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Committee backs amendment to soften proposal to eliminate default budget from ballot, 10‑8
Summary
After warnings that removing the default budget could force towns and schools to cut services and staff, the committee adopted amendment 0695H and voted 10‑8 to recommend HB1355 with that amendment; the amendment creates a continuation budget option or a special meeting process with shortened timelines.
House Bill 1355, which would eliminate the default budget from official ballot referenda, was advanced by the Municipal and County Government Committee after a negotiated amendment aimed at softening the bill's effects.
Representative McDonald presented amendment 2026‑0695H as a moderated approach: if a governing body chooses, it may adopt a 'continuation' budget equal to last year's adopted operating budget, or it may hold a special meeting (timed 20 to 30 days after balloting) to consider a new operating budget that cannot exceed the failed proposed operating budget. The amendment shortens timelines for special meetings and provides a fallback continuation budget if those meetings fail.
Opponents argued the change could start a "race to the bottom," preventing municipalities from adjusting for inflation, cost‑of‑living increases, or teacher contracts and potentially degrading public services. Representative Gilman warned that eliminating the default budget could hamper towns' ability to give raises or maintain essential services. Representative Davis cited a local example of budget dysfunction and urged caution.
Despite those objections, amendment 0695H was accepted 10‑8 and the committee voted HB1355 'ought to pass with amendment' 10‑8; the bill will proceed on the regular calendar and the chair will write the majority report while Representative Gilman prepares the minority report.
