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, if the budget cap is not met in subsequent years, the operating budget will be reduced accordingly.

The bill also details the adoption process for the budget cap, requiring a public hearing and a ballot vote by the town's legislative body. The wording of the ballot question must specify the budget cap parameters, including the method for calculating the annual increase for inflation. Towns that adopt the budget cap can later consider adopting a new cap or rescinding the existing one, both requiring a 3/5 majority vote. The act will take effect 60 days after passage.