CONCORD, N.H. — On Friday, Republican Governor Kelly A. Ayotte signed the state’s budget into law, a milestone and major victory for the first-term governor.
The $15.9 billion budget contains the state’s spending for the next two fiscal years, 2025 through 2027, starting in July.
Just a few days earlier, the fate of the budget was uncertain, as Ayotte pushed lawmakers to include her key priorities, threatening to veto a budget finalized by lawmakers in her own party.
That sparked a flurry of last-minute negotiations on Thursday, narrowly salvaging a budget deal on the two-year spending plan.
“I said from day one in office that I would work each day to deliver an even brighter future for all of New Hampshire — and we have kept that promise,” said Ayotte in a statement Friday afternoon before signing the trio of bills that made up the budget, which she touted as fiscally responsible.
Some New Hampshire Republicans shared her optimism.
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“From standing up for our first responders, to strengthening our Northern Border, to protecting Granite Staters in need, this budget keeps the promises Republicans made with no new taxes,” said Jim MacEachern, NHGOP chairman.
“This hard work will show at the ballot box in November,” he predicted.
Democrats disagreed, criticizing what they called a chaotic process and the final product.
“The end result is a state budget that raises costs and threatens the health, safety, and well-being of our communities,” said Ray Buckley in a statement, chair of the New Hampshire Democratic Party.
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The final budget, which every Democratic lawmaker voted against, features several controversial cost-saving measures, including significant funding cuts for the University System of New Hampshire and the Department of Corrections, plus a move to charge premiums for certain Medicaid beneficiaries who earn more than the federal poverty level.
“The budget they forced through is nothing short of catastrophic, ripping health care away from low-income families, defunding public education, slashing child protection services, and funneling millions to out-of-state casino operators and private schools,” said Representative Alexis Simpson of Exeter, the House Democratic minority leader.
Simpson said the chaos and deal-making that complicated this process demonstrated “a crisis of leadership” and resulted in a budget that will “forever leave a stain on this state.”
Republicans, however, celebrated. House Majority Leader Jason Osborne of Auburn said “principled leadership” had produced a budget that defends the interests of taxpayers, provides additional funding to local schools, and more.
Deputy Majority Leader Joseph F. Sweeney of Salem said the budget will work for all Granite Staters.
“Whether you care about property taxes, public safety, or educational freedom, this budget reflects the priorities of New Hampshire families,” he said. “We can all be proud of that.”
While citing constrained revenue estimates as necessitating cuts from certain programs they disfavor, Republican lawmakers relied on an expected increase in gambling revenues from newly legalized slot machines to help fund expanded investments in certain programs they favor.
The primary sticking point that Ayotte cited when she threatened last week to veto the Legislature’s version of the budget revolved around retirement spending for certain public safety personnel whose benefits were reduced in 2011 amid an earlier budget crunch. Ayotte had campaigned on restoring much of those benefits, but some GOP lawmakers objected to the price tag.
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On Wednesday evening she announced a compromise had been reached, with adjustments to the calculations and maximum benefits for a group of plan members that includes certain police and firefighters.
“There is no doubt in my mind that our citizens respect politicians who keep their word and fight for change,” said Michael Geha, president of the New Hampshire Police Association. “That is what Kelly Ayotte did, and the entire state is better off and safer for it.”
To adopt the late compromise, senators revived and amended a previously tabled bill on Thursday to include language on the retirement plans, school funding calculations, and a few other provisions — leading to a standalone proposal that every Democrat and most Republicans supported.
Still, the revisions did not address everyone’s concerns.
“This budget fails to address the inequities in our school funding system,” said Megan Tuttle, president of NEA-New Hampshire, a teacher’s union. “It is far past time that our elected officials work together to fulfill our collective responsibility to ensure every child—regardless of ZIP code—has access to a safe, supportive, and high-quality public education.”
Steven Porter can be reached at steven.porter@globe.com. Follow him @reporterporter. Amanda Gokee can be reached at amanda.gokee@globe.com. Follow her @amanda_gokee.