This bill modifies the definition of "default budget" in RSA 40:13, IX(b) to include salary and benefit reductions resulting from position turnover. The new definition specifies that the default budget will consist of the same appropriations as the previous year's operating budget, adjusted for debt service, contracts, and other legal obligations, while also accounting for one-time expenditures and the salaries and benefits of eliminated or vacant positions. Notably, the bill clarifies that eliminated positions do not include those that are vacant but under recruitment unless they were vacant before the previous year's budget approval. Additionally, any budget line item from which a transfer was made for one-time expenditures will be reduced accordingly in the default budget calculation.

Furthermore, the bill amends RSA 40:13, XI(a)(3) to include language regarding one-time expenditures, specifically stating that it encompasses reductions to line items for transfers made for one-time expenditures. The act is set to take effect on January 1, 2026. Overall, these changes aim to provide a clearer framework for calculating default budgets in official ballot town meetings, ensuring that budgetary considerations reflect actual fiscal conditions more accurately.

Statutes affected:
Introduced: 40:13
As Amended by the House: 40:13