This bill proposes significant changes to the operating budget process for towns that use the official ballot referenda form of meeting. It removes the requirement for a default budget in the operating budget warrant article by deleting the term "default budget" from various sections of RSA 40:13. Instead, if no operating budget article is adopted, the local political subdivision will automatically have an operating budget equal to the previous year’s approved budget. This change aims to streamline the budget approval process and reduce confusion surrounding default budgets. The bill also modifies procedures for situations where the operating budget warrant article fails, allowing the governing body to hold a special meeting to address a revised operating budget while ensuring that estimated revenues remain approved.

Additionally, HB 1355 amends laws regarding water and sewer system funds, permitting political subdivisions to include a default amount in warrant articles for appropriations raised through user fees or charges. This default amount will be determined by the governing body and reflect the previous fiscal year's appropriation adjusted for obligations. The bill establishes stricter guidelines for special meetings, including new timelines and conditions, and removes previous provisions that allowed for more flexibility in scheduling. Overall, the bill aims to simplify the budget process and provide clearer guidelines for towns in managing their operating budgets, with the act taking effect 60 days after its passage.

Statutes affected:
Introduced: 40:13, 32:7-a, 32:16
As Amended by the House: 40:13, 32:7-a, 32:16
HB1355 text: 40:13, 32:7-a, 32:16