UNH, state colleges could lose tens of millions of dollars in budget cuts

DURHAM — The University of New Hampshire has been considering layoffs and a major budget cut for 2025-26. Now the state’s university system is potentially facing even steeper cuts in New Hampshire's biennial budget.

State lawmakers have advanced plans to slash funding for the University System of New Hampshire (USNH), which includes the three UNH campuses, Keene State College and Plymouth State University. This is a reduction of funding from Gov. Kelly Ayotte’s budget proposal, which includes a proposed 4% cut to the university system. 

USNH receives $95 million in state aid per year under the current state budget, according to USNH spokesperson Lisa Thorne. Ayotte’s plan would bring USNH funding down to $91.2 million per year in fiscal years 2026 and 2027. 

Members of the New Hampshire House of Representatives support shrinking state aid to USNH even further. The House Finance Division II committee has approved $66.2 million in state aid per year to USNH, a decision that was affirmed by the House Finance committee. 

If the legislators’ proposed reduction holds, the USNH would be receiving $28.8 million less annually in the coming two years.

“We are disappointed with the votes of House Division II and upheld by House Finance, which threatens the ability of New Hampshire’s public colleges and universities to meet the needs of our students and employers,” Thorne said in a statement. “With an aging workforce and increasing demand for new skills in a rapidly changing economy, USNH attracts students from around the world to New Hampshire, and plays a vital role in developing and retaining the talent pipeline that will power our future. These votes are just two steps in the process. We remain committed to advocating for funding at the level proposed by Governor Ayotte, ensuring that we can continue delivering a strong return on investment for our state and its economy.”

The state's biennial budget is expected to be finalized in June after lawmakers and Ayotte reach an agreement. The budget proposal still has a long way to go, with review and votes by the full House, Senate Finance Committee, full Senate and a possible House-Senate conference committee to negotiate any differences in the budgets proposed by the two legislative bodies, before finally going to the governor who can either sign the budget or veto it. The new budget takes effect July 1.

UNH previously announced $15M and $20M in budget cuts were needed

In the backdrop, administrators at UNH are working to cut operating expenses in fiscal year 2026. It remains to be seen how the proposed state funding decrease to USNH would impact UNH.

UNH President Elizabeth Chilton and Aaron Howell, the school’s executive vice president of finance and administration, announced in February the university would need a roughly 3.5% cut from its current general fund budget next fiscal year, which is $15 million and $20 million. 

Chilton and Howell at the time noted “anticipated reductions in the state appropriation” to USNH were one of several factors that “further complicate our budget development."

“As we navigate these financial challenges, our priority is to make strategic and thoughtful decisions that uphold the university’s core academic mission,” the two wrote in an email to the university community. “Rather than implementing across-the-board reductions, we are taking a collaborative and holistic approach, working closely with deans and vice presidents to explore a range of potential budget scenarios.”

UNH conducting 'budget exercise' showing multiple percentage decrease proposals

By the end of February, all departments at the University of New Hampshire were required to submit three different budget proposals showing hypothetical 3%, 5% and 7% decreases for next fiscal year.

A Feb. 28 email from Howell to the school’s cabinet and college deans referred to the “budget adjustment” and the “3/5/7% exercise.”

“Our most significant – and difficult to understand – risks lie in the State budget and USNH allocation, and the impact on actions coming from the Federal administration,” he wrote. “Because of these risks and their ambiguity, we believe additional cost-containment measures are warranted and that they should be implemented immediately, so that UNH is demonstrating good fiscal management and controls.”

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Hiring denials and pre-approved travel at UNH

Howell outlined several additional cost-saving measures all university departments were to take effective immediately. He stated all hiring requests would be denied by default “unless a compelling justification is provided demonstrating a critical need for the position or refilling at this time” and that all out-of-state travel was to be pre-approved by college deans or school administrators to save money.

“While we know these additional steps may cause, at a minimum, inconvenience, given this time of unprecedented uncertainty around significant areas of the university’s revenue streams, taking these steps may allow us to mitigate further, more drastic changes,” Howell added.

UNH spokesperson Tania deLuzuriaga said this week that the school will present its proposed fiscal year 2026 budget to the USNH’s board of trustees in June. She declined to comment on the potential state budget cut to the state university system and the status of budget discussions at UNH.

USNH previously announced it is raising in-state tuition prices across the school’s public colleges for the first time in six years.

Last academic year, dozens of UNH staff members were laid off as part of an $11 million “budget reset” that led to some school programs and services ending.

New Castle lawmaker opposes state funding cut to USNH: 'It is a lifeblood of our community'

Rep. Kate Murray, a Democrat from New Castle on the committee, was one of several to oppose the cuts to USNH during the Finance Division II committee meeting on March 28. She called upon legislators to walk away from a plan to expand the taxpayer-funded Education Freedom Account program, which provides vouchers for students who choose not to attend public school to spend on private schools, religious schools or homeschooling.

Murray said the proposed cut to USNH shows higher education is not as valued in the state.

“We do not support, in any way, cutting (funding from) the university system. It is a lifeblood of our community,” Murray said at the meeting.

“I really question whether or not the system can survive this kind of a cut. I’m quite worried and I think the public should be worried, as well,” added Rep. Mary Hakken-Phillips, a Democrat from Hanover.

The committee’s Republican vice chairperson, Rep. Daniel Popovici-Muller of Windham, approved the funding cuts.

“At the end of the day, the only way to make the state budget be overall responsibly balanced is this reduction. We regret that it is necessary. We’ll do our best to bring this back to normal in a future budget,” he said.

An economic impact report from USNH states the system’s schools have a $3.7 billion direct and indirect impact on the state. Each year, approximately 2,000 university system graduates enter the New Hampshire workforce.

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