773 $426,029 



6.0 

$175,410 

60,106 

35,552 



6.0 

$178,282 

86,447 

83,300 



6.0 

$178,958 

87,971 





$271,068 

$81,727 

189,341 

$271,068 


$348,029 

$ 82,957 
265,072 
$348,029 


$266,929 

$ 83,693 
183,236 



11.5 

$281,603 

123,766 

56,900 



14.5 

$373,444 

246,143 

57,500 



14.5 

$327,115 

173,777 





$426.269 $677.087 $500,892 



$338,677 $281,473 $209,924 
90,732 340,959 235,134 
32,860 54,655 55,834 



$426,269 $677,087 $500,892 



DEPT HEALTH & ENVIRON SCIENCES 



171 



Most operating expenses for CSD administration were bud- 
geted at FY86 actual cost. However, a small increase for 
instate travel is included as this program assumed responsi- 
bility for overseeing county use of the MCH block grant 
funds. This function was transferred to CSD administration 
from the Management Services Division as part of the reor- 
ganization. 

Support Services Bureau 

The Support Services Bureau has several programs including 
fiscal, film library, data processing and word processing 
pool. The latter three were transferred to the program as 
part of the reorganization of the Management Services Divi- 
sion. The total bureau budget decreases almost $50,000 
dollars as a result of the loss of 1.5 FTE, transfer of 2.0 
FTE, and reallocation of some expenses due to the reorgan- 
ization. 

The total budget for the Support Services Bureau declines 
about $49,000 from FY86 to FY88. The drop is due to the 
reduction in program FTE. An accounting clerk II position 
in the Fiscal program and a .5 'TE in the word processing 
pool were eliminated to fund the FY87 pay plan and to ab- 
sorb the 5% funding cut. Two clerical positions were trans- 
ferred to the Microbiology Laboratory. 
The bureau operating budget appropriation is slightly above 
FY86 actual expenses largely due to changes in the fiscal 
program budget. Increases in payroll service fees, legislative 
audit costs and maintenance for the mail van offset a reduc- 
tion in travel costs. The responsibility for audits for federal 
child nutrition funds was transferred to the child nutrition 
program, decreasing instate travel costs for the fiscal pro- 
gram. 

The film library has .5 FTE and is funded by user fees from 
the Emergency Medical Services Bureau, the Maternal Child 
Health Bureau and the Department of Institutions. In FY86 
the program purchased a film splicing and repair machine 
authorized by the 1985 Legislature and extra film cases. The 
program appropriation includes indirect costs assessed 
against personal services in both years and $1,000 in FY89 
to update the audiovisual catalogue. 

The data processing program (DP) has 1.0 FTE and is 
funded by fees charged to programs that utilize its services. 
Personal services costs increase as the position was filled 
only part-time in FY86, but was filled full time in FY87. 
Total program costs increase due to the assessment of indi- 
rect costs in both years and the purchase of a personal com- 
puter in FY88. 

The word processing pool cut .5 FTE to fund the 5% cut 
and the unfunded portion of the FY87 pay plan. The word 
processing pool is funded by general fund. Some shared 
expenses were reallocated between the two laboratories and 
the pool after reorganization, otherwise the budget shows no 
changes from current level FY86. Two clerical FTE were 
transferred to the Microbiology Lab Bureau during the reor- 
ganization. Although these FTE were not part of the word 
processing pool, the FTE provided clerical support to the 
Management Services Division and had previously been 
located in the lab. 

Funding for the Support Services Bureau is a combination 
of general fund, federal and state special revenue. The word 
processing pool is funded by general fund, while the film 
library and data processing are funded by state special reve- 
nue. The fiscal program is funded by indirect cost revenues 
assessed against personal services costs paid by federal and 



state special revenue. As in the division administration pro- 
gram, language in HB 2 directs that if indirect cost revenue 
totals more than $390,000 in either year of the biennium, 
the department shall revert a like amount of general fund, 
unless the overage is caused by indirect cost recovery in new 
programs. 

Records and Statistics Bureau 

The appropriation for the Records and Statistics Bureau 
increases almost $8, (MM) over FY86 actual expenditures in 
FY88 and then decreases about $7,000 below the FY86 level 
in FY89. Costs increase in FY88 because new birth certifi- 
cate forms will be published. Such updates are performed 
once every ten years, and operations costs in travel and 
communications were increased in FY88 to allow program 
staff to train local registrars in the use of the new forms. 
Increases were allowed in both years of the biennium for 
microfilming and shipping new longer, heavier documents. 

Contracted services costs go up due to the increase in the 
number of cancer cases being tracked by the Tumor Regis- 
try. Other operational cost increases are related to mainte- 
nance costs of the new computers, and rent. 

Equipment purchases of $7,131 are authorized in FY88. 
This amount includes about $700 for the software and 
$6,460 for the replacement of a microfilm reader/printer. 

Program funding is a mix of state and federal monies. Gen- 
eral fund supports the Tumor Registry program and some of 
the cost of the vital statistics functions. Both federal revenue 
and state special revenue from the sale of copies of vital sta- 
tistics information fund the balance of the bureau program. 
State special revenue funds are higher in FY88 than FY89 
as a fund balance of about $20,000 is appropriated for use 
in FY88 (see Table 1 ). 

Language in HB 2 directs the department to offset general 
fund expenses in this program if vital statistics income 
exceeds $99,012 in FY88 and $77,231 in FY89. The depart- 
ment is further directed to revert general fund if the vital 
statistics account balance exceeds $10,000 at fiscal year end 
of either year during the biennium. 

Chemistry Laboratory 

The Chemistry Laboratory was transferred to the Central- 
ized Services Division during the reorganization. The appro- 
priation is based on current level expenditures in FY86 with 
minor increases in some operational costs. Contracted ser- 
vices increases $2,000 as the lab must properly disposal of 
small quantities of hazardous waste. Inflation adds to the 
cost of lab supplies, about $2,118 in FY88 and $3,722 m 
FY89. An adjustment of $3,410 is included to annualize 
supply costs. Indirect costs assessed against personal sei-vices 
costs paid from fee funds adds about $ 1 6,000 each year. 

Equipment purchases of $83,300 are included in the FY88 
budget. These expenditures are to be financed with fee 
income. The Lab is authorized to purchase a leak detector, 
two strip chart recorders and an atomic absorption 
spectrophotometer. The subcommittee intended that the 
equipment appropriation be a biennial appropriation. 

Funding for the Chemistry Lab is about 30 percent general 
fund. Fee income is projected to increase about $10,000 
each year of the biennium; however, the growth appears 
much higher in FY88 as the equipment purchases are 
financed with fee revenue. 

Microbiology Laboratory 

The Microbiology Laboratory program was transferred to 
the Centralized Services Division during the reorganization. 



172 



DEPT HEALTH & ENVIRON SCIENCES 



The Newborn Screening program (PKU) authorized by the 
1985 Legislature is within this bureau. 
FTE increase by three full-time positions. One new 
position — a microbiologist III — was added because of the 
increased workload due to AIDS testing. Two FTE were 
transferred from the Management Services Division during 
the reorganization. About $14,000 of operating costs, for- 
merly paid by division administration of the Management 
Services Division, was transferred also to the lab. Personal 
services costs in FY 88 have been increased by $24,000 to 
support the new microbiologist position in FY89. 
Operating costs increase about $122,000 in FY88 and about 
$50,000 in FY89 in spite of a decrease of $17,028 in con- 
tracted services that funded an endochronologist contract for 
the Newborn Screening program (NBS). A biennial appropri- 
ation of $70,000 general fund is added in FY88 to fund 
increased AIDS testing and the FTE added to evaluate the 
tests. If federal funds are received for such testing or per- 
sonal services costs, the general fund is to be reverted. Indi- 
rect costs add about $23,000 each year of the biennium and 
$3,000 is included each year for proficiency tests formerly 
provided free by the federal government. Supply costs 
increase $9,000 each year which includes $6,000 for AIDS 
testing kits. Maintenance contracts increase almost $9,000 
per year. 

The laboratory also received a contingency fund appropria- 
tion of $50,000. The authority is to be used to purchase 



supplies and communications for additional reimbursable 
services in either laboratory should expenses rise above 
$99,258 in FY88 and $100,974 in FY89. 
The department received an appropriation of $145,600 in 
general fund in FY86 to purchase equipment, hire 2.5 FTE 
and begin testing for PKU in Montana. The appropriation 
was reduced to $138,600 in order to meet the 5% cut. The 
program is to be supported entirely by fee income beginning 
FY87. The cost of equipment for the NBS program was 
lower than anticipated, allowing the department to reduce 
the biennial appropriation by $8,000 for the 5% cut in 
FY87. The total appropriation for the NBS program is 
about $107,000 in FY88 and $109,000 in FY89, funded 
entirely by fee income. 

Equipment purchases of $57,500 are included in the appro- 
priation, for a water bath, a sonifier, an autoclave, a tissue 
culture microscope and a glassware washer. These acquisi- 
tions are to be funded from water fee income; the equip- 
ment appropriation is a biennial appropriation. 
General fund decreases about 24% from FY86 to FY88 
because $120,000 start up income for the NBS program is 
removed from the base budget appropriation. Fee income 
increases about $150,000 per year ($100,000 of it attribut- 
able to the NBS program). The amount of preventive health 
block grant allocated to the lab increases about $22,000, or 
33% above the FY86 allocation. Part of this increase is for 
the purchase of AIDS testing kits. 



ENVIRONMENTAL SCIENCES 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,038,507.44 

327,083.02 

4,674.57 

302,796.00 

$1,673,061.03 


1,065,760 

357,977 

5,555 

301,000 

$1,730,292 


1,074,260 

664,919 

37,762 

351,291 

$2,128,232 


1,028,011 

411,661 

36,287 

351,291 

$1,827,250 


786,408.06 

323,053.77 

563,599.20 

$1,673,061.03 


802,951 

319,999 

607,342 

$1,730,292 


843,173 

471,236 

813,823 

$2,128,232 


791,887 

371,261 

664,102 

$1,827,250 


1,673,061.03 
$1,673,061.03 


1,730,292 
$1,730,292 


2,128,232 
$2,128,232 


1,827,250 
$1,827,250 



Program Description 



The Environmental Sciences Division administration pro- 
vides for the administration, management and coordination 
of the Air Quality, Food and Consumer Safety, Occupa- 
tional Health, Solid and Hazardous Waste and Water Qual- 
ity bureaus and the varied programs protecting environ- 
mental health in Montana. 

Each of the five bureau chiefs reports directly to the divi- 
sion administrator. The administrator works with his coun- 
terparts in other state and local agencies, as well as with fed- 
eral officials, particularly representatives of the U. S. Envi- 
ronmental Protection Agency. This office is responsible for 
the review of environmental impact statements and assess- 
ments prepared by other state and federal agencies, the coor- 



dination and/or preparation of technical and administrative 
reports, the preparation of environmental impact statements 
within the division, coordination of the DHES emergency 
response team, providing righl-to-know information and the 
planning and implemcniation of special projects. 
The Occupational Health bureau administers the radiologic- 
al and occupational health programs. 

Radiological health (MCA 75-3-101 through 502) provides: 
inspections of approximately 2000 X-ray units for safety, 
calibration and quality assurance; special studies to deter- 
mine human health risks resulting from exposures to 
naturally-occuring and technologically-enhanced 
radionuclides; response to all emergencies in Montana 
involving radioactive materials; and technical assistance to 



DEPT HEALTH & ENVIRON SCIENCES 



173 



users of radiation and radioactive materials to assure proper 
safety procedures. 

Occupational health (MCA 50-70-101 through 118) pro- 
vides: field investigations, technical assistance and informa- 
tion in response to about 600 requests per year; special 
studies of hazardous occupational exposures in selected cate- 
gories of workplaces; technical assistance regarding occupa- 
tional health problems to local governments and other indi- 
viduals and agencies; and emergency response assistance 
during incidents involving hazardous or toxic materials. 
The Air Quality bureau is responsible for the implementa- 
tion of the Montana and Federal Clean Air acts (75-2-101 
and 42 USC 7401 et. seq., respectively). These acts require 
the department to attain and maintain air quality levels in 
the outdoor atmosphere considered safe to public health and 
welfare. The programs necessary to accomplish this task 
include: 

Permit review. Reviews of facilities before construction 
begins are conducted to assure compliance with air quality 
standards are maintained. 

Inspections/enforcement. To assure continued compliance 
with air quality standards, a scheduled program of inspec- 
tions is followed with enforcement actions taken where 
appropriate. 

Ambient air quality monitoring. Continued surveillance of 
the air quality status across the state is provided by over 60 
monitoring stations. 

State implementation plan (SIP). The SIP is the primary 
vehicle used to develop plans to bring areas currently out of 
compliance with ambient air quality standards down to 
levels which are considered safe. 

Special studies. Special studies are conducted to solve or 
research various air quality issues. Some of the more promi- 
nent issues have been: a. East Helena Childhood Lead 
Study, b. Billings Sulfur Doxide Source Apportionment 
Study, and c. Libby Particulate Study. 
Information requests. The bureau responds to numerous 
requests for information about the nature of air quality in 
their area and complaints about various facilities. 

The Food and Consumer Safety Bureau is charged with the 
administration of 13 laws which deal with the Food, Drug, 
and Cosmetic Act; food serving establishments; public ac- 
commodations; mobile home parks and campgrounds; swim- 
ming pools; misquito control; schoolhouses; the Clean 
Indoor Air Act; institutions and jails; pesticide control; 
upholstery control; nuisances and the general state and local 
board of health laws. 

The bureau is the primary provider of continuing education, 
field training consultation, and technical and general sup- 



port to 62 sanitarians employed by 35 local public health 
jurisdictions which serve 55 of Montana's 56 counties. 

Issues Addressed/Legislative Intent 

The Environmental Sciences program is a combination of 
division administration program. Occupational Health 
Bureau. Air Quality Bureau, and Food and Consumer Safety 
Bureau. In the executive budget analysis these programs 
were included as part of the Environmental Sciences Divi- 
sion narrative. 

Total program FTE decrease by a net of 3.98 full-lime posi- 
tions. The reductions are due almost exclusively to the 5% 
cut and unfunded portion of the FYS? pay plan. Two FTE 
were cut from Occupational Health, 1.0 FTE from Air Qual- 
ity and 1.0 FTE from Food and Consumer Safety. An aggre- 
gate .02 FTE was added in Air Quality and a transfer of .5 
FTE was made from division administration to Occupa- 
tional Health. 

General fund shows a jump of $57,000 in FY88 above 
FY86, while the FY89 increase is negligible— about $5,500. 
The FY88 increase is due to the appropriation of $50,000 
for an air quality monitoring program in the Billings area 
authorized by HB 878. These funds are contingent upon the 
receipt of matching funds from private industry. 

Division Administration 

The division administration program FY88 appropriation 
increases dramatically over FY86 actual expenditures due to 
the inclusion of a $100,000 biennial appropriation (see 
Table 1). The authority is intended to allow the division to 
respond to emergencies such as the release of hazardous 
materials into the environment, conduct major facility siting 
reviews and studies, to write environmental impact state- 
ments and to review and issue variances. The fund is sup- 
ported from fees paid by parties responsible for any of the 
actions. In FY86 the division expended about $12,000 from 
such a fund established by the 1985 Legislature. 

FTE in the program decrease by .5. Part of a clerical posi- 
tion was transferred to the Occupation Health Bureau which 
deleted 1.0 FTE to absorb the 5% funding reduction and un- 
funded portion of the FY87 pay plan. 

The 1989 biennium appropriation for program operations 
does not increase above the current level FY86 expenditure 
base; however, the total does increase due to the inclusion 
of $100,000 to continue the environmental quality protec- 
tion fund. Indirect costs, levied against personal services 
expenses funded by federal and state special revenues, are 
the primary reason that operations costs increase above 
FY86 actual. 

Division administration is funded equally from junk vehicle 
disposal fee income and resource indemnity trust tax (RIT) 
interest income. Each source increases about $3,200 above 
FY86 amounts to fund the program in the 1989 biennium. 



174 



DEPT HEALTH & ENVIRON SCIENCES 



Table 1 

Appropriations for the Environmental Sciences Division 

by Program 

FY86 and 1989 Biennium 



Program, Budget, Fund- 
ing 


FY86 
Actual 


FY88 
Budgeted 


FY89 
Budgeted 


Division Administra- 
tion 








FTE 

Personal Services 
Operating 
Total Cost 


3.00 

$ 99,069 

19,644 

$118,713 


2.50 
$ 97,226 
124,010 _ 


2.50 

$ 97,270 

23,991 

.112L261 


Total State Spec. 
Rev. 


$118,713 


$22U36 


$121,261 


Occupational Health 
Bureau 






FTE 

Personal Services 

Operating 

Equipment 

Total Cost 


5.00 

$123,115 

35,367 

1,226 

$159,708 


3.50 

$122,308 

37,558 

1,125. 

$160,991 


3.50 

$122,178 

37,858 

.1160^ 


General Fund 


$159,708 


$160,991 


$160,036 


Air Quality Bureau 








FTE 

Personal Services 

Operating 

Equipment 

Grants 

Total Cost 


19.50 

$560,959 

220,094 

1,609 

99,000 

$881,662 


19.52 

$596,083 

450,796 

36,310 

101,291 

$1,184,480 


19.52 

$550,209 

297,299 

35,960 

101,291 

$984,759 


General Fund 
State Spec. Rev. 
Fed/Spec. Rev. 
Total Funds 


$317,518 

545 

563,599 

_$88L662 


$370,657 



813,823 

$1,184,480 


$320,657 



664,102 

$984,759 


Food and Consumer 
Safety Bureau 






FTE 

Personal Services 
Operating 
Equipment 
Grants 
Total Cost 


9.00 

$255,365 

51,978 

1,839 

203,796 

$512,979 


8.00 

$259,204 

51,994 

327 

250,000 

_$56L525, 


8.00 

$258,921 

51,946 

327 

250,000 

$561,194 


General Fund 
State Spec. Rev. 
Total Funds 


$309,183 

203,796 

^51MZ9 


$311,525 

250,000 

$561,525 


$311,194 

250,000 

$561,194 











Occupational Health 

FTE in the Occupation Health Bureau decline by 1.5 (see 
Table 1). The program eliminated 1.0 clerical FTE due to 
the 5% cut and to offset the unfunded portion of the FY87 
pay plan. A .5 clerical was transferred to the program from 
the Environmental Sciences Division administration. 
Another FTE that was eliminated was authorized by the 
1985 Legislature to inspect x-ray machines but never hired. 



The FTE was to be funded from fees assessed for inspec- 
tions of x-ray machines. 

The 1989 biennium budget maintains FY86 current level 
expenditures. A small increase in contracted services allows 
the program to purchase samples to test the accuracy of pro- 
gram analysis of selected items ($800) and to hire a consult- 
ant to organize the bureau library ($225). The purchase of 
an Anderson Microbial impactor was included in FY88. 

Air Quality 

The FTE in the Air Quality Bureau decline by a net of .02 
FTE (see Table 1). A vacant environmental program super- 
visor position was deleted to offset the unfunded portion of 
the FY87 pay plan. An aggregate .02 FTE was added as a 
result of an IRS ruling that independent contractors hired to 
collect air filters must be classified as FTE and not contrac- 
tors. A 1.0 FTE is added by HB 878. 

The general fund appropriation represents the federally- 
required level of effort; it may not fall below the amount in 
the previous year. The general fund budgeted in the 1989 
biennium equals the amount appropriated for FY87, plus 
$50,000 in FY88 added by HB 878. 

The appropriation is about $100,000 higher in FY89 than 
FY86 expenditures. Federal revenues fund the increase. 
Most of the rise in expenses is attributable to contracted ser- 
vices, indirect costs and equipment purchases. Contracted 
services increases of about $14,000 fund additional labora- 
tory testing and a statewide monitoring network. About 
$3,000 is for additional data processing costs. Indirect costs 
assessed against federally-funded personal services expenses 
account for almost one-half the budget increase — $49,749 in 
FY88 and $49,426 in FY89. Equipment purchases include 
two replacement vehicles, two computers, office equipment 
and miscellaneous field monitoring supplies. The appropria- 
tion is about $300,000 higher in FY88 due to the addition 
of$200,000 from HB 878. 

Other Appropriation Bills 

HB 878 appropriates $50,000 to the department contingent 
upon the receipt of matching fun'ds from private industries 
to institute and operate air quality monitoring stations in 
Yellowstone County. The general fund appropriation is con- 
tingent upon the establishment and execution of contractual 
arrangements between the department and private industry 
representatives through which industries will contribute to 
the department a total of no less than $150,000 for the 
development and operation of the air quality monitoring 
stations. The bill also adds 1.0 FTE to the Air quality pro- 
gram. 

Food and Consumer Safety 

FTE in the Food and Consumer Safety program decrease by 
one position as a sanitarian position was eliminated to meet 
the 5% cut and unfunded portion of the pay plan in FY87 
(see Table 1). The annual increase of about $50,000 over 
FY86 actual expenses is due to the increase appropriated for 
grants to local health boards. 

The operation of this program is funded by general fund, 
while grants to local boards are funded from stale special 
revenue. An annual license fee of $30.00 is paid by licensed 
food establishments. Eighty-five percent of the fee income is 
deposited to the local boards inspection account and trans- 
ferred to local health boards, while the remainder is depos- 
ited to the general fund. 

Language in HB 2 prohibits transfer of funds from the 
$250,000 appropriation for grants to local boards. If author- 



ity is inadcqualc, Ihe dcpartmeni may request a budget 
amendment. 



DEPT HEALTH & ENVIRON SCIENCES 175 

Equipment consists of one replacement chair each year. 



SOLID/HAZARDOUS WASTE 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


21.00 


22.00 


26.50 26.50 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



461,859.36 

1,246,743.92 

18,764.69 

629,612.59 


487,774 

2,927,137 



814,983 


715,980 

5,901,849 

54,910 

785,616 


716.077 

7,020,402 

9,885 

803,630 


$2,356,980.56 


$4,229,894 


$7,458,355 


$8,549,994 


75,855.35 

978,624.19 

1,302,501.02 


74,197 
1,344,323 
2,811,374 


75,734 
1,280,360 
6,102,261 


76,181 
1,212,055 
7,261,758 


$2,356,980.56 


$4,229,894 


$7,458,355 


$8,549,994 


2,356,980.56 
$2,356,980.56 


4,229,894 
$4,229,894 


7,458,355 
$7,458,355 


8,549,994 
$8,549,994 



Program Description 

The Solid and Hazardous Waste Bureau administers seven 
environmental health protection programs. Through these 
activities, the bureau provides project management and 
coordination that includes local government involvement, 
air, water and hazardous waste concerns and liaison with 
the EPA and the general public. 

The Montana Solid Waste Management Act provides for 
control over the disposal of solid wastes through licensing, 
technical assistance, inspection and enforcement activities. 
The majority of solid wastes are disposed of in municipal 
sanitary landfills and the above tasks are directed primarily 
toward these facilities. 

The Refuse Disposal District Act is an enabling act that 
allows county governments to establish districts for the 
financing and management of solid waste disposal. The 
bureau provides technical assistance to county governments 
during the district formation process. 

The Motor Vehicle Recycling and Disposal Act is a regula- 
tory program that controls the disposal of junk motor vehi- 
cles and shielding of such disposal sites. The act requires the 
department to license anyone with four or more junk vehicle 
and requires all junk vehicles to be screened from public 
view. The act also allows the department to make annual 
grants to each county to finance the establishment and 
maintenance of junk vehicle graveyards and to finance the 
collection of junk vehicles for placement in the graveyards. 
The department is responsible for removal of the junk vehi- 
cles and does so by selling the vehicles to recycling firms 
who crush and transport the cars to steel mills for recycling. 
The Septic Tank Cleaner Act is a regulatory program that 
provides for licensing of septic tank pumpers. The licensing 
process includes approving the disposal site locations to be 
used for disposal of sewage. 

The Montana Hazardous Waste Act is a regulatory program 
that controls generation, transport, treatment, storage and 
disposal of hazardous wastes. Persons treating, storing or 
disposing of hazardous waste must obtain a permit from the 
department. The department performs inspections, provides 



technical assistance, and, if necessary, takes enforcement ac- 
tions. 

The underground storage tank legislation was enacted in 
1985 and is modeled after the federal law. Its purpose is to 
prevent leaks in underground storage tanks through identify- 
ing who has underground tanks and eventually requiring 
tank testing, inventory record keeping, ground-water moni- 
toring, financial assurance for clean-up costs and implement- 
ing tank design and installation standards. 

The Superfund Act allows the department to enter into 
agreements for investigating potentially hazardous disposal 
sites to determine if past disposal practices are resulting in 
threats to public health or the environment. The bureau also 
performs studies to determine the most cost-effective 
method of restoring a contaminated site. The bureau may 
contract for any necessary design and construction activities 
after selection of a clean-up method is made. 

Issues Addressed/Legislative Intent 

The Solid and Hazardous Waste Bureau appropriation for 
FV88 grows 216% over FY86 actual expenditures. The 
increase can be attributed to expansion in the superfund 
program and to the annualization of costs in the under- 
ground storage tank (UST) program. Table 1 shows the 
appropriation by fund for each of the programs within the 
bureau. The appropriation for superfund rises about $5.65 
million between FY86 and FY88, which accounts for the 
majority of the increase in the total bureau budget. UST 
expands almost 10 fold between FY86 and FY88, but the 
total impact of the expansion is minor compared to the 
superfund appropriation. 

The most significant legislative change for this bureau is the 
increase in the amount of resource indemnity trust (RIT) 
interest income that is allocated for use in the superfund 
and UST programs. The 1985 Legislature allocated 6% of 
the interest income from the RIT to implement the Mon- 
tana Hazardous Waste Act and the Comprehensive Environ- 
mental Response, Compensation, and Liability Act of 1980 
(CERCLA or superfund) for the 1987 biennium. The 1987 



176 



DEPT HEALTH & ENVIRON SCIENCES 



Legislature increased the amount of RIT interest income to 
12% in order to allow the department to match federal 
funds for clean up of superfund projects and for UST 
projects financed by the newly established federal UST trust. 
The bill also directed that any RIT funds from the 6% allo- 
cation not expended by fiscal year end in 1987 are to be 
deposited to the hazardous waste/ CERCLA state special 
revenue fund created by HB 777. 

The 12% allocation is divided into two portions depending 
on use. Up to one-half or 6% can be appropriated by the 
legislature for operating expenses of the UST, hazardous 
waste, superfund and division administration programs and 
for investigation and remedial action for any hazardous sub- 
stance defined in 75-10-602, MCA. The remainder is to be 
used for the state match for superfund and federal UST 
trust cleanup. The state match can be appropriated during 
session or requested through a budget amendment when the 
legislature is not in session. HB 777 stipulates that the use 
of the hazardous waste/ CERCLA state special revenue fund 
is to be considered an emergency for the purposes of seeking 
a budget amendment. 

HB 777 also creates CERCLA bonds that may be issued to 
fund the required state match for cleanup projects. The 
bonds are to be repaid with unused portion of RIT interest 
and with any other funds deposited to the hazardous waste/ 
CERCLA state special revenue account. HB 760 contains 
the authorization for the issuance of up to $10 million in 
CERCLA bonds. 

HB 777 includes a $200,000 biennial appropriation to 
enable the department to pursue or evaluate any lawsuits 
that the department institutes or may institute under section 
107 of CERCLA. In subcommittee hearings, the department 
testified that it may hire staff as well as consultants to 
review such lawsuits. Staff are likely to be assigned to the 
Legal Unit within the Director's Office. 
Bureau FTE increase by 5.5 positions. Again the increase 
can be attributable to the UST and superfund programs. 
UST FTE increase 2.5 above FY86 actual by the addition of 
two environmental specialists (one added in FY87 by 
approval of the 1985 Legislature), and a .5 FTE attorney. 
The superfund program received 3.0 new FTE including an 
information officer, an accounting manager, a .5 FTE 
administrative aide, and a .5 FTE attorney. 
Various equipment was authorized by the legislature. The 
junk vehicle program received $1,168 for a typewriter and 
office equipment in FY88 and $288 for office equipment in 
FY89. superfund received $18,237 for computers, software, 
a camera, and field monitoring equipment in FY88. Hazard- 
ous waste has $6,767 in FY88 for office and field monitor- 
ing equipment and $7,381 in office equipment in FY89. The 
budget for UST has $28,737 for office equipment, field 
monitoring equipment and software in FY88 and $1,348 for 
office equipment in FY89. The solid waste program has 
$868 for a typewriter in FY89. 

The junk vehicle program appropriation increases $285,000 
in FY8S over FY86 actual expcndilurcs (sec Table I). This 
pr()gr;itn is funded Irom fees assessed on vehicle licenses and 
junk vehicle yard licenses. I'he 1985 Legislative transferred 
$500,000 from the junk vehicle account to the general fund. 
A contingency of $100,000 was appropriated each year in 
case the price of scrap metal falls and the department must 
pay for the removal of junk vehicles from graveyards. The 
same amount was appropriated as a contingency in the 
FY87 bicnnium, but the department did not have to use the 
authority. Operating costs increase to fund gasoline, vehicle 
maintenance, rent and contracted secretarial services for a .5 



FTE relocated to Billings in FY86 by the department. An 
appropriation of $15,000 is included for a public informa- 
tion campaign to increase public awareness of the junk vehi- 
cle program. Indirect costs add about $16,800 to the budget 
each year of the biennium. 

Grants are made to counties to help fund county junk vehi- 
cle programs. Total grants increase above FY86 actual costs 
almost $180,000 in FY88 and $160,000 in FY89. 



