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Subcommittee advances bill to require municipalities to adopt budgets by July 1 or operate on prior-year funding
Summary
HB1516 would require municipalities to adopt annual budgets by the start of the fiscal year (July 1); if they fail to do so they may operate on the previous year's budget for up to two months (three months with a compelling reason approved by the comptroller). The subcommittee advanced the bill 7-0.
House Bill 15 16, sponsored by Chairman Moon, would align municipal budget deadlines with counties by requiring cities to adopt annual budgets on the first day of the fiscal year (July 1). If a municipality does not adopt a budget by that date it could operate on the prior year's budget for two months, with a possible third month allowed only for compelling reasons (such as a disaster) subject to approval by the comptroller's office. For municipalities with a local education agency (LEA) that starts the fiscal year without a budget, the LEA would be funded at the previous year's level (maintenance of effort), with a potential 3% increase after three years.
The sponsor framed the bill as ensuring fiscal discipline and continuity; members had no further questions and the committee voted 7-0 to move the bill to state and local full.
