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Senate Finance hears proposals to reduce student costs, restore university funding
Summary
Senate Finance heard sponsor testimony on SB 407 (a per‑student tuition reduction proposal) and SB 604 (restoring $17.5 million to university and community college budgets). Lawmakers pressed sponsors and the University System chancellor on where money would come from and how enrollment declines factor into planning.
Senate Finance opened hearings on two higher‑education funding measures on Feb. 26, with sponsors and University System officials urging the panel to begin a broader conversation about how to stabilize support for public colleges.
Senator James Gray introduced SB 407, proposing a per‑student appropriation intended to lower in‑state tuition for full‑time students. Gray described the proposal as a conversation starter and acknowledged it may not be feasible this year. "I picked it out of a warm, dark place," he said when asked how he arrived at the $300 illustrative figure.
Catherine Provencher, chancellor of the University System of New Hampshire, told the committee the system faces a steep decline in state support and enrollment pressures. "The state support drops to $77,000,000 in fiscal 27. That is a big chunk," she said, adding the system has modeled the need to take "tens of millions of dollars out of the cost structure" over the next five years.
Provencher said roughly $14 million of the current appropriation goes to statutorily mandated programs (primarily cooperative extension) and that the system funds more than $4.5 million a year in tuition waivers, largely for the National Guard. She said those fixed obligations limit how additional dollars translate into reduced sticker prices.
Senators pressed sponsors and the chancellor on where funding would come from if the proposals move forward. Committee members suggested examining fee agreements and other revenue sources; one senator proposed asking the Legislative Budget Assistant to analyze options. Provencher and Gray both said they welcome further staff work and stakeholder meetings to identify revenue mechanics.
The committee also questioned efforts to grow enrollment amid a regional recruitment competition. Provencher said the system is consolidating programs and "leaning into" areas employers need—business, health care, biotechnology and engineering—as part of a workforce strategy.
Senator Rebecca Perkins Kwoka later introduced SB 604 to restore $14,000,000 to the University System and $3,500,000 to the Community College System, calling those restorations investments in workforce development. Provencher told the committee a restoration "could very well provide the ability for the university system to continue freezing in‑state tuition."
No votes were taken; the committee closed public hearings on both bills and indicated budget mechanics and possible executive‑session follow‑up will be part of ongoing deliberations.