Table 1 

Appropriations for the Solid and Hazardous Waste Bureau 

FY86 and 1989 Biennium 



Item 




FY86 
Actual 


FY88 
Budgeted 


FY89 
Budgeted 


Junk Vehicle 










Junk Vehicle 
Funds 




781,890 


$1,067,374 


$1,069,457 


Superfund 










State RIT Interest 
Federal EPA 


1 


2,700 
,049,773 


$ 60,000 
5,643,301 


$ 
6,833,965 


Total Funds 


$1 


,052,473 


$5,703,301 


$6,833,965 


Hazardous Waste 










State RIT Interest 
Federal EPA 




77,453 
231,251 


$ 95,522 
286,565 


$ 95,775 
287,324 


Total Funds 




308,704 


$ 382,087 


$ 383,099 


Underground Storage 
Tanks 










State Junk Vehicle 
State RIT Interest 
Federal EPA 




1,581 


21,477 


$ 
57,464 
172,395 


$ 
46,823 
140,469 


Total Funds 




23,058 


$ 229,859 


$ 187,292 


Solid Waste 










General Fund 




75,855 


$ 75,734 


$ 76,181 


Total Bureau* 


$2,241,980 


$7,458,355 


$8,549,994 















* FY86 expenditures include an RIT grant for $115,000 
that was expended for a feasibility study for a hazardous 
waste transfer station. 

The appropriation for superfund increases more than 500% 
between FY86 actual expenditures and FY88. Federal 
monies account for almost all the growth in funding. There 
is a $60,000 biennial appropriation of RIT interest income 
that will be used for emergency cleanups, for state investiga- 
tion of superfund sites not included on the EPA national 
priority list, and to partially fund an FTE to manage site 
investigations. 

Ihe growth in the superfund budgel is moslly lonliacted 
services to continue siie investigations and data gathering. 
The superfund appropriation for contracted services totals 
about $5.47 million in FY88 and $6.43 million in FY89. 
Other operations costs increase moderately to fund aerial 
site surveillance and computer maintenance costs. The 3.0 
new FTE and associated operating costs add about $97,000 
to the budget. Indirect costs total about $23,500 each year. 
The appropriation for the hazardous waste program 
increases $73,400 between FY86 actual and FY88 budgeted 



DEPT HEALTH & ENVIRON SCIENCES 



177 



expenditures. The program is funded by 25% of RIT and 
75% of federal funds (see Table I). 

Personal services costs account for most of the increase in 
the hazardous waste budget. Federal start up funds were 
received part way through FY86, making base year personal 
services expenditures lower than the annualized cost if posi- 
tions are filled year round. Contracted services expenses 
decrease due to deletion of one-time program start up costs 
which offset increases in laboratory testing fees and con- 
tracts with nonprofit organizations. Indirect costs for this 
program are budgeted at about $33,500 annually. 
The UST program budget rises dramatically because federal 
funding was not received until late FY86 delaying program 
start up. Most of the cost increase is due to annualization of 
partial year expenses. During the 1987 biennium, the pro- 
gram was funded with junk vehicle fees and federal funds. 
The state 25% match was switched to RIT interest in the 
1989 biennium. 

Contracted services costs go up $41,000 in FY88 and 
$21,000 in FY89 to fund tank testing, laboratory testing, 
public education, and a survey of land owners regarding 
UST program requirements. Communications costs increase 
to fund notification of land owners with tanks. Approval of 
the modified budget request for UST adds 1.5 FTE and 
associated operating costs. The 1985 Legislature approved 
an FTE that was added in FY87. 

The solid waste program is the only function in the bureau 
financed by general fund. During FY86 the solid waste pro- 
gram, in conjunction with junk vehicle program, relocated 
an FTE from Helena to Billings to better serve the eastern 
part of the state. Each program funds one-half of the posi- 
tion. The solid waste program left a position open in order 
to accrue sufficient funds to contribute to the purchase of a 
vehicle and relocation expenses for the employee. The 
FY88-89 budget includes increases in rent and contracted 
secretarial services to fund the Billings office. Instate travel 
was increased as the base year budget was 
unrepresentatively low and would not have allowed the pro- 
gram to fulfill its legal obligations. 

Other Appropriation Bills 

HB 6 allocates grants from RIT to the department for activ- 
ities in the hazardous waste program. An appropriation of 
$101,200 is made for the Apex Mill hazardous waste clean- 
up at Bannack State Park and $300,000 is appropriated for 
remedial action at abandoned oil refinery sites. The depart- 
ment also received reauthorization of a grant in the amount 



of $212,000 for research and public education to help busi- 
nesses minimize or eliminate hazardous waste generation. 
The reauthorization gives the department the authority to 
prepare all necessary bid documents for presentation to and 
approval of the 1989 Legislature if the department deter- 
mines that there is a need for the state to construct a 
hazardous waste management, collection and transfer facil- 
ity. 

During subcommittee hearings, the department agreed to 
partially fund a new position to manage investigations of 
hazardous waste sites with some of the administrative funds 
in the Bannock State Park and oil refinery projects grants. 
This FTE would be funded in part by the $60,000 RIT bien- 
nial appropriation in the superfund program as well. 
The department further agreed to use some of the funds 
from the reauthorized grant of $212,000 to hire an FTE to 
be located in Billings. This position would oversee activities 
of hazardous waste transfer facilities and provide technical 
advice to businesses that generate small quantities of 
hazardous waste. 

HB 718 allocates 4% of the RIT interest income to the envi- 
ronmental quality protection fund beginning in FY90. The 
bill mandates that uses of the fund must include the conduct 
of a hazardous waste site remedial action program. Reme- 
dial action can be taken at sites where a release of hazard- 
ous waste has occurred and where the Environmental Pro- 
tection Agency (EPA) has judged the site ineligible for the 
national superfund priority list or where the EPA has no 
authority or no plan to assess the site under CERCLA. The 
remedial action program must identify and prioritize sites 
for remedial action; investigate, negotiate, and take legal ac- 
tion to identify and obtain financial participation from 
responsible parties; achieve remedial action; and recover 
costs and damages incurred by the state. 
HB 789 extends the requirements, except permitting require- 
ments, of the Montana Hazardous Waste Act to temporary 
storage facilities for hazardous wastes. The statement of 
intent for HB 789 directs the department to adopt rules 
similar to those applicable to hazardous waste management 
facilities that store wastes for longer periods of lime. The 
rules should ensure that public health and the environment 
are protected. 

HB 729 requires that a public hearing be held before a 
temporary hazardous waste storage, collection or transfer 
facility commences commercial operation. The bill directs 
the department to adopt rules governing public hearing re- 
quirements. 



178 



DEPT HEALTH & ENVIRON SCIENCES 



WATER QUALITY 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


40.50 


39.25 


41.00 40.75 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,118,913.89 


1,005,928 


1,182,629 


1,179,577 


477,740.93 


375,203 


794,645 


792,581 


23,316.89 


1,700 


25,154 


10,848 


106,635.00 


180,672 


124,233 


128,797 


$1,726,606.71 


$1,563,503 


$2,126,661 


$2,111,803 


374,964.80 


260,917 


461,655 


460,825 


65,979.24 


80,992 


96,620 


100,320 


1,285,662.67 


1,221,594 


1,568,386 


1,550,658 


$1,726,606.71 


$1,563,503 


$2,126,661 


$2,111,803 


1,726,606.71 


1,563,503 


2,126,661 


2,111,803 


$1,726,606.71 


$1,563,503 


$2,126,661 


$2,111,803 



Program Description 

The Water Quality Bureau is responsible for administering 
Montana's Water Pollution Control, Sanitation in Subdivi- 
sions, Water and Wastewater Operators Certification and 
the Safe Drinking Water Acts. To carry out these responsi- 
bilities the bureau performs the following principle activi- 
ties: 

WatersSupply - About 2,000 public community and non- 
community supplies are monitored by water testing, inspec- 
tions and plan review. 

Construction grants - The federal construction grant pro- 
gram makes funds available to assist municipalities in the 
construction of sewage treatment facilities. Project priorities 
are determined, plans are reviewed and construction inspec- 
tions are provided. 

Permits and enforcement - The bureau administers both fed- 
eral and state wastewater discharge permit acts by issuing 
permits, reviewing monitoring reports and treatment plans, 
inspecting facilities and providing enforcement. 
Water quality management - This section monitors water 
quality in streams and provides water quality assessments 
and cleanup plans for problem areas. 

Water and wastewater operator certification and training 
persons in responsible charge of water supply and waste- 
water treatment facilities are required to be certified. Study 
material is provided and examinations are given. About 
1,200 operators are certified. 

Subdivisions - Proposed parcels of less than 20 acres are 
reviewed to ensure that adequate water supplies and sewage 
disposal is provided. 



Groundwater pollution control - The bureau responds to 
complaints of groundwater pollution and reviews and 
approves plans for activities that may pollute groundwater. 

Water pollution control - The bureau is responsible for the 
investigation of all alleged violations of water quality laws 
and regulations. This involves complaint investigation and 
review of major projects that may have a water quality 
impact. 

Issues Addressed/Legislative Intent 

The Water Quality Bureau budget increases about $400,000 
each year above FY86 actual expenditures. Most of the 
increase is attributable to the new wellhead protection pro- 
gram which adds $266,667 annually. 

FTE increase a net of .5 in FY88 and .25 in FY89. The 
legislature approved 1.0 FTE in the safe drinking water pro- 
gram because the IRS ruled that an independent contractor 
with the program must be an employee. Two modified 
requests with FTE were approved. One added .25 FTE in 
FY88 and .50 FTE in FY89 to the wastewater operators 
program and the second added .50 FTE in FY88 to com- 
plete a project for the permits program that was authorized 
by budget amendment during the 1987 biennium. These 
increases were offset by the elimination of 1.25 FTE associ- 
ated with the Clark Fork study. 

The water quality management program budget declines 
between FY86 and FY88-89 (see Table 1). The decrease is 
attributable to reductions in contracted services. Federal 
funds increase due to the addition of funds transferred from 
the Department of State Lands to DHES for costs of a 
shared position. The budget for this program includes a por- 
tion of the cost of a replacement vehicle to be purchased for 
the Billings office in conjunction with the safe drinking 
water and water permits programs. 



DEPT HEALTH & ENVIRON SCIENCES 



179 



Table I 

Appropriations for the Water Quality Bureau 

FY86& 1989 Biennium 



Water Quality Manage- 
ment 

General Fund 

Federal Funds 

Total Funds 

Water Pollution Control 
General Fund 
Federal Funds 
Total Funds 

Water Permits 

Federal Funds 
Construction Grants 

Federal Funds 
Groundwater 

Federal Funds 
Wastewater Operators 

State Special Revenue 

Subdivisions 
General Fund 
State Special 
Total Funds 

Safe Drinking Water 
General Fund 
Federal Funds 
Total Funds 

Wellhead Protection 
General Fund 



Federal Funds 
Total Funds 

Total Bureau Funding 

General Fund 
State Special 
Federal Funds 
Total Funding* 



FY86 FY88 FY89 

Actual Budgeted Budgeted 



$ 86,473$ 74,291$ 73,058 

106,864 116,627 116,160 

$193,337 $190,918 $189,218 



$ 68,372$ 85,386$ 85,386 

234,631 305,795 300,837 

$303,003 $391,181 $386,223 



$133,406 167,594 156,199 

$ 298,019$ 357,345$ 356,756 

$ 71,219$ 104,286$ 103,777 

$ 18,938$ 36,620$ 40,320 



$ 123,124$ 
42,850 



139,098$ 139,091 
60,000 60.000 



$165,974 $199,098 $199,091 



$ 96,996$ 96,213$ 96,623 

290,980 316,739 316,929 

$387,976 $412,952 $413,552 



$ 66,667 $ 66,667 

200,000 200,000 

$266,667 $266,667 

$ 1 ,57 1 ,872 $2, 1 26,66 1 $2, 1 1 1 ,803 

$ 374,965$ 461,655$ 460,825 

61,788 96,620 100,320 

1,135,119 1,568,386 1,550,658 

$1,571,872 $2.126,661 $2.111,803 



* FY86 funding also included federal funds of $150,541 
for the Cabin Creek project, instream flow study, and 
Clark Fork study. These funds are not included in the 
total funding shown in this table. 

General fund in the water pollution control program rises 
about $ 1 7,000 because the level of state effort required by 
the Environmental Protection Agency (EPA) was increased 
in FY86. The appropriation for the program increases above 
FY86 actual expenditures about $86,000 each year of the 
biennium. About $12,000 of the amount is due to personal 
services costs; about $26,000 is due to indirect costs 



assessed against federally-funded personal services: and the 
balance is in higher contracted services costs. 

The recommended budget for the water permits program 
increases about $44,000 in FY88 and $13,000 in FY89 
above actual expenditures for FY86. A modified request 
approved by the legislature will allow the bureau to expend 
the balance of a grant approved by a budget amendment to 
automate water permits. A .5 FTE is included in FY88 to 
complete the project at a cost of $9,426, all federally 
funded. Operating costs in this program increase about 
$15,300 each year to pay indirect costs assessed against 
federally-funded personal services costs. A portion of the 
cost for a replacement vehicle for the Billings office is 
included in FY88. 

The construction grant program annual appropriation 
increases about $58,000 over FY86 actual. More than half 
the growth is due to indirect costs which add about $31,000 
annually. Grants to local communities to begin water system 
planning and design are budgeted at $40,000 each year. 
Equipment purchases for a personal computer and software 
are included. 

The federally-funded ground water program was instituted 
by the 1985 Legislature. It includes 1.0 FTE and operating 
expenses. The appropriation increases about $35,000 over 
FY86 expenditures. Increases are due largely to contracted 
services ($21,000) and equipment ($7,400). A vehicle and 
personal computer are included in equipment purchases 
costing a total of about $7,500 each year. Indirect costs add 
about $42,000 annually. 

The wastewater operators program is funded entirely by 
annual license fees paid by local wastewater operators. The 
legislature approved a modified request to increase the FTE 
by .25 each year so that the program will have a total of i .0 
FTE by 1989. The cost of the modified adds about $12,000 
in FY88 and $18,000 in FY89. Operating costs increase 
above FY86 actual due to travel for advisory council mem- 
bers and equipment costs for a personal computer. 
The subdivision program is financed by general fund and 
state special revenue funds. Fees charged for subdivision 
review are split between grants to counties and deposits to 
the general fund. Most costs are budgeted at FY86 actual 
expenditures, with personal services costs rising about 
$20,000 between FY86 to FY88-89 due to vacancies in 
FY86. State special revenue funds the grants to counties. 
Grants are budgeted at $60,000 each year of the 
biennium — an increase of about $17,000 over the FY86 ac- 
tual grant level. 

The safe drinking water program increases by 1.0 FTE due 
to the determination by the IRS that the independent con- 
tractor did not meet the criteria established for contractors. 
The FTE was added into current level and contracted ser- 
vices and grants were reduced to fund the incremental cost. 
Most operational costs were budgeted at FY86 actual. This 
program budget includes a portion of the cost for a replace- 
ment vehicle for the Billings office. This program is funded 
25 percent by general fund and 75 percent by federal funds. 
The appropriation for the wellhead protection program is 
part of the safe drinking water program, but is shown sepa- 
rately in Table I. The new program was authorized due to 
the changes in the federal Safe Drinking Water Act. Had the 
expansion not been funded, the state could not have 
requested funds for the program in the next biennium. The 
appropriation of $266,667 annually is for contracted ser- 
vices and like the safe drinking water program, the state 
share of the cost is 25%. 



180 



DEPT HEALTH & ENVIRON SCIENCES 



Other Appropriation Bills 

HB 6 appropriated RIT funds to the department for moni- 
toring the Clark Fork River. The amount of the grant is 
$205,590. 



HEALTH SERVICES/MEDICAL FAC 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


16.25 


15.25 


10.77 10.77 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



470,077.56 

263,186.38 

1,594.86 


443,504 

344,722 

4,450 

$792,676 

481,359 
44,567 

266,750 
$792,676 

792,676 
$792,676 


335,164 

262,759 

5,000 

$602,923 

353,823 
47,019 

202,081 
$602,923 

602,923 
$602,923 


335,270 

262,538 

5,000 


$734,858.80 

491,210.47 

14,990.92 

228,657.41 

$734,858.80 

734,858.80 


$602,808 

353,775 
47,025 
202,008 
$602,808 
602,808 


$734,858.80 


$602,808 



Program Description 

The Health Services Division Administration manages the 
operations of the division, has direct responsibility for 
development and communication of division policy and 
advisory responsibility on department policy, and manages 
the resources of the division. 

The Emergency Medical Services Bureau is responsible for 
the planning, development and implementation of a compre- 
hensive state emergency medical services program (MCA 
50-6-101-104), and serves as a coordinating mechanism for 
the various elements comprising the statewide system. Fol- 
lowing are activities of the EMS Bureau. 
Statewide planning including the writing and enforcement of 
an emergency medical services plan covering all components 
of a comprehensive emergency medical services system. 
Management of Montana ambulance licensing program 
(MCA 50-6-301 316, ARM 16.30.101-210) which includes 
issuance of licenses, annual inspections and reinspections 
and investigation of complaints and violations. 

Training programs for emergency medical technicians at 
basic, intermediate and paramedic levels (MCA 50-6-201). 

Management of the Montana poison control system includ- 
ing providing methods of public access and provision of 
public and professional education. 

Provision and management of a Montana first responder 
training program - an emergency medical training program 
for law enforcement, fire and other public safety members 
of the emergency medical services system. 
Training of rural emergency room nurses and the coordina- 
tion of the advanced trauma life support program for physi- 
cians. 

Provision of technical assistance to local EMS providers and 
trainers including the writing and dissemination of a variety 
of training manuals and handbooks, and responding to 
numerous requests for on-site technical assistance. 



The Nursing bureau has primary responsibility for edu- 
cation and consultation for Montana's 369 community 
health nurses. The three major programs are; 1) public 
health nursing, 2) school health services; and 3) home 
health services. The Nursing Bureau was eliminated by 
the 1987 Legislature. 
In carrying out the mandate of 50-1-202 (11), the profes- 
sional nursing staff of the bureau develop and promote stan- 
dards for community health nursing services, including 
assurance that the legal requirements for nursing practice 
are met in the community setting. Additionally, staff moni- 
tor and evaluate quality assurance and patient care stan- 
dards in direct-service clinics, including well-child and resi- 
dential child care health services; provide public and profes- 
sional education and consultation; develop educational, 
technical and other materials for local providers of public 
health, school and home health nursing services. Evaluation 
of local health services and participation in recruitment and 
hiring of locally-employed staff are also responsibilities of 
the generalized nursing consultation staff. Staff of the 
bureau assume division-wide responsibilities and provide 
input into the professional nursing component of the MCH 
block grant to counties; inborn errors of metabolism; and 
Sudden Infant Death (SIDS); WIC; communicable disease 
control, including school nursing consultation regarding 
AIDS. Professional supervision of nurses employed in the 
Preventive Health, Family/MCH, and Nursing bureaus is 
provided by the bureau chief. 

Issues Addressed/Legislative Intent 

The Health Services and Medical Facilities program has the 
division administration of the Health Services and Medical 
Facilities Division and the Emergency Medical Services 
Bureau. The Nursing Bureau, although eliminated by the 
legislature is included in this program as well. 
The legislature eliminated the Nursing Bureau, reducing gen- 
eral fund outlays by $95,463 in FY88 and $94,557 in FY89, 
and reducing FTE by 2.0 full-time positions. The bureau 
budget and FTE had been reduced as part of the rcorganiza- 



DEPT HEALTH & ENVIRON SCIENCES 



181 



tion of the department which transferred most of the bureau 
functions to the Preventive Health and Maternal Child 
Health bureaus. Of the 15.5 FTE authorized for FY86, one 
position was deleted by the department to absorb the 5% cut 
and unfunded portion of the FY87 pay plan. Four positions 
were transferred to the family planning program in the 
Maternal Child Health Bureau and 8.5 FTE were transferred 
to the I'revenlive Health Bureau. 

Division Administration 

The division administration program funding increases by 
almost 49% (see Table 1). The growth in general fund results 
from the loss of federal health planning funds. Previously 
some of the personal services and operating costs for .75 
administrative FTE had been paid by these federal funds. 
The legislature approved the modified budget request to 
increase general fund to pay costs previously federally 
funded and to add the .75 FTE. The modified added about 
$33,500 general fund each year of the biennium. 
Authorized positions in the program increase by .6 FTE 
from FY86 actual to FY88 budgeted. The increase of the .75 
additional positions was offset by a reduction of .15 FTE 
which was the program's portion of an administrative clerk 
position that was deleted to fund the 5% cut and unfunded 
portion of the FY87 pay plan. 

Emergency Medical Services 

The appropriation for the Emergency Medical Services 
(EMS) Bureau increases by about $32,000 annually above 
FY86 expenditures even though staff positions decrease by 
1.08 FTE. The increase in funding occurs in state special 
revenue. The amount of general fund and federal funds allo- 
cated to the program decline below FY86 actual funding 
levels. 

FTE decrease by a net of 1.08 between FY86 and FY88. 
1.15 FTE were eliminated by the department to meet the 
5% cut and unfunded portion of the FY87 pay plan. An 
aggregate .07 FTE was added to the EMS bureau because 
the IRS ruled that some of the independent contractors 
must be employees of the bureau. Contracted services costs 
were decreased by about $ 1 6,800 each year as a result. 
Operating expense increases for the bureau are due prima- 
rily to the expected increase in training and testing of emer- 
gency medical technicians (EMT). Almost $30,000 was add- 
ed each year for such functions. Equipment purchases 
include replacement training equipment and $2,100 for 
defibrillator equipment in FY88. 

State special revenue consists of fees paid for EMT training 
and testing. The increase in related costs is offset by 
increased fee authority. The federal funds in the EMS pro- 
gram are preventive health block grant funds. 



Table 1 

Appropriations for the Health Services and 

Medical Facilities Division by Subprogram 

FY86 & 1989 Biennium 



Item 


FY86 
Actual 


FY88 
Bud- 
geted 


FY 89 
Bud- 
gcicd 


Division Administration 








FTE 

Personal Services 
Operating 
Total Costs 


1.90 

$ 66,866 

2,678 

i^9^ 


2.50 

$ 98,863 

4,751 

$10M14 


2.50 

$ 98,950 

4,735 

$10M85 


General Fund 
Fed/Spec. Rev. 
Total Funds 


$ 36,618 

32,926 

^6M44 


$ 69,719 
33,895 

$m6H 


$ 69,790 

33,895 

$103,685 


Emergency Medical Ser- 
vices Bureau 








FTE 

Persona! Services 

Operating 

Equipment 

Total Cost 


9.35 

$235,124 

231,132 

1,594 

$467,850 


8.27 

$237,760 

256,549 

5,000 

$499,309 


8.27 

$237,790 

256,333 

5,000 

$499,123 


General Fund 
State Spec. Rev. 
Fed/Spec. Rev. 
Total Funds 


$284,435 

14,992 

168,423 

$467,850 


$284,104 

47,019 

168,186 

$499,309 


$283,985 

47,025 

168,113 

$499,123 


Nursing Bureau 








FTE 

Personal Services 

Operating 

Total Cost 


15.50 

$168,089 

29,383 

$197,472 
■ ■ ■ 






General Fund 
Fed/Spec. Rev. 
Total Funds 


$170,158 

27,314 

$197,472 









Other Appropriation Bills 

SB 353 instituted state regulation of the formation and oper- 
ation of health maintenance organizations (HMO). The 
department must certify that applicants for a certificate of 
authority to operate an HMO demonstrate the willingess 
and potential ability to assure availability and accessibility 
of adequate personnel and facilities to provide accessible 
and continuing care. Applicants also must provide for ongo- 
ing quality assurance concerning health care. 
The department must develop a procedure for reporting and 
evaluating statistics that detail the cost of HMO operations 
and utilization of services. The department is to adopt rules 
governing these responsibilities. The act also gives DHES 
the authority to establish and assess fees on HMO's to fund 
the HMO program expenses and gave the department a stat- 
utory appropriation to spend the fee income. The fiscal note 
for SB 353 estimated that the department would need 1.0 
FTE to administer the program. The total cost was esti- 
mated to be $110,325 in FY88 and $107,325 in FY89. The 
impact of the bill has been included in this section because 
the new program most closely fits with the objectives and 



182 



DEPT HEALTH & ENVIRON SCIENCES 



functions of the Health Services/ Medical Facilities Divi 
sion. 



FAMILY/MCH BUREAU 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


2.90 


21.50 


23.50 23.50 



Personal Services 

Operating Expenses 

Equipment 

Grants 

Benefits and Claims 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



566,245.02 


534,076 


626,476 


626,635 


997,857.41 


5,940,812 


1,144,712 


1,136,052 


45,071.25 





12,510 


90,170 


5,091,638.41 


3,105,337 


2,674,592 


2,685,822 


4,437,246.36 





7,299,325 


7,491,298 



$11,138,058.45 

40,127.83 

11,097,930.62 

$11,138,058.45 

11,001,087.92 
136,970.53 



$11,138,058.45 



$9,580,225 

46,692 

9,533,533 

$9,580,225 

9,580,225 



$9,580,225 



$11,757,615 

30,635 

11,726,980 

$11,757,615 

11,757,615 



$11,757,615 



$12,029,977 



31,013 
)98,964 



$12,029,977 

12,029,977 



$12,029,977 



Program Description 

The Family/Maternal and Child Health Bureau has overall 
administrative responsibility for the following programs: 

1. The special supplemental food program for women, 
infants and children (WIC) provides several services to 
pregnant women, infants and children up to age five, 
who are income-eligible and at nutritional risk. These 
services include education and counseling to improve 
eating behaviors; provision of selected foods to supple- 
ment diets; and access to preventive health programs 
and referral to private and public health providers. 

2. The child nutrition (CN) program provides cash reim- 
bursement for meals meeting specific nutritional require- 
ments which are served to children enrolled in 
licensed/approved day care centers. Head Start pro- 
grams, day care homes, and others. 

3. The handicapped children's services (HCS) program pro- 
vides diagnostic, evaluation and treatment services for 
children from birth to 18 for a specific and limited 
number of chronically handicapping conditions. Services 
are provided to low-income families who are not cov- 
ered by Medicaid or private insurance. 

4. Nutrition consultation integrates nutrition services into 
existing health programs, such as nursing and dental as 
well as WIC, CN, HCS and family planning and assures 
that trained, qualified persons provide acceptable nutri- 
tion services to specific populations in order to promote 
and provide appropriate nutrition services. 

5. The family planning program provides quality compre- 
hensive family planning services through local agencies 
to women ages 1 5-44 at risk of unwanted pregnancy who 
are income eligible in order to reduce unwanted and 
mistimed pregnancies. 

The Family/Maternal and Child Health Bureau administra- 
tion activities entail coordination of the above individual 
programs and responsibilities to provide medical direction 
for the metabolic screening program. Handicapped Children 
Services program, and Family Planning program. 



The Maternal and Child Health Bureau (MCH) is the new 
name given to the clinical program as part of the reorganiza- 
tion of the department. Family planning was transferred 
from the Nursing Bureau resulting in a net increase of .5 
FTE. Child nutrition, the special supplemental food pro- 
gram for women, infants and children (WIC) and handi- 
capped children's services remained in the bureau. The 
Montana perinatal program was transferred to the new Pre- 
ventive Health Bureau, also within the Health Services and 
Medical Facilities Division. The maternal child health block 
grants to counties were transferred to the MCH Bureau from 
the Director's Office. 

Issues Addressed/Legislative Intent 

The Family and Maternal Child Health Bureau (MCH) was 
the new name given to the Clinical Bureau as part of the 
reorganization of the department. The family planning pro- 
gram is transferred to the MCH Bureau from the Nursing 
Bureau. Child nutrition, the special supplemental food pro- 
gram for women, infants and children (WIC) and handi- 
capped children's services (HCS) remain in the bureau. The 
Montana perinatal program, originally in the Clinical 
Bureau, is transferred to the new Preventive Health Bureau, 
also within the Health Services and Medical Facilities Divi- 
sion. The maternal child health block grants to counties 
were transferred to the MCH bureau from the Director's 
Office. 

Bureau staff positions increase by a net of .5 FTE from 
23.00 actual FTE in FV86 to 23.50 budgeted FTE in FY88. 
A 1.0 FTE data entry operator was added as part of a modi- 
fied budget request for on-line WIC data entry. A .5 FTE 
public health nurse was deleted from the family planning 
program. The FY86 FTE leve represents the number of 
positions in bureau administration only and does not 
include the other programs. 

Bureau administration receives the only general fund allo- 
cated to programs within the MCH bureau (see Table 1). 
General fund decreases about $9,500 per year below FY86 



DEPT HEALTH & ENVIRON SCIENCES 



183 



actual as the administrator's position is reinstated at a full 
FTE, and funded with MCH block grant funds. It had been 
reduced to .75 FTE as part of the FY87 5% reduction. 

Table 1 

Appropriations for the Family/Maternal Child Health 

Bureau 

FY86 & 1989 Biennium 



Bureau Administration 
General Fund 
MCH Block 
Total Funds 



FY86 FY88 FY89 

Actual Budgeted Budgeted 



$ 40,128 $ 30,635 $ 31,013 
784.207 767.587 772.245 



$ 824,335 $ 



,222 $ 803.258 



Child Nutrition 

Federal Funds $2.357.868 $2.664,406 $2.662.436 

WIC 

Federal Funds $5,889,097 $6,389,609 $6,659,807 



$ 772,307 $ 808,244 $ 808,244 

193,430 202,015 202,017 

27,268 29,000 29,000 

$ 993,005 $L039,259 $1,039,261 



Family Planning 
Federal Title V 
PH Block 
MCH Block 
Total Funds 



Handicapped Children 
Program 

MCH Block $ 797.536 $ 866.119 $ 865.215 



MCH grants to counties are included in the bureau adminis- 
tration program. Counties must match every $4 in federal 
funds with $3 in local funds for projects that benefit women 
and children. The grant amounts for the 1989 biennium are 
about $162,000 to $165,000 lower than FY86 actual. Lan- 
guage in HB 2 directs the department to distribute addition- 
al MCH grant revenues to the counties if the total amount 
of the MCH block grant exceeds $1,897,421 either year of 
the biennium. 

