This bill introduces a new framework for local political subdivisions to adopt a reduced default budget option, allowing them to set a budget that is a percentage lower than the previous year's budget. Specifically, it amends RSA 40 by adding sections 40:14-c and 40:14-d, which outline the process for adopting this option. The new provisions stipulate that a local political subdivision can vote to adopt a reduced default budget instead of the standard operating budget, with the specific percentage reduction to be determined by the subdivision itself. The ballot must include a two-prong question, where the second question regarding the reduced budget is contingent upon the defeat of the first question regarding the operating budget.

Additionally, the bill establishes the requirements for adopting and potentially rescinding the reduced default budget option. A 3/5 majority of voters is required for adoption, and the question must be placed on the warrant for an annual or special meeting, with a public hearing held prior to the vote. The wording of the ballot question is also specified, ensuring clarity for voters. The act will take effect 60 days after its passage, allowing local political subdivisions to implement these changes in their budgeting processes.