Chancellor Provencher addresses New Hampshire budget cuts impact on university system

The New Hampshire Senate Finance Committee convened on April 25, 2025, to discuss critical funding issues affecting the University System of New Hampshire (USNH). The meeting featured key representatives, including Chancellor Catherine Provencher and Board of Trustees Chair Mike Pilate, who addressed the committee regarding the financial challenges facing the university system.

Chancellor Provencher opened the discussion by highlighting the significant reduction in state funding proposed in the House budget, which would cut state investment by 30%, equating to a loss of $57.6 million over the biennium. This reduction, she emphasized, is unsustainable and would severely impact the university's ability to provide affordable education. The governor's recommendation of a 4% reduction, while challenging, was deemed manageable by the university officials.

The committee was informed that the state currently contributes approximately $95 million to the university system, with $81 million directly offsetting in-state tuition costs. This subsidy allows New Hampshire students to pay an average net tuition of about $7,000, significantly lower than the $16,600 paid by out-of-state students. The representatives stressed the importance of maintaining this financial support to ensure accessibility and affordability for local students.

The discussion also touched on the broader economic impact of the university system, which generates approximately $3.7 billion annually for the state. This figure includes contributions from alumni and the creation of jobs, with 90,000 alumni residing in New Hampshire. The representatives noted that a strong workforce is essential for the state's economic future, particularly as New Hampshire faces demographic challenges, including an aging workforce.

In response to questions from committee members, the university officials provided insights into enrollment trends and workforce development. They reported that 3,000 graduates entered the New Hampshire workforce last year, with 80% being residents of the state. This statistic underscores the university's role in addressing local workforce needs.

The meeting concluded with a call for continued collaboration between the university system, the legislature, and the business community to navigate the financial challenges ahead. The representatives expressed their commitment to maintaining affordable education while adapting to the evolving landscape of higher education in New Hampshire. The committee acknowledged the importance of these discussions as they prepare for future budget considerations and the implications for the university system's sustainability.