Tensions Rise Over New Hampshire Budget Revenue Estimates
As New Hampshire legislators work on the upcoming two-year state budget, a significant divide has arisen between House Republicans and Governor Kelly Ayotte concerning projected state tax revenues. In a recent press briefing, Ayotte expressed her dissatisfaction with the Senate Ways and Means Committee’s revenue projections, which settled between her optimistic forecasts and the House’s more conservative estimates that resulted in severe budget cuts.
Ayotte’s February projections anticipated a recovery for state businesses despite recent downturns, estimating $6.1 billion in revenue over the next biennium. In contrast, the House estimated a reduction of $228.1 million compared to Ayotte’s predictions. The Senate committee’s compromise proposal suggests a revenue estimate that is slightly higher than the House’s but still falls short of Ayotte’s expectations, reflecting an ongoing debate between Republican and Democratic perspectives on economic health.
Sen. Tim Lang, chair of the Senate Ways and Means Committee, remains optimistic, believing that growth will continue despite potential disruptions from new tariffs imposed by President Trump. He argues that businesses are in a better position than suggested, pointing to easing inflation and lower interest rates. However, Sen. Cindy Rosenwald, a Democrat, raised concerns about declining consumer confidence and hinted at potential overestimations in the Senate’s optimistic projections.
The fallout from these disparities could significantly impact funding for various state programs, with Ayotte advocating for the restoration of critical services, such as Medicaid, that may face cuts. As the Senate Finance Committee prepares to finalize budget recommendations in time for a vote on June 5, both parties will have to reconcile these revenue disagreements to achieve a balanced budget.
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