This bill proposes significant amendments to the operating budget process for towns using the official ballot referenda form of meeting. Notably, it removes the requirement for a default budget to be included in the operating budget warrant article by deleting the phrase "and the default budget" from RSA 40:13, IV. Additionally, the bill mandates that if the operating budget warrant article fails, the governing body must hold a special meeting to address a revised operating budget, changing the language from "may" to "shall" in RSA 40:13, IX. The bill also introduces provisions that prevent the governing body or budget committee from proposing an operating budget higher than the one that failed, and if no budget is adopted during the special meeting, the budget will default to the previous year's budget reduced by 10 percent.

Moreover, the bill amends the Municipal Budget Law to clarify the appropriations process and the duties of the budget committee. It establishes that if a proposed article is defeated, the adopted budget will automatically be set at a level 10 percent lower than the previous year's operating budget. The bill also modifies RSA 32:7-a, III to state that the designated amount for each subsequent year will be considered appropriated without further legislative action unless rescinded. It repeals provisions related to the posting and determination of the default budget, aiming to simplify the budgeting process and reduce administrative burdens on municipalities. The act is set to take effect 60 days after its passage.

Statutes affected:
Introduced: 40:13, 32:7-a, 32:16
HB1355 text: 40:13, 32:7-a, 32:16