Senate Republicans Kill Efforts to Fund Housing Champions, Increase Oversight of EFAs
Commentary not part of original article.
Bret's Take
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Housing Champions Funding: This would have added $5 million to the Housing Champions Program. As a designated Housing Champion community, Dover is eligible for state infrastructure funds to support our housing efforts. When the state rejects this funding, the cost of the infrastructure needed to tackle the housing crisis doesn’t disappear; it shifts to the local budget. Those infrastructure costs end up on your property tax bill instead of being covered by the State.
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Education Freedom Accounts (EFAs): EFAs cost the State over $47 million annually, and the State rejected oversight. While the State says the money follows the student, the reality for Dover that EFAs create a funding gap. When a student leaves, the State reduces its aid to our district, but our schools still have fixed costs like heating, maintenance, and staff. The city has to make up the lost State revenue through higher local taxes to keep our schools running.
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Retirement Contribution (SB 601-FN): The State rejected a proposal (SB 601-FN) to resume paying 7.5% of retirement costs for local teachers, police, and fire employees. Historically, the State shared this burden. Now, it’s up to the municipality. Rejecting this is a direct hit to our local budget, forcing property taxes higher to cover costs the State used to help pay.
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The Downshifting Trend: There’s a years-long trend of cutting state-level taxes like the Business Profits Tax (BPT), the Business Enterprise Tax (BET), and the recently repealed Interest and Dividends Tax. While these are marketed as tax cuts, the State has simultaneously failed to meet what courts have ruled is its constitutional obligation to fund education. The State isn’t cutting taxes. It’s changing who pays them: property owners and renters.
Commentary not part of original article.
CONCORD — As hard as they tried, Democrats could not get a single Republican vote in the Senate to pass a number of initiatives offered, including bills to help support infrastructure development for new housing, allow for redistricting maps to be developed before public hearings, and a number of bills that would better monitor oversight of Education Funding Accounts.
All bills were killed on a party-line vote of 16-8.
Contentious bills related to firearms, immigration enforcement and legalizing cannabis were also put off until the next session.
Housing Champions Program
On a vote of 16-8, Senate Republicans rejected Senate Bill 419, known as the Afford Your Home Act, which would have provided an additional $5 million to the Housing Champions Program.
Sen. Sue Prentiss, D-Lebanon, noted that an increase in housing in the state is the top public priority and the program has been incentive-based, with communities building out the infrastructure needed.
But Republicans asked, “where is the money?”
“We all want to find solutions to our housing issue here in New Hampshire,” said Sen. Dan Innis, R-Bradford. “But, where’s the money coming from? That’s the question on everyone’s mind – and once again, Democrats fail to provide an answer.”
According to the state Office of Business and Economic Affairs, the Housing Champions Program provided 45 percent of all new housing units in the state in 2024. Twenty-eight communities have been designated as eligible.
The bill’s prime sponsor, Senate Minority Leader Rebecca Perkins Kwoka, D-Portsmouth, issued the following statement after the vote:
“This is a program which has created thousands of new affordable housing units. For every thousand or so dollars invested by the state, a new home was supported. This program has yielded some of the best returns on investment of any state sponsored program in New Hampshire history. This is the number one issue facing Granite Staters, and Housing Champions is one of the most effective solutions to that issue – we should be working to expand that solution, not extinguish it.”
Education Freedom Accounts
The state spends $47 million a year on providing about $5,000 per pupil for Education Freedom Accounts for more than 10,500 students now attending schools other than their public school, regardless of family
Democrats said there has not been enough oversight, transparency or accountability for how students have performed under the EFA investment.
A suite of bills were offered by Democrats related to the EFA oversight, which all were killed.
This included Senate Bill 532, which would have increased requirements for monthly meetings of the EFA oversight committee with online streaming, Senate Bill 533 requiring the state to seek bids for contracts for EFA administrators every three years rather than the current five years, and Senate Bill 576 adding to requirements relative to EFA reporting.
Medicaid
Senate Bill 484, known as the Lower Cost of Healthcare Act, was killed along partisan lines. The bill would have capped co-pays for Medicaid recipients at $5 per treatment service instead of $35.
Sen. Cindy Rosenwald, D-Nashua, said some patients will skip treatments and die without more affordable costs.
“Yet, we have no problem opening the state’s wallet for its wealthiest to spend $50 million on ski trips, Legos and pianos through the EFA program,” Rosenwald said.
