Chancellors for the University System and the Community College System outlined demographic pressures, finances and workforce-focused initiatives during a briefing to the House Education Funding Committee.

Catherine Provencher, chancellor of the University System of New Hampshire, told the committee the system serves about 23,000 students this fall with 19,000 undergraduates and that last fiscal year the system’s operating expenses were $928,000,000. “This fiscal year, fiscal 25, the university system is fortunate enough to receive $95,000,000 in state support from the, general fund budget,” Provencher said, noting that about $81 million of the appropriation “directly buys down in state tuition for New Hampshire students.” She said the system’s research activity has grown 75% since 2019 and that the system has an annual economic impact of $3,700,000,000 on the state.

Provencher said the system has kept in-state tuition flat for six years because of increased state support, and that net tuition and fees for New Hampshire residents have dropped 6.6% over the past four years. She warned the committee that enrollment has declined about 13% since 2019, a trend she called part of wider New England demographics. “For the first time this fall … the number of our New Hampshire students increased,” she said, but added long-term demographic charts show a continued decline in the school-age pipeline.

Provencher emphasized transfer pathways and internships as retention and workforce tools. She told members the university system and community college system now have about 100 pathways for students to move from the community college system into the university system, and that internships—of which more than 75% are with New Hampshire employers—help retain graduates in the state.

Mark Rubinstein, chancellor of the Community College System of New Hampshire, and Shannon Reed, director of government affairs and communications for the system, described how the community colleges reach students across the state. Rubinstein said the system served more than 24,000 students last year, including 10,000 high school students who collectively earned 54,000 credits through early-college programs. He said early college is supported by a legislature-funded program that covered roughly $2.5 million in the current biennium and that the system has requested $3 million for the next biennium to expand access.

Rubinstein outlined workforce and apprenticeship programs, including a federally supported apprenticeship effort that currently supports about 300 apprentices. He said apprenticeships are being developed for occupations beyond traditional trades, including behavioral health technicians and early-childhood education roles. “Apprenticeship as a way of learning … to be able to earn while you’re learning,” Rubinstein said.

Both systems said declining enrollment requires structural and administrative changes. Provencher described steps at the university system—reducing staff headcount, exiting leases, selling buildings, and implementing a new enterprise resource planning system (ERP) for HR and finance that went live in December 2024—to reduce costs. She noted that grant-funded positions have grown as research funding rose; the system drew about $22 million in federal Pell Grants last fiscal year.

Rubinstein said the community college system is assessing administrative structures and accreditation options to improve efficiency and asked the legislature to consider funding that supports early-college growth and workforce partnerships. He also noted the unique cost structure of some programs—particularly health-care programs like nursing, which require low student-to-instructor ratios and clinical supervision—making them more expensive to operate but critical to workforce needs.

Committee members asked about debt and affordability, the role of federal grants, the ratio of in-state to out-of-state students, and measures to keep graduates working in-state. Provencher said many students receive financial aid and that programs such as the Granite Guarantee help cover tuition for Pell-eligible New Hampshire students, while emphasizing the limited margin in higher-education budgets and the need for continued attention to cost structure and mission alignment.

The committee did not take votes during the briefing. Members scheduled further hearings, including a forthcoming hearing on HB 115, and asked both chancellors to return for more detailed follow-up.