The bill titled "AN ACT relative to enabling school administrative units to adopt budget caps" amends RSA 194-C to allow school administrative units to establish budget caps based on a formula that incorporates the current overhead cost per student and the average daily membership in residence (ADMR) of member school districts. Key provisions include the calculation of the budget cap by multiplying the overhead cost per student by the ADMR and adjusting for inflation, with the option to use either a fixed percentage or an index from the U.S. Bureau of Labor Statistics or the Municipal Cost Index. The bill also outlines the process for exceeding the budget cap, requiring a 3/5 majority vote from voters in the school districts, and specifies voting procedures, including the use of paper ballots and their retention for recounts. New sections 194-C:9-c and 194-C:9-d are introduced to detail these budget cap calculations and adoption processes, while references to the "name of school district" in warrant articles are deleted for more general wording.

Additionally, the bill allows school districts within a school administrative unit that has adopted RSA 194-C:9-c to consider rescinding the budget cap provisions, with modified wording for the voter question to streamline the process. It clarifies that only affirmative or negative votes will count towards the required 3/5 majority for rescission, and results must be certified by the secretary of the school administrative unit board to the department of revenue administration. The bill also amends RSA 194-C:9-b, I to ensure that the school administrative unit budget is presented as a separate warrant article in each district, prohibits amendments prior to the vote (except as allowed under RSA 194-C:9-c), and details the voting and certification process to enhance transparency and accountability. The act is set to take effect 60 days after its passage.

Statutes affected:
HB1288 text: 194-C:9-b