Revision: Dec. 10, 2025, 10:31 a.m.
HB 1610 - AS INTRODUCED
2026 SESSION
26-2523
07/08
HOUSE BILL 1610
AN ACT allowing school districts to annually retain year-end unassigned general funds.
SPONSORS: Rep. Sellers, Graf. 10; Rep. DeRoy, Straf. 3; Rep. Pauer, Hills. 36; Rep. Panek, Hills. 1; Rep. Franz, Graf. 6
COMMITTEE: Education Funding
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ANALYSIS
This bill allows school districts to retain year-end unassigned general funds on an annual basis.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2523
07/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
AN ACT allowing school districts to annually retain year-end unassigned general funds.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Education; District Taxes; Contingency Fund. Amend RSA 198:4-b to read as follows:
198:4-b Contingency Fund.
I. A school district annually by an article separate from the budget and all other articles in the warrant, or the governing body of a city upon recommendation of the school board, when the operation of the schools is by a department of the city, may establish a contingency fund to meet the cost of unanticipated expenses that may arise during the year. A detailed report of all expenditures from the contingency fund shall be made annually by the school board and published with their report. The wording of the question shall be: “Pursuant to RSA 198:4-b, I, shall the school district establish a contingency fund of $____, raised through taxation, to be used by the school board for any unanticipated purpose?”
II. Notwithstanding any other provision of law, a school district by a vote of the legislative body may annually authorize[, indefinitely until specific rescission,] the school district to retain as a contingency any unused portion of the current year-end unassigned general funds for use in the next fiscal year[, 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] 2.5 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] municipalities 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] by the school board of the district at a public meeting and published in the annual report.
(c) The wording of the question shall be: “Pursuant to RSA 198:4-b, II, shall the school district authorize the school board to retain, as a contingency, any unused portion of the current year-end unassigned general funds for use in the next fiscal year by the school board for any unanticipated purposes, instead of returning funds to taxpayers to lower taxes, provided that the amount of year-end unassigned general funds does not exceed ___?percent of the current fiscal year’s net assessment under RSA 198:5?”
III. The legislative body of the city of Manchester, upon recommendation of the school committee, may annually authorize[, indefinitely until specific rescission,] the school district to retain year-end unassigned general funds.
2 Applicability. ?RSA 198:4-b, as amended by section 1 of this act, shall rescind all existing indefinite authorizations to retain unassigned general funds as previously authorized under RSA 198:4-b, II.
3 Effective Date. This act shall take effect 60 days after its passage.