What is Alteration by Local Government Review?

This method of altering local government forms and powers (often referred to as the Voter Review process) is unique in the United States. In essence, Montana’s 1972 Constitution requires that every 10 years starting in 1974, the governments in every municipal and county jurisdiction must ask their voters whether they wish to elect a panel of citizens to conduct a two‐year review of the forms, powers, functions and services of their unit of local government
and to make recommendations directly to the voters concerning alterations in the form of government. Pursuant to 7-3-173, MCA the city/town must pass a resolution that calls for an election on the question of conducting a local government review and establishing a study commission. This resolution must be passed and submitted to the County Elections Administrator by a date determined by the Secretary of State’s office and the question will
subsequently appear on the ballot at the primary election. The ballot language is mandated by 7-3-175, MCA and includes both the number of members to be elected to the study commission and the dollar amount or number of mills that will be permissively levied to fund the activities of the study commission. See the Sample Resolution on the following page.

The purpose of a study commission is to “study the existing form and powers of a local government and procedures for delivery of local government services and compare them with other forms available under the laws of the state” 7-3-172, MCA. The Study Commission’s powers are enumerated at 7-3-183, MCA and include the authority to employ and fix the
compensation of necessary staff, contract and cooperate with other agencies, establish advisory boards and committees, retain consultants, and do any other act consistent with and reasonably required to perform its functions. A study commission examining the government of a municipality may recommend amendments to the existing plan of government, recommend any plan of government authorized by Title 7, Chapter 3, parts 1 through 6,
draft a charter (or recommendations on amendments to the charter), recommend municipal-county consolidation, recommend disincorporation; or submit no recommendation 7-3-185(2)(a), MCA.

In addition, a study commission may 1. Municipal Government Defined 15
recommend service consolidation or transfer in cooperation with a county study commission, a county study commission and one or more municipal study commissions, or one or more municipal study commissions 7‐3‐185(2)(b), MCA. A study commission must prepare a budget for each fiscal year it is in existence and submit it to the city/town commission for adoption. The city/town commission must, for the support of the study commission, appropriate an
amount necessary to fund the study 7-3-184, MCA. To do so, the city/town commission “may levy mills in excess of all other mill levies authorized by law to fund the appropriation” 7-3-184(2)(a), MCA. Any money remaining in the study commission fund at the end of the two‐year cycle reverts to the municipality’s general fund. Since its implementation in 1974, five cycles of the Voter Review process have now been conducted, resulting in 202 proposed changes to municipal government, of which 74 proposals for change have been approved by municipal
voters.