State House Republicans handed Gov. Kelly Ayotte an early birthday present Thursday when they passed a state budget that includes most of her legislative priorities, including more money for Group II retirees.
“It was hard fought, a lot of work, but I really appreciate that everyone came together and we delivered a balanced budget,” said Ayotte, who turns 57 on Friday. “It’s fiscally responsible, protects the New Hampshire advantage, and delivers for the people of the state.”
Hard fought is right. While the main portion of the budget, HB1, passed the Senate in a party-line vote, it was voted down in the House by a single vote. A few minutes later, the House voted to reconsider, then passed it in a 185-180 vote.
The budget rider, HB2, passed by just a single vote, 184-183. The Speaker of the House, who often doesn’t vote on legislation, cast his vote and avoided a tie.
What did Ayotte think when she saw HB1 voted down by the House?
“I thought, ‘You know what? Maybe we need to talk to a few folks…” she told NHJournal.
Whatever happened, it worked.
Ayotte got much of what she wanted, including restoring $10 million to the Manchester school system, which was slated to lose it in 2026, and more money for Group II pensions of first responders. However, Ayotte didn’t get as much money in the pension deal as she originally sought.
Asked what she would tell a law enforcement officer or firefighter impacted by the Group II deal, Ayotte said, “I would say that this is an important win for our first responders.”
Ayotte said the retirees involved “are really pleased with this,” and that the deal is “going to be helpful with recruitment and retention, because we’re prioritizing them. It’s a big step forward.”
She also talked up the “bell-to-bell” classroom cellphone ban and 60-day permitting reform to promote more home building and development in the state.
Listen to NHJournal’s interview with Gov. Kelly Ayotte here.
“I heard a lot about (permitting reform) on the campaign trail, and a true 60-day process for approval of state projects,” Ayotte said. “Whether it’s the smallest thing like a driveway permit — I remember talking about the driveway permits on the campaign trail — to a larger project, we can be better at that. And it’s in the budget.”
Ayotte is no stranger to close votes. In 2016, she lost her reelection bid to the U.S. Senate by just 1,017 votes out of nearly 740,000 cast. And her public battle with fellow Republicans in the state Senate, most notably Senate President Sharon Carson, resulted in resentment among some legislators and ugly headlines in the press.
But victory has a way of smoothing things over, and soon after the budget passed, Republicans in both branches of government were celebrating their successes. A fundraising email from the Committee to Elect House Republicans touted “Promises Made. Promises Kept.” It lists the repeal of vehicle inspections and banning gender-reassignment treatments for minors among the budget wins.
“This budget is the product of Republican unity and principled leadership,” Majority Leader Jason Osborne (R-Auburn) said in a statement. “It defends taxpayers, repeals car inspections, increases aid to local schools, supports the vulnerable, and maintains a fully balanced bottom line. This is a budget that will positively impact the daily lives of Granite Staters.”
And despite the elbow-throwing with Ayotte, Carson also released a statement celebrating the outcome.
“Among all our impressive achievements this year, the most notable was passing a state budget compromise that everyone could support,” Carson said. “This budget fully funds the DD (developmentally disability) waitlist, maintains Medicaid rates, protects community mental health, and sends nearly $2.2 billion to local school districts.”
As expected, Democrats denounced the bill and the “chaos” of the budget process.
“Kelly’s Chaos has defined this entire disastrous budget process, and the end result is a state budget that raises costs and threatens the health, safety, and well-being of our communities,” said state Democratic Party chair Ray Buckley.
“They had every lever of power and still managed to produce chaos and a budget no one can stand behind,” said Senate Democratic Leader Rebecca Perkins Kwoka (D-Portsmouth). “It’s clear from this process that when it comes to managing our state, there’s no plan, but there’s certainly an agenda. Granite Staters deserve better.”
Republicans shrug off the “chaos” comments, arguing voters will remember the outcome, not the process.
“This wasn’t about partisanship — it was about partnership,” said House Speaker Sherm Packard (R-Londonderry). “The hard work and collaboration of both legislative bodies did not go unnoticed.”
Several political insiders told NHJournal that while the margin may have been a single vote, Ayotte was a big winner.
“Anybody who thinks Gov. Ayotte can be dictated to just learned a hard lesson for the future,” one New Hampshire GOP operative told NHJournal. “She fights for the people relentlessly. It’s why voters love her.”
