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.