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Budget 2016-2017

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LFDA Editor
Summary

The state budget for fiscal years 2016 and 2017 runs from July 1, 2015 to June 30, 2017.

Gov. Maggie Hassan presented her two-year spending and revenue plan to the state Legislature on Feb. 12. The $11.5 billion plan increases spending over the two years by 6.4 percent over the current budget that expires on June 30.

Proposed spending included:

-- $13 million more to the University System of New Hampshire and $6.5 million more to the community colleges. The community college system planned to lower tuition, but the university system stated that $13 million isn't enough to freeze tuition as it had hoped;
-- $12 million to continue New Hampshire's Medicaid expansion plan in the second half of 2017, when federal funding drops below 100 percent;
-- At least $3,500 per student in state aid, but with fast-growing school districts subject to a cap based on what they received the previous year
-- An additional $25 million to fund the new women's prison opening in 2016;
-- $4 million in the capital budget to continue studying bringing commuter rail to New Hampshire.

The revenue portion included Keno instead of a casino as a means by which to raise revenue through gambling. The budget also Increased the tobacco tax by 21 cents, raised the motor vehicle registration fee by 35 percent, and changed business tax collections.

“Today, I present to you a fiscally responsible, balanced budget - with no income or sales tax,” Governor Hassan said. “This is a budget that helps expand opportunity for middle class families, supports job-creating businesses, encourages innovation, and aims to attract and retain more young people here in New Hampshire.” 

All budget-related documents are here. The two bills that contain the elements of the budget are HB 1 and HB 2.

The N.H. House on April 1 passed an $11.2 billion budget largely across party lines with the majority Republicans holding sway to trim about $300 million from the governor's spending proposal. Cuts were made to a variety of programs in education, transportation, health and human services, and state aid.

With the House having done its work, the state Senate will craft its budget plan, and lawmakers have until June 30 to reach consensus to set the new budget and get it to the governor's desk.

The process of crafting the biennial budget started in October and November against the backdrop of a changing political dynamic in New Hampshire.

Maggie Hassan, the Democratic incumbent governor, was reelected to a second term in November. Meanwhile, the New Hampshire Legislature became dominated by Republicans, with the GOP gaining more seats in the Senate and taking a majority of seats away from Democrats in the House.

The last time a Democratic governor dealt with a Republican Legislature on the state budget was Gov. John Lynch in 2011. The 2012-2013 budget, which slashed funding to the University System of New Hampshire and state Department of Health and Human Services, was enacted without Lynch’s signature.

The 2014-2015 budget crafted by Hassan, a GOP-led Senate, and a Democrat-led House came in at $10.7 billion.

On April 1,2015, the Republican-led House approved an $11.2 billion budget that cut about $300 million from the governor's plan. A variety of programs was affected in education, substance abuse, health and human services, and transportation. With the House vote, the budget moved to the state Senate for consideration. The Senate on June 4 voted 14-10 along party lines to approve its Finance Committee recommendation for an $11.3 billion budget, restoring some of the House cuts, but far short of Gov. Hassan's expectations.

Hassan, as she promised, vetoed the budget,. calling it "unbalanced" and funded with "false promises" as she and Republican leaders negotiated some adjustments that included adding money for such items as a negotiated salary increases for state employees.

With the new budget due to start on July 1, the Legislature passed and the governor signed a continuing resolution that funds state government and agencies at current levels for six months. The stalemate continued through the summer of 2015 until a compromise was announced and the budget was voted into law. The two-year plan expires on June 30, 2017.

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