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RSA 32:5-h · Adoption of Town Budget Cap

Title
III: TOWNS, CITIES, VILLAGE DISTRICTS, AND UNINCORPORATED PLACES
Chapter
32 · MUNICIPAL BUDGET LAW
Status
current
Official source linked
Yes
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32:5-h Adoption of Town Budget Cap. –

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I.

The provisions of RSA 32:5-g may be adopted by any town in the state whose legislative body raises and appropriates funds through an annual meeting. A 3/5 majority of those voting on the question shall be required to adopt the provisions of RSA 32:5-g. Only votes in the affirmative or negative shall be included in the calculation of the 3/5 majority.

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II.

The question shall be placed on the warrant of the annual or special meeting by the select board or by petition under the procedures set out in RSA 39:3.

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III.

A public hearing shall be held by the select board on the question at least 15 days, but not more than 30 days, before the question is to be voted on. Notice of the hearing shall be posted in at least 2 public places in the town, and published in a local newspaper of general circulation at least 7 days prior to the date of the hearing.

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IV.

If, under RSA 32:5-g, II, a fixed percentage is used for the annual increase for inflation, the wording of the question shall be: "Shall we adopt the provisions of RSA 32:5-g, and implement a budget cap whereby the select board (or budget committee) shall not submit a recommended budget that is higher than _____ dollars per resident expenditure times the current town population plus a _____ percent annual increase for inflation. Requires a 3/5ths majority of the town." Alternatively, if an annual inflation index is used, the wording of the question shall be: "Shall we adopt the provisions of RSA 32:5-g, and implement a budget cap whereby the select board (or budget committee) shall not submit a recommended budget that is higher than _____ dollars per resident expenditure times the current town population plus an annual increase for inflation using (the index) published by (the United States Bureau of Labor Statistics or American City and County) as of October 1. Requires a 3/5ths majority of the town."

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V.

The question shall not be subject to amendment by the legislative body. Voting on the question shall be by ballot, but the question shall not be placed on the official ballot used to elect officers, except in the case of a legislative body that uses an official ballot form of meeting under RSA 40:13 or under a charter adopted pursuant to RSA 49-D. Polls shall remain open and ballots shall be accepted by the moderator for a period of not less than one hour following the completion of discussion on the question. If a 3/5 majority of those voting on the question vote "yes," RSA 32:5-g shall apply within the town beginning with the following fiscal year and for all subsequent years until it is changed as provided in paragraph VI or rescinded as provided in paragraph VII.

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VI.

Any town which has adopted RSA 32:5-g may consider adoption of a new town budget cap, using any method described in RSA 32:5-g, II, in the manner described in paragraphs I through V. If the adoption of a new proposed town budget cap fails, the existing town budget cap shall continue to apply.

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VII.

Any town which has adopted RSA 32:5-g may consider rescinding its action in the manner described in paragraphs I through V. The wording of the question shall be: "Shall we rescind the provisions of RSA 32:5-g, known as the town budget cap, as adopted by the (town) on (date of adoption), so that there will no longer be a town budget cap limit on the amount raised and appropriated?" A 3/5 majority of those voting on the question shall be required to rescind the provisions of this section, except in the case of repeal by charter enactment under RSA 49-D. Only votes in the affirmative or negative shall be included in the calculation of the 3/5 majority. Source. 2025, 131:1, eff. Aug. 23, 2025. Appropriations

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Source note

Source. 2025, 131:1, eff. Aug. 23, 2025. Appropriations

Source history

  • 2025, 131:1, eff. Aug. 23, 2025. Appropriations

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