NHFPI Releases Analysis Of Governor's State Budget Proposal

By News Release, InDepth NH

As the House Finance Committee holds its first public hearing on the State Budget, the New Hampshire Fiscal Policy Institute (NHFPI) is releasing a detailed, data-driven analysis of the Governor’s State Budget Proposal for Fiscal Years 2026 and 2027. This report provides context on the budget’s priorities, trade-offs, and potential fiscal impacts on New Hampshire.

Key Takeaways from NHFPI’s Analysis:

• Maintaining Services Amid Fiscal Challenges – The budget keeps most state agency funding steady, but rising costs and revenue shortfalls put pressure on key services.
• Shifting Appropriations – Funding would increase for public safety retirement benefits, Education Freedom Accounts (with expanded eligibility), special education aid, and homeless services, while the University System, home- and community-based services, and hospital payments face cuts.
• New Revenue Proposals – The Governor proposes generating funds through video lottery terminals and higher Medicaid cost shares and copayments.
• Unfunded Costs Create Uncertainty – No new funding is allocated for major potential expenses, including settlements for Youth Development Center abuse lawsuits, a new state prison, or possible education funding obligations.
• Relatively Optimistic Revenue Assumptions – The budget projects strong growth in business and real estate transfer taxes, while the House offers a far more cautious revenue forecast.

You can read the full report here.

This article first appeared on InDepthNH.org and is republished here under a Creative Commons license.