Committee Summary for Senate Finance (04/14/2025)

Bill/Time	Type	Title	Sponsor
HB1,HB2 00:05:19.080 - 12:04:05 PM	General Working Session	Unclear	Likely Text to Speech Error on Bill #

HB1,HB2: Representative Ken Weyler, Chairman of the House Finance Committee Information Only00:05:19.080 - 12:04:05 PM; Representative Ken Weyler discussed the challenges faced in creating the budget, starting with the governor's proposal and incorporating HB1 and HB2. He highlighted the significant difference in revenue estimates between the House Ways and Means Committee and the governor's budget, which posed a challenge. Weyler mentioned using data on departmental paychecks to identify potential savings by noting discrepancies between funded positions and actual payroll. He also discussed increasing fees, such as car registration and vanity plates, which had not been adjusted in over 25 years, to generate additional revenue. He pointed out adjustments to fees in the Fish and Game and Agriculture departments to avoid using general funds. Weyler also questioned the effectiveness of state spending on travel and tourism advertising, suggesting that the private sector already does significant advertising. He emphasized the resilience of New Hampshire's revenue mix, particularly the meals and rooms tax, which tends to increase during economic downturns. He concluded by mentioning the experience of the House Finance Committee members and their efforts in crafting the budget.
HB1,HB2: Representative Dan McGuire, representing the town of Epsom, Vice Chair and Chair of Division One Information Only00:13:54.800 - 12:12:40 PM; Representative Dan McGuire presented details on the budget, focusing on the surplus statement and policy positions added to House Bill 2. He explained a $770 million gap between the revenue estimates from the House Ways and Means Committee and what the governor wanted to spend, with a significant portion of this gap in the current fiscal year. McGuire noted adjustments to the rainy day fund and the necessity for the Senate to further modify the budget. He discussed various revenue adjustments, including fee increases and changes to dedicated funds. McGuire also mentioned the redistribution of meals and rooms tax, delays in returning money to ratepayers from the renewable energy dedicated fund, and new fees in the Department of Agriculture. He expressed concerns about off-books program spending and proposed changes to the liquor commission's enforcement division, suggesting it should focus on licensing rather than law enforcement activities. McGuire also discussed the potential increase in revenue from video lottery terminals and opposed Senate Bill 83's allocation of lottery revenue.
HB1,HB2: Senator Osw Information Only00:27:42.120 - 12:26:28 PM; Senator Osw inquired about the list of dedicated funds from which a 5% administrative fee is being taken, as mentioned in House Bill 2. The response clarified that HB2 includes a list of accounts exempt from the fee, and the Legislative Budget Assistant (LBA) could provide the full list of affected funds.
HB1,HB2: Unidentified Speaker Information Only00:28:29.600 - 12:27:15 PM; The speaker discussed the management of over 300 dedicated funds, explaining that most are exempt from the 5% administrative fee. They mentioned that the funds generally reach a level where excess money lapses into the general fund, and suggested a joint committee meeting to discuss concerns about specific funds.
HB1,HB2: Senator Pearl Information Only00:29:26.720 - 12:28:12 PM; Senator Pearl asked for a list of fee increases mentioned in the budget, particularly in agriculture and safety. The response indicated that the LBA could provide such a list, though the speaker did not have it at the time.
HB1,HB2: Unidentified Speaker Information Only00:30:52.880 - 12:29:38 PM; The speaker discussed appropriation adjustments from the surplus statement, focusing on budget reductions for various agencies including the legislative branch, governor's office, and Department of Transportation (DOT). They noted a 5% cut to DOT's total funds budget and mentioned similar cuts for other agencies.
HB1,HB2: Unidentified Speaker Information Only00:31:41.039 - 12:30:27 PM; The speaker continued discussing budget cuts, focusing on the judicial branch, which is the second largest agency in Division One. They highlighted budget increases over the years and potential cuts that might lead to branch court closures and staff layoffs. They also mentioned adding judges to offset cuts in smaller agencies.
HB1,HB2: Unidentified Speaker Information Only00:32:56.080 - 12:31:42 PM; The speaker discussed budget changes for the Department of Justice, noting significant increases in grants that were initially federal but replaced with state funds. They suggested that the Attorney General should have flexibility in managing these grants and mentioned overall budget increases over six years.
