HB85: (New Title) relative to the budget adoption procedure in political subdivisions which have adopted official ballot voting.

HB 85- FN-LOCAL – AS AMENDED BY THE SENATE

07Jan2004… 2495h

04/29/04 1186s

2003 SESSION

03-0217

04/09

HOUSE BILL HB 85-FN-LOCAL

AN ACT relative to the budget adoption procedure in political subdivisions which have adopted official ballot voting.

SPONSORS: Rep. Weyler, Rock 79

COMMITTEE: Municipal and County Government

AMENDED ANALYSIS

This bill provides for certain changes to the budget adoption procedure in political subdivisions which have adopted official ballot voting.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07Jan2004… 2495h

04/29/04 1186s

03-0217

04/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to the budget adoption procedure in political subdivisions which have adopted official ballot voting.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Use of Official Ballot; Operating Budget. Amend RSA 40:13, IX-XI to read as follows:

IX.(a) “Operating budget” as used in this subdivision means “budget,” as defined in RSA 32:3, III, exclusive of “special warrant articles,” as defined in RSA 32:3, VI, and exclusive of other appropriations voted separately.

(b) “Default budget” as used in this subdivision means the amount of the same appropriations as contained in the operating budget authorized for the previous year, reduced and increased, as the case may be, by debt service, contracts, and other obligations previously incurred or mandated by law, and reduced by one-time expenditures contained in the operating budget authorized for the previous year. For the purposes of this paragraph, one-time expenditures shall be appropriations not likely to recur in the succeeding budget, as determined by the governing body of the local political subdivision, or by the budget committee if authorized by the legislative body.

X. If no operating budget article is adopted, the local political subdivision either shall be deemed to have approved [the same appropriations as contained in the operating budget authorized for the previous year, reduced and increased, as the case may be, by debt service, contracts, and other obligations previously incurred or mandated by law, or reduced by one-time expenditures contained in the operating budget,] the default budget or the governing body may hold a special meeting pursuant to paragraph XVI to take up the issue of a revised operating budget only; provided that RSA 31:5 and RSA 197:3 shall not apply to such a special meeting. If no operating budget article is adopted the estimated revenues shall nevertheless be deemed to have been approved. [For the purposes of this paragraph, one-time expenditures shall be appropriations not likely to recur in the succeeding budget, as determined by the governing body of the local political subdivision].

XI. The [amount of the previous year’s operating budget, as adjusted pursuant to paragraph X,] default budget shall be disclosed [to the voters at the first session] at the first budget hearing held pursuant to RSA 32:5 or RSA 197:6. The governing body, or the budget committee if authorized by the legislative body, shall demonstrate how the default budget amount was determined by showing the appropriations contained in the operating budget authorized for the previous year and the reductions and increases made pursuant to paragraph IX(b) on a default budget form created by the department of revenue administration. This amount shall not be amended by the legislative body. However, this amount may be adjusted by the governing body, or by the budget committee if authorized by the legislative body, acting on relevant new information at any time before the ballots are printed, provided the governing body, or the budget committee if authorized by the legislative body, completes an amended default budget form. The wording of the second session ballot question concerning the operating budget shall be as follows:

“Shall the (local political subdivision) raise and appropriate as an operating budget, not including appropriations by special warrant articles and other appropriations voted separately, the amounts set forth on the budget posted with the warrant or as amended by vote of the first session, for the purposes set forth therein, totaling $? Should this article be defeated, the [operating] default budget shall be $, which is the same as last year, with certain adjustments required by previous action of the (local political subdivision) or by law; or the governing body may hold one special meeting, in accordance with RSA 40:13, X and XVI, to take up the issue of a revised operating budget only.’’

2 Municipal Budget Law; Budget Preparation. Amend RSA 32:5, VII to read as follows:

VII.(a) The governing body or the budget committee if authorized by the legislative body, shall post certified copies of the budget with the warrant for the meeting. In the case of towns, the budget shall also be printed in the town report made available to the legislative body at least one week before the date of the annual meeting. A school district or village district may vote, under an article inserted in the warrant, to require the district to print its budget in an annual report made available to the district’s voters at least one week before the date of the annual meeting. Such district report may be separate or may be combined with the annual report of the town or towns within which the district is located.

(b) The governing body, or the budget committee if authorized by the legislative body, in official ballot referenda jurisdictions operating under RSA 40:13 shall post certified copies of the default budget form or any amended default budget form with the proposed operating budget and the warrant.

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

03-0217

Amended 1/22/04

HB 85 FISCAL NOTE

AN ACT relative to the budget adoption procedure in political subdivisions which have adopted official ballot voting.

FISCAL IMPACT:

The Department of Revenue Administration states this bill, as amended by the House

(Amendment #2003-2495h), will increase state expenditures by an indeterminable amount in FY 2004 and each year thereafter. There will have no fiscal impact on state, county, and local revenue or county and local expenditures.

METHODOLOGY:

The Department of Revenue Administration states this bill provides for disclosure and posting of the reductions and increases composing the default budgets in SB 2 municipalities. The Department states they will incur some administrative costs to update the rules to cover the form and to design, print, and distribute default budget forms for the 103 SB2 municipalities. The form may also be downloadable from the Department’s website, which would create minimal administrative costs. The exact fiscal impact cannot be determined at this time.

The New Hampshire Municipal Association states this bill will have no fiscal impact on municipalities.