(1) Any unreserved general fund end-of-the-year balance must be reappropriated, up to an amount not exceeding 15% of a school district's maximum general fund budget, to be used for property tax reduction, in accordance with 20-9-308 and 20-9-141, MCA.
(2) The amount reappropriated must be used to reduce the amount of additional financing required to fund a district's general fund budget in excess of the direct state aid and the special education payment for the district.
(3) The amount reappropriated must be applied in the following order:
(a) first, to reduce the revenue needed to be raised to fund the BASE budget as defined in 20-9-306, MCA; and
(b) second, to reduce the amount needed to be raised to fund any over-BASE budget amount.
(4) Subsection (3) does not apply if the amount reappropriated is less than or equal to any unspent amount of excess reserves identified on the final budget of the prior year as provided in ARM 10.22.103. If the trustees of a district elect to use excess reserves to reduce property taxes in the ensuing school fiscal year, the reappropriated amount may be used to reduce the levy for any portion of the general fund budget.
(5) Any unreserved fund balance in excess of 15% of a school district's maximum general fund budget must be remitted to the state.
(6) Any amounts remitted to the state under (5) are not considered expenditures to be applied against budget authority.