This bill establishes a tax cap for local school districts, limiting their authority to make certain appropriations. Specifically, it amends RSA 76:8 by inserting new provisions that restrict school district appropriation amounts, excluding facilities acquisition and construction, to not exceed the previous year's appropriation adjusted by the average Consumer Price Index (CPI) for the previous five years until June 30, 2027. After this date, appropriations will be capped at the greater of either the five-year average percent change in Average Daily Membership Revenue (ADMR) or the five-year average appropriation. Additionally, any appropriations exceeding these limits will require a two-thirds majority vote from the legislative body of the school district.

The bill also includes provisions for the commissioner of the Department of Revenue Administration to notify school boards of any excess appropriations not made in accordance with the new limits, which will be deleted from the computation of district taxation. The calculation of the previous five years' average CPI will be based on the All Urban Consumers index for the Northeast Region, specifically excluding medical care services. The act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 76:8, 198:40-a
As Amended by the House: 76:8