Montana responses to the federal grant review process survey, 2021
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States employ a variety of processes to apply for and administer federal grants. Ballotpedia's 2021 state survey of the federal grant review process examined the general processes applied by the 50 states in order to seek and distribute federal funds.
Research from the Pew Charitable Trusts found that federal funds made up 32% (roughly $639 billion) of all state revenue in 2017, making them the second-largest source of state revenue behind state tax collections.[1] States direct federal funds to government programs related to education, healthcare, transportation, infrastructure, and other policies.[1]
This page features Montana's responses to Ballotpedia's 2021 survey.
Background[edit]
From August 5, 2021, to September 27, 2021, Ballotpedia staff contacted the executive and legislative budget offices of all 50 states via email and/or telephone to update a publicly available 2016 survey on state approaches to the federal grant review process.
Our staff contacted state officials with the following survey questions:
- Approval processes for federal grants
- What is your state’s process for federal grant applications and the approval process?
- What is your state’s approval process when the legislature is not in session?
- How does the legislature monitor the intent of federal grants? What legislative rules allow the state greater oversight of federal funds in the budgets?
- Contingency plans for the loss or decline of federal funds
- What is your state’s contingency plan in the case of a decline or loss of federal funds?
- Quality control processes for federal grants
- What is your state’s quality control process for tracking the effectiveness of federal funds?
- Does your state attempt to estimate the cost of federal fund requirements? If so, how?
- How does your state prioritize federal funds to best meet the needs of constituents?
- If your state doesn’t appropriate key federal funds like food stamps and unemployment benefits, are your state’s federal funds off-budget? How do you track this information?
Our staff also contacted state officials with the following two new survey questions regarding federal funds made available in response to the coronavirus (COVID-19) pandemic:
- Coronavirus (COVID-19) pandemic funds
- Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations in your state?
- Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations in your state?
Montana 2021 survey responses[edit]
What is your state’s process for federal grant applications and the approval process?
“The Montana Legislature meets every two years for 90 working days and makes budget decisions during this time. Prior to the legislative session beginning, state agencies submit their proposed budget to the Office of Budget and Program Planning (OBPP) in the Governor’s Office. This proposal includes any federal funds state agencies are expecting to receive over the biennium. OBPP then develops the executive budget which is submitted to the Legislative Fiscal Division (LFD). The LFD completes an analysis of the executive budget and provides this to the legislature. This analysis is used by the legislature to make appropriation decisions during the legislative session.”
What is the approval process when the legislature is not in session?
“Montana law (17-7-402, MCA) allows agencies to add additional federal funds through a budget amendment process. These types of amendments can only be made if the federal funds could not have been anticipated while the legislature was establishing the budget for the biennium and if there is no present or future commitment of the state’s general fund. Additionally, these federal funds cannot be added unless there is approval from the agency’s approving authority (for example, the governor or the governor’s designated representative is the approving authority for the executive branch). Statute does not require legislative review prior to approval of budget amendments. However, budget amendments are reviewed by the Legislative Finance Committee (a bicameral, bipartisan interim committee) after the amendments are made and the committee can send comments to the approving authority.”
How does the legislature monitor the intent of federal grants?
“The Legislative Fiscal Division and the Legislative Audit Division (LAD) have a role in monitoring federal grants. The LFD provides the legislature with budget analysis prior to the legislative session which includes information on federal funds proposed in the executive budget (5-12-302, MCA). Additionally, the LFD and Legislative Finance Committee review budget amendments that add additional federal funds not appropriated during the legislative session (17-7-402, MCA). The LAD conducts financial compliance and performance audits which can include a review of federal funds (5-13-304, MCA). Any recommendations resulting from these types of audits are required to be presented to the Legislative Audit Committee. This committee is a bipartisan, bicameral interim committee that reviews reports submitted by the Legislative Auditor and serves as the conduit between the Legislative Auditor and the legislature.”
What is your state’s contingency plan for state financing in the case of losses or decline in federal funds?
“If there is a decline or loss of federal funds, there is a corresponding decline in program services for which those funds would have been used.”
What is your state’s quality control process for tracking the effectiveness of federal funds?
“The Legislative Audit Division conducts performance audits that review whether programs are operating efficiently, effectively, and in compliance with laws and regulations. These types of audits can include programs that utilize federal funds. In these cases, the scope could review federal funds and whether these funds are being used effectively. Recommendations resulting from performance audits are presented to the Legislative Audit Committee.”
Does your state attempt to estimate the cost of federal fund requirements? If so, how?
“Montana law (2-1-407, MCA) requires the governor to deliver a report to the legislature that provides estimates of the cost of federal mandates. Prior to the legislative session and budget development, the governor’s office issues a survey to state agencies. This survey requires agencies to provide an estimate of annual costs for federal mandates.”
How does your state prioritize federal funds to best meet the needs of constituents?
“There may be statutory guidance on a specific federal fund that would guide agency action. State agencies may work with legislative subcommittees during session to determine how best meet the needs of their constituents. There is no specific process for determining priorities.”
If your state does not appropriate key federal funds like food stamps and unemployment benefits, are your state’s federal funds off budget? How do you track this information?
“As a general rule key funds are appropriated by the legislature. There are a few exceptions to this rule which include funds used for unemployment insurance benefits. Unemployment insurance benefits are trust funds which are not appropriated. Even though these funds are not appropriated, the LFD budget analysis includes these funds. Any concerns are presented to the appropriations subcommittee for its review.”
Who has decision rights over American Rescue Plan Act (ARPA) State Fiscal Recovery Fund allocations in your state?
“As the Montana Legislature was in session when the ARPA was passed, they had immediate control and the ability to pass a bill directing the use of those funds. While the legislature did direct the categories within which funding would be utilized, it also established commissions with both legislative and executive branch membership to provide guidance on the awarding of grants and final operational rules. However, because the legislature is no longer in session, these commissions are only advisory in nature, and the executive will still have final authority within the parameters established by HB 632 of the 2021 Montana Legislature.”
Who has decision rights over Elementary and Secondary School Emergency Relief (ESSER) Fund allocations in your state?
“The Montana Legislature provided authority through HB 3 & HB 630 (2021 Legislature) to spend ESSER funds within the parameters of the federal rules. Where possible, the legislature used its budgetary authority to direct the allocations of these funds. Within the parameters established by the 2021 Legislature, the Office of Public Instruction will have the final authority to use and expend these funds.”
Other state survey responses[edit]
Click on a state below to view its responses to the 2021 survey on the federal grant review process:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
See also[edit]
- State survey of the federal grant review process, 2021
- State responses to the federal grant review process survey, 2021
- State responses by question to the federal grant review process survey, 2021
- Federalism
External links[edit]
Footnotes[edit]
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