1 School Money; Contingency Fund. Amend RSA 198:4-b, II to read as follows:

II. Notwithstanding any other provision of law, a school district by a vote of the legislative body may authorize, indefinitely until specific rescission, the school district to retain year-end unassigned general funds in an amount not to exceed, in any fiscal year, 2.5 percent of the current fiscal year's net assessment pursuant to RSA 198:5, for the purpose of having funds on hand to use as a revenue source for emergency expenditures and overexpenditures under RSA 32:11, or to be used as a revenue source to reduce the tax rate .

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

1 School Money; Contingency Fund. Amend RSA 198:4-b, II to read as follows:

II. Notwithstanding any other provision of law, a school district by a vote of the legislative body may authorize, indefinitely until specific rescission, the school district to retain any unused portion of the year-end unassigned general funds , from the preceding fiscal year in subsequent fiscal years, provided that the total amount of year-end unassigned general funds does not exceed, in any fiscal year, 5 percent of the current fiscal year 's net assessment under RSA 198:5 .

** (a) Prior to expending retained general funds, the school board shall hold a prior public hearing on the action to be taken with such funds. Notice of the time, place, and subject of such hearing shall be published in a newspaper of general circulation in the relevant municipality at least 7 days before the meeting is held. **

** (b) An annual accounting and report of the activities of the retained general funds shall be presented to the school board of the district and published in the annual report.**

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