Selectmen agree to draft joint letter opposing House Bill 475 over default-budget changes

Board members discussed House Bill 475, legislation that board members said would change how default municipal budgets are calculated. Town Manager Greg explained that, as drafted, the bill would prevent towns from including certain positions or post-adoption salary/benefit increases in a default budget — for example, vacancies the town has been unable to fill or performance-based salary adjustments made after a budget is adopted.

Greg said the bill could “impede hiring, especially for key but difficult to hire positions,” and gave the example that if the town cannot fill a highway department position, the bill would prevent carrying that position forward in a default budget. He also described how the bill would treat one-time transfers and unexpected purchases — such as a large, one-time equipment purchase funded by transfers — in a way that could reduce the town’s ability to carry amounts forward.

Select members said the change could be financially damaging to Plaistow, where year-end balances are “pretty tight.” The board discussed how the New Hampshire Municipal Association (NHMA) had flagged the bill and encouraged SP-2 communities to contact their legislative delegations. The board agreed to prepare a joint letter from the Board of Selectmen and also encouraged individual letters to the town’s four house representatives and state senator. Greg recommended also sending the letter to the legislative committee that considered the bill; the board supported that approach.

Board members discussed asking the senator to remove the bill from the consent calendar and to consider motions to table, re-refer or declare the bill inexpedient to legislate. Members agreed to draft language and circulate it among the selectmen; they asked staff to confirm which committee the bill originated from and to circulate the draft for signatures before the committee deadline.