Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Committee hears bill to restore state retirement contribution for municipal employees to ease property tax pressure
Summary
SB 601 would reinstate a state contribution to municipal employee retirement costs (7.5% in the draft) to reduce municipal retirement bills and potential property-tax pressure; NHMA supported the bill and DRA raised drafting and implementation questions, including a fiscal-note estimate of about $36 million for the first year.
Senate Bill 601, introduced by Kevin Tomick on behalf of Senator Pat Long (District 20), would direct the state to contribute to the state retirement system for certain municipal employees in order to reduce municipal retirement-bill pressure on property taxes.
Kevin Tomick introduced the bill and deferred policy questions to subject-matter witnesses. Marty Carlin, representing the New Hampshire Municipal Association (NHMA), said NHMA supports the bill as a member priority and described the elimination of prior state contributions as a "stealth cost pressure" on municipalities. Carlin provided historical contribution figures and told senators that restoring some state contribution would lower the amounts municipalities pay into the retirement system for police and fire (group 2), though he cautioned municipalities decide how to allocate any savings.
A Department of Revenue Administration (DRA) representative said DRA takes no position but identified technical drafting problems: the draft appears to strike the existing contribution language rather than return it, the DRA may not have statutory authority to make the transfers as written and the treasurer may be the proper party to handle transfers. DRA asked that the retirement system be asked to estimate annual contributions for each political subdivision by Sept. 1 so DRA can use those figures in setting property-tax rates.
A revised fiscal note (dated Jan. 12) was referenced during the hearing, with a witness reporting an approximate FY27 cost of $36,000,037 (and a second-year estimate provided). Senators asked about cost estimates for teachers and other groups and where funds would come from if the state took on additional contribution obligations. The committee closed public testimony and moved to executive session for further consideration; no final vote was taken that day.
