Citizen in a RepublicNH Bill Briefing
← All bills

HB 1610 · 2026 · House · Education Funding Committee

Schools retaining year-end unassigned funds

AI-generated

allowing school districts to annually retain year-end unassigned general funds.

Allows school districts to retain year-end unassigned general funds on an annual basis.AI-generated

Status

Vetoed; the override vote failed, so the veto stands · August 19, 2026
  1. ✓Introduced
  2. ✓House
  3. ✓Senate
  4. ✕Governor
  5. Law

Governor's veto message

“Unfortunately, this bill goes into effect immediately and as a result, will disrupt the will of voters in 95 school districts in New Hampshire who have already decided under current law how to utilize their year-end unassigned funds. For this reason, I have vetoed House Bill 1610.”
— Gov. Kelly Ayotte · Jul 2, 2026 · excerpt
Governor's press release

The House voted 162–148 on the override (Aug 19, 2026) — short of the two-thirds required, so the veto was sustained. See the roll call.

A passage from the Governor's veto message, quoted verbatim. The full message enters the record on veto day.

Analysis

This bill allows school districts to retain year-end unassigned general funds on an annual basis.

From the bill's official ANALYSIS section.

In the bill's words

Quoted verbatim from the bill as passed by both chambers.

“a school district by a vote of the legislative body may annually authorize[, indefinitely until specific rescission,] the school district to retain any unused portion of the year-end unassigned general funds[, from the preceding fiscal year in subsequent fiscal years], provided that the total amount of year-end unassigned general funds does not exceed[, in any fiscal year, 5] 3 percent of the current fiscal year's [net assessment under RSA 198:5] budget appropriation total.”
RSA 198:4-b, II

This changes retention to an annual authorization and lowers the cap from 5 percent of net assessment to 3 percent of budget appropriation.AI-generated

“These funds may only be spent due to an unusual circumstance following the procedure specified in RSA 32:11.”
RSA 198:4-b, II

This limits the use of retained funds to unusual circumstances under an existing spending procedure.AI-generated

“The legislative body of the city of Manchester, upon recommendation of the school committee, may annually authorize[, indefinitely until specific rescission,] the school district to retain year-end unassigned general funds.”
RSA 198:4-b, III

This provides a separate annual retention authorization specific to the city of Manchester's school district.AI-generated

“RSA 198:4-b, as amended by section 1 of this act, shall rescind all existing indefinite authorizations to retain unassigned general funds as previously authorized under RSA 198:4-b, II and shall apply to the setting of tax rates for the fiscal year ending in June 30, 2027.”
Section 2

This rescinds prior indefinite retention authorizations and sets when the new annual regime takes effect.AI-generated

Official record

Bill page — docket & status

gc.nh.gov · the authoritative source

Sponsors

Rep. John SellersRPrime
  • Rep. Diane PauerRChair· Municipal and County Government

Also: Rep. Susan DeRoyR, Rep. Sandra PanekR, Rep. Linda FranzR

Public testimony

4 signed in online · 2 wrote testimony

75% support25% oppose0% neutral

ForDiscourages year-end 'use it or lose it' spending

AI-generatedLeading arguments, summarized by the testimony tool.

Read the arguments

In their wordsVerbatim, exactly as submitted

“As written I feel that this would encourage more responsible spending and less fear of use it or lose it”
— Lisa Ayer, Manchestersupports
“Retaining unassigned funds empowers districts to plan for equitable investments in student programs without losing unused money to state redistribution.”
— Hannah Meiselman, Manchestersupports

Verbatim excerpts of submitted testimony, quoted from the testimony tool.

Read the testimony · as of Aug 12, 2026

Votes

yeanay
Starting text: Bill as introduced

Hearings and debates

  • Jan 29, 2026Public hearingHouse Education Funding1:41:46–2:22:0040m 14s
  • Feb 17, 2026Public hearingHouse Education FundingWatchnot located in the transcript — opens the full streamExecutive Session
  • Mar 5, 2026Floor debateHouse floor1:27:33–1:41:2213m 49s
  • Apr 1, 2026Public hearingSenate Education Finance38:32–1:13:1234m 40s
  • May 7, 2026Floor debateSenate floor4:16:48–4:18:291m 41s
  • May 21, 2026Floor debateHouse floor42:35–53:0510m 30s
  • Jun 4, 2026Floor debateSenate floorWatchnot located in the transcript — opens the full streamEnrolled Adopted — voice vote
  • Aug 19, 2026Floor debateHouse floor4:16:43–4:24:427m 59slocated in the stream transcriptVeto Sustained — roll call 162-148

Timestamps locate where this bill is taken up in the chamber's YouTube stream.

