SB 354-FN-A – AS INTRODUCED
2008 SESSION
05/09
SENATE BILL 354-FN-A
AN ACT establishing a spending cap on state budget requests.
SPONSORS: Sen. Kenney, Dist 3; Rep. Crane, Hills 21; Rep. Ingbretson, Graf 5
This bill limits increases in department budget requests based on the rate of inflation for the preceding year. Certain expenditure requests are exempt from the limitation.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
08-2858
05/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eight
AN ACT establishing a spending cap on state budget requests.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Budget and Appropriations; Limitation on Expenditure Requests. Amend RSA 9 by inserting after section 3-b the following new section:
9:3-c Limitation on Expenditure Requests. Each branch or department of the state shall limit any request for a budget increase for the ensuing biennium to an amount not to exceed one percent above the rate of inflation based on the Consumer Price Index - Urban, as published by the United States Department of Labor, for the preceding calendar year. The limitation on budget expenditure requests established in this section shall not apply to capital expenditures, payments on the principal and interest of any bond, or expenditures contingent on federal funding. This section shall not be interpreted to conflict with any contractual agreement entered into prior to the effective date of this act.
2 Effective Date. This act shall take effect 60 days after its passage.
LBAO
08-2858
Revised 01/23/08
SB 354 FISCAL NOTE
AN ACT establishing a spending cap on state budget requests.
FISCAL IMPACT:
The Department of Administrative Services states this bill will have no fiscal impact on state expenditures in FY 2008 and each year thereafter. The University System of New Hampshire, the Legislative Branch, and the Judicial Branch state the fiscal impact of this bill is indeterminable in FY 2008 and each year thereafter. There is no fiscal impact on county and local expenditures or state, county, and local revenue.
METHODOLOGY:
The Department of Administrative Services states this bill establishes a cap on the amount of biennial requests for funding by state agencies at the level of one percent above the rate of inflation. The cap does not apply to capital expenditures, payments on principal and interest of any bonds, or expenditures contingent on federal funding. The Department states it can meet the requirements of this bill by providing information and guidance to state agencies through its normal budget instructions as the bill only applies to the agency budget requests. The Department does not anticipate this bill having a fiscal impact on the Department or state agencies.
The University System of New Hampshire is not able to determine the fiscal impact of this bill. The System states this bill limits the opportunity for the System to request appropriation funding, but the result would mean a decrease in state funding. The System indicates state funding has averaged less than the Consumer Price Index plus one percent over the last twenty years.
The Legislative Branch and the Judicial Branch state a fiscal impact cannot be determined because all information necessary to determine a fiscal impact is not available.