By Rep. David Preece, D-Manchester

New Hampshire’s latest financial report tells two very different stories.

On paper, the State of New Hampshire received a clean audit for Fiscal Year 2025. Everything is accounted for. The numbers add up. The books are “accurate.”

But accuracy is not the same as stability. And buried inside that report is a far more troubling truth: New Hampshire’s fiscal position is weakening—and it is the direct result of policy choices made by the current Republican majority and Governor Kelly Ayotte.

The numbers are clear.

The state’s overall financial position dropped by more than $750 million in a single year. Revenues fell. A deficit emerged. And instead of adjusting course, the state covered the gap by dipping into reserves—the equivalent of paying your mortgage with your savings account.

That’s not fiscal discipline. That’s a warning sign.

Even more concerning is why this is happening.

At the exact moment business tax revenues declined sharply—more than $100 million below expectations—Republican leadership eliminated one of the state’s few stable revenue sources: the Interest and Dividends Tax. That decision didn’t just reduce revenue. It made the state more vulnerable to economic swings.

At the same time, other long-standing revenue streams—tobacco, liquor, and consumption taxes—continue to decline. These trends are not new. They are predictable. And yet, instead of modernizing our revenue system, policymakers doubled down on the same shrinking base.

Then comes the part taxpayers should find most troubling.

To make the numbers work, the state quietly shifted money between funds—using dollars from the Education Trust Fund to cover what are essentially general government expenses. That is not transparent budgeting. It is papering over a structural gap.

We are also increasingly relying on one-time money—interest earnings, leftover federal funds—to support ongoing obligations. That may balance a single year on paper, but it guarantees deeper problems down the road.

This is how fiscal stress builds—not overnight, but slowly, beneath the surface.

Supporters of these policies will point to New Hampshire’s strong credit rating as proof everything is fine. But credit agencies don’t just look at where you are—they look at where you’re headed. And right now, the direction is clear: less revenue stability, more volatility, and shrinking margins for error.

This is not about partisan politics. It is about basic fiscal responsibility.

You cannot cut stable revenue, ignore declining income streams, expand obligations, and expect the math to work. Eventually, it doesn’t.

And now, it isn’t.

The FY 2025 financial report should be a wake-up call. Instead, it risks becoming just another document filed away while the underlying problems grow.

New Hampshire has long prided itself on conservative, responsible budgeting. But today, we are drifting away from that tradition—toward a model that relies on short-term fixes and long-term risk.

The people of this state deserve better than balanced books built on unstable ground.

Because sooner or later, the bill always comes due.

Rep. David Preece