relative to increases in state tax rates and debts.

HB 1230 caps annual spending increases for New Hampshire's state government and local political subdivisions at a rate tied to the 4-year average inflation rate (capped at 2.5%) plus the previous year's population growth. It requires excess revenues over this limit to be deposited into a rainy day fund (up to 10% of revenue) or refunded, and prohibits spending above the cap without voter approval. Citizens can sue state/local governments for violations and, if successful, recover attorney fees and court costs. The bill directly affects state/local budgets and creates a legal pathway for public oversight of spending and debt decisions.