2025 Freedom Caucus Tri-Chairs
State Representative Shane Sirois
State Representative Paul Terry
Hon. JR Hoell
Media Contacts:
info@NHHFC.org
Hon. JR Hoell
New Hampshire House Freedom Caucus Condemns Fiscally Irresponsible Budget Provisions in HB2
CONCORD, NH – The New Hampshire House Freedom Caucus denounces the passage of HB 2, a budget bill stuffed with provisions that jeopardize the state’s fiscal stability and burden future generations with unsustainable financial obligations.
This legislation, marketed and sold as a balanced budget, employs fiscally unsound accounting and prioritizes special interests over the long-term prosperity of New Hampshire’s taxpayers.
We call on Granite Staters to recognize the negative implications of these policies and financial decisions, which undermine the principles of limited government and fiscal prudence.
Unsustainable Pension Enhancements Threaten Fiscal Solvency
HB 2 includes extravagant pension boosts for Group II retirees, granting certain public safety employees special benefits approaching twice the average working salary in New Hampshire—up to $145,000 annually for some. These enhancements exacerbate the state’s already strained pension system, which faces significant unfunded liabilities. Actuarial projections suggest that these increases will add tens of millions of dollars in annual costs, compounding over decades and diverting resources from critical priorities such as education, infrastructure, and tax relief. By prioritizing a select group over the broader public, this policy risks precipitating a fiscal crisis akin to those plaguing other states with bloated pension systems.
Budget Deferrals Mask Structural Deficits
The bill’s proponents tout a balanced budget, yet this claim rests on a $25 million deferral of obligations into the 2027–2028 budget cycle. Resorting to this type of “postponement accounting” artificially inflates and gives the appearance of fiscal health, while actually saddling future administrations with unaddressed liabilities. Such deferrals erode trust in public institutions, invite credit rating downgrades, and increase borrowing costs, ultimately burdening taxpayers. The Freedom Caucus rejects and condemns this shortsighted tactic, which prioritizes political expediency over responsible governance.
Expansive Policy Shifts Lock in Costly Obligations
Beyond its financial failings, HB 2 embeds policy shifts that significantly expand the scope and cost of government. The bill authorizes new public sector benefits and programmatic expansions—such as enhanced healthcare subsidies and increased administrative staffing—without corresponding revenue reforms. These initiatives, while presented as compassionate, establish permanent spending commitments that will grow with inflation and demographic pressures. Preliminary estimates suggest these policies could add upwards of $50 million annually to the state budget, constraining fiscal flexibility and increasing reliance on volatile revenue sources such as gambling revenues like Video Slot Machines (VLTs).
Failure to Address Revenue Volatility Invites Future Crises
Compounding these concerns, HB 2 fails to address the state’s exposure to revenue volatility, relying on one-time federal grants and optimistic economic forecasts to fund recurring expenditures. This approach invites structural deficits during economic downturns, potentially necessitating painful spending cuts or tax increases. The Freedom Caucus warns that such fiscal imprudence threatens the state’s ability to maintain essential services and preserve its low-tax advantage, a cornerstone of New Hampshire’s economic vitality.
A Call to Action for Fiscal Responsibility
The New Hampshire House Freedom Caucus urges its fellow members to consider these clearly harmful provisions and prioritize policies that safeguard the state’s fiscal future. We advocate for transparent budgeting, sustainable pension reforms, and targeted spending that respects taxpayers’ hard-earned dollars. Granite Staters deserve a government that upholds fiscal discipline, not one that mortgages their future for short-term political gains.
We invite the public to join us in demanding accountability and to contact their representatives to remind them of the potential long-term consequences of HB 2. Together, we can restore New Hampshire’s commitment to limited government and economic freedom.