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Gov. Kelly Ayotte presents FY2026–27 budget urging spending recalibration, increases for education and public safety
Summary
At a Feb. 6 joint convention, Gov. Kelly Ayotte proposed a two‑year budget that reduces general‑fund spending compared with the last biennium, restores some public‑safety retirement benefits and increases education and local aid while avoiding new broad tax increases.
Gov. Kelly Ayotte delivered her recommended budget for fiscal years 2026 and 2027 to a joint convention of the New Hampshire House and Senate on Feb. 6, 2025, calling for a “recalibration” of state spending without raising broad taxes.
Ayotte said the plan trims general‑fund spending by $150,000,000 compared with the most recent biennium and seeks to return certain programs to pre‑pandemic eligibility levels while prioritizing local aid and education. She framed the reductions as targeted rather than across‑the‑board and said the budget preserves support for vulnerable residents.
The proposed budget emphasizes K–12 and postsecondary education, public safety, workforce training and behavioral‑health services. Key line items Ayotte announced in the address include a $98,800,000 increase for special education (described in her speech as “nearly 50% higher than the last biennium”), a $33,000,000 investment to begin an overhaul of the Group 2 retirement system for public‑safety employees, and $4,400,000 to hold tuition flat at community colleges.
Ayotte said the budget would also allocate $6,000,000 for dual and concurrent enrollment programs, $1,000,000 for school grants to address cell‑phone policies, and additional funding to expand career and technical education and credentialing programs. She described an overall approach of moving more resources to local governments and school districts while demanding local fiscal restraint in turn.
On health and human services, the governor said Medicaid eligibility would be brought “back in line with pre‑pandemic levels” and include nominal copays for some services. Ayotte also proposed $10,500,000 for victims‑of‑crime obligations, about $2,300,000 for court‑appointed special advocates, $3,000,000 for child‑advocacy centers and nearly $1,000,000 to support the Internet Crimes Against Children Task Force.
Public‑safety and drug‑enforcement initiatives also feature in the recommendation. Ayotte pledged continued funding for the Granite Shield initiative and called for a new Northern Shield effort aimed at opioid and other drug trafficking in northern counties, and she said the budget adds staff for the attorney general’s cold case unit.
Ayotte announced a landfill moratorium and a “revamped regulatory process” for large projects she said could scar the state’s natural resources, and she introduced a governor‑appointed Commission on Government Efficiency (COAGE) to recommend operational changes.
The address closed with a call for the Legislature to work within the recommended spending parameters. Ayotte said she had submitted legislation to address bail and other public‑safety matters and invited lawmakers to send bills to her for consideration.
The speech set in motion the regular committee and floor review process; lawmakers will consider the administration’s requests and the finance committee’s recommendations over the coming weeks.