HB1,HB2: Unidentified Speaker Information Only00:34:20.159 - 12:33:06 PM; The speaker touched on budget cuts for the Department of Natural and Cultural Resources and the Department of Environmental Services. They noted that new fees added to the latter might exceed the reductions, suggesting further review.
HB1,HB2: Unidentified Speaker Information Only00:35:43.119 - 12:34:29 PM; The speaker discussed the group two retirement system, explaining the changes made in 2011 that created different tiers with varying pension multipliers and rules on final compensation calculation. They detailed a budget proposal to convert all tier B members to tier A status, which is very expensive and does not affect tier C members.
HB1,HB2: Unidentified Speaker Information Only00:36:29.440 - 12:35:15 PM; The speaker further explained the retirement system changes, emphasizing the conversion of tier B to tier A and the costs involved over the next 10 years. They highlighted that this change does not benefit tier C members and could be improved to address hiring issues in certain public safety roles.
HB1,HB2: Unidentified Speaker Information Only00:39:13.359 - 12:37:59 PM; The speaker responded to a question about the YDC settlement fund, clarifying a discrepancy in funding amounts between the governor's office and the budget. They explained that the actual cost might be slightly overestimated due to fewer employees than expected, and that the retirement system does calculations for up to 10 years.
HB1,HB2: Unidentified Speaker Information Only00:41:45.599 - 12:40:31 PM; The speaker discussed the YDC settlement fund, noting that $160 million had been allocated so far, but the fund was initially set up to receive $75 million annually for 10 years. They mentioned that no funds were allocated in the current budget, but they proposed $10 million for a specific settlement and $10 million annually for the next two years, suggesting further discussion to meet the required funding level.
HB1,HB2: Unidentified Speaker Information Only00:43:12.079 - 12:41:58 PM; The speaker discussed the implications of increasing funding for gambling, warning that it could lead to more lawsuits and become a target for legal action. They mentioned the Attorney General initially sought to settle for $100 million, but later requested $500 million. The speaker also highlighted the issue of law firms advertising for abuse cases, potentially creating a 'feeding frenzy' for lawyers, and suggested that settlements should be paid out equally over time rather than lawyers receiving payments upfront. They also mentioned a projected total of 1,500 cases with an average settlement of half a million dollars, totaling $750 million.
HB1,HB2: Unidentified Speaker Information Only00:45:35.359 - 12:44:21 PM; The speaker continued discussing budget allocations, mentioning that $18 million previously allocated for the Canon Mountain tramway was unspent and moved to fiscal year 25. They also noted that the House Finance Committee had restored cuts to the Division of Travel and Tourism and Welcome Centers, impacting the rainy day fund. The speaker discussed the Department of Corrections' budget, pointing out a decrease in inmates and an increase in staff, leading to specific cuts of 150 non-corrections officer positions to rightsize the department. They mentioned using an online database to select employees for cuts and expressed a need for further work on the list in House Bill 1.
HB1,HB2: Unidentified Speaker Information Only00:50:54.480 - 12:49:40 PM; The speaker provided more details on the Department of Corrections, explaining that the cuts included positions like investigators, which could be filled by existing corrections officers working mandatory overtime. They noted that the original budget from corrections had no overtime funding, but they converted half of the unfilled funded positions to overtime in the budget.
HB1,HB2: Unidentified Speaker Information Only00:54:45.359 - 12:53:31 PM; The speaker discussed the elimination of 150 positions in the Department of Corrections, with about 100 being full-time positions. They explained that the workload for investigators was assessed to ensure adequate staffing after cuts. They also mentioned a lack of agreement with the commissioner on these cuts due to other credible information.
HB1,HB2: Unidentified Speaker Information Only00:57:10.240 - 12:55:56 PM; The speaker discussed the elimination of several small agencies from the budget, including the Housing Appeals Board, Child Advocate, Human Rights Commission, Council on the Arts, and others. They justified these cuts by citing poor performance, duplication of services, and high costs per case. They also mentioned that the House reinstated the Board of Tax and Land Appeals (BTLA) despite their recommendation to eliminate it.
HB1,HB2: Unidentified Speaker Information Only01:01:17.599 - 1:00:03 PM; The speaker responded to questions about the Office of Child Advocate and the Housing Appeals Board, arguing that creating new agencies to oversee existing ones was inefficient. They emphasized the need for effective leadership within existing agencies rather than creating new oversight entities. They also discussed the cost-effectiveness of the superior court compared to the Housing Appeals Board and BTLA.
