1 New Sections; Reduced Default Budget Option; Method of Adopting Reduced Budget Default Option. Amend RSA 40 by inserting after section 14-b the following new sections:

40:14-c Reduced Default Budget Option. A local political subdivision which has adopted RSA 40:13 may, instead of a vote taken under RSA 40:13, XI(c), vote under this section to adopt a reduced default budget of a percentage to be determined by the local political subdivision.

I. The wording of the two-prong, second ballot question concerning the operating budget shall appear consecutively on the ballot, and shall be:

(a) "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 $_____?"

(b) "This question shall be considered only if the previous question is defeated. Shall the (local political subdivision) raise and appropriate as an operating budget, not including appropriations by special warrant articles and other appropriations voted separately, a default budget, totaling $_, which is the same as last year, with certain adjustments required by prior action of the (local political subdivision) or by law; the (local political subdivision) governing body nay hold one special meeting, in accordance with RSA 40:13, X and XVI, to take up the issue of a revised operating budget. Should this question be defeated, the operating budget shall be the reduced default budget of $___, which is the default budget reduced by (R) percent."

II. The wording of the ballot question proposed under subparagraph I(b) shall not be amended by the first session of the annual meeting.

40:14-d Method of Adopting Reduced Default Budget Option.

I. The provisions of RSA 40:14-c may be adopted by any local political subdivision whose legislative body has adopted RSA 40:13. A 3/5 majority of those voting on the question shall be required to adopt the provisions of RSA 40:14-c. Only votes in the affirmative or negative shall be included in the calculation of the 3/5 majority.

II. The question shall be placed on the warrant of the annual or special meeting by the governing body, or by petition under the procedures set out in RSA 39:3, RSA 197:2, or RSA 197:6.

III. A public hearing shall be held by the local governing body on the question at least 15 days, but not more than 30 days, before the question is to be voted on. In multi-town districts, a public hearing shall be held in each town embraced by the district, none of which shall be held on the same day. Notice of the hearing shall be posted in at least 2 public places in the town and at least 2 public places in each town of multi-town districts, and published in a newspaper of general circulation at least 7 days prior to the date of the hearing.

IV. The wording of the question shall be: "Shall we adopt an annual option for a default budget, reduced by (R) percent, instead of the default budget, when the proposed operating budget is defeated, per RSA 40:14-c? A 3/5 majority of those voting on the question shall be required." Only votes in the affirmative or negative shall be included in the calculation of the 3/5 majority. R shall be a number between 1 and 10, inclusive. The question shall not be subject to amendment by the legislative body.

V. ? Voting on the question shall be by official ballot. If a 3/5 majority of those voting on the question vote "yes,'' RSA 40:14-c shall apply beginning the following fiscal year and for all subsequent years until changed as provided in paragraph VI or rescinded as provided in paragraph VII.

VI. Any local political subdivision which has adopted RSA 40:14-c may consider adoption of a new reduced default budget option in the manner described in paragraphs I through V. If the adoption of a new reduced default budget option fails, the existing reduced default budget option shall continue to apply.

VII. Any local political subdivision that has adopted RSA 40:14-c may consider rescinding its action in the manner described in paragraphs I-V.The wording of the question shall be: ?"Shall we rescind the provisions of RSA 40:14-c, known as the reduced default budget option, so that there will no longer be any option for a reduced default budget. A 3/5 majority of those voting on the question shall be required.'' ? 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.

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

1 New Sections; Reduced Default Budget Option; Method of Adopting Reduced Budget Default Option. Amend RSA 40 by inserting after section 14-b the following new sections:

40:14-c Reduced Default Budget Option. A local political subdivision which has adopted RSA 40:13 may, instead of a vote taken under RSA 40:13, XI(c), vote under this section to adopt a reduced default budget of a percentage to be determined by the local political subdivision.

I. The wording of the two-prong, second ballot question concerning the operating budget shall appear consecutively on the ballot, and shall be:

(a) "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 $_____?"

(b) "This question shall be considered only if the previous question is defeated. Shall the (local political subdivision) raise and appropriate as an operating budget, not including appropriations by special warrant articles and other appropriations voted separately, a default budget, totaling $_, which is the same as last year, with certain adjustments required by prior action of the (local political subdivision) or by law; the (local political subdivision) governing body nay hold one special meeting, in accordance with RSA 40:13, X and XVI, to take up the issue of a revised operating budget. Should this question be defeated, the operating budget shall be the reduced default budget of $___, which is the default budget reduced by (R) percent."

II. The wording of the ballot question proposed under subparagraph I(b) shall not be amended by the first session of the annual meeting.

40:14-d Method of Adopting Reduced Default Budget Option.

I. The provisions of RSA 40:14-c may be adopted by any local political subdivision whose legislative body has adopted RSA 40:13. A 3/5 majority of those voting on the question shall be required to adopt the provisions of RSA 40:14-c. Only votes in the affirmative or negative shall be included in the calculation of the 3/5 majority.

II. The question shall be placed on the warrant of the annual or special meeting by the governing body, or by petition under the procedures set out in RSA 39:3, RSA 197:2, or RSA 197:6.

III. A public hearing shall be held by the local governing body on the question at least 15 days, but not more than 30 days, before the question is to be voted on. In multi-town districts, a public hearing shall be held in each town embraced by the district, none of which shall be held on the same day. Notice of the hearing shall be posted in at least 2 public places in the town and at least 2 public places in each town of multi-town districts, and published in a newspaper of general circulation at least 7 days prior to the date of the hearing.

IV. The wording of the question shall be: "Shall we adopt an annual option for a default budget, reduced by (R) percent, instead of the default budget, when the proposed operating budget is defeated, per RSA 40:14-c? A 3/5 majority of those voting on the question shall be required." Only votes in the affirmative or negative shall be included in the calculation of the 3/5 majority. R shall be a number between 1 and 10, inclusive. The question shall not be subject to amendment by the legislative body.

V. ? Voting on the question shall be by official ballot. If a 3/5 majority of those voting on the question vote "yes,'' RSA 40:14-c shall apply beginning the following fiscal year and for all subsequent years until changed as provided in paragraph VI or rescinded as provided in paragraph VII.

VI. Any local political subdivision which has adopted RSA 40:14-c may consider adoption of a new reduced default budget option in the manner described in paragraphs I through V. If the adoption of a new reduced default budget option fails, the existing reduced default budget option shall continue to apply.

VII. Any local political subdivision that has adopted RSA 40:14-c may consider rescinding its action in the manner described in paragraphs I-V.The wording of the question shall be: ?"Shall we rescind the provisions of RSA 40:14-c, known as the reduced default budget option, so that there will no longer be any option for a reduced default budget. A 3/5 majority of those voting on the question shall be required.'' ? 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.

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