SB 383-FN is a bill that amends RSA 32:5-b to allow for adjustments to local tax caps based on inflation and population changes for towns or village districts, or attendance for school districts. The amendment includes a formula that utilizes the Consumer Price Index (CPI) or the Municipal Cost Index (MCI), and population or attendance figures provided by the department of business and economic affairs. Additionally, the bill sets forth a procedure for school districts to adopt a budget cap, which would limit the total amount raised and appropriated for the fiscal year to the current per pupil cost times the average daily membership in residence (ADMR), adjusted for inflation. The legislative body can override the budget cap through usual procedures, and a 3/5 majority vote is required for certain appropriations that exceed the cap. The bill also details the process for adopting these provisions, including a public hearing and specific ballot question wording.

The bill also addresses the implementation and potential rescission of a school district budget cap through RSA 32:5-d. It limits the annual budget increase to the rate of inflation plus any additional increase approved by a 3/5ths majority vote. The vote to adopt or rescind the budget cap must be conducted by ballot and not be part of the official ballot for electing officers, except under specified conditions. The bill includes a contingency clause that renumbers RSA 32:5-d to RSA 32:5-e if HB 185 of the 2024 legislative session becomes law. The effective date of the act is 60 days after its passage, and the fiscal note indicates no fiscal impact on state, county, or local expenditures or revenue. The New Hampshire Municipal Association was consulted for the fiscal impact assessment.

Statutes affected:
Introduced: 32:5-b
As Amended by the Senate: 32:5-b
As Amended by the House: 32:5-b
Version adopted by both bodies: 32:5-b