New Hampshire allocates Fidelity funds to boost UNH scholarships and endowments

In a recent meeting of the New Hampshire House Finance Division, lawmakers discussed significant budgetary amendments that could impact higher education funding and local municipalities. One of the key topics was the allocation of funds from the state's 529 college savings plan, which is managed by Fidelity Investments.

Representatives agreed to transfer a portion of these funds to support the University of New Hampshire (UNH) and the broader university system. This decision aims to bolster financial assistance for students, with a focus on increasing individual scholarships, which have recently been deemed insufficient for many students. The amendment proposes that 70% of the funds will now go directly to scholarships, up from previous allocations, allowing for more substantial support for students facing rising tuition costs.

Additionally, the committee addressed the distribution of the rooms and meals tax, proposing to fix the annual distribution to municipalities at $137 million for the next two years. This change is expected to stabilize funding for local governments, although it may limit potential increases that could arise from higher tax revenues. The decision to hold the distribution flat is projected to save the state approximately $11 million over the biennium, but it raises concerns about how municipalities will manage their budgets without anticipated increases.

The meeting also touched on judicial funding, where lawmakers approved a budget that includes the addition of two new judges to address a backlog of cases, particularly in human rights and business-related matters. This move is seen as necessary to improve the efficiency of the judicial system, although it comes with increased costs.

Overall, the discussions reflect ongoing efforts by New Hampshire lawmakers to balance the state budget while addressing critical needs in education and local governance. As these amendments move forward, their implications for students and municipalities will be closely monitored by community members and stakeholders alike.