Democrats said in the last budget created by Senate Republicans and signed by Gov. Kelly Ayotte, Medicaid recipients were subjected to premiums that they call “a Medicaid income tax.”
Restoring Funding to USNH Sent to Study
Senate Bill 604, which would restore some of the general fund cuts to the University System of New Hampshire by $14 million from the general fund in Fiscal Year 2027 and $3.5 million to the community college system, was sent to interim study on a vote of 16-8.
Sen. Rebecca Perkins Kwoka, D-Portsmouth, said the measure comes at a time when businesses are clamoring for workers and students are seeing tuition increases. Failing to support this threatens the New Hampshire advantage, Perkins Kwoka said.
Sen. James Gray, R-Rochester, said no one supports the system more, but he said it is not likely to pass the House.
“We need a different way of doing it,” Gray said. “It is not going to get through the House, and the proof is the last budget.”
Abortion Statistics Tabled
Senate Bill 474, which would require those who perform abortions to submit the numbers to the state, was tabled. The measure would establish a July 1, 2027, deadline for collection of abortion statistics. Currently, the state does not calculate the number of abortions performed.
Sen. Regina Birdsell, R-Hampstead, urged for the passage of the bill.
Mandatory Minimum For Fentanyl Sales Overdose With Death Resulting
Sen. William Gannon, R-Sandown, urged passage of Senate Bill 467, which would establish a mandatory minimum sentence of seven years in prison for the distribution of the illicit drug fentanyl with death resulting.
The measure, which also would also crack down on drug dealers, passed on a vote of 16-8 and will now go to the House.
Gannon said mandatory minimums work well, and the bill would be a deterrence factor for dealers selling large amounts of fentanyl in New Hampshire.
Exceptions are in the bill for those with no prior convictions who are not a threat or a drug dealer, and those willing to cooperate with law enforcement.
Sen. Tara Reardon, D-Concord, spoke in opposition to the mandatory minimums. Often it is not clear who the buyer and seller is, she said.
Sen. Daryl Abbas, R-Salem, said the state has to prove that these people are dealers.
Sen. David Rochefort, R-Littleton, said the amount of the drug in the bill is quite high and likely the bill could go for a smaller amount.
“This is one hundred percent going after the big fish,” he said.
Prentiss said judges already can put the strictest penalties in place and asked the body to reject the measure.
Retirement System
Senate Bill 601, known as the Lower Property Taxes Act, which Democrats said would have saved property taxpayers over $26 million annually, was killed on a vote of 16-8.
Democrats said the measure would have turned back the clock and increased the state’s contribution by 7.5 percent.
Sen. Pat Long, D-Manchester, said in a statement following the vote:
“The so-called fiscally responsible Republicans just rejected an opportunity to save our towns, cities and their constituents tens of millions of dollars. These are the same Republican leaders who created a budget running a deficit, and are actively considering a business tax cut that would save Main Street nothing, but Wall Street millions.
“Concord Republicans prefer the interests of their donors, the wealthy and the powerful more than the town employee, the DPW worker and the fixed-income property taxpayer. Actions speak louder than words, and their hand waving about tax-consciousness pales to their constant disservice to working Granite Staters.”
Constitutional Amendment
The Senate passed on a 16-8 vote CACR 12, related to voting on broad-based taxes. The measure would give voters a say on an income tax.
It now goes to the House.
‘Everybody Is Smiling!’ After Bills Put Off
Expecting long debates on a number of bills that were due to come up after 3 p.m. but were pushed away until the next session, Senate Clerk Tammy Wright said “everybody is smiling!”
The measures included Senate Bill 554 related to firearms, Senate Bill 623 related to immigrant enforcement and House Bill 186 to legalize cannabis, among others.
Honoring Shiffrin and Rep. Harry Bean
At the end of the session, Sen. David Watters, D-Dover, asked for a moment to honor U.S. Olympic Ski Team member Mikeala Shiffrin, formerly of New Hampshire, who won the gold medal in slalom this week.
Lawmakers also took a moment to honor the life of state Rep. Harry Bean, R-Gilford, who recently passed away.
This article first appeared on InDepthNH.org and is republished here under a Creative Commons license.
“Senate Republicans Kill Efforts to Fund Housing Champions, Increase Oversight of EFAs” by Paula Tracy, originally published on InDepthNH.org, is licensed under CC BY-ND 4.0.