On Tuesday, January 31, at 1:55 p.m., in State House 103, the Senate Finance Committee will hold a public hearing on SB 114, which would restore a 7.5% state share of employer costs for police, teachers, and firefighters in the current defined benefit plan. HB 50, a companion bill with similar language, has been filed in the House. NHMA supports restoration of up to 35% of the state’s share of employer costs for police, teachers, and firefighters in the current defined benefit plan and any successor plan, with the goal being a 35% re-instatement of the state contribution.  We encourage municipal officials to sign in support; submit written testimony to the committee by email; or, if time permits, come testify about the effect this legislation would have on your local budget.

As towns and cities are developing budgets and the annual meeting process is underway, now might be the time for local governments to consider how they will incur expenses for their remaining State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan Act (ARPA). For municipalities on a July 1 - June 30 budgeting year, this upcoming budget cycle will be the last full fiscal year to “incur” expenses with these dollars. 

The U.S. Department of Treasury’s Final Rule requires that every dollar must be “incurred” or “obligated” by December 31, 2024. As stated in the final rule, “obligation” means “an order placed for property and services and entering into contracts, subawards, and similar transactions that require payment.” See 31 CFR 35.3. (Treasury SLFRF FAQs 13.17). This deadline, established by the legislation, places an expiration date on how SLFRF funds will be used within your municipality.  If your municipality has not developed a plan to incur an expense with all your SLFRF funds, we encourage you to begin the process to avoid losing the opportunity to expend these allocated dollars.

How does this relate to the state budget? We continue to hear from our members that they want to use these funds for large capital expenses associated infrastructure projects, but that the SLFRF funds are simply not enough to cover the full cost of these projects. It is important to remember that in the case of SLFRF funds, they can be used as a match for many state and federal grants and in combination with other funding sources as the Final Rule expanded eligible uses. As the state develops the biennial budget, funding has historically been included for municipal loans and grants; water and wastewater projects; highway block grant funding for local Class IV and V roads repair and maintenance; the red-listed bridge program; and loan funding for PFAS mitigation, to highlight a few examples.

It is through the state’s partnership with its political subdivisions that we will be able to maximize the use of these funds and move forward much needed investments in New Hampshire cities and towns that these funds were designed to provide. This makes it even more crucial for local officials to reach out and talk to your state senators and representatives and advocate for the importance of State Aid to Municipalities.

Please click here to find a list of hearings next week on bills that NHMA is tracking. Please note that the linked PDF only covers hearings scheduled for the next week. For the most up-to-date information on when bills are scheduled for a hearing, please use our live bill tracker.