By GARRY RAYNO, InDepthNH.org
CONCORD — From special education to a landfill moratorium, Gov. Kelly Ayotte laid out her budget agenda Thursday, saying it is $150 million less in general fund spending than the current two-year plan.
While she touted almost $100 million in additional state aid for special education, $10 million more for the community mental health centers, and a total of $1billion for services for people with developmental disabilities to maintain services with no wait list, she did not articulate any of the major reductions in current spending needed to balance the next biennial budget in light of declining state revenues and the phase out of federal pandemic money.
The University System of New Hampshire is projected to lose $16.5 million in state aid in the next biennium while campuses struggle financially due to declining enrollments, stagnate tuition fees and one of the smallest amounts of state aid to higher education in the country.
The prison system also saw a significant reduction of $18 million in its budget for the biennium.
“This budget honors our unbreakable commitment to those in need of our help and prepares our next generation to meet the needs of tomorrow,” Ayotte said in her first budget address. “Together, we will keep our state the envy of the nation and deliver even greater prosperity for all of New Hampshire.”
Overall, the governor’s proposed budget would spend $16.5 billion over the next two fiscal years, a 6 percent increase, and spend $6.7 billion in general funds, a 5 percent increase over the current biennium.
Revenue projections are almost identical to the current $6.4 billion estimated for the current biennium and Ayotte’s budget projects a surplus of $14 million at the end of the next biennium June 30, 2027.
In her address, she noted the state’s job growth exceeds the national average, New Hampshire has the lowest poverty rate in the nation, while unemployment is low and wages are rising.
“Our New Hampshire Advantage is on display for all to see,” Ayotte said.
But she said, with declining revenues and the phase out of federal aid, the state needs “to recalibrate,” and her proposed budget does that with a scalpel not a shovel, and without across-the-board cuts.
The current operating budget is a 21 percent increase over the previous two-year plan, she noted.
“With federal transfers dropping and revenues lower overall, a recalibration of our approach is in order – both for the total amount of spending, and also the way in which we steward every single taxpayer dollar,” Ayotte said and then added a partisan dig. “But let’s be clear about something…something that our friends across the aisle don’t seem to understand…The State of New Hampshire is strongest when individuals, families, and small businesses have more money in their pockets to make critical decisions. That’s where the strength of our state lies – in the individual – in those that create jobs and opportunities for others. That isn’t the role of government.”
Ayotte said in her address “our guiding principle has been to deliver a budget worthy of our people that represents a recalibration of the way we do business, but continues our New Hampshire way of not raising taxes, but instead taking a hard look at spending…”
“We focused on making our government more efficient and ensuring tax dollars do more with less. We cut bloated contracts with out-of-state vendors, took a hard look at how our agencies operate and worked with commissioners to dial in spending,” Ayotte said. “And we also found areas to make responsible adjustments that bring us in line with the times and what other states are doing as well… We brought our adult Medicaid eligibility back in line with pre-pandemic levels and joined our neighbors in requiring nominal copays for those receiving these benefits.”
In her address Ayotte pledged to continue the increased spending on public education and said that includes a 50 percent increase in state aid for special education. Her budget includes $38 million in additional money that would cover the cost of the current $16 million shortfall that school districts have highlighted in recent months.
“We understand the skyrocketing costs facing towns in providing special education and we want to help lessen that financial burden and ensure students are receiving the resources they need,” she said.
She also said that Education Freedom Accounts or vouchers would be available to all public-school students “so that parents can decide what learning environment is best for their children and every child has the opportunity to succeed.”
That would change the current program which is open to all New Hampshire students whose parents earn 350 percent of the federal poverty level or less, about $109,000 for a family of four.
The largest use of the program to date is by children already in private or religious schools as a subsidy or homeschooled.
It appears children would have to leave public schools in order to qualify for the grants going forward that average $5,200 without limits on a family’s income.
Ayotte also said, “I am making good on my promise to stop cell phones from disrupting our learning environments, doing it the New Hampshire way, making $1 million dollars available in grants to school districts to develop individual approaches to pursue this goal.”
The governor also said her budget will send more aid to local communities than ever before. Under her budget proposal municipal revenue sharing would increase over the biennium by $9 million.
“Much of what we accomplish best in our state is done at the local level, and that’s why we are pushing funds to the local level more than ever before in our history,” Ayotte said. “And it’s why I challenge our local officials to take the same stance we do as a state, and take a hard look at what they are spending taxpayer dollars on, especially when we are supporting them more than ever before, so that they accordingly pass along relief to taxpayers through their property taxes, where possible.”
She noted affordable housing is one of the critical issues facing the state and impacts the state’s ability to attract top talent.
In Ayotte’s budget she proposes consolidating the state permitting process and requiring state agencies to complete the process in 60 days. She urged cities and towns to do their part to speed the process as well.
The budget would also increase state aid to the Community College System of New Hampshire in order to maintain its tuition freeze.
Ayotte’s budget also dedicates $6 million to dual and concurrent enrollment at community colleges for high school students to jumpstart their careers or higher education.
She said her budget also expands funding for career and technical education and workforce credentialing programs, making it easier to receive training for in-demand jobs like welding, HVAC, or electrical work and licensed nursing assistants.
And she said her budget will provide a long-term solution to the Group II retirement system with $33 million that will boost retention and recruitment for public safety jobs like police, firefighters, EMTS and other first responders.
“It’s the right thing to do for those that do so much to keep us safe,” Ayotte said. “This is only the beginning, but it is a big step forward in ensuring they receive the retirement they have earned.”
She called on the legislature to send her “a fix” to the state’s new bail system that is putting police unnecessarily in harm’s way and is a danger to the public at large.
“What happened in Manchester last Friday night is completely unbelievable, when an individual accused of repeatedly stabbing a complete stranger, and who has a prior
conviction for domestic violence, is allowed to walk free by a magistrate. I cannot emphasize this enough. Send me legislation to fix this once and for all,” Ayotte said.
Under Ayotte’s budget the court system would receive an additional $20 million over the biennium.
Her budget fully funds the Granite Shield drug interdiction program, adds a new investigator to the cold case unit, and continues the Northern Border Alliance.
“To me, it’s pretty much common sense to say that our North Country, our lakes region, our beautiful open spaces, shouldn’t be scarred by poorly envisioned projects that detract from our quality of life,” Ayotte said. “Which is why I am announcing today a landfill moratorium and a revamped regulatory process for approving these projects going forward, to ensure that our beauty as a state is not compromised.”
She said her budget is for all of New Hampshire.
“This budget is a step forward for our future, and it will help us directly address the challenges we face in growing our prosperity as a state,” she said.
Garry Rayno may be reached at GarryRayno@yahoo.com.