Proposed Budget - Fiscal Years 2026-2027
On February 13, New Hampshire Governor Kelly Ayotte recommended a biennial budget for fiscal years 2026-2027. The proposal includes total fund spending (before budgeted revenue transfers) of $8.21 billion in fiscal 2026 and $8.33 billion in fiscal 2027, representing annual increases of 0.8 percent and 1.5 percent, respectively. The budget calls for combined general and education fund spending of $3.20 billion in fiscal 2026 and $3.30 billion in fiscal 2027, reflecting an annual decrease of 2.7 percent in fiscal 2026 and an increase of 3.1 percent in fiscal 2027. For fiscal 2026, this includes appropriations of $1.92 billion from the general fund (a 6.2 percent decrease) and $1.28 billion from the education fund (a 3.1 percent increase). Federal funds, meanwhile, are expected to total $2.60 billion in fiscal 2026 (a 2.7 percent decrease) and $2.63 billion in fiscal 2027 (a 1.2 percent increase). The budget is based on unrestricted general and education fund revenue forecasted at $3.12 billion in fiscal 2026 and $3.28 billion in fiscal 2027. General fund revenue is projected to increase 1.6 percent in fiscal 2026 and increase 4.7 percent in fiscal 2027, while education fund revenue is projected to decrease 2.9 percent in fiscal 2026 and increase 5.8 percent in fiscal 2027. The state expects to have a combined undesignated fund balance in the general and education funds of $45 million at the end of fiscal 2026 and $14 million at the end of fiscal 2027. The rainy day fund balance is expected to close fiscal 2026 at $212 million and fiscal 2027 at $222 million. The governor also recommended the capital budget for the fiscal 2026-2027 biennium, equating to $208 million in total funds and $143 million in general funds.
Proposed Budget Highlights
The governor’s budget focuses on protecting the state’s economic advantage and honoring commitments to the most vulnerable citizens, while also recalibrating spending as the state adjusts to a post-COVID environment marked by slower revenue growth and the winddown of temporary federal aid. The budget invests in the governor’s priorities including education, workforce development, public safety, healthcare, and housing, as well as returns more revenue than ever before to local communities. The budget also includes targeted spending reductions, determined in close collaboration with agency commissioners, to balance the budget without raising taxes. Highlights of the budget proposal include:
K-12 Education
- Provides a nearly 50 percent increase in state funding for special education over the previous biennium
- Provides universal eligibility for Education Freedom Accounts for currently enrolled public school students
- Grant funding to help school districts remove cell phones from classrooms
Public Safety
- Begins overhaul of the Group 2 retirement system for law enforcement and first responders to improve recruitment and retention
- Continues funding Northern Border Alliance
- Expands funding for drug interdiction and trafficking prevention efforts
Workforce Development
- Invests in community colleges to maintain the current tuition freeze
- Funds dual and concurrent enrollment scholarships and support these programs for high school students
- Expands career and technical education and workforce credential programs in the trades, health care and other critical workforce areas
Healthcare & Behavioral Health
- Invests in services for citizens with development disabilities to ensure there is no waitlist
- Funding for Community Mental Health Centers
- Fully funds the Recovery Friendly Workplace Program
Housing
- Consolidates the permitting review process to empower state agencies to deliver permit determinations in 60 days.
Protecting Children & Most Vulnerable
- Invests in Child Advocacy Centers
- Funds Internet Crimes Against Children Task Force
- Fully funds the Victims of Crimes Act and Court Appointed Special Advocates programs