Budget Compromise Announced
Concord, NH - Today, Governor Chris Sununu, Senate President Donna Soucy, and Speaker of the House Stephen Shurtleff announced that they have reached a compromise on the state budget. This compromise budget will go before the full House and Senate on Wednesday.
"The people of New Hampshire won today," said Governor Chris Sununu. "This compromise budget does not increase taxes, and ensures financial promises can be kept to the people of New Hampshire. This budget is something I can support. I worked closely with Senator Morse and Representative Hinch and remained in close contact with them as these negotiations progressed, and I am hopeful that Legislative leaders - from both parties - can deliver this critical compromise when it goes before the full legislature on Wednesday."
Senate President Donna Soucy (D-Manchester) stated, "Budgets are a statement of our values, and this budget compromise makes clear that New Hampshire values the people of our state and is committed to ensuring every Granite Stater has the resources and opportunities they need to thrive. This budget maintains vital investments that the Democratic legislature made in mental health, substance use disorder treatment, and child protection and ensures meaningful raises for providers who deliver critical care to our loved ones by implementing long overdue Medicaid reimbursement rate increases."
"We can all be proud of the compromise reached today on a balanced budget that moves New Hampshire forward," added Speaker of the House Stephen Shurtleff (D-Concord). "This budget preserves important Democratic priorities, including the largest investment in job training and public education in the history of our state that will advance educational opportunities for all and along with reinstating municipal aid will provide meaningful support to cities and towns and critical property tax relief to Granite Staters."
The Budget Compromise Included
A Win for Taxpayers:
- Taxes remain at current levels through 2020.
- In fiscal year 2020, if total revenue is 6% over projected revenue — business taxes will trigger down to 7.5% BPT and .5% BET for calendar year 2021.
- In fiscal year 2020, if total revenue is between 106% projected revenue and 94% of projected revenue, taxes will remain at 2020 levels for calendar year 2021.
- In fiscal year 2020, if total revenue is 6% below projected revenue — business taxes will trigger up to 7.9% BPT and .675% BET for calendar year 2021.
Financial promises that can be kept:
- This budget reduces the structural deficit by 75% - a total of $70 million - from the legislature's proposed budget, ensuring that no programs will face funding cuts if an economic downturn occurs.
Increases Rainy Day Fund:
- Increases the Rainy Day Fund by $5 million.
Preserves fiscally responsible Medicaid Expansion:
- Guarantees the 2014 bipartisan agreement prohibiting General Funds from going towards Medicaid Expansion remains.
Providing for our health care workforce:
- 3.1% across the board medicaid rate increases annually.
Historic funding increases to our education system which will help property tax relief:
- Total education funding at 100% of the Committee of Conference education funding proposal.
- $40M in municipal revenue sharing.
Investments in higher education:
- Funding to freeze tuition at the University and Community College System.
- $9 million to the University System to double the amount of nurses.