Legislative history

  1. Jan 7, 2026HouseIntroduced 01/07/2026 and referred to Education Funding HJ 1 P. 28
  2. Jan 29, 2026HousePublic Hearing: 01/29/2026 11:30 am GP 232
  3. Feb 17, 2026HouseExecutive Session: 02/17/2026 10:00 am GP 232
  4. Feb 18, 2026HouseMajority Committee Report: Ought to Pass with Amendment # 2026-0809h 02/18/2026 (Vote 10-7; RC) HC 9 P. 34
  5. Feb 24, 2026HouseMinority Committee Report: Inexpedient to Legislate
  6. Mar 5, 2026HouseAmendment # 2026-0809h: AA VV 03/05/2026 HJ 6 P. 58
  7. Mar 5, 2026HouseOught to Pass with Amendment 2026-0809h: MA RC 182-167 03/05/2026 HJ 6 P. 58
  8. Mar 5, 2026SenIntroduced 03/05/2026 and Referred to Education Finance; SJ 6
  9. Mar 18, 2026Sen==CANCELLED== Hearing: 03/18/2026, Room 100, SH, 01:10 pm; SC 10
  10. Apr 1, 2026SenHearing: 04/01/2026, Room 100, SH, 01:20 pm; SC 12
  11. May 7, 2026SenCommittee Report: Ought to Pass with Amendment # 2026-1635s, 05/07/2026, Vote 4-2; SC 17
  12. May 7, 2026SenCommittee Amendment # 2026-1635s, AA, VV; 05/07/2026; SJ 11
  13. May 7, 2026SenOught to Pass with Amendment # 2026-1635s, MA, VV; OT3rdg; 05/07/2026; SJ 11
  14. May 21, 2026HouseHouse Concurs with Senate Amendment 2026-1635s (Rep. Ladd): MA RC 186-163 05/21/2026 HJ 14 P. 3
  15. Jun 4, 2026SenEnrolled Adopted, VV, (In recess 06/04/2026); SJ 14
  16. Jun 4, 2026HouseEnrolled (in recess of) 06/04/2026 HJ 15
  17. Jul 2, 2026HouseVetoed by Governor Ayotte 07/02/2026
  18. Aug 19, 2026HouseVeto Sustained 08/19/2026: RC 162-148 Lacking Necessary Two-Thirds Vote HJ 16

Coverage

  • HB 1610 (2026) | NH Legislation | Citizens CountCitizens Count

    The bill would have authorized school districts to set aside up to 3 percent of their net assessment in a contingency fund using leftover year-end unassigned general funds, and was vetoed by the governor.AI-generated

Background reading

Evergreen reading on the policy area — spanning perspectives — not coverage of this specific bill.

  • Taking the Mystery Out of Fund BalanceExplainer

    New Hampshire Municipal Association — Defines unassigned fund balance and explains how New Hampshire municipalities and districts account for year-end surpluses.AI-generated

  • Municipal Budgeting: Tackling the UnexpectedExplainer

    New Hampshire Municipal Association — Describes how reserves and fund balances function as a buffer against revenue shortfalls and emergency costs.AI-generated

  • HB 1610 (2026)NH context

    Citizens Count — A nonpartisan summary of the bill changing how New Hampshire school districts may retain year-end unassigned funds.AI-generated

  • ConVal School Board takes action against potential impact of HB 1610District flexibility

    Monadnock Ledger-Transcript — Reports on a New Hampshire district's concerns that tighter retention limits reduce budgeting flexibility.AI-generated

  • $16M back to voters from unassigned fund balanceTaxpayer return

    Eagle Tribune — Illustrates the case for returning accumulated surpluses to taxpayers rather than retaining them in district accounts.AI-generated

Documents (PDF)

Bill text & amendments link direct to gc.nh.gov; committee reports stream from the state record.