HB1,HB2: Unidentified Speaker Information Only01:08:10.920 - 1:06:56 PM; The speaker emphasized that budgeting involves prioritizing and making trade-offs. They suggested that the Housing Appeals Board and BTLA could be moved under the superior court for preliminary rulings to expedite case resolutions. They offered further assistance to the committee outside of the meeting.
HB1,HB2: Representative Keith Lurif from Auburn Information Only01:09:25.799 - 1:08:11 PM; Representative Keith Lurif discussed the highway fund and the fish and game fund, focusing on eliminating general fund subsidies and addressing winter plowing and driver incentives. They mentioned fee increases to keep the highway fund in surplus and noted that the vanity plate fee increase would benefit the general fund. For the fish and game fund, they discussed fee increases and sweeping excess funds into the fund to run it in surplus.
HB1,HB2: Representative Jess Edwards from Auburn Information Only01:13:16.159 - 1:12:02 PM; Representative Jess Edwards discussed the education trust fund, explaining that they did not change the adequacy formula for the first year but made changes for the second year. These changes included increasing special education funding and adjusting the extraordinary needs grant to balance funding between large districts and property-poor towns. They also discussed the creation of a restricted fund for lottery funds and adjustments to the education trust fund's allocations.
HB1,HB2: Representative Jess Edwards from Auburn Information Only01:27:31.080 - 1:26:17 PM; Representative Jess Edwards from Auburn, who chairs Division 3, provided a detailed perspective on the budget, focusing on the challenges faced in balancing limited resources against unlimited wants. He highlighted that the governor's budget allocated $1.1 billion to Division 3, which was subsequently reduced by $290 million in the finance committee, effectively requiring Division 3 to operate on 75 cents on the dollar. Edwards expressed dissatisfaction with the budget but acknowledged the necessity of prioritizing direct responsibilities and vulnerable populations. Key areas of focus included Glencliff, New Hampshire Hospital, the Veterans Home, and YDC, where the state has a direct obligation to provide care. He also discussed adjustments made to funding for the developmentally disabled and the community health system, aiming to reduce indirect costs while maintaining direct care. Edwards emphasized the need for additional funding to avoid a 3% Medicaid rate reduction, which he believes could negatively impact healthcare services. He also suggested looking into back-of-the-budget cuts and protecting the rainy day fund to maintain the state's financial credibility. Additionally, he proposed consolidating the Governor's Commission on Alcohol and other drug misuse with the Opioid Abatement Commission to eliminate redundancy and enhance legislative oversight over the use of funds.
HB1,HB2: Senator Ro Information Only01:44:29.360 - 1:43:15 PM; Senator Ro expressed concerns about the Medicaid rate decreases, noting that these reductions affect net patient services revenues and the associated federal match. He questioned whether the adjustments made to the MET estimate and the subsequent Medicaid cuts were adequately coordinated, suggesting that there might have been a disconnect in the budgeting process.
HB1,HB2: Paul Breen with the Pease Development Authority Information Only01:53:50.320 - 1:52:36 PM; Paul Breen, Executive Director of the Pease Development Authority, along with Suzanne Analone, the finance director, briefly introduced themselves and reminded the committee that the Pease Development Authority took over administrative oversight of division and ports and harbors.
HB1,HB2: Susie Information Only01:54:43.280 - 1:53:29 PM; Susie presented on the operating budget, highlighting differences between FY24 actuals and the proposed FY27 budget. She pointed out that the budgeted overtime in administration and harbor management departments was higher than necessary. She also noted that all expenditures are reimbursed and do not impact the general fund. Susie suggested reducing the overtime budget if the committee preferred, which would also reduce the revenue.
HB1,HB2: Amelia Galeri, Bank Commissioner, State of New Hampshire Information Only01:58:14.000 - 1:57:00 PM; Amelia Galeri, the Bank Commissioner, provided an overview of the banking department's budget proposal. She explained that the department is a self-funded agency, operating without general funds, and is organized into two divisions: the Banking and Trust Division and the CCD Division. The department supervises various financial entities, conducts examinations, investigates consumer complaints, and provides financial education. She highlighted that the budget is mainly salaries and benefits, with no new positions requested. The department has achieved efficiencies by reducing office space, converting administrative positions to examiner roles, and defunding external positions. Galeri also discussed the impact of a proposed 5% administrative charge on their dedicated fund, which could affect their ability to reduce regulatory costs for the entities they oversee.
