Capitol Insight: Weekly Legislative Update 1/17/25
T
he New Hampshire State House is buzzing with action these days as newly sworn-in Governor Kelly Ayotte and the Legislature got down to business. While the House and Senate focus on hearing a portion of the 700 bills that have been filed to date, the Governor continues working to propose a balanced budget without new taxes and seeks more efficiencies within government agencies. To the casual observer, it’s almost like legislators, agency heads, advocates and the public never left.
Cloudy Skies Ahead?
It appear that there is only one way to describe the economic outlook for the state: it’s complicated. Everyone understood that the good times of exceptionally high revenues would not last forever, and now the state is starting to see those predictions come to fruition. The Director of the Office of the Legislative Budget Assistant testified that the 2025 fiscal year general fund revenues have a current shortfall of $21.2 million, primarily due to lower than projected business tax revenues and unbudgeted appropriations from the General and Education Trust Funds. While past revenue shortfalls have been worse, future budgets may face more challenges with further decreases in estimated revenue and the complete elimination of the Interest and Dividends tax. On a positive note, the state’s strong economy, with low unemployment (2.5%), high per capita income and steady growth, positions New Hampshire to weather a potential economic downturn. Additionally, the state’s Rainy Day Fund sits at $292.5 million, a significant improvement from the $9.3 million in 2014. Budget writers will continue to monitor revenues and await Governor Ayotte’s budget presentation in February as she has continues working with agencies on further reductions beyond what former Governor Chris Sununu requested of them last fall.
Efficiency: So In Right Now
As part of her inaugural address, Governor Ayotte announced the creation of a Commission on Government Efficiency (COGE), tasked with identifying cost-saving measures, improving government operations and enhancing state government efficiency. In the same speech, she named former Governor Craig Benson and businessman Andy Crews to spearhead the initiative. The 15-member commission reserved two seats for appointments by the Speaker of the House and Senate President. Speaker Packard nominated himself to the post while Senate President Sharon Carson appointed newly elected Senator Mark McConkey to fill a seat. The Governor announced that membership of the entire panel should be finalized within the next few weeks.
Back in the Spotlight – Again
Although several proposals passed last year to amend New Hampshire’s bail reform statute, it appears that more change is coming in 2025. Governor Ayotte, a longtime supporter of law enforcement, has expressed concerns that even with those changes, the new law is not working. The Governor has called for a full repeal and a return to the laws in place before 2018. While law enforcement is expected to support the proposal, it will face significant pushback from the ACLU and other criminal justice reform organizations. Manchester Mayor Jay Ruais backed the Governor’s proposal during a campaign stop last fall. It will take time to flesh out the details and determine whether consensus can be reached this year.
Week Ahead
It’ll be a short week with the holiday, but that will do little to stem the tide of legislative activity. Both bodies will continue to prioritize public hearings and pass enough legislation out to warrant a session day in the coming weeks. There will be no shortage of individuals being in Concord to testify on a broad range of issues from cannabis to right-to-work.
About Rath, Young and Pignatelli
Capitol Insight is produced with the support of the Chamber’s government relations consultant: Rath, Young and Pignatelli (RYP). RYP merges traditional legal practice areas with legislative and public policy expertise. They have earned a reputation for achieving client success through skillful and creative advocacy in private party negotiations, before courts, regulatory agencies, and legislatures.
Their professionals are leaders in key sectors of the economy where business and government intersect including business and finance, energy, tax, health care, environmental, and insurance.
About The Greater Manchester Chamber
Incorporated in 1911, the Greater Manchester Chamber (GMC) is the largest business organization in New Hampshire, focusing its efforts primarily on Manchester and the surrounding communities of Auburn, Bedford, Candia, Derry, Goffstown, Hooksett, Litchfield, Londonderry, and Merrimack. It is the Chamber’s mission to be the voice of business, shaping economic success to enhance the quality of life in Greater Manchester. For more information visit www.manchester-chamber.org.
