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 establishing a budget cap based on the current per resident expenditure 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, towns can adopt, modify, or rescind the budget cap through a similar voting process, ensuring that any changes require significant community support.

The bill stipulates that towns wishing to implement a budget cap must follow a structured process, including public hearings and specific wording for ballot questions. The cap is calculated using either a fixed percentage or an inflation index, and towns must adhere to the established cap unless a majority of voters decide otherwise. The effective date of the act is set for 60 days after its passage, which is August 23, 2025.