New Hampshire House Finance Committee Moves to Slash Budget Amid Fiscal Challenges
Concord, NH—The New Hampshire House Finance Committee is in the final stages of revising the state’s two-year budget, grappling with significant fiscal hurdles that include the expiration of pandemic-related federal aid and a fluctuating economy. Governor Kelly Ayotte initially proposed a budget aimed at "recalibrating" state expenditures, but the Republican-led Legislature appears ready to make even deeper cuts.
During a recent meeting, the committee debated and voted on a series of spending reductions that are expected to trim Ayotte’s proposal by more than $200 million. Among the most notable cuts is an approximately $80 million reduction to the University System of New Hampshire, with $50 million coming from the University of New Hampshire alone.
The proposed budget also seeks savings across various state agencies. The state court system is anticipated to save $8 million, while the Department of Corrections could face over $20 million in cuts and significant job losses. Additionally, the Attorney General’s office will see a $15 million budget reduction.
In a move reflecting deep fiscal constraints, the committee’s plan proposes to eliminate certain government functions, including the Office of Child Advocate and the State Arts Council. It also pushes for increases in various state fees.
Local control and education funding became contentious discussion points as the committee considered capping local school budgets to match the inflation rate. Critics argue this could lead to chronic underfunding for schools.
As lawmakers continue deliberations, the looming risk of further federal aid cuts and additional budget constraints raises concerns about the state’s financial capabilities and the potential impact on essential public services. The Finance Committee is set to reconvene to discuss funding for the Department of Health and Human Services, which constitutes about 40% of state expenditures.
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