This bill introduces new provisions allowing towns to adopt budget caps under the Municipal Budget Law (RSA 32). Specifically, it adds sections 32:5-g and 32:5-h, which outline the process for towns to establish a budget cap based on current per resident expenditures and town population, adjusted for inflation. The budget cap can be overridden by a 3/5 majority vote during town meetings, with specific voting procedures outlined for appropriations that exceed the cap. Additionally, towns can adopt or rescind the budget cap through a public vote, requiring a similar majority for either action.

The bill also specifies the methods for calculating the annual increase for inflation, which can be based on a fixed percentage or an inflation index published by the U.S. Bureau of Labor Statistics or the Municipal Cost Index. The provisions ensure transparency and public participation by mandating public hearings and proper notice before voting on the budget cap. The act will take effect 60 days after its passage, allowing towns to implement these budgetary controls starting in the following fiscal year.