The child nutrition appropriation increases about $310,000 
annually above FY86 actual program expenditures. Respon- 
sibility and funding for the child nutrition audits were trans- 
ferred to this program from the Support Services Bureau 
necessitating increases of about $36,000 annually in con- 
tracted services and $4,000 in travel. Indirect costs add 
about $12,300 to the appropriation each year. Grants to 
day-care providers for reimbursement for meals for eligible 



children were increased about $230,000 annuallv (sec Table 
2). 

Table 2 

Grants by Program within the Family/ Maternal Child 

Health Bureau 

FY86 and 1989 Biennium 



Program 


FV86 


FY88 


FY 89 


Bureau Admin.— 








MCH to Counties* 


$ 824,664 


$ 662,587 


$ 667,245 


Child Nutrition 


2,270.164 


2,500,000 


2,500.000 


WIC 


1,079,025 


1,192,061 


1,192,061 


Family Planning** 


917,786 


819.944 


826,516 



$5.091.639 $5.174.592 $5,185,822 



* The FY86 MCH block grants to counties includes a 

legislative appropriation of $139,247. 
** The FY86 family planning grants includes a budget 

amendment of $ 1 20.266. 
WIC is 100% federally-funded. The 1989 biennium budget 
increases about $500,000 in FY88 and $800,000 in FY89. 
About $120,000 of the increase is attributable to a higher 
grants appropriation (see Table 2). 

The largest operating increase in the WIC budget results 
from the approval of the modified request to automate WIC 
payment data. About $32,700 in FY88 and $26,400 in 
FY89 is added to the operating budget for the on-line sys- 
tem. FTE increase 1.0 full-time position as well. The com- 
puter equipment appropriation for in-house automation 
adds $85,100 in FY89. Contracted services costs decrease 
about $50,000 as a result. Indirect costs add about $29,000 
to the annual appropriation. 

The family planning 1989 biennium appropriation is about 
$16,250 higher each year than FY86 expenditures. Oper- 
ating cost increases were allowed for printing and clinic 
expenses. The purchase of two personal computers and soft- 
ware is included. Grants to local agencies decrease from 
FY86 actual because additional funds were available in 
FY86 (see Table 2). 

The FY88 appropriation for the handicapped children pro- 
gram increases about $68,500 over current FY86 level. The 
program is funded entirely from MCH block grant funds. 
Increases are granted for contracted medical services. It is 
the intent of the legislature that these funds be used to pro- 
vide treatment to more individuals and not to increase 
reimbursement rates to service providers. 



184 



DEPT HEALTH & ENVIRON SCIENCES 



PREVENTIVE HEALTH BUREAU 
BudKet Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


31.00 


12.90 


15.00 15.00 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 

General Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



345,293.22 


358,765 


445,691 


446,205 


710,317.20 


299,216 


1,102,650 


572.850 


4,598.85 


1,000 


5,900 


327 


13,070.00 


820,197 


17,028 


17,101 



$1,073,279.27 
473,603.13 
599,676.14 

$1,073,279.27 
1,073,279.27 

$1,073,279.27 



$1,479,178 

57,363 

1,421,815 

$1,479,178 

1,479,178 



$1,571,269 

743,645 
827,624 

$1,571,269 
1,571,269 

$1,571,269 



$1,036,483 

223,707 
812,776 

$1,036,483 
1,036,483 

$1,036,483 



Program Description 

The Preventive Health Bureau has administrative responsi- 
bility for the following programs: 

The Montana perinatal program (MPP) administers educa- 
tional projects directed towards improving the outcome of 
pregnancy. 

The dental program consists primarily of dental prevention 
projects such as fluoride mouthrinse and screening pro- 
grams. Forty-six counties and 390 school systems currently 
participate in the programs. Over 75,000 children receive 
dental health education pertaining to proper diet, brushing 
and flossing techniques. 

The hypertension program establishes and maintains preven- 
tive health projects which include screening, education, 
referral and compliance for elevated blood pressure treat- 
ment. The program works through state-local partnerships, 
providing funds on a competitive basis. 
The health education risk reduction (HERR) program deliv- 
ers services through state-local partnerships which include 
behavioral risk surveillance, health risk appraisals (3000 + 
annually), community health promotion activities and edu- 
cational programs on personal health risks and change. 
The health promotion and education (HP & E) program 
manages resources and activities directed at promoting 
health and reducing disease. 

The behavioral risk surveillance (BRS) program identifies 
and monitors major risk factors occurring in the population 
of Montana. 

The immunization program includes monitoring of the 
school immunization law, and assures adequate immuniza- 
tion levels of Montana children by providing vaccine to 82 
public providers. 

Ihc coniinuniuiblc disease program provides surveillance 
and outbreak control for approximately 100 reportable com- 
municable diseases. 

The sexually-transmitted disease (STD) program consists of 
casefinding, treatment, and prevention of sexually trans- 
mitted disease, including inter- and intra-state referral and 
coordination. 

The rabies program provides professional consultation and 
vaccine (as necessary) to persons potentially exposed to 
rabies through animal bite or other exposure. 



The end stage renal disease program (ESRD) assists Mon- 
tanans who have chronic end stage renal disease as verified 
by a nephrologist. The program, funded by general funds, 
assists with medicare co-insurance payments and "medicare 
disallows" for eligible services. 

The rape/crisis program supports local level intervention 
and education efforts for law enforcement and social service 
agencies across the state. 

The Montana AIDS project is responsible for health 
education/risk reduction of general population (low-risk), 
allied health professionals, and specific high-risk groups, as 
well as administrative responsibility for testing and counsel- 
ing of those persons in the high-risk categories. Additionally, 
the project is responsible for AIDS morbidity/mortality sur- 
veillance and reporting. Screening of the State blood supply 
is also monitored by the project. 

Issues Addressed/Legislative Intent 

The Preventive Health Bureau is part of the Health 
Services/Medical Facilities Division. The bureau was created 
as part of the departmental reorganization. The perinatal 
program was transferred from the Clinical Bureau and the 
Dental and Health Education bureaus became part of the 
new Preventive Health Bureau. Several programs were trans- 
ferred from the Nursing Bureau including: communicable 
disease, sexually-transmitted diseases (STD) and immuniza- 
tion. Rape crisis grants were transferred from the Director's 
Office. Table 1 shows the programs within the bureau by the 
funding of each program. 

Bureau staff increase by a net of 2.10 FTE. Two full-time 
positions for the Montana AIDS Project were added with 
the approval of a modified request. A .5 FTE administrative 
aide authorized by the 1985 Legislature was retained in the 
Perinatal program. A .4 FFF adniinislralivc ckrk position 
was deleted from the Dental program as a result of the 5% 
cut. The FY86 FTE include the positions in the Nursing 
Bureau that were transferred to various programs and3.0 
FTE that were eliminated. 

The 1985 Legislature adopted a per capita tax on each Mon- 
tana resident insured under a health or disability insurance 
policy to fund a genetics program in the Preventive Health 
Bureau. The program was reauthorized by the 1987 Legis- 
lature and the tax was made permanent. The amount of the 
tax was lowered from $.40 to $.35 per insured resident. The 



DEPT HEALTH & ENVIRON SCIENCES 



185 



bill also included a biennial appropriation of $520,000 for a 
contract to provide genetic counseling and testing. 
The Montana perinatal program accounts for about one-fifth 
of total bureau costs (not including the genetics program). 
The appropriation increases about $17,300 in FY88 above 
current level FYK6 expenditures (see Table I). Personal ser- 
vices costs and eiiuipmcnl purchases account for most of the 
expenditure growth. A personal computer and software arc 
included in the program budget. 



Tabic 1 
Appropriations for the Preventive 
FY86and 1989 Bicnni 


Health Bureau 
um 


Horn 

IVniKiUil I'rograni 

MCH Block 

I'H Block 


1Y86 
\cui;il 

$ 'M.144 


I'VSS 
Ituilti-lal 

$ 1 37,9X8 
70,012 


lUkltcU-.l 

,$ 134,234 
68,670 


Total Funds 


$190,673 


$208,000 


$202,904 


Dental 
General Fund 
MCH Block 
PH Block 


$ 24,909 

57,997 




$ 21,672 
43,000 
18,318 


$ 21,599 
43,000 
18,455 


Total Funds 


$ 82,906 


$ 82,990 


$ 83,054 


Behavioral Risk 
Federal Funds 


$ 10,878 


$ 11,000 


$ 11,000 


Health Education Risk Reduc- 
tion 
Total PH Block 


$ 47,869 


$48,218 


$48,315 


AIDS 
General Fund 
Federal Funds 


$ 11,677 
6,814 


$ 
94,380 


$ 
84,030 


Total Funds 


$ 18,491 


$ 94.380 


$ 84.030 


Communicable Diseases 
General Fund 


$ 42,786 


$ 43,085 


$ 43,170 


Item 

STD 
General Fund 
Federal STD 


FY86 
Actual 

$ 11,946 
67,436 


FY88 
BudReted 

$ 12,075 
76,267 


FY89 
Budgeted 

$ 12,093 
76,356 


Total Funds 


$ 79,382 


$ 88,342 


$ 88,449 


General Fund 
Federal Funds 


$ 19,208 
160,641 


$21,813 
267.810 


$21,845 
267,918 


Total Funds 


$179,849 


$289,623 


$289,763 


Rape Crisis, Renal and Rabies 
Rape Crisis PH Block 
End Stage Renal Disease 
Rabies 


$ 11,970 
122,500 
47,528 


$ 11,970 
125,000 
48,661 


$ 11.970 
125,000 
48,828 


Total Funds 


$181,998 


$185,631 


$185,798 


Total Bureau* 


$834,832 


$1,051,269 $1,036,483 













* The total bureau appropriation does not include the 
biennial general fund appropriation of $520,000 to fund 
the genetics program. 

The dental program has appropriations of general fund and 
monies from both block grants. The budget rises slightly 
from FY86 current level. Increases for the purchase of fluo- 
ride and toothbrushes are offset by the reduction in personal 
services from the elimination of .4 FTE in the program. 



186 



DEPT HEALTH & ENVIRON SCIENCES 



The Health Education and Risk Reduction Project used to 
be located in the Dental Bureau. The appropriation is 
slightly higher than FY86 actual costs largely attributable to 
inflationary increases. 

The Behavioral Risk Project modified request establishes a 
monthly public survey of behavior as it relates to health 
risks. The $1 1,000 annual amount of federal authority repre- 
sents the first two years of a five-year grant. 
The legislature approved the Montana AIDS Project modi- 
fied request tor continued funding for 2.0 FTE and oper- 
ating expenses to develop and conduct community educa- 
tion projects. Total costs of the ongoing project are about 
$84,000 per year and are federally funded. The project was 
started in the 1987 biennium by budget amendment. 
The legislature approved a second modified budget request 
related to the AIDS project that allows the expenditure of 
remaining grant funds approved by budget amendment in 
the 1987 biennium. About $10,300 of federal funds would 
be spent in FY88 on contracted services to provide counsel- 
ing and testing for AIDS. 

The communicable disease program is financed entirely by 
general fund. The FY88-89 appropriation holds expenses to 
current level FY86 costs, except for small increases in the 
personal services budget (see Table 1 ). 



The STD program is funded by a federal categorical grant 
and general fund. General fund expenses are limited to 20% 
of the personal services costs and instate travel, with the 
remainder of program costs being federally financed. The 
appropriation increases about $9,000 over current levej 
FY86. The bulk of growth is due to the indirect costs 
assessed against the federally-funded portion of personal ser- 
vices. 

The immunization program accounts for almost one-third of 
the total bureau budget, excluding the genetics program. The 
appropriation for this program incUulcs an nuiiMNc ol alxuil 
$95,000 to otTset the increase in the cost of vaccines. Most 
other operating expenses are held to the FY86 level. Like 
the STD program, the general fund portion of the budget 
pays 20% of personal services and instate travel costs. The 
balance of the program is federally funded. Indirect costs 
assessed against federally-funded personal services also 
increase the operating budget. 

Other programs included in the PH bureau include: rape cri- 
sis, funded by $1 1,970 of preventive health (PH) block grant 
funds; the renal program, funded by $125,000 general fund; 
and the rabies vaccine program, funded by a federal monies. 
The rape crisis grants are mandated as part of the receipt of 
the PH block grant. 



LICENSING AND CERTIFICATION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



443,468.57 

165,476.31 

21,945.63 

$630,890.51 


449,402 

138,442 



$587,844 


686,849 

193,971 

2,356 

$883,176 


686,682 

193,866 

500 

$881,048 


243,756.35 

387,134.16 

$630,890.51 


250,695 

337,149 

$587,844 


368,558 

514,618 

$883,176 


367,630 

513,418 

$881,048 


630,890.51 


587,844 
$587,844 


883,176 
$883,176 


881,048 


$630,890.51 


$881,048 



Program Description 

The Licensing and Certification Bureau is responsible for 
monitoring the operation, maintenance, and design of vari- 
ous health care facilities and related services including 
hospitals, long-term care facilities, home health agencies, 
medical laboratories, outpatient physical or speech therapists 
and facilities, renal dialysis units, ambulatory surgical cen- 
ters, mental health and retardation treatment facilities, hos- 
pice, swing beds and chemical dependency treatment facili- 
ties. 

The bureau has legal authority to issue licenses, grant Med- 
icaid certification, and recommend Medicare certification 
for facilities and services that meet regulations. It has the 
legal responsibility to promulgate and revise licensing regu- 
lations, to investigate and act upon citizens" complaints, and 
to revoke the license or certification of any facility or ser- 



vice which falls below minimum standards and jeopardizes 
the health or safety of the patients or clients. 

The surveyors and supervisory staff provide continuing con- 
sultation services to all providers and information to the 
public and government and private agencies. 

Issues Addressed/Legislative Intent 

The legislature approved a recommendation in the executive 
budget to add 9.5 FTE and associated operating costs to the 
Licensing and Certification Bureau. The total cost of the 
modified recommendation is about $306,000 per year, of 
which about $126,000 is general fund. 
The additional positions include 2.5 that were authorized by 
program transfer in FY86; 1.0 FTE that must be hired as an 
employee and cannot remain as an independent contractor 



DEPT HEALTH & ENVIRON SCIENCES 



187 



according lo an IRS ruling; and 6.0 FTE included and 
approved in the program budget submission lo the federal 
Health Care Financing Administration (HCFA). Additional 
staff arc necessary to meet increased workloads resulting 
from new federal regulations and the growth in the number 
of health care facilities that must be surveyed. Recently pub- 
lished federal regulations double the number of on site 
patient interviews that must be conducted as part of the 
Medicaid and Medicare certification process. The depart- 
ment testified during subcommittee hearings that HCFA 
compared the number of Montana certification program 
staff to surrounding Rocky Mountain stales and found the 
Montana program to be understaffed after taking into ac- 
count the number of facilities to be surveyed and the dis- 
tance between such facilities. 

The total number of program FTE increase by a net 9.2. 
The increase of 9.5 is offset by a reduction of .3 FTE in 
FY87 in order to meet the 5% funding reduction and to 
meet the unfunded portion of the FY87 pay plan. 
The growth in the general fund appropriation for this pro- 
gram is deceptive. Program lunding must be allocated 
equally between general fund, Medicaid funds and Medicare 
funds according to federal mandate. Because Medicaid re- 



quires a general fund match (roughly a third state match), 
state funds contribute more than one-third of the tola! 
funds. 

Although the program appropriation must be budgeted 
between funding sources, reimbursement is made according 
to allocation of staff time to each licensing and certification 
area. During FY86 more time was spent on Medicaid and 
Medicare certification than state licensure activities. 

The legislature added language in HB 2 prohibiting the 
transfer of general fund authority out of this program. (Icn- 
eral fund and federal authority may be transferred into the 
program, however. General fund in the program may be 
reduced if the Governor requests a general fund reduction 
of state agency budgets. 

The equipment budget includes a typewriter in FY88 and 
computer software in both years. Most other operating costs 
were budgeted at FY86 actual, except contracted services 
which declines as the building consultant contract was dis- 
continued and an FTE authorized for that function. In 
FY86, legal expenses of $58,181 for the family planning law- 
suit were paid from this program budget. The expenses have 
been deleted from the base. 



HEALTH PLANNING 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 

General Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



235,996.20 
68,077.33 
2,717.33 


247,890 

85,189 




141,327 

34.529 

250 


141,318 

28,915 

250 


$306,790.86 


$333,079 


$176,106 


$170,483 


114,157.06 

192,633.80 

$306,790.86 


119.163 

213,916 

$333,079 


176,106 



$176,106 


170,483 



$170,483 


306,790.86 


333,079 
$333,079 


176,106 
$176,106 


170,483 


$306,790.86 


$170,483 



Program Description 

The Bureau of Health Planning and Resource Development 
produces the state health plan, related plans, and planning 
research; administers the state certificate of need program 
for medical facilities; and collects, maintains, and distributes 
health facility, service and manpower data. 

Issues Addressed/Legislative Intent 

This program was included as a modified request in the 
executive budget because the certificate of need (CON) stat- 
utes administered by the bureau expired at the end of FY87 
and because the federal funding for health planning had 
been discontinued. The legislature passed SB 246 extending 
the CON process another biennium until federal guidelines 
for health planning and the construction of new health care 
facilities are adopted. 

Budgeted FTE are 4.25 fewer than actual FY86. When fed- 
eral funding was discontinued the bureau cut staff and oper- 
ating costs to a minimum. The legislature adopted the mini- 
mized budget. 



General fund outlays for the program increase about 
$62,000 over FY86 actual. However, total the FY88 budget 
is about $128,000 less than FY86 actual expenditures. The 
equipment budget includes funds for the purchase of soft- 
ware both years of the biennium. Other operating expenses 
are budgeted at FY86 actual expenditures or lower. 

The bureau will be able to administer the CON law and 
update the state health plan at the level of funding adopted 
by the legislature over the 1989 biennium. However, the 
department testified during subcommittee hearings that ad- 
ditional funding and staff would be necessary to write a new 
state health plan in the 1991 biennium. Updating the 1987 
health plan will work in the short term, but the plan will 
need to be researched and rewritten in FY90 and FY91. 
SB 246 established fees for CON applications and hearings. 
The application fee is to be .3% of the estimated capital 
expenditure, except that no fee may be less than $500. Each 
affected person who is party in a hearing held to reconsider 
the department recommendation on a CON application shall 
pay a $500 fee to the department. The fee income will be 
deposited to the general fund to offset the increased state 



DEPT HEALTH & ENVIRON SCIENCES 



commiimcnl to the program. Fee income is estimated to be 
$86,250 per year. 

SB 246 repeals the requirement to obtain a CON effective 
July 1, 1989. However, the statement of intent adopted with 
SB 246 directs the department to prepare an evaluation of 
the need to continue the CON program by December 1988. 
The department is directed also to identify alternative legis- 
lation that would be needed if CON were to be discontin- 
ued. If possible, the legislative audit committee is to make a 
performance audit of the CON process and make its recom- 
mendation to the 1989 Legislature. 



In addition to replacing federal health planning funds in this 
bureau with general fund, the legislature approved a modi- 
fied request to fund portions of two administrative positions 
in Health Facilities and Medical Services Division adminis- 
tration previously funded by federal health planning monies. 
About $34,000 per year of general fund was added to the 
division administration budget to fund .75 administrative 
FTE. 

The legislature approved a supplemental appropriation of 
$35,713 general fund to continue operation of this program 
through 1987 fiscal year end. 



DEPARTMENT OF HIGHWAYS 



189 



ARency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



2,005.50 



1.985.75 



,920.74 



.9?, 1 



Personal Services 

Operating Expenses 

Equipment 

Capital Outlay 

Grants 

Transfers 

Debt Service 

Total Agency Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 

Current Level Services 
Budget Amended Services 
Total Service Costs 



52,885,941.23 

222,780,620.27 

3,685,817.16 

2,241,454.86 

14,282,777.84 

31,020,070.48 

16,914.59 

$326,913,596.43 

183,387,074.13 

129,073,261.09 

14,453,261.21 



326,857,650.12 
55,946.31 



52,025,032 

203,322,545 

5,871,264 

2,858,108 

300,000 

16,563,599 

8,502 

$280,949,050 

152.048,344 

114,992,701 

13,908,005 



$326,913,596.43 $280,949,050 



280,949,050 




54,081,272 

173,588,942 

6,422,413 

5,302,630 

282,778 

1.930,659 

16,915 

$241,625,609 

129,229,829 

95,897,753 

16,498,027 

$241,625,609 

241,625,609 





54,407,768 

177,252,634 

6,120,081 

2,388,130 

282,778 

1,705.659 

16,915 

$242,173,965 

1 30,407,443 

95,300,954 

16,465,568 

$242,173,965 

242,173,965 





$326,913,596.43 $280,949,050 $241,625,609 $242,173,965 



Agency Description 

The Department of Highways is responsible for the plan- 
ning, designing, constructing, repairing, reconstructing and 
maintaining the state's highways. It is also responsible for 
assessing and mitigating the social and environmental im- 
pacts resulting from these activities. The department also 
enforces the gross vehicle weight statutes and regulations. 
The department's statutory authority is derived from section 
2-15-2501, MCA. Specification of the department's statutory 
powers and duties is found in Title 60, chapter 2, part 2, 
MCA. 

Issues Addressed/Legislative Intent 

The legislatively approved budget for the Department of 
Highways reflects two trends. First, operating expenses for 
the base program (net of construction costs) is reduced 
approximately $27 million in each fiscal year in comparison 
with the expenditure level in FY86. Approximately $14 mil- 
lion of this amount represent funds that go to local govern- 
ment. These funds are now appropriated in statute and are 
not included in the department's budgeted figures. In addi- 



tion, $4 million has been reduced because of debt 
restructuring of the department's bond issue payments. The 
remaining reduction comes primarily from the elimination 
of 140.36 FTE from the FY86 authorized level including 
20.5 FTE in the Maintenance Program. 
The Construction Program expenses also decline approxi- 
mately $46 million from the FY86 level, reflecting the com- 
pletion of the interstate system. 

The legislature approved HE 136 which increased the gas 
and diesel tax by three cents per gallon to 20 cents per 
gallon for gasoline and diesel. The additional revenue that 
will be generated has been pledged for repayment of a $150 
million bond issue that will be completed before July, 1987. 
This additional revenue will fund the reconstruction trust 
Fund (RTF) which is the department's program to recon- 
struct and resurface the state's primary road system with 
100% state funds. The increased areas of the budget due to 
an increased RTF program appear in the Construction and 
Preconstruction Programs. Historical tax rates and net High- 
way Department collections from fuel taxes are displayed 
below. 



190 



DEPARTMENT OF HIGHWAYS 



Per Gallon Fuel Tax Rates 




Fuel Tax Collections 

1 1S73 - tta 








Table 1 








Gas and Diesel Tax Collec 


ions and Rates 




Gasoline 


Diesel 


Fiscal 


Tax 


Collections 


Tax 


Collections 


Year 


Rate 




Rate 




1973 


0.07 


$28,797,215 


0.07 


$6,546,050 


1974 


0.07 


$28,406,106 


0.07 


$6,634,991 


1975 


0.0775 


$29,347,498 


0.0975 


$6,702,829 


1976 


0.0775 


$32,938,703 


0.0975 


$7,914,518 


1977 


0.08 


$34,781,015 


0.1 


$8,787,176 


1978 


0.08 


$37,329,995 


O.I 


$9,443,204 


1979 


0.09 


$38,095,294 


0.1 


$9,670,767 


1980 


0.09 


$39,917,484 


0.11 


$10,659,498 


1981 


0.09 


$36,811,022 


0.11 


$11,705,214 


1982 


0.09 


$37,395,507 


0.11 


$11,697,235 


1983 


0.09 


$36,687,190 


0.11 


$11,877,324 


1984 


0.15 


$61,088,589 


0.17 


$17,793,066 


1985 


0.15 


$60,948,945 


0.17 


$19,278,727 


1986 


0.15 


$59,566,023 


0.17 


$18,576,576 


1987 


0.17 


$65,533,959 


0.17 


$18,576,576 


1988 


0.2 


$65,517,209 


0.2 


$18,576,576 


1989 


0.2 


$64,373,065 


0.2 


$18,576,576 





The following table presents projected cash flows for the 
Highway Earmarked Revenue Account for the 87 and 89 
bienniums. 



It is prepared on a working cash basis from the Statewide 
Budgeting and Accounting System (SBAS) and do not con- 
tain the adjustments and disclosure that would be necessary 
to present the financial information in accordance with 
generally accepted accounting principles. These schedules 
include activity in the Highway Earmarked Revenue Ac- 
count, the Highway Reconstruction Trust Fund Account and 
the; Highway Bond Accounts. 

It is important to note that the projected $98 million bal- 
ance at the end of FY89 reflects the April 1987 $ 1 50 mil- 
lion bond sale. Debt service payments for the bonds increase 
from the $10,041,083 shown in the schedules to 
$17,860,983 from 1993 through 2005. Coal lax revenues, 
gross vehicle weight fees and motor fuel taxes arc pledged to 
repayment of the bonds. The bonds and other revenues are 
committed to funding the 1987-1993 Reconstruction Trust 
Fund Program. Changes in revenues will directly affect 
funds available for RTF projects during that period. 



DEPARTMENT OF HIGHWAYS 



191 



The schedules do not reflect revenues the Department 
receives as reimbursement from the federal government of 
its share of the cost of constructing and reconstructing high- 
ways and bridges that are part of the federal-aid system. 
These revenues are deposited in the Federal Special Reve- 
nue Account. 



The Department is required to maintain an approximate 
$10 million balance in the Highway Earmarked Revenue Ac- 
count for availability of stale match for additional federal 
revenues, possible natural disasters and advance funding of 
contractor payments due to the reimbursement nature of the 
federal-aid program. 







Table 3 










Projected Cash Flow 








Highway Earmarked Revenue Account 








Actual FY86 


Budgeted FY87 


Budgeted FY88 


Budgeted FY89 


BEGINNING CASH 


$73,540,570 


$45,286,748 


$136,008,400 


$122,902,124 


BALANCE 










REVENUE 










G.V.W. 


22,583,650 


22,809,487 


23,037,582 


23,267,958 


Gas Tax 


59,576,264 


65,299,704 


65,517,209 


64,373.065 


Diesel Tax 


18,576,576 


18,576,576 


18,576,576 


18,576,576 


Accounts Receivable 


1,014,755 


1,497,631 


1,014,755 


1,014,755 


Mineral Royalties 


7,577,783 











Coal Tax 


1,684,344 


5,949,000 


7,938,000 


6,810,000 


Interest Income 


3,466,058 











Stores 


12,792,441 


12,643,971 


13,602,298 


13,672,810 


Prior Year Revenue 


250,393 











Adj. 










Modified Revenue 








13,707,063 


14,719.660 


Bond Proceeds 





98,210,000 








ACI Reimbursement 




$ 12,000,000 


$ 8,806,000 


$ 


TOTAL REVENUE 


$127,522,264 


$236,986,369 


$152,004,483 


$143,357,824 


AVAILABLE CASH 


$201,062,834 


$282,468,117 


$287,284,883 


$264,928,948 


EXPENDITURES 










G.V.W. 


3,205,616 


3,388,159 


3,497,307 


3,503,362 


General Operations 


4,567,463 


4,944,397 


5,383,195 


5,208,734 


Construction 


14,669,564 


7,057,058 


37,590,039 


28,432,277 


Maintenance 


41,546,502 


38,688,379 


40,613,889 


40,865,147 


Preconstruction 


4,787,503 


3,165,851 


5,459,612 


4.357,716 


Equipment 


2,910,182 


2,247,850 


1,930,659 


1,705,659 


Headquarters Building 


646,106 


588,505 


591,525 


597,881 


A.&E. 


732,886 


962,000 


761,000 


761,000 


Local Government 


14,150,000 


14,150,000 


14,150,000 


14,150,000 


Bond Principal & Inter- 
est 
Reconstruction Trust 


14,127,179 


15,069,700 


10,041,083 


10,041,083 


29,660,678 


33,292,030 








Reconstruction To Be 

Let 

Department of Revenue 








21.152,215 


.32,661,738 


787,852 


753,879 


807,291 


788,714 


Department of Justice 


6,913,827 


9,283,571 


9,725,646 


9,807,252 


Stores 


12,442,555 


12,643,971 


13,602,298 


13,672,810 


Entity Consolidation 


5,324,531 











Adjustment 










Prior Year Adjustment 


(696,358) 


29,367 








TOTAL EXPENDI- 


$155,776,086 


$146,264,717 


$165,305,759 


$166,553,373 


TURES 










ENDING CASH BAL- 


$45,286,748 


$136,008,400 


$122,902,124 


$98,783,575 


ANCE 















192 



DEPARTMENT OF HIGHWAYS 



GENERAL OPERATIONS PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



142.53 



142.53 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Grants 
Debt Service 

Total Program Costs 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



3,562,576.42 


3,604,911 


3,709,929 


3,711,571 


2,439,241.53 


2,728,592 


2,679,357 


2,624,451 


471,771.81 


388,787 


300,910 


128,875 


2,000.00 











14,282,777.84 


300,000 


282,778 


282,778 


16,914.59 


8,502 


16,915 


16,915 



$20,775,282.19 

18,643,228.74 

2,132,053.45 

$20,775,282.19 

20,775,282.19 
$20,775,282.19 



$7,030,792 

4,972,089 

2,058,703 

$7,030,792 

7,030,792 



$6,989,889 

5,383,195 
1,606,694 

$6,989,889 
6,989,889 

$6,989,889 



$6,764,590 

5,208,734 
1,555,856 

$6,764,590 
6,764,590 

$6,764,590 



Program Description 

The General Operations Program provides the overall 
administrative and support services essential to the opera- 
tions of the department through the Director's Office, and 
the Centralized Services, Program Development, and Per- 
sonnel Divisions. 

