The New Hampshire Senate Ways & Means Committee has recently adopted revenue estimates for the fiscal years 2026-27. These figures fall between those proposed by the House, which were lower, and those of Governor Ayotte, which were higher.
For Fiscal Years 2026-27, the Governor’s estimates stand at $6.4 billion for total general and education funds and $2.45 billion for business taxes. The Senate projects $6.1 billion and $2.3 billion respectively, while the House estimates are $5.9 billion and $2.16 billion.
NFIB NH commended both the governor and legislative leaders for their focus on fiscal responsibility and maintaining business tax relief. “While lawmakers will deal with some difficult spending decisions as they complete the FY26-27 state budget, it’s imperative to preserve the hard-won business tax relief implemented over the past decade.”
The recent revenue estimates reflect a significant drop in Business Profits Tax and Business Enterprise Tax revenue in the current fiscal year—down 15%, or $156 million below previous forecasts for FY25. This decline aligns with trends seen in neighboring states like Maine and Massachusetts.
Despite these challenges, New Hampshire’s overall revenue remains relatively stable with only a 1.5% decrease, equivalent to $41.6 million less than expected. Shortfalls in business tax revenue have been balanced by increased revenues from insurance taxes, lottery proceeds, and investment income.
Governor Ayotte anticipates a recovery in business tax revenue from this year’s low of $1.12 billion to an estimated $1.25 billion by FY27. Her projections suggest that state spending can increase modestly without raising taxes.
The Senate is now working on its version of the budget and related policies, aiming to finalize them by early June. Following this, negotiations between the House, Senate, and Governor Ayotte will be necessary to agree on final details before passing and signing the budget by June’s end.
In addition to state-level budgeting efforts, several bills are progressing towards enhancing local government spending caps:
– SB 105 (Senator Keith Murphy) proposes allowing towns to adopt city-like budget caps with a 60% vote needed for approval or override.
– HB 200 (Representative Diane Pauer) seeks to amend existing municipal budget caps requiring 60% support for overrides.
– HB 374 (Representative Pauer) aims to clarify elements of current municipal caps.
These legislative measures address concerns over increasing property tax burdens statewide.
