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New HampshireSB1052025-2026 Regular SessionSenateWALLET

SB105

Sponsored By: Keith R. Murphy (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

How your town budget cap works

In towns that adopt a cap, total yearly appropriations cannot be more than the per-resident amount times population times (1 + the inflation factor). In the first year, the per-resident amount is the adopted amount. In later years, it grows by last year’s inflation factor. The inflation factor uses a fixed percent or a Bureau of Labor Statistics index as of January 1, as shown on the ballot. The town must use the official population from the NH Department of Business and Economic Affairs. For bonds and other multi-year articles, only the first year’s estimated cost counts toward the cap.

How towns adopt or end caps

Any town that raises money at an annual meeting can put a budget cap question on the warrant by petition. The select board must hold a public hearing 15 to 30 days before the vote, with notice posted in two public places and in a local paper at least 7 days before. Voting is by ballot; the question is not on the officer ballot unless the town uses the official ballot meeting form or a charter allows it. Polls stay open at least one hour after discussion. Adoption needs a 3/5 majority of votes cast on the question. If it passes, the cap starts the next fiscal year and stays until voters rescind it with the same steps and a 3/5 vote. The ballot must show the per-resident dollar amount and either the fixed percent or the BLS index used for inflation. Only yes and no votes count toward the 3/5.

When voters can override the cap

If a proposed appropriation would put total appropriations over the cap, or they already exceed it, the vote on that item must be by ballot. It passes only with at least a 3/5 yes vote from those voting on the question; a town charter’s supermajority applies if different. Only yes and no votes count. In towns that use the official ballot form of meeting, if the operating budget would exceed the cap and gets less than a 3/5 yes vote, the adopted operating budget must be reduced by appropriations already raised so it meets the cap.

Sponsors & Cosponsors

Sponsor

  • Keith R. Murphy

    Republican • Senate

Cosponsors

  • Daniel E. Innis

    Republican • Senate

  • Diane Pauer

    Republican • House

  • James P. Gray

    Republican • Senate

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Signed by the Governor on 06/24/2025; Chapter 0131; Effective 08/23/2025

    6/25/2025Senate

  2. Enrolled Adopted, VV, (In recess 06/12/2025); SJ 17

    6/16/2025Senate

  3. Enrolled (in recess of) 06/12/2025 HJ 17 P. 24

    6/16/2025House

  4. Sen. Gray Moved to Concur with the House Amendment, RC 15Y-8N, MA; 05/15/2025; SJ 13

    5/15/2025Senate

  5. Ought to Pass with Amendment 2025-1626h: MA RC 193-168 05/08/2025 HJ 14 P. 50

    5/8/2025House

  6. Amendment # 2025-1626h: AA VV 05/08/2025 HJ 14 P. 49

    5/8/2025House

  7. Minority Committee Report: Inexpedient to Legislate

    4/30/2025House

  8. Majority Committee Report: Ought to Pass with Amendment # 2025-1626h 04/28/2025 (Vote 10-8; RC) HC 23 P. 15

    4/30/2025House

  9. Executive Session: 04/28/2025 10:00 am LOB 301-303

    4/23/2025House

  10. Public Hearing: 04/07/2025 10:45 am LOB 301-303

    4/2/2025House

  11. Introduced (in recess of) 03/27/2025 and referred to Municipal and County Government HJ 11 P. 111

    3/28/2025House

  12. Ought to Pass: MA, VV; OT3rdg; 03/06/2025; SJ 6

    3/6/2025Senate

  13. Committee Report: Ought to Pass, 03/06/2025; Vote 4-1; CC; SC 11

    2/19/2025Senate

  14. Hearing: 02/18/2025, Room 103, LOB, 09:15 am; SC 10

    2/12/2025Senate

  15. Introduced 01/09/2025 and Referred to Election Law and Municipal Affairs; SJ 3

    1/22/2025Senate

Bill Text

  • Enrolled

    6/16/2025

    HTML

  • Introduced

    1/22/2025

    PDF

  • CHAPTERED FINAL VERSION

    PDF

  • Version adopted by both bodies

    PDF

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