Issues Addressed/Legislative Intent 

The General Operations Program budget increases approxi- 
mately $208,000 per year when compared with the FV86 
base. The FTE for the program decrease 0.35 FTE from the 
FY86 level due to absorbtion of the unfunded pay plan. Per- 
sonal services increase approximately $147,000 over the 
FY86 level, primarily due to fully funding positions that 
were left vacant. 

Operating expenses increase approximately $185,000 per 
year over the FY86 level. In addition, FY88 includes audit 
costs of $61,865. Areas of increase include $76,000 per year 
for additional professional services, and an additional 
$164,634 per year for liability insurance. At the same time, 
data processing expenses will decrease approximately 



$80,000 per year as the new highway data systems are 
brought on line. Travel expenses increase approximately 
$19,000 between FY86 and FY88, and approximately 
$32,000 between FY86 and FY89. Out of stale travel for 
administrative conferences and seminars increases $11,000 
over the biennium. The remainder of the increase is prima- 
rily due to in-state travel for federally funded programs such 
as planning and statistics and minority businesses. 

Equipment in FY88 includes a skid trailer ($150,000), 55 
radios, ($79,000), a system analyzer ($16,000), and I 
oscilloscope ($6,000). Equipment in FY89 includes 55 
radios ($79,000), a system analyzer ($16,000), an 
oscilloscope ($6,000), and 2 traffic counters ($4,000). 

Fourteen million dollars per year of grants appear in FY86 
and do not appear in the recommended 1989 Biennium 
budget because these payments to cities and counties for 
planning, construction, and public transportation arc statu- 
tory appropriations and therefore do not need to appear in 
the budget. The grants in the 1989 Biennium arc expected 
to remain at the same level as FY86. The debt services 
expense reflects administrative costs for scheduled bond 
registrations. 



DEPARTMENT OF HIGHWAYS 



193 



CONSTRUCTION PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
V\ 1988 V\ 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



16,707,703.28 


16,079,216 


16,712,914 


16,955,797 


74,969,202.89 


158.577,580 


127,096,549 


130.754,581 


249,637.70 


149,685 


174,866 


174,931 



$191,926. 

71,731. 
120,194, 



976.48 
567.39 



$191,926, 

191,926. 



543.87 

543.87 



$191,926,543.87 



68,331,138 

106,475,343 

$174,806,481 

174,806,481 



58,742,869 

85,241,460 

$143,984,329 

143,984,329 



$174,806,481 $143,984,329 $147,885,309 



61,094,015 

86,791,294 

$147,885,309 

147,885,309 



$143,984,329 $147,885,309 



Program Description 

The Construction Program is responsible for ensuring that 
roads and bridges are constructed or reconstructed to appro- 
priate design standards to accommodate the needs of state 
motorists. It supervises highway construction from project 
award through completion and approval of the project. 

Issues Addressed/Legislative Intent 

The legislature approved a budget for the Construction Pro- 
gram that reflects the fact that the interstate construction is 
complete, and the emphasis of the Highway Department 
construction efforts will shift to reconstruction and repair of 
the state's primary system through the reconstruction trust 
fund program (RTF). 

The legislature approved HB136 which increased the gas 
and diesel tax by 3 cents per gallon. The revenue generated 
from this tax increase will be pledged to repay bonds that 
will be issued prior to July, 1987. The bond proceeds will 
finance the reconstruction trust fund (RTF) activities. Please 
refer to the Highway Department narrative for further dis- 
cussion of the fuel tax increase. 

With the fuel tax increase, the amount anticipated to be 
spent for contractor payments for highway construction will 
total $1 19,195,577 in FY88 and $123,424,580 in FY89. 



Historical construction by type of road is shown below for 
FY81 through FY86. 



Highway Construction By Type 




d 



El 



^ 





Table 2 
Highway Construction By Vc 
(in centerline miles = 4 lane m 


ir 
lies) 




















FY 

1981 


FY 

1982 


FY 

1983 


FY 

1984 


FY 

1985 


FY 

1986 


Inter- 
state 
Pri- 


29.1 
59 


44.6 
164 


66.3 
88 


224.6 
101 


105 
177 


113.6 
231 


mary 
Secon- 
dary 


60 


35 


98 


55 


52 


84 


Total 


148.1 


243.6 


252.3 


380.6 


334 


428.6 





194 



DEPARTMENT OF HIGHWAYS 



MAINTENANCE PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



642.33 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 

Total Program Costs 
State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



18,564,765.42 


17,797,691 


18,962,443 


19,030,425 


22,542,003.71 


20,710,325 


21,629,212 


21,601,602 


337,195.03 


80,363 


100,204 


100,090 


1 58,484.00 


100,000 


133,030 


133,030 



$41,602,448.16 

41,546,501.85 

55,946.31 

$41,602,448.16 

41,546,501.85 

55,946.31 

$41,602,448.16 



38,688,379 



$38,688,379 
38,688,379 



$38,688,379 



$40,824,889 

40,613,889 
211,000 



40,824,889 




$40,865,147 

40,865,147 



$40,865,147 
40,865,147 



$40,865,147 



Program Description 

The Maintenance Program is responsible for preserving and 
repairing all highways and their appurtenances within the 
right of-way of interstate, urban, primary, and state- 
maintained secondary highway systems in Montana. The 
purpose of the program is to maximize the safety of persons 
traveling on state highways, enhance the convenience of the 
public while moving about the state, and preserve the 
rideability of the highway system within the expected useful 
life of the road surfaces. 

Issues Addressed/Legislative Intent 

The budget approved for the Maintenance Division repre- 
sents a decline from the FY86 level. The decrease is due 
primarily to maintaining reductions made to the budget in 
FY87 to absorb the 5% cut made to the budget. 
The FTE level decreases by 20.5 FTE to absorb the unfund- 
ed pay plan. However, the total amount budgeted for per- 



sonal services expenditures increases over the FY86 level 
because all positions are funded, whereas several positions 
were held open in FY86. Vacancy savings of 4% was applied 
against this budget. 

Operating expenses also decline from the FY86 level repre- 
senting reductions made in the budget in FY87. Weed con- 
trol expenses increase from the FY86 level of $446,857 to 
$546,283 in FY88 and to $556,555 in FY89. It is antici- 
pated that rental of specialized equipment will decrease 
$178,570 per year, and that the cost of oil-mixed materials 
will decrease by $957,1 17 per year. 

Equipment purchases will decline from the FY86 level by 
approximately $237,000 per year, primarily in the area of 
major maintenance equipment. 

Capital outlay expenditures represent anticipated land pur- 
chases for gravel sites. 



DEPARTMENT OF HIGHWAYS 



195 



PRECONSTRUCTION PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 

Total Program Costs 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



6,491,201.99 


6,678,393 


6.733,303 


6.733.429 


1,783,885.21 


2,186,355 


1,969.850 


1.928,491 


1,132,526.50 


1,650 


425,458 


394,500 


2,080,970.86 


2,758,108 


5,169,600 


2,255,100 



$11,488,584.56 

4,797,890.62 
6,690,693.94 

$11,488,584.56 
11,488,584.56 

$11,488,584.56 



$11,624,506 

5,165,851 
6,458,655 

$11,624,506 
11,624,506 

$11,624,506 



5.459,612 

8,838,599 

$14,298,211 

14.298,211 



$11,311,520 

4,357.716 
6.953,804 

$11,311,520 
11,311.520 

$11,311,520 



Program Description 

The Prcconstruction Program carries out the planning stages 
of highway development, including determining location and 
design, conducting any necessary public hearings, acquiring 
needed rights-of-way, and processing highway projects for 
contract award. 

Issues Addressed/Legislative Intent 

The Prcconstruction Program FTE are reduced by 9 FTE 
which represents the reduction in highway construction ac- 
tivities. The department requested, and the legislature 
approved the reduction of 3 1 FTE from the base budget of 
which 15 are related to the implementation of the computer 
aided drafting and design system (CADD). Passage of the 
fuel tax increase adds 20.0 FTE to this program above the 
base level approved by the legislature for the increased con- 



struction schedule anticipated related to the RTF program. 
Vacancy savings of 4% was applied against this budget. 

Adjustments to operating expenses include an increase for 
contracted appraisers of $50,000 for right-of-way work, legal 
fees increased by $12,120, and increased training expenses 
of approximately $12,500 in FY88 and $16,500 in FY89. 
Travel expenses for right-of-way personnel decrease $ 1 6,000 
between FY86 and FY88, and decrease $46,000 between 
FY86 and FY89, again reflecting the reduction in actual 
right-of-way proceedings anticipated in the 1989 Biennium. 

Equipment for this program decreases substantially from the 

FY86 level as the CADD system was purchased in FY86. 

However, the approved equipment for the 1989 Biennium 

includes approximately $400,000 per year for CADD 

upgrades. 

Non-operating expenses include budgeted expenditure levels 

for anticipated right-of-way purchases. 



HIGHWAY SERVICE REVOLVING 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


68.25 


73.25 


67.75 67.75 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



,847,926.24 


1,862,339 


1.848,143 


1,848.655 


,079,867.08 


1,117,522 


1,021,604 


1.007,774 


6,485.75 


238,000 


33,276 


26.286 



$2,934,279.07 

2,934,279.07 
$2,934,279.07 

2.934,279.07 
$2,934,279.07 



$3,217,861 

3,217,861 
$3,217,861 

3,217,861 
$3,217,861 



$2,903,023 

2,903,023 
$2,903,023 

2,903,023 
$2,903,023 



$2,882,715 

2,882,715 
$2,882,715 

2,882,715 
$2,882,715 



Program Description 

The Highway Service Revolving Program provides certain 
support services (such as data processing, printing, photog- 
raphy, airplane use and material testing) common to all 
divisions within the department. 



Issues Addressed/Legislative Intent 

The FTE in this program decrease by 5.5 FTE. Five FTE 
were transferred from this program to the Construction Pro- 
gram as requested by the department, and a .5 FTE labora- 
tory aid was deleted due to a prolonged vacancy. Vacancy 
savings of 4% was applied to this program. 



196 



DEPARTMENT OF HIGHWAYS 



Adjustments to operating expenses include increased repairs 
to calibrate the aerial camera. Repairs will increase $3,873 
in FY88 and by $2,000 in FY89. Total operating expenses 



decrease from the FY86 level primarily due to a reduction 
in the cost of data processing by the Department of Admin- 
istration. 



STATE MOTOR POOL 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



132,387.03 


139,644 


147,684 


148,107 


394,441.21 


238,528 


212,804 


217,982 


40,505.00 


322,120 


427,120 


335,620 



$567,333.24 

567,333.24 

$567,333.24 

567,333.24 



$700,292 
700,292 

$700,292 
700,292 

$700,292 



$787,608 

787,608 
$787,608 

787,608 



$701,709 

701,709 
$701,709 

701,709 
$701,709 



Program Description 

The State Motor Pool Program operates and maintains a 
fleet of rental vehicles available to all state officials and 
employees in the Helena area for use for official business. 



Issues Addressed/Legislative Intent 

The budget for the motor pool decreases from the FY86 
level primarily due to lower gasoline prices. Language in 
HB2 allows the department to add spending authority if 
gasoline purchases exceed $131,684 in FY88 or $136,169 in 
FY89. 



EQUIPMENT PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


120.35 


120.35 


119.85 119.85 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
State Special Revenue Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



3,280,308.05 


3,249,152 


3,396,551 


3,409,223 


6,340,097.85 


4,331,451 


4,505,186 


4,566,262 


1,331,243.00 


4,657,099 


4,905,659 


4,905,659 


2,910,181.61 





1,930,659 


1,705,659 



$13,861,830.51 

2,910,181.61 
10,951,648.90 

$13,861,830.51 
13,861,830.51 

$13,861,830.51 



2,247,850 
9,989.852 

$12,237,702 
12.237,702 

$12,237,702 



$14,738,055 

1,930,659 
12,807,396 

$14,738,055 
14,738,055 

$14,738,055 



1,705,659 

12,881,144 

$14,586,803 

14.586.803 



Program Description 

The Equipment Program is responsible for the purchase and 
niaintonaiKC of a fled of equipment and vehicles for use 
within the Department of Highways. The primary goal is to 
provide replacement equipment and maintain and repair 
existing equipment in a cost effective manner. 

Issues Addressed/Legislative Intent 

The FTE level in this program declines by a .5 FTE office 
clerk position that was deleted due to absorbing the unfund- 



ed pay plan in FY87. The department had requested that 
2.0 FTE mechanics be deleted for the same reason, but the 
positions were restored to the base by the legislature. 
Adjustments made to operating expenses include insurance 
increases of $48,974 per year, and fuel price reductions 
reducing expenditures by $265,840 per year. Language in 
HB2 allows the department to request a budget amendment 
if the inflation on gas or diesel is in excess of the level antic- 
ipated by the legislature. Equipment purchases approved 
include almost all of the major motor equipment needs for 
the department. 



DEPARTMENT OF HIGHWAYS 



197 



CAPITAL OUTLAY PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 



Full Time Equivalent Employees 



.00 



Transfers 

'total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



28.109,888.87 
$28,109,888.87 

28,109,888.87 
$28,109,888.87 

28,109,888.87 
$28,109,888.87 



$16,563,599 

16,563,599 
$16,563,599 

16,563,599 



Program Description 

The Capital Outlay Program constitutes the sinking fund for 
retirement of the department's Headquarters Building 
bonds. 

Issues Addressed/Legislative Intent 

The Capital Outlay Program is used as a sinking fund for 
bond payments on outstanding highway bonds. This pro- 
gram is also used to budget the transfer payments between 



highway special revenue accounts and the reconstruction 
trust fund. 

Because bond debt service payments are statutory appropri- 
ations the legislature did not provide any direct spending 
authority to this program. However, language in HB2 estab- 
lishes an appropriation that will be used in this program. 
Language in HB2 states that "The department is appropri- 
ated $15,023,916 in FY88 and $26,476,461 in FY89 for a 
cash transfer from the highway special revenue accounts to 
the highway reconstruction trust account." 



STORES INVENTORY 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Operating Expenses 

Total Program Costs 

State Special Revenue Fund 
Total Funding Costs 

Current Level Services 
Total Service Costs 



12,442,555.11 
$12,442,555.11 

12,442,555.11 
$12,442,555.11 

12,442,555.11 
$12,442,555.11 



$12,643,971 

12,643,971 
$12,643,971 

12,643,971 



$13,602,298 

13,602,298 
$13,602,298 

13,602,298 
$13,602,298 



$13,672,810 

13,672,810 
$13,672,810 

13,672,810 
$13,672,810 



Program Description 

The Store's Inventory Program purchases and stores mate- 
rials (such as sand, road oil and gasoline) needed by other 
programs within the department. 



Issues Addressed/Legislative Intent 

The Stores Program increases over the FY86 level primarily 
due to an anticipated increase in gasoline purchases of 
$238,000 per year, reduction in the cost of road oil of 
$173,000 per year, and increases in the purchases of sand 
totaling approximately $850,000 per year. 



198 



DEPARTMENT OF HIGHWAYS 



G.V.W. 

Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


107.14 


118.14 


110.03 110.03 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



2,299,072.80 

789,325.68 

116,452.37 

$3,204,850.85 

3,204,850.85 

$3,204,850.85 

3,204,850.85 

$3,204,850.85 



2,613,686 

788,221 

33,560 

$3,435,467 

3,435,467 

$3,435,467 

3,435,467 

$3,435,467 



2,570,305 

872,082 

54,920 

$3,497,307 

3,497,307 

$3,497,307 

3,497,307 

$3,497,307 



2,570,561 



$3,503,362 
3,503,362 

$3,503,362 
3,503,362 

$3,503,362 



Program Description 

The Gross Vehicle Weight Division provides enforcement of 
the statutes and regulations relating to vehicle weight and 
size on the state's highways (Title 61, MCA) and collects 
gross vehicle weight fees. 

Issues Addressed/Legislative Intent 

The FTE level in this program increases by 2.89 FTE when 
compared to the FY86 level. However, 5.08 FTE were 
reduced from the FY87 budget level to absorb the impact of 
the 5% reductions and the unfunded pay plan. 



Operating expense adjustments include an increase in data 
processing costs of $8,564 per year, and increases in utility 
costs for GVW weigh stations totalling $6,049 per year. In 
addition, relocation expenses increase $22,875 per year, 
allowances increase $10,807 per year, and recruiting 
expenses increase $2,043 per year. These increases are 
attributable to the addition of two new weigh stations at 
DeBorgia and Havre. 

Equipment includes six sets of portable scales costing 
approximately $44,000 per year. 



DEPARTMENT OF STATE LANDS 



199 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Persona! Services 
Operating Expenses 
Equipment 
Capital Outlay 
Grants 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



7,265,150.63 


6,995,858 


7.425,817 


7,493.303 


8,359,131.37 


5,356,898 


5,433,419 


5,181,330 


687,211.47 


179,220 


555,553 


383,912 


2,556,871.82 


6,943,847 


5,018,000 


5,048.000 


265,000.00 


307,000 


265,000 


265,000 


$19,133,365.29 


$19,782,823 


$18,697,789 


$18,371,545 


8,678,724.68 


6,529,244 


6,959,942 


6,834,436 


3,333,684.78 


3,216,558 


2,810,649 


2,679,919 


6,922,694.16 


9,860,437 


8,735,417 


8,666,871 


198,261.67 


176,584 


191,781 


1 90,3 1 9 



$19,133,365.29 

19,018,938.54 

114.426.75 

$19,133,365.29 



$19,782,823 
19,782,823 



$19,782,823 



18,697,789 



$18,697,789 



18,371,545 




Agency Description 

The Department of State Lands exists to administer the 
lands granted to the state for the support and benefit of the 
various state educational institutions and to administer 
Montana's reclamation laws. The department is provided for 
in section 2 15-3201, MCA, and its responsibilities are 
delineated within Title 77, MCA. 



Issues Addressed/Legislative Intent 

It is the intent of the legislature that all support functions be 
consolidated by July 1, 1988. Two FTE were reduced from 
the Forestry budget for FY89 for a total reduction of 
$55,973. Lands is given the flexibility to choose the posi- 
tions it wishes to eliminate and how restructuring will occur. 
The department is to report to the 51st Legislature on the 
fiscal, savings of the consolidation. 



CENTRAL MANAGEMENT PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


19.00 


18.00 


21.00 21.00 



Personal Services 
Operating Expenses 
Equipment 
Grants 

lotal Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



551,946.54 

588,481.87 

3,341.95 

265.000.00 

$1,408,770.36 


552.262 

747.336 

16.000 

265,000 

$1,580,598 


617,778 

614,069 



265,000 

$1,496,847 


617,321 

540.511 



265,000 

$1,422,832 


845,052.84 
197,083.41 
168,372.44 
198,261.67 


837,210 
379,571 
187,233 
176,584 


1.057.899 
157.885 
89.282 
191.781 


1.028.672 
114,559 
89.282 
190,319 



$1,408,770.36 

1,350,979.76 

57,790.60 

$1,408,770.36 



$1,580,598 

1,580.598 

g 

$1,580,598 



$1,496,847 

1,496,847 




$1,422,832 

1,422,832 



$1,422,832 



Program Description 

The Central Management Program staff provide necessary 
administrative services for the department. The staff are 
responsible for more than $50 million per year in distribut- 
able and non distributable trust income. They provide ac- 



grams in the department. The Air Operations Bureau and 
Trust Ownership Records is included in this program. 

Issues Addressed/Legislative Intent 

Total FTE increases 2.0 between FY86 and FYSS. This 



counting, data processing and personnel services to all pro- increase is due to an attorney position which was transferred 



200 



DEPARTMENT OF STATE LANDS 



from the Reclamation Division to Central Management in 
FY86. The agency requested that this position be continued 
into the new biennium. The position increases general fund 
$28,250 per year. I.O FTE auditor position was also trans- 
ferred into Central Management during the last biennium. 
$25,000 per year is added to fund 1.0 FTE to audit oil and 
gas leases on state owned land. 

Operating expenses increase 4.35% from FY86 to FY88. 
Increases include: $62,321 in payroll costs, aircraft insur- 
ance and audit for FY88 and a $30,600 increase for these 
same costs in FY89. Repair and maintenance is reduced by 
$35,500 for the biennium. From FY88 to FY89 costs associ- 
ated with the Trust Land Management System decrease 
$16,635 because major start up costs are reflected in the 
FY88 budget. 

$128,972 in FY88 and $127,472 in FY89 is appropriated 
for the repair and maintenance of six aircraft. 

Sections 77-1-501 through 77-1-507, MCA require the state 
to reimburse counties in which the state owns over 6% of 
the land area of the county for lost property tax revenues. 
For the 1989 biennium, $265,000 per year of general fund is 
appropriated for payment to counties. 
HB 29 was adopted by the legislature thus transferring state 
ownership records from the Secretary of State to the Lands 
Department. Lands is required to maintain a repository and 
index of ownership and was granted rule making authority 
to record ownership information pertaining to fee lands 
owned by the state. An appropriation is not attached to this 
bill and it is intended that Lands work within their current 
level budget and that work progress in accordance with the 
personnel and funds available. 



The Central Management Division is made up of four pro- 
grams: Central Management which handles agency adminis- 
tration. Trust Land Management, Aviation Program and 
State Equilization Payments to Counties. These programs 
are financed by general fund, resource development funds, 
proprietary funds (aircraft rental) and federal indirect costs. 

Between FY86 and FY88 the Central Management Pro- 
grams general fund increases approximately 25%. This 
increase is due to: 1 ) the federal indirect rate allowed by the 
general government was decreased by 3% or approximately 
$39,000 per year; 2) the elimination of the Enviormental 
Analysis Bureau reduced indirect reimbursements by 
approximately $40,000 per year; 3) aircraft insurance 
increased $27,000 per year; 4)the transfer of the attorney 
position to Central Management; and 5) operating increases 
of approximately $32,000 which is primarily due to the 
increase of payroll service fees. 

The Trust Land Management System is reduced approxi- 
mately $39,000 from FY86 to FY88. The systems start-up 
remains on schedule. Revenue for the program comes from 
the resource development fund which receives 2.5% of the 
income revenue generated by state trust fund lands. 
The Aviation Program funds its direct costs with proprietary 
funds derived from charges to users for the use of aircraft. 
The fixed costs such as the pilot's salary, insurance and 
utilities for the hanger are financed through general fund. 
$ 1 2,600 of general fund per year is appropriated to provide 
minimum maintenance and utilities at the former state 
childrens' facility at Twin Bridges. The Lands Department is 
obligated to oversee minimal maintenance of the buildings 
and it is the intent of the legislature that the Lands Depart- 
ment try to resell the property during the 1989 biennium. 



RECLAMATION PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 198& FY 1989 


Full Time Equivalent Employees 


41.00 


42.00 


35.00 35.00 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service C«»sts 



1,048,277.59 

2,494,876.16 

34,803.93 

2,540,531.18 


1,083,491 

1,964,916 

28,823 

6,273,359 

$9,350,589 


994,915 

2,146,765 

49,550 

4,960,000 

$8,151,230 


994,153 

2,025,226 

30,000 

4,970,000 


$6,118,488.86 


$8,019,379 


0.00 

861,151.41 

5,257,337.45 

$6,118,488.86 


556,704 

729,928 

8,063,957 

$9,350,589 


85,057 

1,133,887 

6,932,286 

$8,151,230 


84,177 

1,012,474 

6,922,728 

$8,019,379 


6,075,865.86 
42,623.00 


9,350,589 



8,151,230 



8,019,379 



$6,118,488.86 


$9,350,589 


$8,151,230 


$8,019,379 



Program Description 

The staff of the Reclamation Division is responsible for 
regulating all mining-related disturbances in the state. Spe- 
cifically, they administer: the Montana Strip and Under- 
ground Mine Reclamation Act; the Montana Open-Cut 
Mining Act; the Montana Strip and Underground Mine Sit- 
ing Act; the Montana Coal Conservation Act; statutes regu- 



lating hard rock mining; and the regulatory program of the 
Federal Surface Mining Control and Reclamation Act. 

Issues Addressed/Legislative Intent 

Total FTE included in the program decreases by 6.0 from 
FY86 to FY89.There was a reduction of 9.0 FTE when the 
Environmental Assessment Bureau was eliminated in FY86 
because of a lack of funding. 3.0 FTE are added in the Hard 



DEPARTMENT OF STATE LANDS 



201 



Rock Mining Bureau. The overall funding reduction to per- 
sonal services is approximately 5% less than the FY86 level. 

The Hard Rock Bureau is appropriated $15,000 for each 
year of the bicnnium to fund its portion of a .50 FTE water 
quality liaison position with the Department of Health and 
Environmental Sciences. This position is not included in the 
DSL budget. 

Operating expenses decrease 13.95% from FY86 to FY88 
although there are increases in helicopter insurance, legal 
fees, and contractual services with DNRC for environmental 
impact statements. This service from DNRC is necessary 
because of the elimination of the EIS bureau. The funding 
for this service is 100% Montana Environmental Protection 
Agency (MEPA) funds. Reductions occur in supplies and 
materials, communications, rent and indirect costs. 

Language included in the appropriation bill states that none 
of the biennial appropriation of $100,000 to the Hard Rock 
Bureau can be used for research. This money is made avail- 
able by 82-4-31 1, MCA (hard rock account). 

The major portion of the operating expenses are for consult- 
ing services for the federally funded Abandoned Mine Pro- 
gram and for environmental impact statements. The total 
budget for this program is $6,263,159 in FY88 and 
$6,273,156 in FY89. 

The equipment budget mcludes $45,000 in FY88 for re- 
placement of three 4x4 vehicles and $30,000 in FY89 for 
the replacement of an additional two 4x4 vehicles. Also, in 
FY88, $4,050 is appropriated for office and computer 
equipment. 

Non-operating expenses (capital outlay) is federal funds for 
abandoned mine reclamation. 

There is language in the appropriation bill which requires 
the department to eliminate one of the three new positions 
added as a modified request if the number of hard rock 
mining applications going into FY89 is less than the number 
of applications going into FY88. (The number of hard rock 
exploration licenses that have been issued on an annual 



basis have increased from 12 in 1982 to 16 in 1983 to 18 in 
1984 to 29 in 1985 and to 37 in 1986 with an additional 10 
to 15 pending exploration license applications) 

There arc four bureaus in the Reclamation Division: 1) 
Hard Rock, 2) Abandoned Mine, 3)Open Cut Mining and 
4)Coal and Uranium. 
Funding for the division is as follows: 

1) Administration is funded with RIT interest. 

2) Hard Rock Mining Bureau is funded with general fund 
and RIT. In addition, revenue from penalties and bond fore- 
closures are used by the bureau to resolve unanticipated 
mining emergencies. 

3) Spending authority was appropriated in FY88 and 89 to 
process environmental impact statements under contract 
with DNRC and private consulting firms. The Environ- 
mental Assessment Bureau which had performed this work 
was disbanded in FY86 due to a lack of funding. 

4) The Abandoned Mine Bureau is funded totally with fed- 
eral funds. 

5) Open Cut Bureau is funded with RIT interest. 

6) Coal and Uranium Bureau is funded with RIT interest 
and federal funds. 

(In FY86, the Open Cut Bureau, Hardrock Bureau and 20% 
of the Coal Bureau was funded with general fund. The legis- 
lature chose to fund these bureaus with RIT instead of gen- 
eral fund for the 1989 biennium.) 

One modified program in the Hard Rock Bureau is 
approved for the 1989 biennium. This modified enables the 
bureau to add three new FTE's to assist in the compliance, 
permit, inspection, and enforcement activities in regard to 
the Montana Environmental Protection Act (MEPA). The 
positions are financed with general fund; $85,057 in FY88 
and $84,177 in FY89. The intent of the legislature is to 
enable the bureau to keep up with the forecasted increase in 
hard rock mining activities in Montana. 



LAND ADMINISTRATION PGM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



382,855.69 
106,161.64 
56,939.14 


421,840 

85,508 

10,000 

$517,348 


442,257 
113,256 
16,408 


441,995 
108,832 
16,408 


$545,956.47 


$571,921 


$567,235 


545,956.47 


517,348 


571,921 


567,235 


$545,956.47 


$517,348 


$571,921 


$567,235 


545,956.47 
$545,956.47 


517,348 
$517,348 


571,921 
$571,921 


567,235 
$567,235 



Program Description 

The staff of the Land Administration Program are responsi- 
ble for the leasing of surface and mineral resources for the 
benefit of common school and other endowment funds. This 
program covers the appraisal and reclassification of all state 
lands to obtain the greatest revenue for the trust funds com- 
mensurate with the preservation of the resource. This pro- 



gram includes the Land Management Bureau. Surface Leas- 
ing Bureau and Mineral Leasing Bureau. 

Issues Addressed/Legislative Intent 

The Department of State Lands manages 5,216,176 surface 
acres and 6,196,634 acres of subsurface. The surface acres 
are divided as follows: 



202 



DEPARTMENT OF STATE LANDS 



Forest 491,547 acres 

Grazing 4,090,430 acres 

Agriculture 559,954 acres 

The 1985 Legislature added 3 FTE land use specialists to 
the budget. These positions did not work the full year in 
FY86 because a contingency to their hiring was the DSL 
raise its transactions fees and not hire the positions until the 
necessary funding was available. Consequently personal ser- 
vices for this time period are lower than a "normal" fiscal 
year. The 15.55% increase to personal services in FY88 
r4eflects full funding for these positions. 
As a result of 7-22-2 1 1 6, MCA, the department is required 
to control weeds on lands that are state-owned and currently 
unleased. There is currently over 1400 acres of unleased 
land requiring weed control. The legislature appropriated 



$24,000 each year to begin a program of weed control on 
classified grazing and agriculture lands. This figure is based 
on a cost of $30 per acre on 800 acres of infestation. 
With the exception of the increases just noted, there are no 
other increase to the operating budget. 
The equipment budget includes funding for the replacement 
of a 4x4 vehicle in Miles City at a cost of $1 1,432 in FY88 
and a 4x4 vehicle in Lewistown at a cost of $ 1 1 ,432 in 
FY89. The division is also authorized to purchase a per- 
sonal computer at a cost of $4,976 in FY88. There is an ad- 
ditional $4,976 appropriated in FY89 which was not a part 
of the agency requires and was not specifically added to the 
budget by the legislature. 
General fund is the sole source of funding for this division. 



