This bill amends RSA 198:4-b to allow school districts to retain year-end unassigned general funds on an annual basis, rather than indefinitely until rescission. The new language specifies that school districts can authorize the retention of these funds for use in the next fiscal year, with a cap of 2.5 percent of the current fiscal year's net assessment under RSA 198:5. Additionally, the bill requires that prior to expending retained funds, the school board must hold a public hearing, and an annual accounting of the retained funds must be presented at a public meeting.

The bill also includes provisions for the establishment of a contingency fund to address unanticipated expenses, requiring a separate article in the budget for its creation. The wording of the questions posed to voters regarding the establishment of the contingency fund and the retention of unassigned general funds has been updated to reflect these changes. Furthermore, the bill rescinds any existing indefinite authorizations to retain unassigned general funds under the previous law, ensuring that the new regulations take precedence. The act is set to take effect 60 days after its passage.

Statutes affected:
Introduced: 198:4-b
HB1610 text: 198:4-b