In a small New Hampshire town, a family dreams of opening a bakery, but their local bank can’t offer the loan they need. Across the street, a young couple hopes to buy their first home, only to face the same hurdle. These aren’t just personal stories; they point to a larger issue: too much of our state’s public money is leaving New Hampshire, instead of being sent to out-of-state and foreign banks.
The New Hampshire Public Deposit Investment Pool invests nearly a billion dollars in taxpayer monies, but Granite Staters need not apply. A law that passed last legislative session made it clear: give the state treasurer and their investment advisor flexibility to maximize returns while encouraging investment in New Hampshire’s local banks. They’ve fallen short, prioritizing distant institutions that don’t reinvest in our communities.
Reinvesting hundreds of millions of dollars in local banks could transform New Hampshire’s towns and cities while ensuring a strong return on investment. A bakery in Portsmouth could secure a loan to open its doors, hiring workers and drawing customers to the downtown. A manufacturer in Claremont could borrow to upgrade equipment, adding jobs that keep families in the community. Local banks, rooted in our state, are more likely to lend to small businesses and residents they know, creating a cycle of growth where every dollar spent locally multiplies its impact. This kind of investment strengthens the businesses and neighborhoods that define New Hampshire.
The benefits would extend beyond individual towns. In Keene, a startup could get funding to innovate, boosting the region’s economy. In Littleton, a family could afford to renovate a historic home, preserving the town’s character while supporting local contractors. In Manchester, a small business could expand, creating jobs and increasing commerce. Investing PDIP funds in New Hampshire’s community banks ensures the money works for our people, fostering opportunities that make our state a better place to live and work.
Reforms to the PDIP, now awaiting Gov. Ayotte’s signature, will make this possible. The new law requires the Executive Council to approve the contract for the investment advisor managing the PDIP’s nearly billion dollars, adding oversight that’s currently lacking. This ensures the council, with its history of careful contract review, can ensure the advisor will prioritize New Hampshire’s local and community banks while securing strong returns. The reforms could more explicitly direct the treasurer to ensure the advisor focuses on deposits in state banks eligible to hold public funds, keeping money in our communities to increase lending and support economic growth.
Continuing to allow the state treasurer to award major contracts without council input runs counter to New Hampshire’s tradition of accountable governance. By requiring Executive Council approval, the reforms bring transparency and ensure decisions align with the state’s needs.
This type of reform puts New Hampshire communities first by offering a practical way to keep our taxpayer dollars working here, supporting local banks that reinvest in our towns. Oversight by the Executive Council will ensure these investments are secure and transparent, holding the treasurer and advisor accountable to the people of New Hampshire.
This isn’t just about numbers—it’s about the businesses, families, and neighborhoods that make our state home.