RESOURCE DEVELOPMENT PGM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


7.00 


7.00 


7.00 7.00 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



176,961.10 


169,618 


180,350 


180,310 


323,286.11 


40,136 


34,835 


35,123 


428.50 











16,340.64 


670,488 


58,000 


78,000 



$517,016.35 

517,016.35 
$517,016.35 

517,016.35 
$517,016.35 



$880,242 

880,242 
$880,242 

880,242 



$273,185 

273,185 

$273,185 

273,185 



$293,433 

293,433 
$293,433 

293,433 
$293,433 



Program Description 

The Resource Development Program staff are responsible 
for developing and improving state lands to increase reve- 
nue for the trust funds and for restoring and preserving state 
land resources according to the policy delineated in section 
77-1-601, MCA. This program is assigned to the Lands 
Division. 

Issues Addressed/Legislative Intent 

There is no change in FTE level from FY86 to FY88 and 
FY89. 

It is the general intent of DSL to utilize the operating 
expenses in this program to evaluate and develop projects 
on state owned land. All projects funded out of the 
Resource Development Program are addressed when a lessee 
shows an interest in developing state land in range 
renovations, irrigation projects, title perfections, and other 
inter-rclalcd work. The program experienced a downturn in 
projects this last biennium which generally reflects the 
downturn in agricultural economics. 



The decrease in operating expenses *for the 1989 biennium 
reflects the downturn in projects as well as a $290,023 one- 
time special assessment which was included in the FY86 
budget. This assessment was on state owned land in the Bill- 
ings area. The assessment had to be paid to facilitate the 
opening of a new Billings school. 

The program budget includes $58,000 for capital outlay in 
FY88 and $78,000 in FY89. The capital outlay projects are 
projects to improve state owned land. Included in these 
projects is: 1) replacement of a headgatc structure on a 
water project in Gallatin County, perfecting title in an oil 
and gas ownership dispute in Richland County and a saline 
seep project in McCone County. 
No equipment is requested for the 1989 biennium. 
The total funding for this program is derived from a per- 
centage of the income fund (income from land managed) 
not to exceed 2.5%. (The percentage to be used is deter- 
mined by the Board of Land Commissioners. For the 1989 
biennium, 2.5% is used.) 



DEPARTMENT OF STATE LANDS 



203 



FORESIRY 

Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



5,105,109.71 

4,846,325.59 

591,697.95 

0.00 

$10,543,133.25 

7.287.715.37 

1.758,433.61 

1,496,984.27 


4,768,647 

2.519,002 

124,397 

42,000 

$7,454,046 

4,617,982 

1,226,817 

1,609,247 

$7,454,046 

7,454,046 



$7,454,046 


5.190,517 

2,524,494 

489.595 



$8,204,606 

5,245,065 
1,245,692 
1,713,849 

$8,204,606 

8,204,606 



$8,204,606 


5,259.524 

2.471.638 

337,504 



$8,068,666 

5.154,352 

1.259.453 

1.654.861 


$10,543,133.25 

10,529,120.10 

14,013.15 

$10,543,133.25 


$8,068,666 

8,068,666 



$8,068,666 



Program Description 

The Forestry Program is administered through the Forestry 
Division in Missoula. The program is designed to manage 
and protect Montana forests, especially those owned by the 
state or held in trust for the support of education. Program 
services include: 

The Fire Management program - provides direct fire control 
services within forest fire districts and by contract to private 
landowners, and cooperative fire control agreements through 
which counties are assisted in meeting their fire protection 
responsibilities. 

The Multiple-use Concept program - provides active protec- 
tion of water-shed and young stands of timber, continuing 
inventory to support planning for improving forest land 
capability, and proposed consolidation of state-owned forest 
land into units that can be more easily managed on a sus- 
tained yield basis. 

Technical Assistance - provides private forest land opera- 
tions with training, demonstrations, utilization and market- 
ing assistance in order to reduce waste, increase efficiency of 
logging operations and forest product businesses, and to 
increase benefits to local communities. 

The Forest Tree Nursery - produces and distributes seedling 
trees and shrubs at a price that encourages such conserva- 
tion practices as shelterbelts, windbreaks, forest plantings, 
wildlife cover, and reclamation plantings on state and pri- 
vate lands. 

Administration of the Fire Hazard Reduction and Manage- 
ment Law assures that the fire hazard created by logging 
and other forest management operations is reduced by treat- 
ment or that additional protection is provided until the fire 
hazard is reduced to an acceptable level. 

Insect and Disease Protection - studies are conducted and 
measures adopted to prevent and suppress outbreaks of 
forest insect pests and tree diseases. The project is carried 
out in cooperation with the federal government and private 
landowners. 

Institutional Forestry program - needed forest work is per- 
formed and the work potential and skills of young men at 
the Swan River Youth Forest Camp are developed through 
training in the areas of forestry, carpentry, and automotive 



mechanics. This program is a cooperative effort with the 
Department of Institutions. 

Issues Addressed/Legislative Intent 

In reviewing the Forestry budget, it is important to keep in 
mind that FY86 includes actual expenditures of $3,284,844 
for the fire supplemental. The expenditures by the Forestry 
Division when the fire supplemental are taken out equal 
$7,258,312. 

The Forestry personal services budget includes salaries and 
benefits for both permanent employees working in the forest 
resource programs, and for the temporary employees hired 
to do seasonal work in fire suppression, hazard reduction, 
timber stand improvement and the nursery operation. From 
FY86 there is an increase of 8.48 FTE in FY88 and 13.63 
FTE in FY89. 

If the FY86 fire supplemental is included in the FY86 base, 
then personal services increase 1% from FY86 to FY88 and 
FY89. If the fire supplemental is excluded then personal ser- 
vices increase 13% from FY86 to FY88 and FY89. This is 
due to the increase in FTE. 

Excluding the FY86 fire supplemental expenditures, oper- 
ating costs increased 18.9% from FY86 to FY88. Major 
changes between the two time periods include the following: 
$40,276 increase for the assumption of Block III 
$81,000 reduction in payments to the U.S. Forest Service 
$20,000 reduction in contracted services 
$28,000 increase in fire supplies and materials 
$118,566 increase for contracted brush removal from state 
land 

$97,946 increase for heavy equipment rental (brush 
removal) 

$143,700 increase for timber stand improvement (TSI) con- 
tracted service 

$41,200 increase for heavy equipment rental for the TSI 
program 

$13,200 increase in rent (office space outside of Helena) 
$15,800 increase in repairs and maintenance 
The difference in operating expenditures between FY88 and 
FY89 is a $52,856 reduction to the U.S. Forest Service for 
fire protection (lower rates) and a $12,000 increase for sup- 
plies and materials attributed to inflation. 



204 



DEPARTMENT OF STATE LANDS 



The 1989 biennial budget for equipment includes: 

$255,000 for vehicle replacement in regard to Block III 

$1 17,950 for new vehicles for Block III 

$134,100 for communications equipment (replacement 

costs) 

$228,899 for fire suppression equipment 

$18,500 for agricultural equipment for the greenhouse and 

nursery 

$27,050 for office equipment 

$16,600 for shop equipment 

$29,000 for computer equipment and software 

The equipment budget, as usual, includes equipment for 
both forestry and fire suppression work, and covers both the 
direct fire protection activities as well as support for the 
county fire program. In FY86, $585,025 was spent on capi- 
tal equipment. In deciding how to allocate the 5% budget 
reduction mandated in the June Special Session, DSL chose 
to take part of the cut out of the capital equipment budget. 
The Office of Budgets and Program Planning approved this 
with the understanding that the approximate $275,000 bien- 
nial budget reduction establish the level of expenditure to be 
used as a base for future capital budget requests. This is also 
the intent of the legislature. 

The U.S. Forest Services and the State of Montana share 
wildfire responsibilities in the fire districts of western Mon- 
tana. In the interest of efficiency these responsibilities have 
been split along logical boundaries rather than ownership 
lines. As a result, historically the Forest Service protected 
approximately 1.9 million acres more state and private land 
than the slate protected Forest Service land. Prior to 1983 
the Forest Service protected this excess acreage for the 
amount assessed the landowner, 16 cents per acre. In Octo- 
ber, 1982, the Forest Service notified the state that it would 
no longer protect the state and private acres for the assessed 
cost but would charge the full cost of protection; in 1982 
estimated at 66 cents per acre. However, the Forest Service 
agreed to only charge 16 cents per acre if the state would 
enter into a 10-year program to equalize the acres protected. 
After analyzing the cost, it was shown to be cheaper for the 
state to assume the protection. In 1983, 1985, and again in 

1987, the legislature approved the Department assuming 
protection on an incremental block basis. The table below 
shows the blocks assumed, the cost of each and the acres 
assumed. After Block 3 a 697,570 acre imbalance remains. 
ACRES 1st YR COSTS 2nd YR COSTS 

Blk 355,911 $292,404 (FY84) $292,201 (FY85) 

1 

Blk 395,115 $197,299 (FY85) $182,560 (FY86) 

2 

Blk 413,492 $264,520 (FY88) $235,656 (FY89) 

3 

The 1989 biennial budget includes $264,520 in FY88 and 
$235,656 in FY89 for the assumption of the third block for 
forest fire protection from the U.S. Forest Service. It is the 
inlcnl of ihe legislature to again review this program in the 



FY82 


29,290,000 


FY83 


34,741,000 


FY84 


25,656,000 


FY85 


28,549,000 


FY86 


52,800,000* 


FY87 


50,116,000** 



1991 biennium to evaluate costs and decide if future blocks 
are cost effective. 

Prior to 1 985 the Department of Lands sold and harvested 
approximately 32 million board feet per year. In 1985 the 
Legislature approved increasing the level of cut to 50 mil- 
lion board feet per year. In 1985 the increase was funded 
from the resource development account. For the 88-89 bien- 
nium resource development funds were not available and 
general fund is used. 

HARVEST in BD FT INCOME 

$2,231,888 
1,726,370 
1,814,053 
1,933,952 



* FY86 is the amount sold. Since sale contracts are for a 
three year period the increased harvest will be realized 
over that period. 
** FY87 is the projected harvest. No income is projected 

because of the three year lag. 
The 1989 biennial budget includes an increase of $295,300 
for brush removal and a $297,500 increase for timber stand 
improvement on state land over the amounts expended in 
FY86 for those programs. The increase in the programs cor- 
respond to the increased timber sales from 34 million board 
feet per year to 50 MMBF. This increase to 50MMBF is 
supported by the legislature because of the positive impact 
to the state: revenue from the sales are deposited in the 
school trust fund and employment of forestry personnel and 
other inter-related economic factors. 

There is an appropriation for the continuation of the 
expanded timber sale. In FY86 this program was funded 
with resource development funds. Because there was insuffi- 
cient RRD funds for the 1989 biennium, the program is 
funded with general fund: $236,000 in FY88 and $237,656 
in FY89. 

The legislature approved increasing nursery production. Cur- 
rent demand for conservation and reforestation seedlings 
surpassed DSL's production capacity during the 1987 bien- 
nium. For the 1989 biennium an additional .70 FTE and 
operating costs are approved for the nursery to increase the 
production of seedlings for conservation plantings. The 
increase amounts to $20,413 in FY88 and $20,440 in FY89. 
The funding source is earmarked revenue generated by 
increased sales. 

The legislature also approved an additional .90 FTE and 
operating costs are to cover the increased requests for trees 
and shrubs to improve wildlife habitat on private lands. 
This is an ongoing program through the Federal Conserva- 
tion Reserve Program. Appropriated is: $24,401 in FY88 
and $24,472 in FY89. Funding is from the Department of 
Fish , Wildlife and Parks which administers the Federal 
Conservation Reserve Program. 



DEPARTMENT OF LIVESTOCK 



205 



Agency Summary 
BudRct IXtail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 h\ 1989 


Full Time Equivaleni Employees 


116.61 


114.61 


126.61 126.61 



Personal Services 
Operating Expenses 
Equipment 
Benefits and Claims 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



2,842,637.93 


2,945,840 


3,342,772 


3,350,172 


1,366,206.08 


1,664,674 


1,062,660 


1,068,549 


182,804.64 


131,542 


139,466 


137.544 


25.00 


2,300 


2,000 


2.000 



$4,391,673.65 

641,095.67 

3,223,950.83 

526,627.15 

$4,391,673.65 

4,391,673.65 

$4,391,673.65 



$4,744,356 

580,100 

3,576,256 

588,000 

$4,744,356 
4,744,356 



$4,546,898 

746,342 

3,566,156 

234,400 

$4,546,898 

4,546,898 

$4,546,898 



$4,558,265 

747,162 

3,579,203 

231,900 

$4,558,265 

4,558.265 

$4,558,265 



Agency Description 

The Department of Livestock was established to provide 
state responsibility for the control and eradication of animal 
diseases, the prevention of the transmission of animal dis- 
ease to humans, and for the protection of the livestock 
industry from theft and predatory animals. 

The Department of Livestock is provided for in section 2-15 
3101, MCA. The department is organized into four major 
divisions: Animal Health Division, Centralized Services 
Division, Brands Enforcement Division, and Diagnostic 
Laboratory Division. 

Issues Addressed/Legislative Intent 

For FY86, the actual level of FTE was 116.61. In the 1989 
biennium, 126.61 FTE are funded in both years. Included in 
the 126.61 are 12 FTE which are appropriated through 
HB814. This bill enacts a new meat inspection program. 
The Department of Livestock was asked by the legislative 
natural resources subcommittee to reduce the executive bud- 
get request by 10% of its general fund in each year of the 
biennium. The revised budget proposed by the department 
was accepted. Changes to the budget are as follows: 
I: The department did not include vacancy savings in any 
of its program budgets. 



2: Centralized Services cut its operations by $6,012 in FY88 
and $6,172 in FY89. 

3: The Diagnostic Laboratory cut the general fund by 
$26,000 in FY88 and in FY89. However, this reduction is 
offset by a $10,000 increase in authority for fee revenue; 
with the stipulation that fees increase only for non-livestock 
animals. 

4:The Milk and Egg Program transferred .50 FTE to the 
Inspection and Control Program. The agency also reduced 
operating expenses for a total general fund reduction of 
$5,246 in FY88 and $5,228 in FY89. 

5: The Rabies Program reduced its operational budget by 
$22,500 in each year of the biennium. This is a general fund 
reduction. 

The total general fund cut proposed by the Department of 
Livestock was $67,512 in FY88 and $67,672 in FY89. How- 
ever, due to the non-usage of vacancy savings as well as the 
increased other fund spending authority in the Diagnostic 
Laboratory, the actual reduction to general fund is $34,159 
in FY88 and $48,276 in FY89. Programs which actually 
increased overall spending levels from the executive budget 
are Centralized Services, Diagnostic Laboratory. Disease 
Control, Inspection and Control and Predatory Animal. 
Consequently, the only program not alTectcd was Beef and 
Pork and the only reduction was in the Milk and Egg Pro- 
gram. 



206 



DEPARTMENT OF LIVESTOCK 



CENTRALIZED SERVICES PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



259,564.63 

135,997.37 

449.00 


261,587 
124,366 
12,974 


272,815 

140,078 

5,750 


273,000 

126,370 




$396,011.00 


$398,927 


$418,643 


$399,370 


57,427.00 
338,584.00 


58,958 

339,969 

$398,927 


57,659 

360,984 

$418,643 


54,659 
344,711 


$396,011.00 


$399,370 


396,011.00 


398,927 


418,643 


399,370 


$396,011.00 


$398,927 


$418,643 


$399,370 



Program Description 

The Centralized Services Division staff are responsible for 
the accounting, budgeting, payroll, personnel, legal services, 
purchasing, administrative, data processing and general ser- 
vices functions for the Department of Livestock. 

Issues Addressed/Legislative Intent 

The number of FTE in the Central Services Division does 
not change in the 1989 biennium from FY86. By legislative 
decision, vacancy savings is not taken from this program, 
thus $10,661 is added to the FY88 budget and $10,668 is 
added to the FY89 budget. (The base used for the additions 
was the executive budget as submitted to the legislature.) 
There is a three percent increase to operating costs in 
compar ing FY88 to FY86. The increases to the budget are 
in the follow ing areas: continuation of a $1,500 per year 
contract for a study of the disease Chalkbrood in leafcutter 
bees, a $1,100 increase in FY88 and a $1,500 increase in 
FY89 for computer maintenance, $1,300 in FY89 for 



increased computer costs, and a $1,300 increase for audit 
costs. (Total audit costs for the biennium is $17,271) Rent 
increases $1,000 in FY88 and $4,000 in FY89. 
Some operating costs are reduced in the 1989 biennium 
from the 1987 biennium level. Included in these reductions 
are: $1,000 in supplies and materials each year, a $3,000 per 
year reduction in communications, and $2,014 in FY88 and 
$2,184 in FY89 for travel. 

The legislature approved an equipment budget containing 
$1,050 for office equipment and $4,700 for computer equip- 
ment. 

Funding for this program is from general fund and by the 
assessment in livestock based on taxable value. In the 1987 
biennium, the legislature had agreed upon a funding formula 
of 15% general fund and 85% state special revenues to 
finance central services. This ratio changed during the 1989 
biennium session, when the level of general fund was 
reduced to approximately 14%. 



DIAGNOSTIC LABORATORY PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



479,341.31 

167,905.24 

84,929.54 

$732,176.09 


473,269 

173,730 



$646,999 


499,968 

163,477 

8,290 

$671,735 


501,214 

171,272 

11,200 

$683,686 


311,734.09 
420,442.00 


306,533 
340,466 


300,222 
371,513 


305,330 
378.356 


$732,176.09 


$646,999 


$671,735 


$683,686 


732,176.09 


646,999 
$646,999 


671,735 
$671,735 


683,686 


$732,176.09 


$683,686 



Program Description 

The Diagnostic Laboratory Program's functions are to pro- 
vide laboratory support for the Disease Control and Milk 
and Egg Bureaus; provide laboratory diagnostic support to 



veterinarians and livestock producers; protect the public 
health by testing dairy products and performing diagnostic 
tests on suspected rabies cases and other zoonotic diseases; 
and provide test services to enhance the marketability of 



DEPARTMENT OF LIVESTOCK 



207 



livestock. Testing on wildlife and small animals is per- 
formed upon request. 

Issues Addressed/Legislative Intent 

There is no vacancy savings taken in this program; thus an 

additional $19,988 was added to FY88 and an additional 

$19,773 is added to FY89. (Base used for the increases was 

the executive budget proposed to the legislature.) 

In FY86 a laboratory supervisor position was eliminated 

from the appropriated level and this reduction is carried 

into the 1989 biennium. No other changes are made to the 

FTE biennial appropriation. 

Operating expenses decrease 2.70% in FY88 from actual 

FY86. However, there is a 2% increase from FY86 to FY89. 

Increases include: 1) $1,500 per year data communication 



line; 2) $1,000 in FY88 and $350 in FY89 for iravel; 3) 

$2,095 per year for computer maintenance; 4) $2,050 in 

FY88 and $4,150 in FY89 for utilities; and 5) $6,000 m 
FY88 and $10,000 in FY89 for laboratory expenses. 

Equipment for the 1989 biennium includes $1,490 for an 
embedding oven, $600 for a liquid nitrogen storage con- 
tainer, $12,400 for personal computers and software; and 
$5,000 for a carbon dioxide mcubator. 

This program is financed with approximately a 50/50 split 
between the general fund and animal health funds. To com- 
pensate for the overall agency general fund reduction, the 
department requested that $10,000 of the general fund cut 
be restored with animal health funds. This request was 
approved with the contingency that the fee increases only be 
applied to non-livestock animals. 



DISEASE CONTROL PROGRAM 
Budget Detail Summary 



.Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Benefits and Claims 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



173,565.98 


373,703 


390,322 


390,820 


74,615.65 


136,547 


75,886 


76,847 


3,500.69 


20,826 


24,660 


22,064 


25.00 


2,300 


2,000 


2,000 



$451,707.32 
451,707.32 

$451,707.32 
451,707.32 

$451,707.32 



$533,376 
533,376 

$533,376 
533,376 

$533,376 



$492,868 

492,868 
$492,868 

492,868 
$492,868 



$491,731 

491,731 
$491,731 

491,731 
$491,731 



Program Description 

The Disease Control Program's functions are to: provide for 
the diagnosis, prevention, control, and eradication of animal 
diseases and disorders; maintain a disease surveillance sys- 
tem; provide education and information on animal diseases 
and disorders to the livestock industry, the veterinary 
profession, and the public at large; conduct applied research 
into the causes, transmissibility and control of animal dis- 
ease and disorders; enforce sanitary standards and inspect 
animals at livestock auction markets; monitor and enforce 
import-export requirements applied to livestock; and assist 
the Department of Health and Environmental Sciences in 
the control of animal diseases transmissible to man. The 
program is part of the Animal Health Division. 

Issues Addressed/Legislative Intent 

No vacancy savings is applied to this program which 
increases the executive budget by $15,673 in FY88 and 



$15,633 in FY89, and is the reason for the increase to per- 
sonal services. 

The department had eliminated 1.0 FTE word processor 
operator in FY87 and this reduction was carried into the 
1989 biennium. 

The increase to equipment is for the replacement of four 
vehicles during the biennium. These vehicles are used for 
field veterinary usage. The program is also authorized to 
purchase one personal computer. 

Non-operating expenses (Benefits and Claims) are brucello- 
sis indemnity payments for ranchers whose cattle have bru- 
cellosis and must be destroyed. 

Funding for this program is derived through the assessment 
on livestock based on taxable value. There is approximately 
a nine percent increase in funding from the 1986 level. This 
change is a reflection of the livestock market which is pro- 
jected to improve somewhat from the 1986 level. 



208 



DEPARTMENT OF LIVESTOCK 



MILK & EGG PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


FY 1988 FY 1989 


Full Time Equivalent Employees 


6.70 


6.70 


6.20 6.20 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



184,827.54 


189,159 


183,261 


183,719 


23,816.04 


28,996 


22,678 


22,879 


13,302.00 


14,454 


18,009 


18,562 



203,945.58 

18,000.00 

$221,945.58 

221,945.58 



$232,609 

214,609 

18,000 

$232,609 

232,609 



$223,948 

203,948 

20,000 

$223,948 

223,948 
$223,948 



$225,160 

205,160 

20,000 

$225,160 

225,160 
$225,160 



Program Description 

The Milk and Egg Program's function is to insure that eggs, 
milk and milk products sold or manufactured in Montana 
are fit for human consumption. This function is accom- 
plished through licensing, sampling, laboratory testing, and 
product and site inspecting done in cooperation with other 
state and federal agencies. The program supervises the 
enforcement of state and federal law. It is operated by the 
Animal Health Division. 

Issues Addressed/Legislative Intent 

A .5 FTE clerical position, and $10,000 in funding, is trans- 
ferred from the Milk and Egg Program to the Inspection and 



Control Program; thus there are 6.20 FTE appropriated to 
this program in each year of the biennium. Vacancy savings 
is not taken from the budget which increases the appropria- 
tion $7,754 in FY88 and $7,680 in FY89. 
Operating costs are reduced by $1,138 in FY88 from the 
FY86 level. The most significant reduction occurs in the 
travel budget, with small adjustments in contracted services, 
supplies and materials. 

The program is appropriated funding to replace two vehicles 
in each year of the biennium. 

The federal government is contributing $20,000 each year 
for inspecting poultry products used in school lunches and 
for the egg shell surveillance program. 



INSPECTION & CONTROL PROGRAM 
Budget Detail Summary 



Actual 
FY 1986 



Appropriated 
FY 1988 " FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,506,565.27 

230,097.94 

75,932.00 

$1,812,595.21 

1,812,595.21 

$1,812,595.21 

1,812,595.21 

$1,812,595.21 



1,603,850 

241,584 

77,088 

$1,922,522 

1,922,522 

$1,922,522 

1,922,522 



1,733,964 

257,794 

66,257 

$2,058,015 

2,058,015 

$2,058,015 

2,058,015 

$2,058,015 



,738,252 
265,148 
74,718 



$2,078,118 

2,078,118 
$2,078,118 

2.078,118 
$2,078,118 



Program Description 

The Inspection and Control Program is part of the Brands 
Enforcement Division and its staff are responsible for theft 
investigations, stray livestock investigations, brand inspec- 
tions, recording of livestock brands, filing of livestock secur- 
ity interests, dealer licensing, and hide and beef inspection. 

Issues Addressed/Legislative Intent 

No vacancy savings was taken from this program and as 
such ihc budget was increased by $68,935 in FY88 and 
$69,107 in FY89. 



5.90 FTE positions were left vacant in FV86 due lo Ihc 
|X)or livestock market. These positions remain vacant, but 
are funded in the 1989 biennium and will be filled if there 
is an upturn in the market. The increase of .50 FTE clerical 
position reflects the transfer of that position from the Milk 
and Egg Program. 

Operating costs increase approximately 12% in FY88 from 
the FY86 level. This increase is primarily due to upgrading 



DEPARTMENT OF LIVESTOCK 



209 



the programs computer system. An additional $8,012 is add- 
ed for computer processing. $9,735 in FY88 and $14,937 in 
FY89 is appropriated to connect personal computers state- 
wide via communication lines and to connect a terminal in 
Helena with the Department of Administration's mainframe. 
The program is budgeted $59,357 in FY88 for the purchase 
of five '/2 ton pickup trucks and one automobile. Six '/2 ton 



pickup trucks are budgeted to be purchased in FY89. Also, a 
total of six computer terminals are authorized for purchase 
during the biennium. 

The overall increase to this program's budget from FY86 to 
the FY88 level is 13.5%. The program is funded entirely by 
the per head tax on livestock which is anticipated to 
improve over the 1989 biennium. 



BEEF/PORK RESEARCH & MARKETING 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



50.00 

508,577.15 

$508,627.15 


150 

569,850 

$570,000 




75,000 

$75,000 




75,000 

$75,000 


508,627.15 
$508,627.15 


570,000 
$570,000 


75,000 
$75,000 


75,000 
$75,000 


508,627.15 
$508,627.15 


570,000 
$570,000 


75,000 
$75,000 


75,000 
$75,000 



Program Description 

The Beef and Pork Research and Marketing Program's func- 
tions are to promote effective research into the production 
and marketing of beef and pork through collection and dis- 
tribution of funds. Funds derived from a per-head assess- 
ment on swine sold are distributed to the Pork Research 
and Marketing Committee and the National Pork Council. 
Funds derived from a per-head tax on cattle owned is allo- 
cated to the Montana Beef Council for distribution to state 
and national organizations. The Montana Pork Research 
and Marketing Committee is provided for in section 



2-15-3103, MCA, and is attached to the Department of 
Livestock for administrative purposes. 

Issues Addressed/Legislative Intent 

In FY86 the Department of Livestock collected the .25 cents 
per head tax on cattle and forwarded the funds to the state 
and national beef organization. In FY87 the beef collections 
were converted to a fiduciary fund. As such, funds do not 
appear in the appropriations bill because the state is only 
collecting and forwarding the revenue. No appropriation is 
necessary. 

The $75,000 per year appropriated in this program is for the 
pork research and marketing program. 



PREDATORY ANIMAL CONTROL PGM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 F\ 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



38,623.20 


44,122 


42,142 


42,367 


42,307.69 


206,874 


215,634 


218,920 


4,691.41 


6,200 


10,000 


10,000 



$185,622.30 

185.622.30 
$185,622.30 

185,622.30 
$185,622.30 



$257,196 

257,196 
$257,196 

257,196 
$257,196 



$267,776 
267,776 

$267,776 
267,776 



$271,287 
271,287 

$271,287 
271.287 

$271,287 



Program Description 

The Control Program offers protection to livestock pro- 
ducers by controlling certain types of predators that kill or 



injure domestic livestock. The program is also designed to 
alleviate problems caused by species that may endanger 
human health or safety, particularly the coyote, which can 



210 



DEPARTMENT OF LIVESTOCK 



carry bubonic plague. The program is operated by the 
Brands Enforcement Division. 

Issues Addressed/Legislative Intent 

Vacancy savings was not taken from this budget which 
resulted in an increase of $1,686 in FY88 and $1,695 in 
FY89. 

In FY86, the decision was made to change the methodology 
used to carry out the goals and objectives of this program. 
Three Bell 47 helicopters were sold and replaced with one 
Hughes 500D helicopter. This helicopter is faster and re- 
quires less maintenance than the helicopters previously used. 
The decision was also made to contract for predator control 
in the eastern portion of the state. The intent of these two 
changes is designed to increase efficiency and decrease costs. 
This programs has 1.0 FTE; this is a 1.0 FTE reduction 
from FY 86. 



This program will be relying more heavily on contracted ser- 
vices to provide predator control. Thus, the budget includes 
an increase of $31,301 of state special revenue per year for 
contracted services, making the total available in each year 
$100,000. The one helicopter maintained by the department 
will be in need of substantial maintenance which is reflected 
in the $32,563 in FY88 and $37,563 in FY89 appropriated 
for this purpose. Helicopter fuel costs increase $4,100 per 
year, insurance increases $3,100 per year, and travel 
increases $1,650 per year. 

$ 1 0,000 per year was added for additional predator control 
equipment. 

Funding for this program is from assessments on livestock 
and a $75,000 per year grant from the Department of Fish 
Wildlife and Parks. 



RABIES CONTROL 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



100.00 
82,889.00 



$82,989.00 

67,989.00 
15,000.00 

$82,989.00 
82,989.00 

$82,989.00 




182,727 




182,727 



$182,727 

182,727 

$182,727 




60,113 



$60,113 

45,113 
1 5,000 



$60,113 

60,113 



$60,113 




60,113 



$60,113 

45,113 
15.000 



$60,113 

60,113 



$60,113 



Program Description 

The Rabies Control Program was designed to prevent expo- 
sure of domestic animals and humans from rabid skunks. 
The program is part of the Animal Health Division. 

