This bill, titled "An Act enabling towns to adopt budget caps," introduces new provisions to the municipal budget law under RSA 32. Specifically, it adds sections 32:5-g and 32:5-h, which allow towns to establish a budget cap that limits the total amount raised and appropriated for the fiscal year based on a formula involving current per resident expenditure, town population, and an inflation factor (IF). The bill outlines the process for adopting this budget cap, requiring a 3/5 majority vote from the town's legislative body, and specifies that the cap can be overridden through a ballot vote under certain conditions. Additionally, it details how to calculate the budget cap and the procedures for public hearings and voting on the adoption or rescission of the budget cap.

The bill also stipulates that if a town adopts the budget cap, it must follow specific guidelines for appropriations, including how to handle warrant articles proposing multi-year expenditures. If the proposed budget exceeds the cap and does not receive the necessary majority approval, the budget will be adjusted to comply with the cap. The effective date of the act is set for 60 days after its passage. Overall, the bill aims to provide towns with a mechanism to control budget growth while ensuring transparency and public participation in the decision-making process.