House Finance committee adopts HB1 and HB2 as amended after LBA surplus briefing; votes split 14-11 on key package

The House Finance Committee voted to advance House Bill 1 (the operating budget) and House Bill 2 (the enabling legislation) as amended on April 4 after a detailed surplus-statement briefing from Legislative Budget Assistant Michael Kane and several roll-call votes on technical amendments.

Kane told the committee the documents before members "reflect all of your votes" and summarized the committee's surplus statement, revenue estimates and schedule 2 adjustments used to balance the two-year budget. He said the committee's assumptions left a projected general-fund deficit in FY2025 of about $148.8 million and that House Bill 2 includes a provision allowing the comptroller to request a transfer from the rainy day fund if needed. "There is a section in House Bill 2 which will allow the comptroller to come to the fiscal committee and GNC to request to transfer from the rainy day fund if needed to make up that deficit," Kane said.

The committee discussed the statutory conditions for such a transfer. Kane said the bill would suspend provisions in "09/13 e" to permit a rainy-day transfer because the two conditions for an automatic transfer—(1) an existing general-fund operating deficit and (2) biennial revenues below the plan—would not both be met under the committee—s revenue estimates unless the suspension is enacted. Kane noted those figures will change as actual revenues and agency lapses are finalized.

Why it matters

The votes advance the biennial budget to the full House ready for next-week floor consideration. The package reallocates certain revenues between the general fund and the Education Trust Fund, adjusts lapse assumptions, and imposes schedule 2 appropriations and other technical changes. Committee members said the changes result from lower revenue estimates the Ways and Means committee supplied and from efforts to reduce appropriations across agencies.

Key details from the LBA briefing

- FY2025 projected general-fund shortfall (House finance assumptions): about $148,799,000. - Estimated transfer authority into the rainy day fund to cover the projected shortfall: about $148.8 million (amount shown in the committee surplus statement subject to revision). - Projected rainy day fund ending balance at the end of the biennium (after the assumed transfer and other movements): roughly $256.7 million. - Education Trust Fund shortfall shown in the package: about $14.7 million; by statute that shortfall would be covered from the general fund. - Highway Fund: projected balanced with about $13 million at the end of the biennium; Fish and Game Fund: about $3 million.

Amendments and votes

The committee approved several amendments by roll call before advancing the bills. Representative Sweeney moved a technical cleanup to the Group 2 retirement provision (amendment 14-73-H), which the mover described as "a technical cleanup on the 7 year rule" that "does not affect the money." That amendment was adopted unanimously, 25–0.

Representative Stringham moved a technical correction (amendment 14-82-H) to language in the recreational services section related to historic horse racing; the motion was seconded and adopted 25–0.

A package amendment to House Bill 2 (amendment 14-84-H) drew divided views from members and the minority. A member of the minority caucus told the committee the minority could not support House Bill 2 as amended, arguing the bill eliminated several small state entities, reduced travel and tourism marketing, underfunded a settlement fund for the Sununu Youth Development Center, scaled back renewable energy initiatives and would change income thresholds for the EFA program in 2027. The minority speaker said those changes, along with Medicaid premium and provider-rate adjustments included in the package, would harm low-income families and service providers.

The committee adopted amendment 14-84-H on a 14–11 roll call. The committee subsequently adopted amendment 14-74-H to House Bill 1 on a 14–11 roll call.

Final committee recommendations

After the amendment votes the committee voted the motions of "ought to pass as amended" for both bills. House Bill 1A (as amended) was reported out by a 14–11 vote. House Bill 2 (as amended) was reported out by a 14–11 vote.

Minority objections and majority response

A minority member told the committee the budget "goes on to take some radical actions" including abolishing certain small offices and cutting HHS and developmental-disability programs, and said the minority would vote no. Majority members and the chair framed the actions as difficult choices forced by lower-than-expected revenues and by prior agency vacancy levels; the chair said many savings came from unfilled positions and that some back-of-budget flexibility would allow agencies to reallocate funds if needed.

What happens next

The committee's amended bills and surplus statement will be placed on the House calendar for the full chamber's consideration next week. Committee leaders said staff and division chairs will prepare a presentation packet—including surplus statements and pie charts—to explain the package on the House floor.

Votes at a glance

- Adopt amendment 14-73-H (technical cleanup to Group 2 retirement provisions): adopted 25–0. - Adopt amendment 14-82-H (technical correction to recreational services language): adopted 25–0. - Adopt amendment 14-84-H (package changes to HB2): adopted 14–11. - Adopt amendment 14-74-H (amendment to HB1): adopted 14–11. - Motion: House Bill 1A "ought to pass as amended": adopted 14–11. - Motion: House Bill 2 "ought to pass as amended": adopted 14–11.

Provenance

This article is based on the committee's April 4 proceeding, beginning with the Legislative Budget Assistant's surplus-statement briefing and ending with the committee's final roll calls to report HB1 and HB2 as "ought to pass as amended."