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 instances where proposed appropriations exceed the cap. Additionally, the bill stipulates that towns can adopt, modify, or rescind the budget cap through a similar voting process, ensuring that any changes are subject to public discussion and majority approval.

The bill also details the requirements for public hearings and the wording of ballot questions related to the adoption or rescission of the budget cap. It mandates that towns must hold a public hearing at least 15 days prior to the vote and provides guidelines for how the question should be presented to voters. The effective date of the act is set for 60 days after its passage, allowing towns time to prepare for the implementation of the budget cap provisions.