Cost downshifting - the intentional reduction of expenses and consumption in order to lower the overall cost of living, often as part of a broader lifestyle change toward simplicity, sustainability, and personal well-being.
In the case of New Hampshire, it intentionally reduces state funding while increasing state mandates for local spending. This now requires local governments to increase property taxes to make up for the difference.
A decrease in state funding results in higher property taxes. Can’t be said enough!
During the current reign of the Republican Free Staters, NH has been gutted of approximately $3 billion, (yes, with a B) in local government funding. This funding would normally go to counties, town and school districts.
Here’s some examples of the revenue that has been cut by Republican Free Staters:
~Interest and Dividends tax - Brought roughly $180 million per year, mostly from the wealthy making $20,000 or more on “unearned” income; repealed in 2023, took effect in Jan. 2025.
~The Business Profits tax - The state’s largest revenue source, made up about 35% of General and Education Trust Fund revenues in SFY 2025. This was paid mostly by large corporations, (some from out of state) and has cost the State about $1 billion in revenue since 2016.
~Car Inspections – yeah, I know. A lot of people were happy to see that go, but the roughly annual $6 million state revenue went right along with it.
~Rooms & Meals tax – Republicans screwed over cities and towns by taking a bigger (about $11 million) share of this tax. And of course, tourism has been dropping due to the rising cost of gas, food, everything, thanks to the current federal regime.
Now, Republican Free Staters are targeting local governments and school boards, claiming “out of control” spending. When the reality is, these same local governments and school boards are having to find creative ways to fund their cities, towns and public schools with less and less state support. That means property owners, landlords and tenants pay more.
To add insult to intentional injury, the Republican Free Staters, looking for a scapegoat and having primed their supporters for many years about the “evils” of government spending, are now blaming these same cities, towns and school boards for their financial woes. There will be no support from Gov. Ayotte who has claimed, “Our towns and municipalities need to get serious about fiscal responsibility.” Republican Free Staters House Majority Leader Jason Osborne and Senate Majority Leader Regina Birdsell have both blamed the state’s towns and cities as spending too much on public education.
Ahhh, now we’re getting to the crux of this “cost downshifting” issue.
Public education.
Republican Free Staters want to see an end to it. Or at the very least, segregated.
Did you know, NH ranks dead last in state contributions to public education. In 2024, the state contributed 29% to public education! For comparison, Colorado contributes 40% and New Mexico 68%. Pretty shameful when Free Staters claim to have the best interests of school children in mind.
On the other hand, the hated school voucher program, newly freed from the encumbrance of an income cap, has seen the number of students receiving vouchers rise by 82%, and the total cost of the program has risen by 70%. Where does THAT money come from?
But yes, Governor, tell us more how “Our towns and municipalities need to get serious about fiscal responsibility” while you and your Free Stater buddies are incrementally reducing state aid, underfunding special education and ignoring court orders.
Thank you for your attention to this matter.