With five stops down and five more to go on NHFPI’s State Budget Tour, one thing is already clear: people across the Granite State are deeply invested in understanding how public dollars are raised, allocated, and impact their communities. While each audience brings its own perspectives, a few key questions have surfaced multiple times.

Here are the three themes we’re hearing most and what they tell us about how people are thinking about New Hampshire’s state budget.

Where does the money actually come from, and is it enough? 

Many attendees are focused on the big picture: how New Hampshire raises revenue and whether it’s sufficient to meet the state’s needs.

Questions in this category included:

• Are we a “donor” or “recipient” state when it comes to federal funding?

• How much of the State Budget comes from federal matches?

• What has been the impact of recent tax reductions, like the Interest & Dividends (I&D) Tax repeal or Business Profits Tax (BPT) changes?

• Do current revenues adequately fund the services people rely on, like education?

Changes to business taxes, the phase-out of the I&D Tax, and adjustments to other revenue sources all shape how much funding is available. These decisions raise important questions about long-term sustainability, especially as health care, education, and infrastructure costs continue to grow.

How is the State Budget structured and who decides on that structure? 

Another common thread is curiosity about how the State Budget is actually organized behind the scenes.

Attendees asked:

• Who determines the six major budget categories?

• Do these categories change over time?

• Why is the State Budget a two-year budget?

• Can the state revisit or revise the budget mid-cycle?

• Why is there spending outside of the State Budget, and who determines which appropriations are made in the budget or outside of it?

The short answer: the structure of the budget is crafted by the State agencies in their proposals and both altered and approved by legislators. While the six main categories have remained relatively stable over time, what gets included within them can shift. Some placements come down to policymaker judgment rather than strict definitions, which can lead to confusion. For example, certain programs may be categorized under “Education” even if they don’t fit the images that public funding of “education” generates.

Attendees were also interested in what happens when things don’t go as planned. The State does have tools to respond such as drawing from the Rainy Day Fund or reopening the State Budget in response to economic downturns or emergencies, as seen during the Great Recession of 2007-2009.

Where does the money go and who benefits? 

Finally, many of the most detailed questions focused on how funds are distributed and who ultimately benefits from State spending.

Some of the most frequent topics included:

• How is Education Trust Fund revenue distributed between public schools, charter schools, and Education Freedom Accounts?

• Why is school funding tied to population trends?

• Where do Liquor Commission profits or Lottery Commission revenues go, and how much revenue do those Commissions generate?

• How much funding goes to health services, such as Medicaid?

These questions reflect a desire to connect the dots between State-level decisions and local impacts. For example, a significant portion of State spending, about 44% of the State Budget, goes to the New Hampshire Department of Health and Human Services, and federal programs, particularly Medicaid, play a major role in shaping that funding. Meanwhile, education funding continues to be one of the most discussed expenditures, particularly as new policies and shifting demographics change how dollars are distributed.

As the tour continues, these conversations will help shape how we present information, what resources we develop, and how we support informed decision-making across New Hampshire.

If you’re interested in attending an upcoming stop or learning more, visit nhfpi.org/tour.