Senate Finance raises revenue forecasts, backs larger abuse‑settlement fund and advances mixed budget changes

The Senate Finance Committee on Thursday adopted a committee amendment raising official revenue projections and approved a series of budget adjustments, including a contested increase in funding proposed for a state child‑abuse settlement fund.

The panel voted to increase the committee’s revenue estimates after hearing a proposal from Senator Lang to raise several line items in the Department of Revenue Administration forecast, adopt an amendment to move additional funds into the budget’s second year and to apply the Legislature’s general‑fund/education‑trust‑fund split when the Legislative Budget Assistant (LBA) posts the amendment.

The committee amendment approved the following changes to the revenue lines cited by Senator Lang as recommended by DRA: business taxes, +$25,000,000 in fiscal 2026 and +$50,000,000 in fiscal 2027; rooms and meals tax, +$11,500,000 in 2026 and +$16,300,000 in 2027; and real estate transfer tax, +$2,300,000 in 2026 and +$2,700,000 in 2027. Senator Lang told colleagues that, after meeting with Commissioner Step of the Department of Revenue Administration, “the commissioner felt extremely comfortable with these changes.” The amendment passed by voice vote.

Why this matters: The committee’s revenue baseline determines how much the Legislature can appropriate without adopting additional offsets. The LBA will apply statutory splits between the general fund and the education trust fund when it posts the amendment, staff said.

Funding for child‑abuse settlement fund

A major flashpoint at the meeting involved funding for the state’s settlement fund that resolves claims from people alleging abuse while in state care. The current budget baseline the committee had been working from provided $10,000,000 a year ($20,000,000 for the biennium). Senator Waters offered and secured a committee amendment that would substantially increase the biennial commitment; during discussion he said, “we are doing a hundred million dollars with this motion to move at 5 times the existing funding level,” arguing the larger pool better addresses ongoing and future settlements.

Opponents warned the higher appropriation risked prompting law firms to pursue litigation outside the administrative settlement process, which several senators said could raise total costs to the state. One senator described prior settlements that were resolved outside the fund at higher per‑case cost and urged caution about reducing the fund’s negotiated structure with claimant counsel. Nevertheless, the committee adopted the amendment after debate.

Opioid‑abatement, law enforcement and Granite/Northern Shield programs

The committee also voted to permit certain law‑enforcement interdiction and other programs to be paid from opioid‑abatement dollars. Senator Lang and other supporters said the Attorney General’s office had confirmed the uses; Deputy Attorney General Buffet had earlier informed members of legal questions but the committee approved the amendment by roll call. The committee likewise restored language allowing the Granite Shield and Northern Shield interdiction programs to be funded from opioid abatement proceeds, reversing an earlier change that shifted those expenditures to general‑fund dollars.

Lottery commission amendment

The panel approved an amendment to modify how new lottery revenues would be distributed and to delay a planned initial revenue distribution to a new reimbursement fund for certain populations. As explained by the amendment’s sponsor, the change also adjusts wagering limits and tax rates to make New Hampshire competitive with neighboring jurisdictions. The sponsor said the change would free about $20,000,000 for higher priorities during the two‑year budget window and that the new fund’s rules and DRA processes would be stood up before money would flow to it.

Judiciary item removed from budget list (HB 506)

The committee discussed House Bill 506 — a judiciary bill tied to procedures for returning firearms to people after administrative seizure — and the fiscal language that had been placed in the budget. Because the bill was still pending on the floor and contained tight statutory deadlines the judiciary said would require a new position, the committee agreed to remove the appropriation from the budget and consider the bill on its own legislative schedule. The chair asked whether members objected to removing it from the list; seeing no objections, the item was taken off the budget list for separate floor consideration.

Health and human services items: case management parity and other holds

Committee members debated a proposal tied to parity in case‑management rates across provider types. Department staff and the sponsor estimated the annual cost at roughly $5,200,000 (about $10.4 million over the biennium), roughly half of which would be general‑fund dollars. Because of the fiscal scale, members left that item on hold pending additional review.

Other HHS items were also held, advanced, or amended: a request tied to nursing‑home Medicaid reimbursements (to speed provider payments) was kept on hold for additional information; a small department‑insurance item with an indeterminable fiscal note (estimated by staff in the $100,000–$500,000 range for state health coverage administration) was moved forward; and a number of smaller line items were approved or lapsed as part of the committee’s housekeeping.

Roll calls, procedure and next steps

Committee staff said they will compile the day’s votes and post updated revenue and fund‑balance totals so members can prioritize the remaining big‑ticket items at the next meeting. The chair reminded members that some high‑dollar items remain on the “big ticket” list and that staff will prepare alternative amendment language and scenarios so the committee can pick priorities when it reconvenes.

End note: The Senate Finance Committee voted on a mix of technical and high‑profile items that reshaped the budget baseline and moved several contested items either through adoption or to separate floor consideration. The LBA will provide updated fund totals to members before further votes.