According to a new study from the nonpartisan, independent research nonprofit, the N.H. Fiscal Policy Institute, New Hampshire spends the least on higher education — and this could have far-reaching consequences for students, colleges and the state’s future workforce. On this episode of “The State We’re In,” Dr. Nicole Heller, a senior policy analyst with the N.H. Fiscal Policy Institute, who is studying the issue.
This article has been edited for length and clarity.
By Rosemary Ford and Caitlin Agnew
Melanie Plenda:
Tell us about your research on higher education. What did you look at?
Nicole Heller:
We summarized data from the State Higher Education Executive Officers Association, which allowed us to compare New Hampshire's spending for public higher education to other states in a standardized fashion.
We report on New Hampshire state funding for public higher education from state fiscal year 2006 to 2027 — what we have budgeted for that fiscal year. We also examined tuition rates at the three university system institutions, which include Keene State, Plymouth State and the University of New Hampshire, as well as the community college system of seven colleges.
Melanie Plenda:
What were some of your findings?
Nicole Heller:
Our finding that New Hampshire is the lowest funder of public higher education in the country is consistent with our 2019 and 2023 reports on this topic. In this report, we found that the state of New Hampshire spends approximately $4,600 of funding per full-time student enrolled in public higher education institutions, while the national average is about $11,700. These figures are derived from the amount of funding allocated to USNH (the University System of New Hampshire) and CCSNH (the Community College System of New Hampshire) in the state budget, not the amount these systems spend on each full-time equivalent student attending their institutions.
What's different about this most recent report is that it's written in the context of a small 1% increase for the community college system’s budget and a considerable 17.6% decrease in the University System of New Hampshire's budget for state fiscal year 2026 and 2027 compared to the prior state budget.
Melanie Plenda:
Were any of these findings a surprise to you, and if so why?
Nicole Heller:
In 2024, the public institutions relied heavily on student tuition payments for revenue. So 68% of all revenue was from student tuition. And this is compared to a national average of contributions of 39%. New Hampshire’s public institutions are tuition-dependent, meaning that they’re highly reliant on student tuition to cover their operating budgets. When any revenue of a tuition-dependent institution’s budget is reduced, additional revenue is needed. So this often means tuition increases for students and families so the institution can balance its operating budget.
New Hampshire has seen this in both the community college system and the university system this academic year, with 7% increases in the community college tuition and a range of between 2.5% and 4.9% at the university system institutions.
Melanie Plenda:
Let's talk about some of your key findings. Why is New Hampshire’s spending on higher education a cause for concern?
Nicole Heller:
This is cause for concern because when we think about New Hampshire, our workforce and population are aging. We need young people to remain in or come to New Hampshire in order to fill positions that are opening as a result of individuals’ retirements.
Additionally, about half of the occupations projected to have the most growth through 2032 require a college degree, and this includes software developers, registered nurses and nurse practitioners. So high tuition rates may make it difficult for individuals to afford degrees required for these occupations and contribute to workforce shortages.
Melanie Plenda:
How is this spending, or lack thereof, expected to affect New Hampshire’s workforce?
Nicole Heller:
High tuition rates for public institutions might result in more students leaving a state to pursue their higher education, and these students may not return to the state after they've completed their degree.
Right now, we have a really tight housing market, even among rental units, it's expensive to live in the state, and additionally, high non-resident tuition rates or out-of-state tuition rates may also deter young people from coming to New Hampshire to pursue their education. They may be able to afford another college within the Northeast that costs less, and that might attract them there. Since we do have a reduced number of students, high school graduates, in the Northeast, and this is a trend that's been predicted over time, and so the institutions, particularly in the Northeast, are competing for fewer and fewer students to attend their institutions.
Melanie Plenda:
You also compared funding at four-year and two-year institutions. What did you find there? And what implications does that have?
Nicole Heller:
New Hampshire invests more funding in students attending two-year institutions than four-year institutions on a per-enrollee basis. The education appropriation for full-time equivalent students was about $9,800 at our two-year institutions and approximately $4,000 at our four-year institutions in state fiscal year 2024. I want to point out that these figures include both in-state and out-of-state enrollees.
So while there's more investment in the community college system — and that may make accessing education more affordable for individuals pursuing occupations that require two-year degrees — individuals who are pursuing careers that require four-year degrees may find the pathway to their chosen careers inaccessible due to high tuition costs.
Melanie Plenda:
Is there a connection between students who study in New Hampshire and young people who stay in New Hampshire?
Nicole Heller:
According to a 2023 report from the University System of New Hampshire, students are twice as likely to stay and join the New Hampshire workforce if they attend a four-year public college or university and complete an internship program within the state university system. The university system also reports that about 2,000 USNH graduates join the Granite State workforce every year.
Melanie Plenda:
What other causes of concern did your research find?
Nicole Heller:
New Hampshire college graduates are experiencing more and higher rates of student loan debt than graduates from other states. The most recent number from 2022 suggests graduates from New Hampshire's colleges and universities who have debt carry the highest average debt at nearly $40,000 compared to all other graduates in the country. New Hampshire also has the second highest percentage of graduates with student loan debt, at 70%.
Melanie Plenda:
Let’s say you are a Granite Stater with no connection to higher ed — not a student, not a university worker, not a parent of a current or future student. Would you still be concerned? Why?
Nicole Heller:
High college tuition rates can have long-term effects that impact the overall Granite State economy. As I mentioned earlier, those high tuition rates can deter individuals from pursuing degrees and careers and high demand occupations, which will adversely affect our workforce, particularly in certain industries.
Additionally, students and families may take on more of that student loan debt that we discussed, which can impact their financial stability and wealth-building over time — for example, saving for retirement, buying a house or having funds for emergencies.
Another option for individuals may be to forgo a postsecondary education or training entirely if they're not able to afford and access that education, which can hinder their long-term earning potential — again lowering the amount of money that they have to save for their retirement, for buying a home, for emergency savings.
In both scenarios, the Granite State economy is impacted when residents don't have enough resources available to spend on goods and services that help build our local and state economies.
Melanie Plenda:
What’s the solution here? What can the average person concerned about this do?
Nicole Heller:
Additional funding for public higher education may help slow those tuition rate increases and help ensure students can access and afford degrees necessary for in-demand occupations. When our legislators were crafting the current state budget, revenues were considerably smaller than in the last budget cycle, for a variety of reasons. Federal pandemic aid has mostly ended. New Hampshire repealed its interest and dividends tax, so that funding — though it's still trickling in as various portfolios are wrapped up — has drastically decreased and will eventually go away entirely. Then we have reduced combined business taxes related to reductions in those tax rates.
So while those tax rates were initially reduced and we did see differences, because spending went up — particularly in the pandemic era, as we weren't able to travel, consumer spending went up, particularly with stimulus income that came in from the federal government — that spending has slowed over time, and so now those business tax reductions are starting to be seen in the amount of revenues that are coming in. So as a result of relatively reduced revenues, the Legislature had a lot of difficult decisions to make, and one of them included drastically reducing public support for the USNH budget.
Melanie Plenda:
So interesting. Dr. Nicole Heller, thank you for joining us.
“The State We’re In” is a weekly digital public affairs show produced by NH PBS and The Marlin Fitzwater Center for Communication at Franklin Pierce University. It is shared with partners in the Granite State News Collaborative, of which both organizations are members. For more information, visit collaborativenh.org.