House Finance hears Department of Business Regulation budget; fire academy bids come in well above estimates

The House Finance subcommittee heard a briefing on the governor's fiscal 2026 recommendation for the Department of Business Regulation (DBR). The administration proposes an authorized level of 155 positions and approximately $35.1 million for FY2026, about $2.3 million less than the enacted level, largely reflecting timing differences for capital projects.

Why it matters: DBR oversees licensing and consumer protection across many professions and programs that affect businesses and municipalities. The department's fee collections in 2024 were substantial relative to its operating budget; fiscal staff noted collections totaled about $86 million in FY2024, mostly transferred to general revenues.

E-permitting and municipal impact: DBR officials and fiscal staff discussed the state requirement that municipalities adopt online permitting by 2023. The governor's recommendation reduces the department's proposed support for that effort by about $400,000 compared with enacted levels; DBR representatives told the committee they are working with the Office of Management and Budget to determine how any shortfall will be managed and cautioned it could shift costs toward municipalities.

Fire Academy expansion: The budget recommendation includes RICAP funding for expansion of the State Fire Academy in Exeter. Fiscal staff said initial cost estimates were roughly $6.1 million, but recent bids came in substantially higher; the administration has requested an additional $2.7 million to reflect the lowest received bid of about $8.7 million. DBR and fiscal staff characterized the higher amount as driven by rising hard-construction costs including labor and materials.

Fees and program funding: DBR staff reiterated that many DBR accounts are funded by statutory fees and noted differences in how individual fee lines are set and adjusted. Committee members asked whether the department periodically benchmarks fees against neighboring states and DBR said they review regional comparators but must also consider statutory constraints and market effects (for example, certain insurance-related fees carry retaliatory implications if changed).

What wasn't decided: The hearing was informational; committee members requested more detail on construction-cost drivers for the fire academy and whether fee or revenue adjustments could offset capital needs.

Ending: DBR committed to provide follow-up detail on the fire-academy budget increase, the e-permitting support plan, and any fee-benchmarking analyses requested by the committee.