HB1,HB2: Ken Marfield, Commissioner of the Department of Labor Information Only02:15:15.280 - 2:14:01 PM; Ken Marfield, Commissioner of the Department of Labor, discussed the department's budget, which is funded entirely by agency income from the administration and restricted funds. He noted that the department has been returning significant amounts to the general fund in recent years. Marfield explained that they met efficiency targets without requesting new positions, despite adding one back due to a Senate-added program. He highlighted changes such as increases in special payments, equipment for elevator inspections, and indirect costs. Marfield also addressed a question about the appeal process for workers' compensation decisions, clarifying that the proposed changes revert to the department's previous practice.
HB1,HB2: George Capis, Commissioner of Employment Security Information Only02:26:37.399 - 2:25:23 PM; George Capis, Commissioner of Employment Security, provided an overview of their budget, emphasizing that they do not use general funds and are primarily funded by federal funds and a 2% set aside of employer-paid unemployment taxes. He highlighted various programs they administer, including job training, work invest, work now, and work ready, and their significant impact since 2019. Capis discussed the unemployment trust fund's status, which has been stable and allowed for tax discounts for employers. He also mentioned their partnership with the voluntary paid family leave program and the importance of maintaining the job training program. Capis answered questions about budget line changes and the contract with MetLife for the paid family leave program, noting potential considerations for future RFPs.
HB1,HB2: DJ Beton Court, Commissioner of the New Hampshire Insurance Department Information Only02:36:01.840 - 2:34:47 PM; Commissioner DJ Beton Court provided an overview of the New Hampshire Insurance Department's budget and operations. The department is self-funded through an annual administrative assessment based on per capita written premium. For fiscal year 2024, the department's actual budget was $12,411,233, and the adjusted authorized budget for fiscal year 2025 was $15,343,677. The House did not approve the department's request for a 7D position in the consumer unit. For the biennium fiscal years 2026 and 2027, the House-passed budget figures were $15,342,855 and $15,614,431 respectively. These numbers reflect adjustments made to unfund positions, reduce travel and training budgets, and cut back on consultants. The department is also seeing increased calls to its consumer division, suggesting a need for additional staff. The House included a 5% administration fee on the assessment that funds the department, which has received pushback from the insurance industry due to potential retaliatory tax implications. Additionally, the department highlighted concerns about an increase in the motor vehicle records fee and revised its insurance premium tax revenue estimates upward by $13 million over the biennium.
HB1,HB2: Michael Kane, Legislative Budget Assistant Information Only02:51:52.240 - 2:50:38 PM; Michael Kane provided an overview of the general fund surplus statement for the fiscal years. The governor's proposal assumed an $81 million draw from the rainy day fund due to revenues being below expectations and additional appropriations. The current rainy day fund balance is $292.5 million, and the governor's estimate for the end of fiscal year 2025 is $211.5 million. The House's revenue estimates for 2025 were about $70 million short of the governor's, with additional appropriations of about $7 million. The House decided to draw $148.8 million from the rainy day fund, bringing the balance down to $143.7 million. For fiscal years 2026 and 2027, the House made adjustments to revenue splits to address shortfalls, resulting in a general fund balance of $13.8 million at the end of 2026 and $111.7 million at the end of 2027. The House also proposed a transfer of $85 million into the rainy day fund, bringing its balance to $228 million. The education trust fund saw adjustments in revenues and appropriations, resulting in a negative balance of $64.3 million in 2025, offset by a transfer from the general fund. The House's budget proposal for the education trust fund included changes to lottery revenue and resulted in a deficit of $26.6 million at the end of 2027. For the highway fund, the House proposed increases in motor vehicle fines and fees to address a shortfall, resulting in an estimated $13 million balance at the end of 2027. The fish and game fund faced flat revenues against growing expenditures, with the House proposing fee increases to maintain a balanced budget, though the fund balance is projected to decrease from $7 million in 2026 to $3.1 million in 2027.

Gray, James(Chairman)(R)[B-]2025	Innis, Daniel(V Chairman)(R)[B]2025	Carson, Sharon(R)[B]2025
Watters, David(D)[D-]2025	Birdsell, Regina(R)[B-]2025	Lang, Timothy(R)[B-]2025
Rosenwald, Cindy(D)[F]2025	Pearl, Howard (R)[B]2025