InDepthNH.org – June 3, 2025
By PAULA TRACY
CONCORD – Along party lines, the Senate Finance Committee voted 6-2 Tuesday to pass its version of a budget for the next two years at about $16 billion despite Democratic concerns that it does not meet the needs of the citizens of the state who are just trying to get by. But Republicans said the Senate version of the budget is responsive to public concerns and a needed “readjustment” from the past few years when the money was flowing in heavily from the federal government for post COVID-19 relief.
That money has since dried up as have a number of revenue lines which have disappeared or contracted. The new governor, Republican Kelly Ayotte proposed a $16 billion budget based on revenue projections this winter. It looked to retain most current services while asking department heads to reduce their asks, which they did. The House next passed a $15.5 billion budget April 10 which was $513.5 million less than the governor’s budget, based on revenue projections trending downward.
But they heard loudly from hundreds at a public hearing that the House went too far in cutting services, particularly to the most vulnerable. Revenue estimates trended upward for Senate budget writers to be roughly between the House and Governor’s estimates.
The proposed Senate budget fits the needs of the state for it to be balanced and is likely to pass on Thursday when the full Senate votes. It is expected to go to a committee of conference between the House and Senate if passed because there are a number of key differences financial and policy between House and Senate versions which will have to be worked out.
Some key highlights to the recommended Senate House Bill 1 and 2 which will be voted on by the 16-8 Republican controlled Senate are:
– Medicaid provider rates have been restored from the House contemplation of 3 percent cuts, a cost of $52.5 million.
– It fully funds the wait list for those with developmental disabilities needs, restoring it from House cuts by $31 million.
– It uses $15 million in federal funds for childcare workforce programming.
– For Corrections, it restores 75 out of 100 positions cut in the House budget, which sought a 10 percent cut.
– It restores some funding and changes some policies related to the Arts Council, Office of the Child Advocate, the Human Rights Commission and the Commission on Aging.
– Community mental health services are also restored from the $15.5 billion House budget by $38 million.
– It funds $11.5 million for water improvements and directs $55 million in PFOS settlement funds to public water systems impacted by the “forever” chemical.
– It dedicates more than $100 million to the former YDC settlement fund for victims in the state’s care including $80 million estimated from the future sale of the Sununu Youth Services Center property in Manchester.
– It restores funding for the courthouses in Hooksett and Goffstown.
– It includes $10 million for people with developmental disabilities and acquired brain disorder in community residences.
– It restores the full 30 percent revenue sharing to cities and towns under the rooms and meals tax from the House cuts. That revenue sharing has doubled to communities since the Senate pushed to increase it four years ago.
– The proposed Senate version sends more than $2.1 billion to local schools under the student-centered education funding formula.
– It restores $10 million for local wastewater projects.
– It expands the Education Freedom Accounts program to all families, regardless of income.
– It restores funding from the House version for the UNIQUE college scholarships program for Granite State students attending New Hampshire colleges.
– It provides $85 million in state funds for the University System of NH, an increase from the House version of $67 million.
– It includes back of the budget cuts for state departments totaling $95.5 million which will be determined by department heads.
The vote on both House Bill 1 and the trailer bill, House Bill 2 in the Senate Finance Committee was 6-2 with Republican Senators Regina Birdsell, R-Hampstead, Tim Lang, R-Sanbornton, Chairman James Gray, R-Rochester, Senate President Sharon Carson, R-Londonderry, and Dan Innis, R-Bradford supporting them. Opposing the measures were the two Democrats on the Senate Finance Committee, Sen. Cindy Rosenwald, D-Nashua, and Sen. Rebecca Perkins Kwoka, D-Portsmouth, who was filling in for Sen. David Watters, D-Dover, who was sick.