Issues Addressed/Legislative Intent 

There are no FTE assigned to this program. 



The executive budget had proposed to maintain this pro- 
gram at approximately the FY86 level. However, the general 
fund portion of the budget was reduced by $22,500 in each 
year of the 1989 biennium leaving a total operating budget 
of $60,1 13 for each fiscal year. 

The program is funded by general fund and a $15,000 per 
year grant from the Department of Fish, Wildlife, and 
Parks. 



DEPARTMENT OF LIVESTOCK 



21 



MEAT INSPECTION PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 




Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 




.00 


.00 


12.00 12.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



0.00 
0.00 
0.00 

SO.OO 
0.00 
0.00 

(0.00 
0.00 

$0.00 



220,300 
52,000 
6,500 



220,800 
52,000 
1,000 



$0.00 


$0 


$278,800 


$273,800 


0.00 
0.00 
$0.00 






$0 


139,400 

139,400 

$278,800 


136,900 

136,900 

$273,800 


0.00 





278,800 


273,800 



$278,800 



$273,800 



Program Description 

The Montana Meat and Poultry Inspection Act of 1987 
(House Bill 8 1 4) provides the authority for a program of the 
same name whose function it is to implement and enforce a 
State Meat Inspection Program "equal to" the inspection 
system maintained by the U.S. Department of Agriculture, 
Food Safety Inspection Service. The goal of this program is 
provided for in the Wholesome Meat Act adopted by the 
U.S. Congress in 1967. It is intended that this program will 
provide a State certified supply of wholesome meat products 
for retail consumption by Montana producers. The program 
will be developed in cooperation with the U.S. Department 
of Agriculture and Food Safety Inspection Service and 
administrative rules promulgated by the Department of 
Livestock will conform in all respects to requirements of the 



Federal Meat Inspection Act and Poultry Products Inspec- 
tion Act. 

Issues Addressed/Legislative Intent 

Twelve FTE are appropriated for both years of the bien- 
nium. 

$52,000 is appropriated in each year of the biennium for 
operat ing expenses. Of this total, $25,000 is allocated each 
year for travel and $13,500 in each year of the biennium is 
appropriated for contracted services. 

The equipment budget includes $6,500 in FY88 and $1,000 
in FY89. 

Funding for the program is one half general fund and a 
matching amount of federal funds. 



212 



DEPT NAT RESOURCE/CONSERVATION 



Agency Summary 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


FY 1988 FY 1989 


Full Time Equivalent Employees 


273.22 


252.67 


238.20 244.20 



Personal Services 

Operating Expenses 

Equipment 

Capital Outlay 

Local Assistance 

Grants 

Benefits and Claims 

Transfers 

Debt Service 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 

Current Level Services 
Budget Amended Services 
Total Service Costs 



6,507,248.25 


6,258,007 


6,505,733 


6,426,688 


2,869,898.80 


3,610,414 


7,586,220 


3,528,787 


196,424.79 


49,767 


94,272 


137,341 


66,195.02 





4,840,000 





98,646.20 


95,000 


95,000 


95,000 


2,772,683.79 


945,759 


8,288,159 


449,850 


29,425.13 











2,289,727.93 





2,319,356 


28,314 


11,186,144.31 


8,500 
$10,967,447 


40,290 
$29,769,030 


40,484 


$26,016,394.22 


$10,706,464 



4,416,053.26 

20,378,956.57 

1,221,384.39 

$26,016,394.22 

25,940,398.87 

75,995.35 

$26,016,394.22 



4,059,452 

5,706,641 

1,201,354 

$10,967,447 

10,967,447 

g 

$10,967,447 



3,815,935 
12,125,608 
13,827,487 



29,769,030 



$29,769,030 



3,845,998 

5,563,174 

1,297,292 

$10,706,464 

10,706,464 




Agency Description 

Through execution of the statutory responsibilities concern- 
ing Montana's land, water, and energy resources, the 
Department of Natural Resources and Conservation 
(DNRC) assists in maintaining and enhancing the quality of 
life in the state. Resources are managed and their develop- 
ment assisted to answer human needs and achieve economic 
well-being. Safeguards are provided so that development ac- 
tivities do not unduly jeopardize the human or natural envi- 
ronment, unavoidable effects are mitigated, and the resource 
needs of future generations can be met. The department is 
provided for in section 2-15-3301, MCA. 

Issues Addressed/Legislative Intent 

There is a reduction of 20.09 FTE in the Water Resources 
Division, .50 FTE is reduced in Centralized Services, 2.0 



FTE are reduced from both the Oil and Gas Division and 
the Energy Division. 

The agency is assessed a 4% vacancy savings in both years 
of the 1989 biennium. 

Non-operating costs are approximately 268% higher in FY88 
as compared to FY86. This increase is do a federal fund 
appropriation of $4,040,000 in FY88 for the Middle Creek 
Dam Project. 

Debt service for FY86 shows actual costs incurred. For 
FY88 and FY89, actual costs for debt service will not show 
until incurred. The $40,290 in FY88 is an appropriation in 
the oil and gas division of $3,170 for a lease-purchase agree- 
ment, and $37,120 in the water division for a loan repay- 
ment to (FERC) Federal Energy Regulation Commission 
and Cooney Dam. $40,484 is appropriated in FY89 foir the 
same purposes. 



DEPT NAT RESOURCE/CONSERVATION 



213 



CENTRALIZED SERVICES 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


42.50 


43.00 


41.00 42.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,123,391.72 

466,586.78 

35,474.58 


1.134,523 

330,812 

3,097 


1.133.859 

522,767 

3,975 


1,178,879 
413.833 

2,275 


$1,625,453.08 


$1,468,432 


$1,660,601 


$1,594,987 


1,117,902.48 
337,840.53 
169,710.07 


996,934 
281,667 
189,831 


1,012,620 
350,859 

297,122 


1,013,227 
350,717 
231,043 


$1,625,453.08 


$1,468,432 


$1,660,601 


$1,594,987 


1,625,453.08 


1,468,432 
$1,468,432 


1,660,601 
$1,660,601 


1,594,987 


$1,625,453.08 


$1,594,987 



Program Description 

The staff of the Centralized Services Program perform 
managerial and administrative support services essential to 
the effective operation of all DNRC divisions. Areas of 
responsibility include budgeting and accounting, payroll pre- 
paration, purchasing, systems analysis and data processing, 
inventory, legal counsel, personnel, research center, public 
information and involvement, and technical writing, editing 
and cartography. 

Issues Addressed/Legislative Intent 

There is .50 FTE reduction in Centralized Services from 
FY86 to FY89. This is the net result of the deletion of 1.50 
FTE technical writers and 1.0 FTE draftsman position, an 
attorney position transferred from the Water Resources 
Division, and an accounting position added through a 
modification request approved by the legislature. 
In FY87 the department entered into a two year contract 
with the Bureau of Land Management to provide a federal 
employee who has assumed the duties of the department's 
deputy director. The federal government pays 90% of the 
salary of the employee. As a result, the deputy director's 
position has been deleted in FY88 but is included in the 
FY89 budget. 

The only substantial increases to the operating budget are 
seen in areas mandated by other agencies: a $10,000 
increase in audit costs in FY88 only, $11,200 increase for 
non-general fund payroll costs, $16,000 increase for grounds 
maintenance (service of FWPD). Reductions occur in the 
following areas: $5,900 per year reduction for janitorial 
costs, $46,400 decrease in rent, $12,200 utility reduction, 
and a $17,300 reduction in moving costs. 

The equipment budget in FY86 included approximately 
$30,000 for computer related equipment. The total equip- 
ment budget for the 1989 biennium is $6,250. 

The funding of the Centralized Services Program has 
evolved from being funded almost entirely from the general 
fund to being funded by the various sources of funding 
found throughout the department. The major issue that con- 
tinues to surface concerns what proportion of non-general 
funds should be allocated to Centralized Services and how 
much general fund should support the program. The first 
attempt to allocate non-general funds was made in the 82-83 
biennium. No set procedure was used in assessing the alloca- 



tions; rather, it was a case of "what the fund could afford" 
and not all funds were considered. During the last two bien- 
niums the department has attempted to allocate the non- 
general funds in the following manner: Generally, a 5% rate 
was applied to the administrative costs of the programs that 
did not have grant or loan activity. A 10% rate was applied 
to the administrative costs of programs with grant or loan 
activity. This methodology was generally accepted by the 
50th Legislature. ( The usage of $78,650 RIT funds rather 
than general fund and the usage of oil overcharge funds: 
$73,160 in FY88 and $88,789 in FY89 are changes to the 
executive funding request.) 

The department did commit to a review of funding alloca- 
tions by source, as well as the methods for arriving at equi- 
table allocations. Methods of allocating non-general fund 
sources for the Centralized Services Program will be studied 
by the department and presented with the 1991 biennium 
budget request. 

The legislature chose to use $78,650 of RIT funds in each 
year of the biennium rather than using general fund. Oil 
overcharge funds: $73,160 in FY88 and $88,789 in FY89 
were used to replace general fund. 



Centralized Services Funding 


Funding Source 


FY88 


FY 89 


Rangeland 


$ 13,014 


$ 13.010 


Major Facility Siting 


20,000 


20,000 


Water Rights 


3,750 


3.750 


Grazing Fees 


500 


500 


Conservation District 


11,257 


11,254 


Alternative Energy 


26,161 


26,085 


Oil and Gas 


70,000 


70,000 


Renewable Resource Dev. 


8,584 


8,565 


Federal Indirect 


142,257 


42,254 


Water Development 


116,889 


116,868 


RIT Interest 


80,704 


80,685 


Oil Overcharge 


154.865 


88.789 


General Fund 


1,012,620 


1,013,227 


TOTAL 


$1660 601 


$1,594,987 



Modifications Approved: 

Loans and Grants Auditor - 1.0 FTE and the necessary 
funding: $24,786 in FY88 and $24,550 in FY89 arc 
included in the 1989 biennial budget. Position duties will 



214 



DEPT NAT RESOURCE/CONSERVATION 



include regular audits of all department loans and grants 
and all accounting functions in relation to water develop- 



ment bond sales. Funding for the position is from a variety 
of non-general fund sources. 



OIL & GAS REGULATION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Debt Service 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



574,510.55 


568,885 


568,073 


670,422 


208,099.05 


265,261 


286,801 


346,575 


33,917.45 


28,700 


10,434 


78,992 


1,954.11 





3,170 


2,905 



$818,481.16 

818,481.16 
$818,481.16 

818,481.16 



$862,846 

862,846 
$862,846 

862,846 
$862,846 



$868,478 

868,478 
$868,478 

868,478 
$868,478 



$1,098,894 

1,098,894 
$1,098,894 

1,098,894 



Program Description 

The function of the Oil and Gas Conservation Division is to 
administer Montana oil and gas laws to promote conserva- 
tion and prevent wasteful practices in the recovery of these 
resources. Exploration and drilling are regulated through 
permits, well classifications, inspections and investigations. 
Well spacing units, secondary recovery programs and pool- 
ing orders are established and engineering and geologic 
studies are conducted. 

Well information, including logs, completion data, test data 
and production records, is collected and filed for public and 
industry research. Well data and production information are 
also entered into an oil and gas database and statistical 
reports are compiled and published. 

Issues Addressed/Legislative Intent 

2.0 FTE field inspector positions were eliminated in FY87 
as part of the division's five percent reduction. These posi- 
tions are not included in the 1989 biennial budget. 
In accordance with 2-15-124 MCA, the budget includes 
compensation for board members. The rate used is $50 per 
day for seven board members, 18 days per year. The total 
appropriation for this purpose is $6,300, thus assuming full 
participation at all meetings. 

Included in the budget is a $5,000 biennial appropriation 
for possible Montana Environmental Protection Act litiga- 
tion, $20,000 biennial appropriation for microfilming and 
$10,000 a year in RIT funds for possible plugging and recla- 
mation of abandoned well sites per provisions of 82-10-402, 
MCA. 

Legislation is passed establishing an appropriation of 
$143,800 to conduct a programmatic review of enviromental 
impacts of oil and gas drilling and production in Montana 
during the 1989 biennium. To ensure that the issuance of 



drilling permits will not be delayed or curtailed during the 
programmatic review, legislation provides an exemption of 
oil and gas drilling permits from MEPA until the review is 
completed and adopted by the board, pursuant to public 
hearings under the Montana Administrative Procedures Act, 
but no later than June 30, 1989. 

In FV89, $24,400 is appropriated for the purchase of two 

4x4 pickups. These vehicles will replace trucks assigned to 

inspectors in Glendive and Shelby. 

Non-operating costs of $3,170 in FY88 and $2,905 in FY89 

is for the continuation of a lease-purchase agreement for a 

copier. 

HB795 revises the oil and gas conservation laws to incorpo- 
rate regulation of class II injection wells as defined by the 
federal Environmental Protection Agency. The intent of the 
legislation is for the Montana Board of Oil and Gas Conser- 
vation to adopt rules necessary to establish an enforceable 
program meeting the requirements of the Enviormental Pro- 
tection Agency and ensuring compliance with state water 
quality laws. To enable the division to administer this law, 
there is included in the bill an appropriation in FY89 for 
4.0 FTE positions: 1.0 professional position, 2.0 field 
inspectors and 1.0 secretary. Total funding included in 
HB795 IS $45,000 in FY88 for operating expenses for nego- 
tiations with the EPA for state primacy. The FY89 appro- 
priation includes: $102,600 for personal services, $130,400 
for operating costs and $47,000 for equipment. Costs are 
based on a full, self-supported program. Funding comes 
from an injection well user fee. It is assumed that the trans- 
fer will be completed and the board will be administering 
the program by July 1, 1988. 

The program is funded by oil and gas privilege and license 
tax and drilling permit fees. The only exception to this is 
the $10,000 per year of RIT interest for the plugging and 
reclamation of abandoned well sites. 



DEPT NAT RESOURCE/CONSERVATION 



215 



CONSERVATION DISTRICTS 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


5.20 


5.20 


5.20 5.20 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 
Grants 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



138,316.84 


137.995 


146,520 


146.353 


115,529.99 


378,371 


118,065 


118.777 


1,079.99 


250 


200 


1,156 


98,646.20 


95,000 


95,000 


95,000 


296,928.37 


220,000 


821,250 


291,250 


$650,501.39 


$831,616 


$1,181,035 


$652,536 


0.00 


340,923 








648,360.44 


487,990 


678,332 


649,833 


2,140.95 


2,703 


502,703 


2,703 


$650,501.39 


$831,616 


$1,181,035 


$652,536 


650,501.39 


831,616 


1,181,035 


652,536 


$650,501.39 


$831,616 


$1,181,035 


$652,536 



Program Description 

The Conservation Districts Division staff supervise the 
administration of soil and water conservation districts. The 
division staff perform eight major functions: 

Conservation Districts Supervision - provides supervision, 
assistance, and coordination to local conservation districts 
in their efforts toward proper development and management 
of land, water and other resources. 

The 208 Sediment Control Project - assists districts in com- 
plying with federal water-quality objectives, emphasizing a 
district level water quality program. 

The Rangeland Resource Project - established under the 
Montana Rangeland Resource Act by the 1977 Legislature, 
improves rangeland management and coordinates federal, 
state, and local range-management efforts. 

The Watershed Planning Project - reviews small watershed 
projects with assistance and partial funding by the Soil Con- 
servation Service of the U.S. Department of Agriculture 
under Public Law 566. 

The Cooperative State Grazing Districts - assists and advises 
the state grazing districts regarding the conservation, protec- 
tion, and restoration of grass, forage, and range resources. 

Resources Conservation Planning - provides an appraisal of 
soil, water, and related resources every five years and of cor- 
responding plans at conservation district, state, and national 
levels. 

The Rangeland Improvement Loan Program - provides low 
interest loans to private landowners for rangeland improve- 
ment and development projects. 

The Conservation District Grant Program (223) provides 
grants to conservation districts for a variety of conservation- 
related projects including planning, feasibility studies, and 
many applied conservation practices. 

Administrative Grants - provides grant funds to conserva- 
tion districts for district administration and operation. 
Riparian Management Program - provides grant funds to 
conservation district for demonstration projects showing 
non-typical streambank and riparian area protection mea- 
sures. 



Conservation Tillage Information Program - assists in estab- 
lishment of conservation tillage committees and provides til- 
lage information to individuals. 

Conservation Reserve Program - assists the conservation 
review group and conservation districts in establishing state- 
wide policy and implementing the reserve program portion 
of the Federal Farm Program. 

Issues Addressed/Legislative Intent 

There is no change in the FTE level of 5.2 from FY86 to 
FY88. Because of the small size of this program, the legis- 
lature did not apply vacancy savings to this program thus 
adding $1 1,594 to the biennial budget. 

The operating budget approved by the legislature is essen- 
tially the same budget as proposed by the executive. 

One-half of one percent of the coal severance tax is allo- 
cated for conservation projects. Each year of the biennium, 
$220,000 is appropriated for conservation district grants. 
Ten percent of the renewable resource development funds 
are allocated to conservation districts for development of 
water reservations. Each year of the biennium. $95,000 is 
appropriated for local assistance grants (conservation district 
administrative grants). In FV89, $900 is budgeted for the 
application fees for RRD and water development grants, 
thus assuming six applications at $150 each. The grazing 
district fees included for administration equal $6,000 per 
year. 

The division receives $65,600 of RRD funds each year of 
the biennium; $63,500 is appropriated for the Watershed 
Program and $2,100 is appropriated for administration. 
Saline seep is budgeted $71,250 of RIT funds in both FY88 
and FY89. 

The legislature increased the proposed executive budget by 
$30,000 for the biennium for the spending authority related 
to a 1987 biennium grant from RIT interest funds. The 
grant will be used for reclamation of streambank damaged 
by placer mining. Funding for this project is line itemed. 
The following table highlights funding for the 1989 bien- 
nium budget. 



216 



DEPT NAT RESOURCE/CONSERVATION 



Funding For The Conservation District Division 



Program 
Administration 
Watershed Plan. 
Conser. Dist. Sub. 
Saline Seep 
RIT Grant 

Conser. Dist. Grant Coal Tax 
HB 621 
TOTAL 



Funding Source 

RIT,RRD,Fed,Graz.Con. 

RRD 

RIT 

RIT 

RIT 



FY88 


FY89 


$201,285 


$202,786 


63,500 


63.500 


95,000 


95,000 


71,250 


71,250 


30,000 





220,000 


220,000 


500,000 





$652,536 



Legislative Intent: 

The division administers a low interest rangeland improve- 
ment loan program. To date fifty-two loans have been made. 
The legislature approved the continuation of the loan pro- 
gram and language allowing the division to make up to 
$500,000 worth of loans during the biennium. 



$220,000 for each year of the biennium is included for con- 
servation district grants. Language allows the division to dis- 
tribute additional grant funds that may be received by diver- 
sion of unexpended grant funds. 

HB 621, appropriates $500,000 to conservation districts for 
projects that promote energy conservation in agriculture. 



WATER RESOURCES & PLANNING 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 

Operating Expenses 

Equipment 

Capital Outlay 

Grants 

Benefits and Claims 

Transfers 

Debt Service 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



3,545,534.24 

1,367,880.42 

103,616.72 

26,024.86 

1,504,444.36 

29,425.13 

2,289,727.93 

11,184,190.20 


3,460,549 

1,103,544 

14,470 









8,500 


3,387,388 

2,446,337 

71,759 

4,840,000 

4,617,347 



28,314 

-37,120 


3,361,002 

1,169,851 

44,913 







28,314 

37,579 


$20,050,843^6 


$4,587,063 


$15,428,265 


$4,641,659 


2,900,724.08 

17,112.563.45 

37,556.33 


2,277,125 

2,267,138 

42,800 


2,365,163 

8,953,427 

4,109,675 

$15,428,265 


2,381,653 

2,190,331 

69,675 


$20,050,843.86 


$4,587,063 


$4,641,659 


20,050,843.86 
$20,050,843.86 


4,587,063 
$4,587,063 


15,428,265 
$15,428,265 


4,641,659 
$4,641,659 



Program Description 

The Water Resources Division staff are responsible for 
many programs associated with the uses, development and 
protection of Montana's water. These programs include the 
following: 

Water Planning - (Title 85, chapter I, MCA) - administers 
Montana's water planning responsibilities, which include 
ensuring that Montana's interests are represented in national 
water policy and federal water resources programs and 
projects conducted in Montana. The program includes pro- 
jection of future water requirements, formulation of plans 
and alternatives, administration of the water reservation 
statutes, identification of water storage needs and projects, 
evaluation of effects of varying levels of water use, recom- 
mendations for implementation methods for water resource 



programs and projects, and development of slate water 
policy. 

Water Rights - (Article IX, Section 3 of the Montana Con- 
stitution) - administers a permit system for new appropria- 
tions and is centralizing all existing water rights records and 
administers the Water Rights Adjudication Act. which estab- 
lished a water court system to adjudicate existing water 
rights claimed prior to July 1, 1973. Although the responsi- 
bility for the adjudication program is with the Judiciary, the 
division staff handles technical and administrative tasks for 
the court. 

Water Projects - (Title 85, chapter 1, MCA) - provides water 
to Montana citizens by developing, operating and maintain- 
ing a system of 40 state-owned water conservation projects. 

Floodplain Management Program - (Title 76, chapter 3, 
MCA) determines 100-year frequency floodway and flood- 



DEPT NAT RESOURCE/CONSERVATION 



217 



plain boundaries for all streams in Montana and manages 
and regulates lloodprone lands and waters to prevent or alle- 
viate Hood threats to life and property. As the state's coordi- 
nating agent for the Department of Housing and Urban 
Development Federal Flood Insurance Program, the Flood- 
plain Management Program staff assist local political sub- 
divisions in meeting flood insurance eligibility requirements. 
Dam Safety - (Title 85, chapter 15, MCA) - administers a 
permit system for construction, repair, alteration, and 
removal of state or private dams 50 acre-feet or over where 
the failure may cause a loss of life; may make emergency 
repairs or breach a dam to safeguard life or property; estab- 
lish safety standards for the design, construction, operation 
and maintenance of high hazard dams and reservoirs. 

Board of Water Well Contractors - (Title 37, Chapter 43, 
MCA) administer and participate with the Board of Water 
Well Contractors the licensing of well drillers and the devel- 
opment and enforcement of well construction standards. 
Renewable Resources - (Title 90, chapter 2, MCA) - imple- 
ments the Renewable Resource Development (RRD) act. 
The RRD program invests coal severance funds in Montan- 
a's renewable resources, cither through direct grants, loans 
or as security for the issuance of state revenue bonds. The 
Water Resources Division staff review all applications for 
Renewable Resource loans and grants and make recom- 
mendations to the Governor. When RRD grants are 
awarded by the Legislature, the staff of the Water Resources 
Division administer the grants to insure proper execution of 
legislative intent. 

Water Development - (Title 85, chapter I, MCA) - adminis- 
ters Montana's Water Development Program, which pro- 
vides grants and loans to public and private entities. In ad- 
dition, bonds backed by the coal severance tax are sold for 
the development of water resource projects. 
Water Allocation Negotiations - (Title 85, chapters I and 2, 
MCA)- ensures that Montana's interests are represented in 
negotiations with other states and Canada regarding water 
allocation. Staff assistance is also provided to the Reserved 
Water Rights Compact Commission, which negotiates with 
federal agencies and Indian tribes concerning reserved water 
rights. 

Issues Addressed/Legislative Intent 

To comply with the FY87 five percent reduction, the Water 
Resources Division eliminated 2.87 FTE. Because of a net 
reduction in the water rights adjudication program of 
$483,212 in each fiscal year of the biennium, the depart- 
ment estimates that it will eliminate an additional 19.22 
positions. Legislative intent of the cut in water adjudication 
was not to dictate how the reductions would be made. As 
such, DNRC has the latitude to chose specifically how the 



reductions will be made, and consequently, which positions 
will be cut. HB 6 adds $50,000 in RIT to personal services 
for administration. 

The Water Rights Adjudication Program is part of the 
Water Rights Bureau. The bureau's budget is approximately 
$2,242,000 per year (after the $483,212 per year reduction) 
Of this total, all but $75,000 per year is funded by general 
fund. 

In regard to the Water Rights Adjudication Program cut. the 
Supreme Court has recently decided that it will adopt rules 
on how the water right claims examination will be per- 
formed. According to DNRC, the utilization of new rules 
based on the budget reduction, about 4,000 claims will be 
verified per year reflecting a decrease of about 67% from the 
past claim examination rate. It should also be noted that the 
1987 Legislature provided a biennial appropriation of 
$75,000 to the EQC for use by the Water Policy Committee 
to evaluate the accuracy and viability of the current adjudi- 
cation program. Results are to be reported to the 1989 
Legislature. 

In addition to the reduction in the Water Rights Adjudica- 
tion Program the budget is also reduced $13,300 for water 
testing and funding for the flood plains hearings is reduced 
by $9,300 per year. 

It should also be noted that in FY86, the expenditures for 

the state water projects ($378,820) was included in operating 

expenses. In FY88, the appropriation for the state water 

projects is listed in the non-operating category. 

The equipment budget for the biennium includes $60,000 

for the replacement of three vehicles, office equipment 

totalling $4,100, engineering equipment for field usage 

$38,00(), and computer equipment $10,000, and other 

equipment of approximately $4,500. 

Included in non-operating expenses are the following: 

State Water Projects 

- Middle Creek Dam Rehabilitation $500,000 

- North Fork of the Smith River Dam rehabilitation study 
$275,000 

Petrolia Dam Emergency Warning and Evacuation Plan 

$25,000 
(Up to $100,000 of these funds may be used for unantici- 
pated project repairs) 

All of the above-listed projects are biennial appropriations. 
Also included in non-operating costs: 

Poplar River water quality monitoring $15,650 (general 

fund) 

- Middle Creek Dam Project $4,040,000 (federal funds) 

- Water Conservation Bond payment $28,300 per year 
Debt service repayments $37,100 per year 

The following table shows funding for the Water Resource 
Division by bureau (Grants not included). 



218 



DEPT NAT RESOURCE/CONSERVATION 





Water Resources Division - Funding By Bureau FY88 


Water 




Bureau 


General 


Water 


Water 


RRD 


RIT 


Federal 




Fund 


Well 


Dev 






Right 




Admin 








175,312 





94,688 








Water Well 


10.000 


30,000 

















Water Right 


1,967,471 














75.000 





Water Manag. 


257,158 











342,568 








Water Dev. 








335,438 


65,000 











Engineering 








1,480,000 











4,109,675 


RWRCC 


114,884 











114,883 








Missouri Riv. 














174,407 








Dam Safety 














127,563 








Poplar River 


15,650 




















Powder 
















River 














35,500 








Total 


2,365,163 


30,000 


1,990,750 


65,000 


889,609 


75,000 


4,109,675 






Water Resources - Funding by 


Bureau FY89 








Bureau 


General 


Water 


Water 


RRD 


RIT 


Water 


Federal 




Fund 


Well 


Dev 






Right 




Admin 








174,273 





95,727 








Water Well 


10,000 


30,000 

















Water Right 














75,000 







1,967,471 
















Water Manag. 


273,792 











313,934 








Water Dev. 








335,438 


65,000 











Engineering 








671,410 











69,675 


RWRCC 


1 14.740 











114,739 








Missouri Riv. 














174,358 








Dam Safety 














140,452 








Poplar 
















River 


15,650 








$ 











Total 


2,38 1^653 


30,000 


1,181,121 


65,000 


839,210 


75,000 


69,575 





Legislative Intent: 

Language in House Bill 2 prohibits the usage of more than 
$584,788 in operation costs to be used for adjudication of 
pre-July 1, 1973. water rights. 
Modifications Approved: 

Reserved Water Rights Compact Commission - The com- 
mission was created in 1979 as part of the statewide water 
adjudication process. The commission is authorized to nego- 
tiate water rights settlements with federal agencies and tribes 
claiming federal reserved water rights in the state of Mon- 
tana. Enabling legislation was passed by the 1987 Legislature 
for the Commission to continue work through June 30, 
1993. Funding is provided for FY88 and FY89. The pro- 
gram is funded one half with general fund and one half with 
RIT interest. Funding in FY88 equals $229,479 and 



$229,479 in FY89. Six FTE are also continued in the 1989 
biennium. 

Missouri River Reservation Program - This modified 
enables DNRC to continue a comprehensive basin-wide 
water reservation process on the portion of the Missouri 
River from Canyon Ferry to Fort Peck. 1.0 FTE is added 
for the biennium and funding is $174,407 in FY88 and 
$174,358 in FY89 of RIT. 

Dam Safety - This modified is approved for the 1989 bien- 
nium and funds the review inspections on high hazard 
dams. Three FTE are approved in FY88 and 4.0 FTE in 
FY89. RIT funds the modified: $127,563 in FY88 and 
$140,452 in FY89. 

Powder River Negotiations - $35,500 of RIT is appropriated 
for the biennium to continue negotiations with Wyoming 
relative to the Powder River water quality. 



