When the State “Finds” Money, Cities Like Ours Eventually Pay the Price.
O P I N I O N
THE SOAPBOX
Stand up. Speak up. It’s your turn.
In Manchester, budgets aren’t abstract. They show up in classroom sizes, plowed streets, police accountability, and—most directly—in our property tax bills.
So when Concord says the state budget is balanced, the real question is simple: how?
Two recent disclosures—one from the New Hampshire Office of the Legislative Budget Assistant and another from the office of Kelly A. Ayotte—give us an answer that should concern every taxpayer in this city.
The state is meeting a $16 million annual budget requirement not through new revenue or transparent spending cuts, but by transferring money out of dedicated funds.
In a detailed breakdown, Budget Officer Melissa A. Rollins outlined millions in these transfers. Roughly $20 million came from the Renewable Energy Fund. Another $1.25 million came from the Payment and Procurement Card Fund.
Then comes the recurring piece.
Under the current budget, the Governor must generate $16 million per year using dedicated funds, lapses, or other mechanisms. According to the Governor’s December 31, 2025 report, nearly $13.9 million of that total came from six funds, including:
- $7 million from the Revenue Information Management Fund
- $3.4 million from the Energy Efficiency Fund
- $1.5 million from the Body-Worn Camera Fund
- $1 million from the Animal Population Control Fund
We’re told these were “unused” balances. But in Manchester, we know better: reserves are not excess—they are protection.
Consider what this means locally.
Manchester homeowners are already carrying a heavy load. In FY2025, the city tax rate was approximately $7.10, with the school portion at $6.18—a combined burden that continues to strain families and seniors on fixed incomes. Even modest shifts in state support can ripple directly into local tax bills.
At the same time, Manchester schools continue to face tight budgets, rising costs, and increasing demands. When state-level funding becomes less reliable—or when funds are quietly redirected elsewhere—the pressure doesn’t vanish. It lands squarely on local districts, forcing difficult decisions about staffing, programming, and student support.
Energy is another area where the impact is real. The state’s Energy Efficiency Fund—tapped for $3.4 million—helps reduce long-term costs through efficiency programs. Those savings matter to Manchester residents struggling with utility bills. Pulling from that fund today risks higher costs tomorrow.
Then there’s public safety and infrastructure.
The Body-Worn Camera Fund supports transparency and accountability in policing—something every Manchester resident has a stake in. The Revenue Information Management Fund helps maintain the systems that keep state and local finances functioning smoothly.
And here at home, our Department of Public Works faces rising costs for snow removal, road maintenance, and equipment—costs that don’t go down when state-level funding becomes less stable. When Concord shifts resources to plug budget gaps, cities like Manchester are often left to absorb the long-term consequences.
There’s also a deeper concern: unpredictability.
The state budget assumed $1.6 million from the Governor’s Scholarship Fund. The actual transfer was $3.7 million—an extra $2.1 million used to meet the annual requirement.
That’s not disciplined budgeting. That’s a windfall.
And windfalls don’t repeat.
To be clear, this approach is legal. State law allows it. But legality is not the same as sound policy.
What’s happening is this: the Legislature sets a number—$16 million—but the details of how it’s achieved are decided later. That means critical funding decisions are made outside the full public debate of the budget process.
For Manchester, that matters.
Because when state funding becomes less predictable, the burden shifts. It shows up in higher local costs, tighter municipal budgets, and increased pressure on property taxes.
We all want government to live within its means. But living within your means doesn’t mean quietly draining accounts that were created for specific purposes.
It means making clear, transparent choices—and standing by them.
Right now, New Hampshire is balancing its budget in a way that avoids those choices.
It works—for now.
But when the “unused” money runs out—and it will—Manchester won’t be spared.
We’ll be the ones left holding the bill.
NH State Rep. David Preece represents Manchester in the New Hampshire House of Representatives and is a longtime urban and regional planner who previously served as executive director of the Southern New Hampshire Planning Commission.
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