New Hampshire budget cuts prompt concerns over university funding and student retention

The House Finance Committee of the New Hampshire Legislature convened on April 8, 2025, to discuss the state budget and its implications for various sectors, including gaming and higher education. The meeting focused on the transition from historic horse racing (HHR) machines to video lottery terminals (VLTs) and the impact of budget cuts on the university system.

The first significant topic addressed was the tax structure for gaming machines. It was clarified that the budget does not repeal HHR machines, allowing operators to maintain them at a 25% tax rate. Some larger operators benefit from a totalizer that reduces their overall tax burden to approximately 30% per machine. Discussions revealed that operators would not transition to VLTs even if the tax rate were lowered to 33%. Instead, a 30% tax rate was proposed to encourage a gradual shift towards VLTs, with projections estimating around 4,000 machines statewide by the end of the year, including a transition of 2,500 HHR machines to VLTs in the first year.

The second major topic was the proposed 30% budget cut to the University of New Hampshire (UNH). A committee member expressed strong opposition to these cuts, emphasizing the importance of maintaining a robust university system to prevent the outflow of talented students from New Hampshire. The speaker highlighted that UNH is one of the lowest-funded university systems in the country, which could deter families from choosing it as a viable option for higher education. The concern was raised that such cuts contribute to a "brain drain," where students leave the state for college and may not return.

In response, a committee member noted that this was the first reduction in university funding since February 2011 and acknowledged the concerns about population retention. However, they pointed out that New Hampshire has been experiencing significant population growth from incoming residents, suggesting that the state remains attractive to new families.

The meeting concluded with a call for further discussion on the implications of budget cuts and the need for a balanced approach to funding both the gaming industry and higher education in New Hampshire. The committee plans to continue evaluating these issues as the budget process unfolds.