DEPT NAT RESOURCE/CONSERVATION 



219 



ENERGY PLANNING 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


53.43 


38.00 


43.00 43.00 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay 
Grants 
Transfers 

Total Program Costs 
General Fund 

Slate Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 
Budget Amended Services 

Total Service Costs 



1,125,494.90 

711,802.56 

22,336.05 

40,170.16 

971,311.06 

0.00 

$2,871,114.73 


956,055 

1,532,426 

3,250 



725,759 



$3,217,490 


1.269,893 

4.212,250 

7,904 



2,849,562 

2,291,042 

$10,630,651 


1.070,032 

1,479,751 

10,005 



158,600 



$2,718,388 


397,426.70 

1,461,710.99 

1,011,977.04 

$2,871,114.73 


444,470 

1,807,000 

966,020 

$3,217,490 


438,152 

1,274,512 

8,917,987 

$10,630,651 


451,118 

1,273.399 

993,871 

$2,718,388 


2,795,119.38 
75,995.35 


3,217,490 



$3,217,490 


10,630,651 



2,718,388 



$2,871,114.73 


$10,630,651 


$2,718,388 



Program Description 

The staff of the Energy Division administer the Montana 
Major Facility Siting Act (MFSA), the Alternative Energy 
Grant and Loan Program, the Energy Emergency Powers 
Act, and federally-sponsored energy conservation programs. 
These responsibilities are carried out by three bureaus. 
The Facility Siting Bureau designs and conducts environ- 
mental impact and monitoring studies and performs analy- 
ses of energy projects under either MFSA or the Montana 
Environmental Policy Act (MEPA). In addition, the bureau 
conducts and/or supervises impact assessment and research 
studies when its environmental expertise is requested by the 
Board of Natural Resources and Conservation, other 
bureaus, divisions, or state or federal agencies. The bureau 
1) writes, oversees, and implements administrative rules for 
MFSA; 2) evaluates the environmental and economic im- 
pacts of transmission lines, power plants, pipelines, and 
other major energy facilities, or projects in accordance with 
rules, and regulations of MFSA, MEPA or other environ- 
mental laws; 3) monitors construction and cleanup activities 
to determine compliance with state conditions of approval 
adopted for projects; and 4) researches and gathers informa- 
tion to formulate and recommend environmental standards, 
siting policies and mitigating measures for adoption by the 
Board or other state agencies. 

The Planning and Analysis Bureau is responsible for the 
conducting energy need and energy alternative analysis as 
required under MFSA and MEPA. The bureau develops and 
analyzes energy policy, evaluates and monitors energy issues 
that may affect Montana, short-term (contingency) and long- 
term energy planning studies. In addition, the bureau ad- 
ministers the Energy Emergency Powers Act and monitors 
petroleum supplies and demand in Montana, collects and 
updates energy data, conducts feasibility studies of alternate 
energy and energy conservation, provides planning and ana- 
lytic support to other bureaus in the division and conducts 
other special projects relating to energy. 
The Conservation and Renewable Energy Bureau's purpose 
is to reduce Montana's dependence on fossil fuels by 
encouraging energy conservation and the use of renewable 
resources. Bureau staff administer the Renewable Energy 



and Conservation Program and approximately ten other 
federally funded conservation programs. They award grants 
and loans to individuals and organizations for projects that 
research, develop, demonstrate, or commercialize energy 
conservation and renewable energy sources such as solar, 
wind, geothermal, water, and biomass. The bureau staff are 
also responsible for development and implementation of 
several energy conservation under the U.S. Department of 
Energy and Bonneville Power Administration. 

Issues Addressed/Legislative Intent 

The personal services portion of the Energy Division budget 
for the 1989 biennium continues the 2.0 FTE reduction 
made during the Special Session for the 1987 biennium. 
These 2.0 FTE's were funded with general fund. 

14.2 FTE are authorized with an appropriation of $438,152 
in FY88 and $451,118 in FY89 of general fund to support 
division administration, facility siting, and energy planning 
and analytic activities. 

13.25 FTE and $738,486 in FY88 and $642,294 in FY89 of 
federal funds are appropriated to promote energy conserva- 
tion in Montana. The federal funds arc provided primarily 
by the Bonneville Power Administration and the U.S. 
Department of Energy. 

3.75 FTE and $253,450 in FY88 and $252,336 in FY89 
from the alternative energy account is appropriated to the 
division. An earmarked allocation of coal severance tax 
revenues and repayment of alternative energy grants and 
loans are the source of revenue. All coal severance tax reve- 
nues collected during the 1989 biennium are appropriated to 
the Office of Science and Technology. The other credits to 
the alternative energy account, including grant and loan 
repayments, are appropriated to the Energy Division. 

$1,021,062 in spending authority is appropriated for oper- 
ating expenses related to preparing environmental impact 
statements under the Montana Major Facility Siting Act 
(MFSA) and the Montana Environmental Protection Act 
(MEPA). This authorization includes .8 FTE as general fund 
offset for four general funded FTE's and provides for addi- 
tional modified FTE's to allow the Department to complete 



220 



DEPT NAT RESOURCE/CONSERVATION 



its work within statutory time frames as applications are 
received and funds are avaiiabe. 

The general fund appropriation to the Facility Siting Bureau 
has historically served two purposes. 1) Provide funds to ad- 
minister enviornmental regulations; and, 2) provide a cush- 
ion or "safety net" to ensure employment continuity for the 
core staff. The "safety net" was to be employed only when a 
lack of project fees would have otherwise forced 
dismantiling the core staff. In the past, the availability of 
project funds for use by core staff has made it possible to 
turn the "safety net" portion of the allocation back to the 
general fund. Reductions to the general fund appropriation 
in the last few years has eliminated the "safety net". The 
1987 Legislature also passed HB397 which, under certain 
conditions, will exempt 100 and 115-kv transmission lines 
from the Major Facility Siting Act. Facilities qualifying for 
exemptions under HB397 will tend to increase routine 
administrative costs, since verification that qualifying condi- 
tions are met will increase administrative workload. HB397 
creates responsibilities for the department, but since no 
application is filed, no fee can be collected to fund the 
responsibilities. Hence, general fund administrative costs 
will tend to increase and reversions back to the general fund 
may decrease. 



In FY88 there are two biennial appropriations to continue 
mitigation trust funds created as conditions for project 
approval under the Major Facility Siting Act (MFSA). 
$1,650,000 is reappropriated for the Rock Creek mitigation 
trust fund and $40,000 is reappropriated for the Lake 
Broadview mitigation trust fund. 

$10,000 is appropriated in FY88 from Warner Amendment 
Overcharge funds for the institutional conservation program 
for grants to schools and hospitals. 

$20,000 of federal funds is appropriated each year for 
project grants under the biomass utilization and 
cogeneration program. 

Legislative Intent: 

House Bill 2 stipulates that funding for Lake Broadview 
mitigation. Rock Creek mitigation and Chevron Oil over- 
charge are biennial appropriations. 

House Bill 2 states that the Energy Division is authorized to 
spend up to $40,000 it may receive from the Bonneville 
Power Administration for technical assistance and up to 
$50,000 it may receive from the Montana Power Company 
for builder training. 

Funding for the Energy Division by program activities is 
shown below (Grants not included). 



Funding For The Energy Division By Program - FY88 



PROGRAM 
Prog. Admin 
Facility Siting 
Energy Planning 
Conservation 
Total 



G/F 

117,857 
132,950 
187,345 


MFSA/ 
MEPA 

1,021,062 


ALTER. 
ENERGY 

253,450 
253,450 


FED 
15,000 

mm 


OTHER 

1 ,690,000 
15,500 
10,000 


438.152 


1,021,062 


1,715,500 



Funding For The Energy Division By Program - FY89 



PROGRAM 

Prog. Admin 
Facility Siting 
Energy Planning 
Conservation 
Total 



G/F 

118,612 
136,649 
195,857 

451,118 



MFSA/ 
MEPA 



1,021,063 



ALTER. 
ENERGY 



252,336 
252,336 



FED 
15,000 



978,871 
993,871 



Modifications Approved: 

Residential Construction Demonstration Program - The 
legislature appropriated $220,194 in FY88 and $264,042 in 
FY89 and authorized 4.0 FTE lor ihc Residential Construc- 
tion Demonstration Project. Funding for this program is 
provided by a federal grant from the Bonneville Power 
Administration through the Washington State Energy Office. 
The program is aimed at researching and demonstrating new 
residential building techniques and product innovations that 
will further enhance the state-of-the-art in constructing 
energy efficient housing. 



Technical Assistance Program - $72,639 in FY88 and 
$72,535 in FY89 and the authorization for 3.0 FTE is 
appropriated for the Technical Assistance Program. The 
Bonneville Power Administration funds the Technical Assis- 
tance Program under the provisions of the Pacific North- 
west Electric Power Planning and Conservation Act. This 
modification provides technical assistance and information 
to local government, commercial, agricultural, and residen- 
tial consumers of electricity in western Montana to encour- 
age Bonneville customers to conserve electrical energy. 
BPA Coordination Agreement - $15,000 is appropriated in 
each year of the biennium for the BPA coordination agree- 
ment. The BPA funds this agreement to facilitate state parti- 



DEPT NAT RESOURCE/CONSERVATION 221 

cipation in the review of existing and in the development of are appropriated for the biennium to update analysis previ- 
new Bonneville policies and programs as they affect the ously done by the department. The division will analyze cur- 

interests and authorities of states in the Pacific Northwest. rent building practices in Montana for use in estimating the 

Chevron Oil Overcharge - $15,500 of Chevron oil over- ^ost effectiveness of energy savings measures that can be 

charge funds mstalled by builders when constructmg new homes m Mon- 

tana. Information will also be used to direct the depart- 
ment's conservation programs in the new residential sector. 



222 



DEPARTMENT OF REVENUE 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



1,029.88 



984.95 



886.67 



898.17 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 
Benefits and Claims 
Transfers 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



20,681,801.34 

33,223,508.72 

■527,480.14 

9,990,968.56 

3,274.00 

15,822,072.50 

$80,249,105.26 

18,841,525.08 

12,737,905.59 

1,363,383.52 

47.306.291.07 

$80,249,105.26 

80.249,105.26 

$80,249,105.26 



20,440,277 

33,902,260 

349,773 

160,000 



14,330,000 

$69,182,310 

17,267,091 

880,288 

1,560.191 

49,474.740 

$69,182,310 

69.182.310 

$69,182,310 



19.532,852 

6.404.672 

151.932 

180,000 



120,000 

$26,389,456 

17,482,614 

1,297,951 

1,444,152 

6,164,739 

$26,389,456 

26,389.456 

$26,389,456 



19,767,999 

6,585,307 

227.073 

195.000 





$26,775,379 

17.511.147 

1.171.994 

1.955,688 

6.136.550 

$26,775,379 

26.775,379 

$26,775,379 



Agency Description 

The principal responsibility of the Department of Revenue 
is to collect and enforce approximately 31 state taxes and 
fees. The Department is also responsible for regulating the 
sale and distribution of alcoholic beverages. 

Issues Addressed/Legislative Intent 

The budget for the Department of Revenue reflects a sub- 
stantial decrease from the FY86 level of expenditures. The 



general fund decreases $1.3 million from the P^86 level for 
both years. The FTE level decreases from 1,029.88 to 
864.67 in FY88 and 860.97 in FY89. This decline is due to 
several factors. This decrease is due to the end of the reap- 
praisal cycle, the continuing conversion of state liquor stores 
to agency stores, and elimination of FTE to absorb the un- 
funded pay plan. 



DIRECTOR'S OFFICE 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


16.50 


14.50 


15.00 15.00 



Personal Services 
Operating Expenses 
Equipment 
Benefits and Claims 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



496,771.40 


480,823 


520,338 


520,079 


207,562.69 


120,663 


267,130 


143,883 


827.14 


118 


675 


700 


3,274.00 












$708,435.23 

521,755.23 
114,769.00 
71,911.00 

$708,435.23 
708,435.23 

$708,435.23 



469,156 
86,856 
45.592 



$601,604 

601.604 
$601,604 



$788,143 

612,835 

96,506 

78.802 

$788,143 

788.143 

$788,143 



535,697 
80,365 
48,600 



$664,662 

664.662 
$664,662 



Program Description 

The Director's Office provides management control, coordi- 
nation of policy direction, strategic planning, legal and per- 
sonnel services that assist the tax programs in carrying out 
their respective collection and enforcement responsibilities. 
This office provides detailed studies concerning the impact 



on state and local revenue sources caused by legislative ac- 
tion, executive decisions and changes in economic patterns. 
It provides a fact-finding service to the legislative and 
executive branches of State government, to the public and 
others interested in revenue issues in the State. In addition, 
it publishes major statistical reports on Montana taxation 
and a summary of all taxes, licenses and fees of the State. 



DEPARTMENT OF REVENUE 



223 



The program provides a variety of management and admin- 
istrative services such as legal services, planning and 
research, and personnel to all program areas. 
The purpose of the program is to improve the efficiency of 
Departmental operations, increase the speed and accuracy 
with which tax payments are handled, and increase the 
degree of taxpayer compliance with state laws. 

Issues Addressed/Legislative Intent 

The director's office budget was left at the FV86 level with 
the following adjustments. A 4% vacancy savings was 
applied against personal services, but the budgeted amount 
for personal services still exceeds the FY86 level due to pro- 



longed vacancies in FY86 which produced excess vacancy 
savings. 

Adjustments were made for increased insurance costs 
totalling $11,728 per year. The cost of the legislative audit 
was increased from $99,750 to $115,200 and is reflected in 
the FY88 budget. The remaining reductions result from the 
deletion of a one-time contract for approximately $10,000 
per year. 

Funding for this division is comprised of approximately 
12% from the highway special revenue account. Liquor Divi- 
sion funds support approximately 7% of the base budget. 
Support of $20,800 is included for the Liquor Division's 
share of the audit in 1^88. The remaining program funding 
is general fund. 



CENTRALIZED SERVICES DIVISION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


37.27 


37.27 


35.27 35.27 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 
Transfers 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



733,690.86 


748,029 


746,910 


747,187 


124,301.66 


87,292 


136,145 


142,076 


6,782.50 


6,000 


4,091 


4,103 


2,516,012.03 











1,750,680.00 












$5,131,467.05 

858,175.02 

4,266,692.03 

6,600.00 

$5,131,467.05 

5.131,467.05 

$5,131,467.05 



$841,321 



836,321 



5,000 



$841,321 

841.321 

$841,321 



$887,146 

880,546 



6,600 

$887,146 

887,146 

$887,146 



886,766 



6,600 



$893,366 

893,366 



Program Description 

The Centralized Services Division provides support services 
to all Department divisions. In addition, the division pro- 
vides bad debt collection and write-off service for all state 
agencies by collecting debts owed and writing off 
uncollectible debts. The program also administers the beer 
and wine tax statutes regarding department tax collections. 
Specific responsibilities include: 

Recording, summarizing, analyzing and reporting budget 
and accounting data including cash receipts, distribution 
and payment of invoices; 

- Maintaining beer and wine tax collection records and 
completion of monthly collection reports; 

- Providing centralized payroll services and position con- 
trol services for all divisions; 

- Maintaining records for all Department fixed assets; 

- Performing inventory, fiscal and performance audits of 
all state liquor stores; 

- Depositing all tax collections for the Department; 
Receiving and distributing all Department mail; 

- Maintaining a supply operation for liquor stores and a 
purchasing function for Department purchases; 

- Maintaining a revenue-producing debt collection service 
for all state agencies. 



Issues Addressed/Legislative Intent 

The personal services portion of this division's budget 
increases over the FY86 level despite the deletion of two 
FTE needed to absorb the unfunded pay plan. This increase 
is due to forced vacancy savings realized in FY86 due to 
holding positions open. The personal services budget for the 
1989 Biennium represents all remaining positions fully 
funded and a 4% vacancy savings applied against total bud- 
geted personal services. 

The legislature provided funding for operation of the reve- 
nue control data processing system that was developed 
during FY86. This system will automate all accounting, 
cashiering and reconciliation for the department. This sys- 
tem was recommended by the Legislative Auditor. The on- 
going cost of this system was budgeted at $43,758 in FY88 
and at $49,195 in FY89. Printing costs were reduced from 
the 1986 level by $27,000 per year for printing associated 
with the property appraisal effort in FY86 which will not 
recur. Rent expenses increase $12,000 per year for this 
department's share of the upkeep of the capitol complex 
grounds. 

Equipment includes one typewriter, one personal computer, 
and one microfiche reader in each year. 
Local assistance payments are anticipated to be approxi- 
mately at the FY86 level. These payments are for the return 
of liquor, wine and beer tax revenues to the counties. These 
payments are not reflected in the budget as they are appro- 



224 



DEPARTMENT OF REVENUE 



priated by statute and it is no longer necessary to appropri- 
ate these funds in the budget. 

Transfer payments of resource indemnity trust (RIT) funds 
to other state agencies was appropriated through language 
because both the revenue that will be available and the 
amount of projects that would be approved by the legis- 
lature in later session action was unknown. Language in 



HB2 provides that "Funds for resource indemnity trust 
projects approved by the 50th Legislature in other state 
agencies are appropriated for transfer purposes to the extent 
that these funds are available." 

This division receives federal funds for administrative sup- 
port of the child support enforcement program. The general 
fund also provides funding for the division. 



DATA PROCESSING DIVISION 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


60.50 


54.50 


52.50 52.50 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,205,762.22 
326,814.11 
38,714.43 



$1,571,290.76 



1,165,145 
194,363 
8,042 



1,228,458 
196,228 




$1,367,550 



$1,424,686 



1,227,338 

202,186 





$1,571,290.76 


$1,367,550 


$1,424,686 


$1,429,524 


1,151,103.76 

420,187.00 

$1,571,290.76 


938,313 

429,237 

$1,367,550 


1,005,278 

419,408 

$1,424,686 


1,007,144 

422,380 

$1,429,524 


1,571,290.76 


1,367,550 


1,424,686 


1,429,524 



$1,429,524 



Program Description 

The Data Processing Division provides automated data and 
word processing services, detailed systems requirements 
analysis, systems development and maintenance services, 
technical support for Departmental and personal computers, 
and research services relating to tax policy, revenue esti- 
mating, and Montana tax laws. 

Issues Addressed/Legislative Intent 

The personal services for this division were reduced by 9.0 
FTE after taking into account the reorganization of the divi- 
sion. Four FTE were reduced to absorb the unfunded pay 
plan. Four FTE were reduced because they were "sunsetted" 



last session. These positions were of a one-time nature to 
help establish the new data systems in the department. 
Finally, the legislature reduced one additional FTE that had 
been held open in FY87 by the division to generate vacancy 
savings. 

Operating costs decrease because one-time printing costs 
totalling $135,000 were deleted from the base. These FY86 
costs, associated with the reappraisal effort, are not re- 
curring costs. 

Funding for this program is made up of approximately 29% 
from Liquor Division revenues and the remainder from the 
general fund. 



DEPARTMENT OF REVENUE 



225 



INVESTIGATION AND ENFORCEMENT 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,653,816.89 


1,586,654 


1,670,978 


1,682,590 


436,625.25 


471,171 


497,554 


516,679 


85,770.37 


29,547 


48,625 


12,089 


1,835,194.56 


160,000 


180,000 


195,000 


$4,011,407.07 


$2,247,372 


$2,397,157 


$2,406,358 


594,844.49 


543,115 


581,656 


573,449 


1,876,006.43 





230,728 


238,348 


1,243,936.15 


1,414,448 


1,315,424 


1,326,171 


296,620.00 


289,809 


269,349 


268,390 


$4,011,407.07 


$2,247,372 


$2,397,157 


$2,406,358 


4,011,407.07 


2,247,372 


2,397,157 


2,406,358 


$4,011,407.07 


$2,247,372 


$2,397,157 


$2,406,358 



Program Description 

Investigation and Enforcement Division 
The Investigations and Enforcement Division administers 
the investigation program and the child support enforcement 
program. 
Administration 

The Administration Program is responsible for the Investi- 
gation and Child Support programs. 

Investigation Program 

The Investigations Program performs the criminal and 
regulatory investigative functions required by state and fed- 
eral statute. Specific areas of responsibility are alcohol bev- 
erage control, video poker and keno enforcement under con- 
tract to the Department of Commerce, welfare and Medic- 
aid fraud investigation, cigarette tax enforcement, criminal 
income tax and intra departmental investigation as well as 
special investigation when required. 

All persons and organizations involved in the sale of alco- 
holic beverages including retailers, distributors, representa- 
tives, brewers, distillers, and carriers must obtain a license 
to operate. Applications are processed by the Liquor Divi- 
sion and all applicants are investigated by the Investigations 
Program. In addition, the Investigations Program enforces 
Montana alcohol beverage control laws on the state's 3,054 
licensed premises. 

All video poker and keno machines placed for play in the 
state must be inspected. In addition to inspecting new 
machines the Investigations Program provides law enforce- 
ment to control the manner in which the state's licensed 
machines operate. The investigators also detect and seek 
prosecution of machine tampering. 

The Investigations Program has the sole responsibility for 
the investigation of criminal welfare and Medicaid fraud. 
The Program annually receives over 150 requests to investi- 
gate public assistance fraud involving approximately 
$300,000 in public assistance monies. 
Child Support Enforcement 

The Child Support Enforcement Program is a revenue 
generating program authorized by Part D of Title IV of the 
Social Security Act. It was created "for the purpose of estab- 



lishing, enforcing, and collecting support obligations owed 
by absent parents to their children and the spouses (or 
former spouses) with whom such children are living; addi- 
tionally locating absent parents, establishing paternity, and 
obtaining child and spouse support helps assure assistance 
in assuring support is available under this part for all chil- 
dren for whom such assistance is requested." 

The Program generates revenue from three sources: 

the recovered AFDC funds originally paid out by the 

State of Montana; 
- the federal incentives paid to states for operating a cost 

effective program; and 

fees generated in Non-AFDC cases. 

Issues Addressed/Legislative Intent 

The Investigation and Enforcement Division contains three 
separate functions. Legislative action is explained for each 
of these functions in the following narrative. 
Administration Program 

This program was decreased slightly from the FY86 level. 
The primary change is the source of funding; general fund 
declines while federal and liquor funding increases. The 
non-general fund sources were increased reflecting the 
changing workload of the division to non-general fund sup- 
ported areas. 
Investigations and Enforcement 

The investigations and enforcement program was altered by 
the 50th Legislature, especially with regard to the video 
poker licensing function. The licensing and enforcement 
functions for video poker machines had been housed in this 
division in the 1987 Biennium. The legislature passed 
HB189 which transfers the licensing function to the Depart- 
ment of Commerce's newly created Lottery Division. The 
Lottery Division will now contract with the Investigations 
Division in the Department of Revenue for enforcement of 
the video poker and keno licensing laws. The Department of 
Commerce is currently oriented toward licensing functions, 
while the Department of Revenue is involved in enforce- 
ment activities in the same establishments that have video 
poker machines. 
Child Support Enforcement 



226 



DEPARTMENT OF REVENUE 



At the department's request, FTE levels decrease for this 
program from the FY86 level due to continuing only 9 of 
the 13 "sunsetted" positions authorized in FY86. The 49th 
Legislature required that these positions, added in FY86, be 
submitted as modified level positions. After review of the 
performance of these positions the legislature approved the 
continuance of these positions as permanent positions begin- 
ning in FY88. 

Operating costs increase $63,400 for anticipated operating 
costs associated with the new computer system developed in 
the 1987 Biennium. Other areas of increase include $20,490 
in FY88 and $26,196 in FY89 for increased laboratory 
paternity tests, additional payments to the internal revenue 
service for income tax return matchups, and for additional 
hearing officer expenses. 
Equipment includes one vehicle in FY88 only. 
Non-operating expenses reflect pass through funds to local 
governments for assistance with child support activities at 
the local level. 

Funding reflects a required general fund match of 34 % 
necessary to receive federal funds. 

The legislature also approved the proposed reorganization 
plan to combine the medicaid fraud bureau into the existing 
investigations bureau. 

The following graph shows for every state dollar spent how 
much the state has saved through child support enforce- 
ment. The average since FY76 has been nearly two state 
dollars saved for every state dollar spent. This is the net 
reimbursement to the state. Total collections are also dis- 
tributed to mothers, the federal government, and county 
government. 



Child Support 



18-1 
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HISTORICAL CHILD SUPPORT PERFORMANCE COST 
EFFECTIVENESS 



Child Support Cost Effectiveness 


$ Saved Per $ Spent 


FY 


Amount 


76 


$0.81 


77 


' $1.18 


78 


$1.15 


79 


$0.91 


80 


$1.07 


81 


$1.56 


82 


$2.01 


83 


$2.44 


84 


$2.48 


85 


$2.79 


86 


$2.10 


87 


$2.11 



DEPARTMENT OF REVENUE 



227 



LIQUOR DIVISION 
Budget Detail Summary 



Actual 
FY 198« 



Budgeted 
FY 1987 



Appropriated 



Full Time Equivalent Employees 



199.08 



199.08 



138.50 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



3,311,652.92 

29,119,380.72 

15,146.93 

14,071,392.50 

$46,517,573.07 

46,517,573.07 

$46,517,573.07 

46,517,573.07 

$46,517,573.07 



4,346,111 

29,846,991 

187,000 

14,330,000 

$48,710,102 

48,710,102 

$48,710,102 

48,710,102 

$48,710,102 



3,236,366 

2,160,814 





$5,397,180 

5,397,180 

$5,397,180 

5,397.180 

$5,397,180 



3,236,366 

2,160,814 





$5,397,180 

5,397,180 

$5,397,180 

5,397,180 

$5,397,180 



Program Description 

The Liquor Division administers the provision of Title 16, 
MCA, relating to the control, sale and distribution of alco- 
holic beverages and the licensing of manufacturers, whole- 
salers and retailers of alcoholic beverages. 
The Division orders all merchandise for distribution and 
sale through the state retail liquor stores/agencies, publishes 
a retail price list on a quarterly basis, prepares analysis on 
new products and sales patterns of existing products and 
audits all merchandise invoices and freight claims. 

The Division warehouse receives and stores all alcoholic 
beverage merchandise ordered, assembles orders from indi- 
vidual state retail liquor stores/agencies and schedules ship- 
ment by the most economical means and routes. 

The Division also supervises and evaluates all phases of 
state retail store and agency operations, analyses and audits 
retail outlets financial condition and profit potential, nego- 
tiates store leases and evaluates bids for selection of agen- 
cies, develops and implements merchandising/marketing 
techniques and a training program for store personnel and 
agents. 

State Liquor Stores and Agencies maintain an adequate vari- 
ety of listed alcoholic beverage products in inventory for 
direct sale to retail licensees and the public, maintain store 
premises in a well kept attractive manner and conduct in- 
store merchandising and marketing programs. 



Additionally, the Division determines qualifications of 
applicants for wholesale and retail licenses, issues licenses, 
and processes annual renewals of licenses and registrations. 

Issues Addressed/Legislative Intent 

The appropriation for the Liquor Division was established 
by the legislature through language in HB2. This language 
states: 

"Liquor division proprietary funds necessary to 
maintain adequate inventories of liquor and wine 
and to operate the state liquor operations are appro- 
priated. During the 1989 Biennium, the division 
shall attempt to return at least 10% of net sales. Net 
sales are gross sales less discounts and all taxes col- 
lected. The division shall limit operational expenses 
of the liquor merchandising system to not more than 
15% of net sales. Operational expenses may not 
include product costs, freight charges, or expenses 
allocable to other divisions or licensing bureau 
expenses." 
The FY 88 and FY 89 budget for the liquor division 
includes only personal services and operating expenses. The 
FY 86 and FY 87 fiugures include liquor sales. When liquor 
sales are included for FY 88 and FY 89, the total final costs 
for the division should be about the same as FY 86 and FY 
87. This will be contingent upon liquor sales. 



228 



DEPARTMENT OF REVENUE 



INCOME TAX 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



89.65 



95.15 



103.65 



103.65 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



1,752,400.58 

771,648.44 

98,023.88 

0.00 

$2,622,072.90 

2,613,218.49 

8,854.41 

$2,622,072.90 

2,622.072.90 

$2,622,072.90 



1,805,529 

752,253 

53,989 



$2,611,771 

2,604,927 

6,844 

$2,611,771 

2,611,771 

$2,611,771 



2,177,911 

976,076 

8,260 

120,000 

$3,282,247 

3,079,363 

202,884 

$3,282,247 

3.282.247 

$3,282,247 



2,176,998 

1,062,265 
5,000 



$3,244,263 

3,156,379 

87,884 

$3,244,263 

3.244.263 
$3,244,263 



Program Description 

The Income Tax Division administers and enforces the 
Montana personal income and withholding taxes. This also 
includes partnership returns, fiduciary and trust returns, 
estimated income tax, filing extensions and elderly 
homeowner/renter credit. These taxes constitute the largest 
payments to the general fund. 

The goals of the program are to: 

achieve and maintain a cost effective level of compliance 
with the state tax laws in a manner respectful of all citi- 
zens; 

- account for tax returns and payments; 

- collect delinquent taxes; 

- simplify reporting requirements; and 
promptly issue tax refunds. 

Major activities include providing assistance to taxpayers 
and employers on filing returns, performing audits to ensure 
accurate and complete returns, identify noncompliance with 
the tax laws, and issue tax refunds. 

The program provides many services to the public. Forms 
and instructions are distributed to taxpayers through the 
mail or at the many distribution points around the state. 
Toll free telephone lines are available to taxpayers and 
practitioners for tax questions. Volunteers are trained by the 
Division staff to assist others in completing their returns. 
Direct assistance in completing returns is available in some 
cities. Small business clinics are conducted to inform 
employers of the requirements for state tax withholding. 
Training programs are given to practitioners on changes in 
tax laws and regulations. 

Ensuring that all taxpayers pay their fair share is an impor- 
tant part of the program. Audit staff working both in the 
office and at the taxpayer's location audit returns and tax 
records. Reports from other state agencies and the Internal 
Revenue Service are matched against the state tax records to 
identify nonfilers. Unpaid taxes are pursued by collectors. 
Arrangements are made to have the taxes paid. Disputed tax 



assessments are resolved through discussions, informal con- 
ferences and formal hearings. 

In FY 87 the Miscellaneous Tax Division was consolidated 
with this division. As a result the Income Tax Division is 
now responsible for the administration of seventeen miscel- 
laneous licenses and taxes and the minimum cigarette price 
law. This program also administers the Inheritance Tax, 
Abondonded Propoerty, Escheated Estates and Contractors 
Gross Receipts Tax programs. 

Issues Addressed/Legislative Intent 

The Income Tax Division increases less than 2% when FY88 
is compared to FY86. The legislature approved the Execu- 
tive request to combine this division with the miscellaneous 
tax program. 

