New NH legislative leaders sound alarm on Republican plans to downshift state revenue cuts

The newly elected leaders of the New Hampshire House and Senate Democratic caucuses are throwing up red flags as state-level Republicans hold budget hearings, foretelling sweeping cuts to state spending, intending to further downshift the tax burden to local communities.

“After years of Republicans’ mismanagement and squandering of federal funds, we are facing a massive revenue shortfall that will ultimately hurt working families and small businesses the most… the last time Republicans in New Hampshire held a super majority in the legislature… Republicans cut funding for public education, retirement benefits for first responders, and services for the developmentally disabled,” said New Hampshire House Democratic Leader Alexis Simpson and Senate Democratic Leader Rebecca Perkins Kwoka in a joint statement Thursday morning,

“Granite Staters are still suffering from those cuts today. These kinds of budget decisions at the state level lead directly to higher costs at the local level.”

The warning came after a successful 2024 election cycle for New Hampshire Republicans, in which they campaigned on a seemingly impossible promise: zero tax increases at the state level, and no new property taxes at the local level.

Democratic leaders are now saying they are ready to hold Republicans to their word. In a video posted Tuesday, the two newly elected leaders appeared together to warn Granite Staters on Republicans’ plans, while admitting their ability to thwart those efforts would be limited.

“As Governor-Elect Ayotte and Republicans begin drafting the state budget, we know they will have millions of dollars less in revenue than New Hampshire had two years ago thanks to the misguided economic policies of the last Republican legislative majority, which cut taxes for big corporations and the top one percent and left the rest of us to pick up the bill.” Simpson says in the video.

“Democrats, this term we will do everything in our power to prioritize the needs of working families and to ensure that the state’s limited resources are allocated in a way that reflects New Hampshire’s values,” said Perkins Kwoka.

RELATED: New NH legislative leaders sound alarm on Republican plans to downshift state revenue cuts

Republicans have held a majority in the New Hampshire State House for most of the past decade, overseeing drastic property tax increases resulting from downshifting cuts to state spending.

Following recent budget hearings, those cuts are driving concerns among a diverse set of groups.

State tourism leaders recently published a joint letter warning how steep cuts to marketing could result in further revenue losses for the state.

Proposed budget cuts to the Division of Travel & Tourism Development (DTTD) would reduce marketing funds by 30%, which industry leaders estimate could lead to a $68 million loss in tax revenue. The state’s tourism economy, generating over $327 million annually through the Meals & Rentals Tax and employing more than 70,000 residents, could face significant setbacks without robust promotional support.

The New Hampshire Fish and Game Department has also raised their concerns about the potential impact of budget cuts on its services. Director Scott Mason warned that reduced funding would undermine the department’s ability to manage wildlife resources, enforce laws, and serve the public. These cuts come at a time when the department’s responsibilities are expanding.

The state’s Education Commissioner, Frank Edelblut, recently announced a substantial decrease in state aid for special education costs. Funding will drop from covering 87% of its portion in 2024 to just 67.5% in 2025. The unchanged $33.9 million budget for special education since 2021 now falls far short of needs as student qualifications and costs per student rise.

Republicans are also expected to expand eligibility for their school voucher program to all students in the state, likely prompting greater cuts to public schools.

The appearance of both the House and Senate leaders together is in stark contrast to the Republican House and Senate majorities in New Hampshire, who have been seen as not working closely together in the past.

That split is likely to grow wider after Republican House leaders attempted to replace longtime State Senator Bill Gannon with former State Rep Emily Phillips in the 2024 primary in an attempt to install a State Senator more friendly to House Republican priorities. That effort failed.