In June, Governor Sununu vetoed the biennial state operating budget (HB 1 and HB 2) as passed by the House and Senate.  Consequently, since July 1 the state has been operating under a Continuing Resolution that authorizes state agencies to spend up to 1/4 of the prior year’s appropriations.  This resolution expires September 30, 2019.  Having failed to resolve the state budget stalemate last week when the House and Senate convened to vote on other vetoed bills, both bodies are scheduled to meet again on Wednesday, September 25, to address the budget.

We are hearing that, despite ongoing negotiations, a budget resolution may not be reached in time for a vote on September 25, which will then likely result in adoption of another Continuing Resolution for some extended period of time. 

The New Hampshire Department of Revenue (DRA) has indicated that it will begin certifying property tax rates October 1 based on “current law.”  But if DRA does not know the appropriated amounts for municipal aid and education funding, those tax rates may not be correct, in which case some form of adjustment will be required this year or next. 

Failure to adopt the state budget raises significant concerns about the accuracy of municipal tax rates because state aid to municipalities and school districts remains uncertain.

Please contact each of your Representatives and Senators, as well as the Governor, TODAY and urge them to reach a compromise on the state budget before the Continuing Resolution expires on September 30 so municipalities can issue timely and accurate  property tax bills.