The legislature continued the 13.0 FTE associated with the 
assessment and collection effort and made these FTE part of 
the program base. In total, the FTE level decreases by 4.65 
FTE due to the absorbtion of the unfunded pay plan in 
FY87. 

Presented below in the table and graph are levels of audit 
revenue collected by the program for calender years 84, 85 
and 86 and projected revenue for calender years 87, 88, and 
89. The table also includes the number of staff and the reve- 
nue per staff that is anticipated. 

Individual Income Tax Audit Revenues 





Audit 


Audit 


Revenue/ 


CY 


Revenue 


FTE* 


FTE 


1984 


$8,400,000 


26.3 


$319,149 


1985 


$7,900,000 


26.3 


$300,152 


1986 


$10,300,000 


31.9 


$323,391 


1987 


$11,000,000 


31.9 


$345,369 


1988 


$11,000,000 


32.6 


$337,630 


1989 


$11,000,000 


33.6 


$327,576 


lit FTE 


are based on a fiscal 


year basis. 





DEPARTMENT OF REVENUE 



229 



Individual Income Tax 



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This funding provides for mainframe computer time to run 
the new accounts receivable, withholding, and income tax 
system that was developed during FY87. The operating 
expenses reflect a reduction of $85,000 for computer 
expenses in FY86 to assist in the reappraisal effort, and the 
merger of this division with the miscellaneous tax program 
results in a savings of $34,000 per year. 
This program is funded from general funds and from state 
special revenue which includes unclaimed property funding, 
cigarette enforcement funds, and non-game wildlife checkoff 
funds. The following table provides information on the vari- 
ous checkoff programs collected by this division. 
Revenue From Tax Checkoffs 



Year 


Public 
Campaign 


Non-Game 
Wildlife 


Child 
Abuse 


1984 
1985 
1986 


$2,399 
$4,474 
$2,809 


$33,086 
$34,060 
$36,401 


$20,922 



The primary reason for the increase in operating expenses is 
the addition of $204,000 in FY88 and $288,000 in FY89. 



CORPORATION TAX 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



35.00 



Personal Services 
Operating Expenses 
Equipment 
Local Assistance 

Total Program Costs 
General Fund 

State Special Revenue Fund 
Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



890,136.24 


1,010,184 


957,519 


958,073 


379,921.75 


424,080 


328,565 


328,722 


9,993.51 


7,001 








5,639,761.97 












$6,919,813.47 


$1,441,265 


$1,286,084 


$1,286,795 


1,110,272.13 

5,696,693.97 

112,847.37 

$6,919,813.47 


1,244,901 

55,621 

140,743 

$1,441,265 


1,106,908 

57,048 

122,128 

$1,286,084 


1,107,619 

57,048 

122,128 

$1,286,795 


6,919,813.47 


1,441,265 


1,286,084 


1,286,795 



$6,919,813.47 



$1,286,084 



$1,286,795 



Program Description 

The Natural Resource and Corporation Tax Division ad- 
ministers 17 different taxes. These include Corporation Li- 
cense Tax, Oil & Gas Severance Tax, Coal Severance Tax, 
Metal Mines Tax, Gross & Net Proceeds Tax, Electrical 
Energy License Tax and the Resource Indemnity Trust Tax. 



The Division also administers the State and Federal Royalty 
audit programs related to mineral production from State 
and Federal lands located in Montana. 
Taxes administered by the Division generate $200-$250 mil- 
lion in State revenue and $100-$ 150 million in County reve- 
nue annually. 



230 



DEPARTMENT OF REVENUE 



Issues Addressed/Legislative Intent 

The budget for the Natural Resources and Corporation Tax 
Division increases slightly in the 1989 biennium. The FTE 
level decreases by .83 FTE, attributable to absorbtion of the 
pay plan , and a continuance of the FY87 FTE level which 
was .33 FTE lower than the FY86 level. Two FTE that were 
"sunsetted" by the 49th Legislature were continued as per- 
manent positions. 

Operating expenses decrease from the FY86 level due to 
deletion of one time expenses attributable to the property 
reappraisal effort in FY86. 

State special funding is from the oil and gas special revenue 
account and from the state lands resource development ac- 
count. Federal funds support three auditors which are 
assigned to federal mineral royalty audits. 
The following table and graph show revenue collected by 
corporation tax auditors for both corporation taxes and 
natural resource taxes. In FY85, $10.5 million of the 
amount collected for corporation taxes was the result of an 
audit of ARCO. In addition, after review of the windfall 
profits tax, property value was amended in FY85 which 
resulted in additional natural resource taxes totalling almost 
$18.9 million. These two occurances explain the large 
increase in revenues shown in FY85. 



Natural Resource and Corporation Taxes 

fYa3-fY«6 




771 Coporaltai Toi 



[^ RmouuTom 



Collections From Corporation Tax Auditors 

FY 83 FY 84 FY 85 FY 86 

$10,396,020 $4,616,498 $16,627,269 $10,312,274 

$3,687,780 $2,375,770 $22,694,057 $2,761,158 

$14,083,800 $6,992,268 $39,321,326 $13,073,432 



Coproration Tax 
Natural Resource Tax 



Total Collected 



The following table and graph show dollar refunds made for 
oil and gas. These refunds, authorized in Section 15-36-112 
MCA, are allocated to counties for increased production of 



oil and gas. HB 776 exempts new production from the oil 
and natural gas severance taxes for two years. County 
refunds should show a decrease b&ause of this exemption. 



DEPARTMENT OF REVENUE 



231 



OIL AND GAS TAX REFUNDS 

FlKd isao - 1916 




Oil and Gas Tax Refunds 
Refunds to Counties 



Oil 

$992,489 
$1,644,110 
$4,353,485 

$973,190 
$1,422,334 
$3,087,474 

$475,922 



Gas 

$234,107 
$183,790 
$206,760 
$176,928 
$509,262 
$104,910 
$106,915 



Total 

$1,226,596 
$1,827,900 
$4,560,245 
$1,150,118 
$1,931,596 
$3,192,384 
$582,837 



ZZ! oif 



IXS 





Total County Refunds 






1980-1986 






County 


Oil 


Gas 


Total 


Beaverhead 


$0 


$27 


$27 


Big Horn 


$13,722 


$166 


$13,888 


Blaine 


$103,762 


$358,256 


$462,018 


Carbon 


$71,042 


$55,904 


$126,946 


Carter 


$0 


$2,441 


$2,441 


Choteau 


$244 


$32,364 


$32,608 


Custer 


$0 


$4,271 


$4,271 


Daniels 


$44,026 


$36 


$44,062 


Dawson 


$169,456 


$776 


$170,232 


Fallon 


$1,588,947 


$25,860 


$1,614,807 


Fergus 


$0 


$3,047 


$3,047 


Garfield 


$208,575 


$0 


$208,575 


Glacier 


$582 


$137,362 


$137,944 


Golden Valley 


$18,534 


$4,485 


$23,019 


Hill 


$5,238 


$198,178 


$203,416 


Liberty 


$49,437 


$47,187 


$96,624 


Madison 


$1,826 


$0 


$1,826 


Musselshell 


$395,794 


$0 


$395,794 


Petroleum 


$166,001 


$152 


$166,153 


Phillips 


$0 


$108,379 


$108,379 


Pondera 


$209,337 


$86,052 


$295,389 


Powder River 


$0 


$3,718 


$3,718 


Prairie 


$85,506 


$0 


$85,506 


Richland 


$2,962,373 


$36,753 


$2,999,126 


Roosevelt 


$2,211,908 


$49,142 


$2,261,050 


Rosebud 


$3,047 


$383 


$3,430 


Sheridan 


$2,189,993 


$78,385 


$2,268,378 


Stillwater 


$33,485 


$17,904 


$51,389 


Teton 


$66,154 


$111,757 


$177,911 


Toole 


$530,326 


$104,059 


$634,385 


Treasure 


$0 


$1,407 


$1,407 


Valley 


$1,344,171 


$45,900 


$1,390,071 


Wibaux 


$83,317 


$8,321 


$91,638 


Yellowstone 


$392,201 


$0 


$392,201 


Total Refund 


$12,949,004 


51,522,672 $14,471,676 



232 



DEPARTMENT OF REVENUE 



PROPERTY VALUATION 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 

General Fund 

State Special Revenue Fund 

Federal & Other Spec Rev Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



9.683,646.51 


8.379,991 


8,476,452 


8,701,540 


1,661,654.02 


1,793,454 


1,657,915 


1,838,161 


•242,845.23 


57,466 


81,661 


205,181 



$11,588,145.76 

11,563,145.76 

25,000.00 

0.00 

$11,588,145.76 

11,588,145.76 

$11,588,145.76 



$10,230,911 

10,230,911 



$10,230,911 

10,230,911 



$10,216,028 

10,216,028 




$10,216,028 

10.216,028 



$10,744,882 

10,244,093 



500.789 

$10,744,882 

10.744.882 

$10,744,882 



Program Description 

The Property Assessment Division is responsible for per- 
forming all tasks necessary to secure a fair, just, and equi- 
table valuation of all taxable property among counties, 
between different classes of property, and between indi- 
vidual taxpayers. 

Specific duties to accomplish this legislative mandate 
include: 

Completing reappraisal of all real property every 5 years; 

- Auditing taxable values to be sure they reflect market 
value; 

Centrally assessing railroads, public utilities, and airlines 
to ensure assessments are completed on mine net pro- 
ceeds, oil and gas net proceeds, coal gross proceeds, and 
metal mines gross proceeds; 

Defending Department of Revenue in tax appeals before 
county and state tax appeal boards and the courts; 

- Conducting schools for assessors and appraisers. 

The work is done in 56 counties, in appraisal and assess- 
ment offices under the direct supervision of 8 area managers 
and a small staff in Helena. The Helena office also appraises 
all intercounty and industrial property, defends the lawsuits, 
and regularly audits all county offices. 

The Division staffs' appraisal offices must use the elected 
assessors in 51 counties as agents to carry out its mandate. 
In FY87 the Division reorganized to reduce the duplication 



of time, effort, and money in the counties. The county 
appraisal and assessment offices are combined with one 
budget. The Helena office combined the appraisal and 
assessment bureaus and centralized the auditing of both the 
appraisal and assessment function in the county offices. 

A minimum of 20% of reappraisal must be completed each 
year of the new 5 year reappraisal cycle. Assessment of all 
property subject to property tax is an annual requirement. 

Issues Addressed/Legislative Intent 

The budget for the Property Assessment Division declines 
by over $2 million per year when FY86 is compared to 
FY88 and F^'89. A large portion of the reduction represents 
elimination of expenses associated with the reappraisal cycle 
in FY86. 

Personal service expenditures decrease due to the reduction 
of 24 "sunsetted" FTE that were approved for FY86 to fin- 
ish the reappraisal work. The legislature further reduced the 
staff by 5.0 FTE area managers and 2 FTE area field super- 
visors. In addition, 37.05 FTE were eliminated due to ab- 
sorption of the unfunded pay plan. Finally, 1.0 FTE was 
added in FY88 to assist with the department's proposal to 
put all real property assessment data on the state's 
mainframe computer. (See discussion of the approved on- 
line data system below.) 

Changes to base level operating expenses include $46,000 in 
FY88 to contract with local private appraisers to develop a 



DEPARTMENT OF REVENUE 



233 



unit cost analysis to be used in the next appraisal cycle, and 
for a subscription to the Marshall valuation service. Travel 
costs were reduced $12,000 per year. Only assessors and 
deputy assessors will travel to training sessions. The infor- 
mation can then be passed on to the local field office staff. 
Finally, this program's budget was increased $140,000 per 
year. This amount represents computer usage that took place 
in FY86 but was charged to other divisions within the 
department. 

The legislature approved a modified request of $60,000 
annually for the department to defend the state against 
expected appeals from railroad and powerline tax assess- 
ments. This modified is line-itemed in HB2. 
The legislature approved the division's request to alter the 
method of data collection and storage regarding real prop- 
erty appraisals. In the last biennium, the department shared 
computer systems m 19 counties and paid these counties a 
total of $240,000. This amount was reduced to $120,000 in 
the June, 1986 Special Session. The legislature approved a 
proposal to capture the data on the 19 different county sys- 
tems for real property assessments on the state mainframe 
computer. The county computer systems will continue to be 
used for personal property assessment information, and the 
state will pay the counties $60,000 for this service. The 
$60,000 level of payment is based upon the fact that per- 
sonal property is about one quarter of the division's work- 
load. As $240,000 was determined to be a fair reimburse- 
ment in 1^86, this payment was reduced by three-quarters. 
This change was necessitated by the fact that agricultural 
and timbered land value was frozen during the last reap- 



praisal cycle, and was not entered on the county computer 
data bases. During the current reappraisal cycle, these par- 
cels are no longer frozen, and will be reappraised. The sheer 
volume of these frozen parcels will overload many of the 
existing memory capacities of the county computers. Fifty 
one million acres of agricultural land data must be entered 
into the data base. To avoid this problem, it was decided to 
consolidate all real property data at the state level. 
This decision resulted in additional funding for computer 
time totalling $46,000 in FY88 and $84,000 in FY89, while 
reducing payments to counties for use of their computers by 
$133,500 in FY88 and $164,000 in FY89. Postage costs 
were also decreased $22,600 in FY88 and reduced $25,000 
in FY89 due to the implementation of this proposal. 
Budgeted equipment purchases include eight vehicles per 
year totalling $52,000 annually. The modified proposal 
approved the purchase of computer equipment totalling 
$19,600 in FY88 and $136,600 in FY89. 

Other Appropriation Bills 

SB200 The Legislature approved SB200 which changes the 
method that vehicles are taxed from a flat fee system based 
on the weight and age of the vehicle to 2% of the wholesale 
value of the vehicle. This change adds 36 FTE in FY88 and 
34 FTE in FY89 to implement the provisions of this legis- 
lation. This legislation results in additional appropriations 
totalling $624,650 in FY88 and $591,451 in FY89. 
HB436 This legislation requires that there be on-site 
appraisals of 20% of all property in classes 3,4, 12,13 and 1 4 
each year and to require revaluation of the remaining 80% 
of property in these classes based on on-site appraisals. 



MISCELLANEOUS TAXES 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



390,352.74 

97,563.96 

9,626.00 

$497,542.70 


382,245 

80,536 

610 

$463,391 





$0 








$0 


429,010.20 
68,532.50 


399,447 
63,944 










$497,542.70 


$463,391 


$0 


$0 


497,542.70 
$497,542.70 


463,391 
$463,391 



$0 



$0 



Program Description 

This program was consolidated with the Income Tax Divisin 
in FY 87 and the Legislature approved the transfer. 



234 



DEPARTMENT OF REVENUE 



MOTOR FUEL TAX 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


26.50 


27.17 


25.00 25.00 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
State Special Revenue Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



563.570.98 


535,566 


517,920 


517,828 


98,036.12 


131,457 


184,245 


190,521 


19,750.15 





8,620 






$681,357.25 

681,357.25 
$681,357.25 

681,357.25 
$681,357.25 



$667,023 

667,023 
$667,023 

667,023 
$667,023 



$710,785 

710,785 
$710,785 

710.785 



$708,349 

708.349 
$708,349 

708.349 
$708,349 



Program Description 

The Motor Fuel Tax program enforces compliance and ad- 
ministers license taxes on gasoline and diesel fuel. It also ad- 
ministers the refund provisions of the tax laws, supervises 
the bonding requirements of distributors, dealers and users 
to insure the proper collection of the license taxes, and 
issues permits and licenses to distributors, dealers and users. 
The Motor Fuels Tax Division administers and enforces the 
motor fuel tax law. This includes the issuance of licenses 
and permits, collection of taxes enforcement of the bonding 
requirements and payment of refunds. Revenue is ear- 



marked to the Department of Highways, state parks, Depart- 
ment of Commerce and cities and counties. 

Issues Addressed/Legislative Intent 

The budget for the Motor Fuels Division increases from the 
FY86 level. Personal services decrease due to the reduction 
of 1.5 FTE to absorb the FY87 unfunded pay plan. Oper- 
ating expenses increase reflecting the costs of running the 
new computer system developed in FY86. The cost is bud- 
geted at $83,358 in FY88 and at $89,601 in FV89. Equip- 
ment includes one vehicle in FY88. 

This division is funded entirely from state special revenue 
derived from the gas and diesel taxes. 



DEPARTMENT OF ADMINISTR4TION 



235 



Agency Summary 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 



Full Time Equivalent Employees 



385.80 



388.09 



357.09 



361.09 



Personal Services 
Operating Expenses 
Equipment 
Capital Outlay . 
Benefits and Claims 
Transfers 
Debt Service 

Total Agency Costs 
General Fund 

State Special Revenue Fund 
Capital Projects Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



9,827,279.04 

20,559,293.35 

560,071.39 

121,418.82 

16,274,298.69 

12,448,650.20 

3,136,295.40 

$62,927,306.89 

16,073,522.42 

1,162,125.96 

1,307,009.90 

44,384,648.61 

$62,927,306.89 

62,927,306.89 

$62,927,306.89 



9,939,413 

20,166,583 

1,734,431 





691,791 

1.797,236 

$34,329,454 

3,710,496 

895,448 

602,907 

29,120,603 

$34,329,454 

34,329,454 



9,502,346 

20,049,314 

1,587,507 





1,392,519 

2,137,065 

$34,668,751 

3,857,082 

866,833 

619,273 

29,325.563 

$34,668,751 

34.668.751 



9.550,938 

20,174,466 

1,385,418 





1,381,803 

2.132,408 

$34,625,033 

3,650,505 

859,579 

621,201 

29,493,748 

$34,625,033 



$34,625,033 



Agency Description 

The Department of Administration was established under 
the Executive Reorganization Act of 1971 (section 
2-15-1001, MCA). The department's major responsibilities 
include providing centralized services for state agencies in 
the following areas: accounting and financial reporting; capi- 
tol complex building maintenance; capitol security; state 
bonded indebtedness administration, state treasury services, 
insurance coverage. Tort Claims Act administration, systems 
development, telecommunications; data processing; person- 



nel management and labor relations; purchasing; dupli- 
cating, mail and messenger services; and records manage- 
ment. The department also administers the state Long 
Range Building Program, state employee group benefits pro- 
gram, and the various state retirement systems. 
In addition, the Board of Examiners, State Tax Appeal 
Board, Workers' Compensation Judge, Board of Invest- 
ments, Public Employees' Retirement Board, and Teachers' 
Retirement Board are attached to the department for 
administrative purposes only. 



DIRECTOR'S OFFICE 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 

Total Program Costs 
General Fund 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



263,130.09 


272,705 


277,016 


276,725 


23,033.79 


26,965 


26,207 


27,117 


11,581.24 












$297,745.12 
253,154.13 
44,590.99 

$297,745.12 
297,745.12 

$297,745.12 



$299,670 

257,695 

41,975 

$299,670 

299,670 
$299,670 



254.147 
49,076 



$303,223 

303_^3 



$303,842 

255.153 
48,689 



$303,842 

303,842 



Program Description 

The staff of the Central Administration Program are cur- 
rently responsible for overall supervision and coordination 
of the department's ten divisions and the four administra- 
tively attached boards and agencies. The staff also provide 
legal ser.ices, internal management reviews, and assistance 



in special projects to the divisions and bonding expertise for 
the Board of Examiners. 

Issues Addressed/Legislative Intent 

This program is funded 16% proprietary fund and 84% gen- 
eral fund. The proprietary funds are fees from six divisions 
(Table 1) for legal services provided by 1.375 FTE of the 



236 



DEPARTMENT OF ADMINISTRATION 



legal unit. The balance of the 2.0 FTE attorney positions is 
covered by the general fund. 



Vacancy savings of 4% was set for this program. 



Table 1 

Director's Office - Legal Unit 

Distribution of Costs 

1989 Biennium 


Unit 

Information Services Division 
Teachers Retirement Division 
Public Service Retirement Division 
Architecture & Engineering Division 
Publications & Graphics Division 
Property & Supply Bureau 
Total 


FTE/Position 
1/4 FTE Lawyer IV 
1/8 FTE Lawyer IV 
3/8 FTE Lawyer III 
1/2 FTE Lawyer III 
1/16 FTE Lawyer III 
1/16 FTE Lawyer III 


FY88 
$9,815 

4,908 
13,602 
18,138 

2,268 

2,267 
$50,998 


FY89 
$9,744 

4,872 
13,497 
17,996 

2,249 

2,250 
$50,608 














GOVERNOR ELECT PROGRAM 
Budget Detail Summary 


Actual Budgeted 
FY 1986 FY 1987 




Appropriated 
FY 1988 FY 


1989 


Full Time Equivalent Employees 


.00 


.00 


.00 


.00 


Operating Expenses 


0.00 


$0 

$0 


$0 





5,000 


Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 


$0.00 

0.00 
$0.00 

0.00 
$0.00 


$0 


$0 


$0 


$5,000 

5,000 
$5,000 

5,000 
$5,000 



Issues Addressed/Legislative Intent 

Section 2-15-221(5), MCA, requires provision of a governor 
elect budget. The original request of the Department of 



Administration was $25,000, the legislature approved 
$5,000. 



DEPARTMENT OF ADMINISTRATION 



237 



ACCOUNTING PROGRAM 
Budget Detail Summary 


Actual 
FY 1986 


Budgeted 
FY 1987 


Appropriated 
FY 1988 FY 1989 


Full Time Equivalent Employees 


12.25 


12.50 


12.00 12.00 



Personal Services 
Operating E.\pcnses 
Equipment 

Total Program Costs 
General Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



316,109.64 


319,516 


323.575 


323.553 


499,652.12 


489,018 


537,315 


504,522 


12,981.40 












$828,743.16 

828,743.16 
$828,743.16 

828,743.16 
$828,743.16 



$808,534 

808,534 
$808,534 

808,534 



$860,890 

860.890 
$860,890 

860,890 



$808,534 



$828,075 
828.075 

$828,075 
828.075 

$828,075 



Program Description 

The Accounting Division's staff operate and maintain the 
Statewide Budgeting and Accounting System (SEAS) and the 
Property Accountability Management System (PAMS). SBAS 
is used by all State agencies, including universities and voca- 
tional technical centers, to account for the State's financial 
affairs. The system controls agencies' use of appropriation 
authority and cash balances in accordance with legal man- 
dates. The division controls the inflow of data to SBAS and 
distributes daily, monthly and year-end reports that summa- 
rize agencies' accounting transactions. The staff establish the 
State's accounting policies in accordance with generally ac- 
cepted accounting principles and provide accounting assis- 
tance and instruction to agencies. The Accounting Division 
prepares and distributes the State's annual financial report 
and the Statewide Indirect Cost Allocation Plan. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
The Accounting Division's budget pays the cost of operating 
the Statewide Budget and Accounting System (SBAS), 
including staff support for the system. The division is 
authorized 12.0 FTE for the 1989 biennium. In addition to 
the division administrator and secretary, there are three 
clerical staff and a supervisor responsible for the day-to-day 
flow of information into and out of the system, three profes- 



sional accountants responsible for state accounting policies 
and financial reporting, and three data processing specialists 
responsible for system operations. 

The 12.0 FTE biennium staff level is down .5 FTE from the 
1987biennium. A .25 FTE accounting clerk III position was 
transferred to the Personnel Division during FY86. Another 
one-quarter of the accounting clerk III position was deleted 
as part of the June 1986 Special Session 5% reductions. 
Off-site printing for approximately 14 state agencies will be 
implemented during FY88 at an estimated $13,500 general 
fund annual savings to this program. The division will con- 
tinue to realize an annual savings of approximately $29,000 
by not verifying most SBAS, PAMS. and ICC documents. A 
change implemented in FY87 as part of the June 1986 Spe- 
cial Session 5% reductions. 

$31,341 in FY88 and $53,214 in FY89 are included in the 
program budget to allow for user growth in document pro- 
cessing (SBAS, PAMS). 

$25,000 of general fund was authorized on a contingency fee 
basis to contract for assistance in the preparation of the 
Statewide Cost Allocation Plan (SWCAP) used in the nego- 
tiation of an indirect cost rate with the U.S. Department of 
Health and Human Services. The funds were authorized for 
FY88. 



238 



DEPARTMENT OF ADMINISTRATION 



ARCH & ENGINEERING PGM 
Budget Detail Summary 



Actual 
FY 1986 



Budgeted 
FY 1987 



Appropriated 
FY 1988 FY 1989 



Full Time Equivalent Employees 



Personal Services 
Operating Expenses 
Equipment 
Transfers 

Total Program Costs 
Stale Special Revenue Fund 
Capital Projects Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



418,279.03 


467,275 


460,222 


459,897 


86,525.21 


80,740 


97,822 


100,443 


26,355.89 


3,704 


2,428 


2,060 


536,737.00 


544,106 


560,472 


562,400 



$1,067,897.13 

531,160.13 
536,737.00 

$1,067,897.13 
1.067,897.13 

$1,067,897.13 



$1,095,825 

551,719 
544,106 

$1,095,825 
1,095,825 

$1,095,825 



$1,120,944 

560,472 
560,472 

$1,120,944 
1,120,944 

$1,120,944 



$1,124,1 



562,400 
562,400 



$1,124,800 

1,124,800 
$1,124,800 



Program Description 

The function of the Architecture and Engineering Division, 
as authorized in Title 18, chapter 1 & 2, MCA, is to handle 
state building construction in a functional and aesthetic 
manner and at an affordable cost. 

The division staff are responsible for contract administra- 
tion, bid letting and supervision of architects and engineers 
during construction of buildings for the state. The Long 
Range Building Program is prepared by this division. 

Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
15.5 FTE were authorized for this program during the 1987 
biennium and 15.25 FTE authorized for the 1989 biennium 
for a net reduction of a .25 FTE. One-quarter of a position 
was transferred to the Information Systems Division. The 



1985 Legislative Session approved an additional secretarial 
position, but it was deleted to satisfy part of the June 1986 
Special Session 5% cutbacks. A purchasing agent 111 position 
was transferred from the Purchasing Division to this pro- 
gram in order to provide specialized purchasing activities 
for the division. 

$3200 for the printing of the Long-Range Building Plan was 
included in FY89. 

The program requires a transfer appropriation from the 
Capital Project Fund in an amount equal to the State Spe- 
cial Revenue Fund. The Capital Project Fund supports the 
program, but actual expenditures are made from the State 
Special Revenue Account. 

Cigarette tax, interest on bond proceeds, and supervisory 
fees for non-Long-Range Building Projects support the Long- 
Range Building Cash Account, in the Capital Project Fund. 



PUBLICATIONS AND GRAPHICS 
Budget Detail Summary 



Actual Budgeted Appropriated 

FY 1986 FY 1987 FY 1988 FY 1989 



Full Time Equivalent Employees 



30.50 



Personal Services 
Operating Expenses 
Equipment 
Debt Service 

Total Program Costs 
Proprietary Fund 

Total Funding Costs 
Current Level Services 

Total Service Costs 



616,645.15 


696,136 


626,858 


706,634 


2,563,371.00 


2,941,759 


2,852,598 


3,064,666 


3,356.50 


340,105 


9,408 





59,777.54 





375,553 


375,553 



$3,243,150.19 

3,243,150.19 
$3,243,150.19 

3,243,150.19 
$3,243,150.19 



$3,978,000 

3,978,000 
$3,978,000 

3,978,000 



$3,864,417 


3,864,417 


$3,864,417 


3,864,417 



$3,978,0 



$3,864,417 



$4,146,853 

4,146,853 
$4,146,853 

4,146,853 
$4,146,853 



Program Description 

The staff of the Publications and Graphics Division offer 
services in printing, duplicating, computerized typography, 
layout and design, graphic and illustrative art, forms design, 
photo-reprographics, binding and quick copy. They are 



responsible for all printing and printing-related purchasing 
for state government and offer printing coordination and 
specification writing to user agencies (section 18-7-101, 
MCA). The staff also operate the state's photocopier pool 
(section 2 17-301, MCA). 



DEPARTMENT OF ADMINISTRATION 



239 



Issues Addressed/Legislative Intent 

Vacancy savings of 4% was set for this program. 
Half of an audit technician position was eliminated for the 
biennium. In addition the FY89 total FTE was reduced by 
.75 FTE. The reduction in FY89 will be staff specifically 
hired for the Legislative Session. These cuts were taken as 
part of the unfunded pay plan and June 1986 Special 
Session 5% cutbacks. 

The program is funded by a proprietary account - user fees. 
This program has three functions/control accounts purchas- 
ing and printing coordination, publications and graphics 
operations, and administration. 
Purchasing & Printing Coordination 

FY88 and FY89 goods for resale, budgeted at $1,951,526 
each year, are reflected at a twelve month level. FY86 actual 
represent approximately nine months. Beginning in FY86, 
the division became responsible for the coordination of all 
printing channeled to private printers. There are 2.5FTE in 
this control account. 

Publications and Graphics Operations 
This function/control account is authorized 18.5 FTE in 
FY88 and 22.5 FTE in FY89. The 4 FTE difference is 
temporary staff hired for the legislative session. 
Debt service expenditures are for the installment purchase 
of printing equipment - principal $98,206 and interest 
$25,707. 

Equipment authorized in FY88 are a collator and two map 
files. 

Administration - Publications & Graphics 
Debt service expenditures are for the installment purchase 
of photocopiers used in the agency's photocopy pool- 
principal $217,569 and interest $34,071. 5.50 FTE are 
authorized for this function. 



HJR52 requests an interim study (without separate funding 
sources) on state printing and duplicating procedures. Con- 
cern was expressed by the private sector during the legis- 
lative session about the amount of printing prepared inter- 
nally vs. commercial firms. Table 2 shows a comparison of 
total dollar value of all printing jobs while Table 3 compares 
the average dollar value per job. 







Table 2 






Publications and Graphics 


Division 






Total Dollar Value - All Jobs 






(In 


Thousands) 
986- 1989 








FY86 


FY87 


FY88 


FY89 


Dollars: 










Commercial 


$2,028 


$2,356 


$2,231 


$2,592 


Internal 


1,066 


1,133