VIII.9. Balanced Budget
Appropriations by the legislature shall not exceed anticipated revenue.
History
Sources
1884 Montana Constitution (proposed)
No appropriation shall be made, nor any expenditure authorized by the Legislative Assembly, whereby the expenditure of the State during any fiscal year shall exceed the total tax then provided for by law, and applicable to such appropriation or expenditure, unless the Legislative Assembly making such appropriation shall provide for levying a sufficient tax, not exceeding the rates allowed in Section ten (10) of this article to pay such appropriation or expenditure to suppress insurrection, defend the State, or assist in defending the United States in time of war.Mont. Const. Art. XII, Sec. 13. (Proposed, 1884)
1889 Montana Constitution
No appropriation shall be made or any expenditures authorized by the Legislative Assembly whereby the expenditures of the State during any fiscal year shall exceed the total tax then provided for by law, and applicable to such appropriation or expenditure, unless the Legislative Assembly making such appropriation shall provide for levying a sufficient tax, not exceeding the rate allowed in section nine (9) of this article, to pay such appropriations or expenditures within such fiscal year. This provision shall not apply to appropriations or expenditures to suppress insurrection, defend the State, or assist in defending the United States in time of war. No appropriations of public moneys shall be made for a longer term than two years.Mont. Const. Art. XII, Sec. 12. (1889).
Other Sources
Generally, 49 states have balanced budget requirements in their State Constitutions. These requirements typically obligate the Executive, and/or Legislative branches of government to pass a balanced budget; some require explicit provisions that forbid deficits from carrying into the next biennium. Vermont is the only state in the United States without a balanced budget requirement."State Balanced Budget Provisions: Provisions and Practice". National Conference of State Legislatures. 2014. Retrieved 5 May 2015.
The Federal Constitution does not have a balanced budget provision. There have been several unsuccessful attempts to amend the Federal Constitution to add the provision.H.J. Res.1, proposed Balanced Budget-Amendment approved by the U.S. House of Representatives on January 25, 1995.
Drafting
[Drafting includes the original delegate proposals, committee reports, floor debates, and votes during the convention on the provision.]
Delegate Proposal No. 161. (Felt, Bowman, McDonough, Cates, Foster, Drum): Appropriations by the legislative assembly shall not exceed anticipated revenues during any budget period.1 Verbatim Transcript 307 (Feb. 4, 1972).
Revenue and Finance Committee Proposal No. 7: Section 9. Balanced Budget. Appropriations by the Legislative Assembly shall not exceed anticipated revenues during any budget period.5 Verbatim Transcript 1508 (Mar. 4, 1972).
Adoption. The Delegates adopted the committee proposal on voice vote (none opposed) March 4, 1972. Delegate Rygg moved: "This section is similar to Section 12 of Article XII, although it does not have near the words the present article has. It merely requires the state to operate under a balanced budget inasmuch as it is possible to determine the anticipated revenue. Most states have a similar requirement, and the consensus of the committee was that the state should try to operate in the black. We fell that it is important enough to ask you to retain it in the present Constitution."5 Verbatim Transcript 1508 (Mar. 4, 1972). Delegate Reichert moved: ". . . Doesn't [Section 9] imply balancing the budget.?" Delegate Aronow moved: "Yes, it does, but also you have to read this Constitution together. The courts have said that you pick it up by its four corners, like any law. And her ein one place you ahve extremely lax, and the other place you have something else; what was the intent?" Delegate Reichert responded: "Mr. Chairman. I just wish to state that I speak in support of the majority proposal. I believe the Legislature will attempt to balance the budget."5 Verbatim Transcript 1494 (Mar. 4, 1972). The Delegates adopted the final draft of ART VIII.9 with a vote of 91-2 (7 excused or absent) on March 16, 1972.7 Verbatim Transcript 2469 - 2470 (Mar. 17, 1972).
Ratification
[Ratification includes official and unofficial voter guides, commentary, and contemporaneous reporting about the provision.]
1972 Official Text with Explanation: No change except in grammar. Requires legislature to stay within estimated revenue limits when appropriating funds.