’26 Article 13 – Operating Budget of $38,236,520 versus a Default Budget of $37,778,312

To see if the Town of Hampton will vote to raise and appropriate as an operating budget, not including appropriations by special warrant articles and other appropriations voted separately, the amounts set forth on the budget posted with the warrant as amended by vote of the first session, for the purposes set forth therein, totaling $38,236,520.  Should this article be defeated, the default budget shall be $37,748,568 which is the same as last year, with certain adjustments required by previous action of the Town of Hampton or by law; or the governing body may hold one special meeting, in accordance with RSA 40:13, X and XVI, to take up the issue of a revised operating budget only.

What it means: The voters are presented with two possible operating budgets. The Proposed Operating Budget is what the Town departments feel they need to manage the Town efficiently, safely and effectively. The Default Budget is a calculated budget defined by RSAs (New Hampshire state legislature), which specify certain costs that must be covered in the Town’s Budget. Both budgets for 2026 reflect cost of Warrant Articles approved at prior Town Elections.  The difference between the two budgets is $487,952.

A default budget is regulated by RSA 40:13 and starts with the prior year’s approved budget, and is increased by obligations mandated by law; debt service and contracts lawfully entered into; and is reduced by one-time expenditures, salaries and benefits related to positions that may have been eliminated. The Default Budget will be the operating budget for the Town in the event the Proposed Operating Budget fails to pass.  80% of both the Proposed Operating Budget and the Default Budget is driven by wages, benefits, contracts and debt. The Proposed Operating Budget represents a 5.26% increase over the 2025 approved Operating Budget.  The Default Budget represents a 4% increase.

Those in favor say: The Budget Committee worked with each Town department to review needs and obligations. Each line item of the budget was thoroughly reviewed by the Department Heads, Board of Selectmen, Town Manager and the Budget Committee. The Proposed Operating Budget funds what is necessary to maintain the current level of services to the Town while reducing costs where possible. The Proposed Operating Budget includes a 3% increase in wages for non-union employees. Other cost increases include computer software upgrades, IT support fees, and the leasing of two trash trucks for use during the summer months.

Those opposed say: One speaker noted that in review of the 2025 expenses, there was $2.2M of unspent funds from the 2025 approved Operating Budget. A proposal at Deliberative Session to cut the Proposed Operating Budget by 2% was defeated. Those who spoke against the Proposed Operating Budget expressed praise for the level of services the Town provides but noted that care needs to be taken not to tax people out of their homes.

Fiscal impact: The estimated additional tax rate impact for the 2026 Budget is $0.31 per thousand. The estimated tax impact for a home valued at $600,000 is $188.12. The estimated additional tax rate impact for the Default Budget is $0.24 per thousand. The estimated tax impact for a home valued at $600,000 is $142.98.

If the Proposed Operating Budget passes, the additional cost will be $45.15 for that $600,000 property.