Ayotte: ‘A recalibration of our approach is in order’ with new budget 

CONCORD, NH – Gov. Kelly Ayotte delivered her Budget Address for fiscal years 2026 and 2027 Thursday morning, with a focus on reducing spending and sending more funds to the local level.

“In building this budget, our guiding principle has been to deliver a budget worthy of our people that represents a recalibration of the way we do business while continuing our New Hampshire way of not raising taxes, but instead taking a hard look at spending,” Ayotte said.

While the last budget saw a 21% increase in spending in general funds over two years, she announced that her budget will spend $150 million less in general funds without “across the board cuts,” and while prioritizing those who rely most on state-provided services.

With a budget that sends “more funds than ever” to the local level, she challenged local officials to take the same fiscally responsible approach, and provide property tax relief whenever possible.

While acknowledging the current state of the state’s economy as being in a “very strong position” with rising wages and low unemployment and “job growth that leads the region,” Ayotte recognized challenges such as increasing the housing supply, working toward a best in class education system, and keeping up with the demand for services.

“This budget expands education freedom to all public school students,” she said.

This includes continuing a tuition freeze at community colleges and ensuring no waitlist for people with disabilities.

The budget will also allocate for  “record levels of spending for special education” with a $98.8 million investment.

“Our job growth leads the region, but our home listings are half their pre-pandemic levels and rentals are extremely tight, not to mention higher home prices, rents, mortgage rates, all of which have gone up and it makes it even harder,” Ayotte said.

To combat this issue, Ayotte announced her plan to streamline the permitting process, ensuring a maximum of 60 days.

She also announced her plan to overhaul the Group II retirement system with a $33 million investment to restore benefits promised to public safety employees.

“Our state remains in an enviable position,” Ayoote said. “To maintain our standing as the beacon of the northeast and adjust to the revenue environment that we’re facing, some recalibrations, they’re in order. But we have been thoughtful in taking care to ensure that they will not be felt by those who are most vulnerable and who need us.”

Added Ayotte, “This budget is a step forward for our future and it will help us directly address the challenges we face in growing New Hampshire and growing our prosperity and our freedom,” she concluded. “This is truly a budget for all of New Hampshire.”

Following the address Manchester Mayor Jay Ruais issued the following statement:

“I am thankful that Governor Ayotte continues to make Bail Reform a top priority and plans to include it in HB-2. Keeping violent and repeat offenders behind bars is the foundation of public safety and the safety of our citizens is non-negotiable. We cannot wait for another tragedy like the recent stabbing in Manchester to demonstrate why Bail Reform is needed. Justice for victims, police, residents and our business community must come first.  The time to act is now and we’re grateful the governor, as a former attorney general and prosecutor, recognizes the urgency of this situation.”

A bullet-point summary of Ayotte’s budget was released by her office following her address [see below].

A Balanced Budget

• Fulfilling our constitutional duty of a balanced budget that delivers for all of New Hampshire
• No new taxes
• More revenue returned to local communities than ever before
• A smart, thoughtful approach to spending reductions through close collaboration with commissioners, a hard look at agency operations, and cutting bloated contracts with out-of-state vendors

Educating Future Granite State Leaders

• More funding for public schools than ever before
• A record $98 million invested in special education, nearly 50% more than the previous biennium
• Education freedom for all public school students
• $1 million in grants to help local school districts remove cell phones from classrooms

Keeping New Hampshire the Safest State in the Nation

• Delivering a long-term solution for the Group II retirement system to boost recruitment and retention of first responders
• Continuing funding for the successful Northern Border Alliance
• Expanding drug interdiction efforts through Operation Granite Shield to include a specific focus on cross-border coordination with the City of Lawrence, as well as a dedicated Northern Shield program
• Ending the failed bail reform social experiment by slamming shut the revolving door for criminals to keep our communities safe

Preparing Students for the Workforce of Tomorrow

• Investing in the Community College System of New Hampshire to maintain the current tuition freeze
• $6 million to fund dual and concurrent enrollment scholarships and support these programs for our high school students
• Expanding career and technical education and workforce credential programs in the trades, health care, and other critical jobs in our state

Building a Healthier New Hampshire

• Over $1 billion to fund services for citizens with disabilities and ensure there continues to be no waitlist
• $10 million to support uncompensated care provided through Community Mental Health Centers
• Fully funding the Recovery Friendly Workplace Program

Streamlining the Permitting Process for Housing

• Consolidating the permitting process to cut red tape and empower state agencies to deliver permit determinations in 60 days

Delivering for Our North Country

• Establishes a one-year moratorium on new landfills and creates a new site evaluation committee for future locations
• Invests in securing our Northern Border and supporting North Country law enforcement
• Supporting the North Country’s tourism economy by opening the Connecticut Lakes Headwaters Working Forest OHRV trails for the full season