Revision: Feb. 5, 2026, 9:26 a.m.
Rep. Pauer, Hills. 36
January 22, 2026
2026-0233h
07/05
Amendment to HB 1505-FN
Amend RSA 32:5-e, I as inserted by section 4 of the bill by replacing it with the following:
I. In a school district that has adopted this section, the total amount raised and appropriated for the fiscal year, including the operating budget and all other warrant articles with a tax impact, as shown on the budget certified by the school board or the budget committee and posted with the warrant for the annual meeting pursuant to RSA 32:5, shall not exceed the current per pupil cost, as defined herein, times the average daily membership in residence (ADMR), pursuant to RSA 198:38, I-a, of the school district as of October 1 of the year immediately preceding the proposed budget year as reported [to] by the department of education [times (1+ IF), where IF is an amount for an annual increase for inflation]. The first year after the budget cap is adopted, the current per pupil cost shall be the per pupil cost adopted in the warrant article per RSA 32:5-f, IV. In subsequent years, the current per pupil cost shall be the previous year's current per pupil cost times [(1+IFP)] (1+IF), where [IFP] IF is the [previous] current year's [IF] annual increase for inflation.
Amend the bill by replacing all after section 8 with the following:
9 Municipal Budget Law; Preparation of Budgets; Local Tax Cap. Amend RSA 32:5-b, I-b(b)(1) to read as follows:
(1) "Attendance" shall mean the average daily membership in residence (ADMR) of the school district, pursuant to RSA 198:38, I-a. "This year's attendance" shall be the annual ADMR reported [to] by the department of education as of October 1 preceding the date of the budget hearing held pursuant to RSA 32:5, I. "Last year's attendance" shall be the annual ADMR reported [to] by the department of education as of October 1 of the year prior to the annual ADMR reported for "This year's attendance".
10 Municipal Budget Law; Application. Amend RSA 32:2 to read as follows:
32:2 Application. RSA 32:1-13, shall apply to all towns, school districts, cooperative school districts, village districts, municipal economic development and revitalization districts created under RSA 162-K, and any other municipal entities, including those created pursuant to RSA 53-A or 53-B, which adopt their budgets at an annual meeting of their voters, except RSA 32:5-b[,] which shall apply only in those towns or districts adopting that section pursuant to RSA 32:5-c, except RSA 32:5-e which shall apply only in those school districts adopting that section pursuant to RSA 32:5-f, and except RSA 32:5-g which shall apply only in those towns adopting that section pursuant to RSA 32:5-h. RSA 32:14-23, concerning budget committees, shall apply only in those towns or districts adopting that subdivision pursuant to RSA 32:14, I, and shall apply automatically in school districts or village districts located wholly within towns adopting that subdivision.
11 Municipal Budget Law; Preparation of Budgets; Adoption of School District Budget Cap. Amend RSA 32:5-f, IV to read as follows:
IV. If, under RSA 32:5-e, 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-e, and implement a budget cap whereby the school board (or budget committee) shall not submit a recommended budget that is higher than _____ dollars per pupil cost times the average daily membership in residence of the school district as of October 1 of the year immediately preceding the proposed budget year, plus with a _____ percent annual increase on the per pupil cost for inflation. Requires a 3/5ths majority [of the school district] to adopt."
Alternatively, if an annual inflation index is used, the wording of the question shall be:
"Shall we adopt the provisions of RSA 32:5-e, and implement a budget cap whereby the school board (or budget committee) shall not submit a recommended budget that is higher than _____ dollars per pupil cost times the average daily membership in residence of the school district as of October 1 of the year immediately preceding the proposed budget year, [plus] with an annual increase on the per pupil cost for inflation using (the index) published by (the U.S. Bureau of Labor Statistics or American City and County) as of October 1. Requires a 3/5ths majority [of the school district] to adopt."
12 Municipal Budget Law; Preparation of Budgets; Adoption of Town Budget Cap. Amend RSA 32:5-h, IV to read as follows:
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] with a _____ percent annual increase on the per resident expenditure for inflation. Requires a 3/5ths majority [of the town] to adopt."
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] with an annual increase on the per resident expenditure 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] to adopt."
13 Applicability. RSA 21-J:34, RSA 32:5-b, RSA 32:5-e, RSA 32:5-g, and RSA 32:2, as amended by this act, shall apply to the local tax caps, school district budget caps, and town budget caps adopted prior to the effective date of this act and shall not require local amendment or re-adoption by towns or districts.
I. Section 8 of this act shall take effect on April 1, 2027.
II. The remainder of this act shall take effect 60 days after its passage.