New Hampshire’s Public Higher Education Crisis: Underfunding, Rising Tuition, and the Implications for Workforce and Economic Growth
New Hampshire’s public higher education system has long faced chronic underfunding, and recent analysis has once again brought this issue into sharp focus. According to the New Hampshire Fiscal Policy Institute (NHFPI), in Fiscal Year 2024, the state allocated only $4,629 per full-time student at its public colleges and universities—far below the national average of $11,683 per student. This stark gap places New Hampshire at the very bottom of the nation in terms of public higher education funding, highlighting a long-standing lag in investment that has broad implications for students, families, and the state’s economy.
In recent years, the rising cost of higher education has placed a significant burden on students and families. NHFPI’s analysis shows that in-state tuition and fees at four-year public colleges in New Hampshire increased by 2.5% to 4.9% this year, while tuition at community colleges rose by nearly 7%. Compounding this challenge, public colleges in New Hampshire rely far more heavily on student tuition than institutions nationally—tuition accounts for 68% of revenue for the state’s public colleges, compared with a national average of just 39%. This overreliance on student payments means that students and families bear a disproportionate share of the cost of education, creating significant financial pressure, particularly for low- and middle-income families. Many students are forced to take out loans, work part-time jobs, or sacrifice other aspects of their daily lives to afford college. These financial pressures do not just affect students during their time at school; they often follow graduates into the workforce, limiting career choices and financial stability in the years after graduation.
Even more concerning is the state’s budget for fiscal years 2026–2027, which may exacerbate these challenges. The approved budget modestly increases funding for the Community College System of New Hampshire by roughly 1% (approximately $940,000), while cutting funding for the University System of New Hampshire by 17.6% (around $35 million). These reductions affect major institutions including Keene State College, Plymouth State University, and the University of New Hampshire. Budget cuts at this scale could impact the day-to-day operations of these universities, reducing available courses, limiting student services, and potentially diminishing overall educational quality. In response to reduced funding, institutions may feel compelled to raise tuition further or cut scholarships, creating a cycle that disproportionately affects students from lower-income households.
The consequences of underfunding extend beyond individual students; they have broader economic and societal implications. Approximately half of New Hampshire’s top ten in-demand jobs require at least some college education, including fields such as healthcare, technology, education, and engineering. If public colleges and universities cannot provide adequate training and education, the state risks creating a workforce that is ill-prepared to meet labor market needs. This talent gap could hinder business growth, reduce employment opportunities within the state, and weaken New Hampshire’s competitive position in the regional economy. Moreover, neighboring states that are investing more heavily in higher education may attract talent away from New Hampshire, exacerbating the risk of “brain drain” as young people leave to pursue more affordable, higher-quality education elsewhere.
Underfunding also affects research and innovation, key functions of public universities that extend beyond teaching. Universities serve as centers of scientific inquiry, technological advancement, and social research. Budget cuts can limit the scope of research programs, reduce funding for laboratories, and restrict opportunities for both faculty and students to engage in innovative projects. For faculty, decreased funding can lead to salary pressures, reduced benefits, and higher turnover, potentially driving talented educators and researchers to better-funded institutions in other states or private organizations. Over time, this diminishes New Hampshire’s capacity for research and development, slowing the state’s broader technological and industrial progress.
From a social equity perspective, chronic underfunding exacerbates educational inequality. Students from low-income families are often the most reliant on public institutions for access to higher education. Rising tuition and reduced financial support make college increasingly inaccessible to these groups, limiting upward social mobility and entrenching economic disparities. These inequities have long-term consequences for communities, potentially affecting civic engagement, economic stability, and social cohesion. Without targeted investment to ensure equitable access to education, New Hampshire risks widening the gap between wealthier families who can afford private education or out-of-state tuition and lower-income households who are left with fewer options.
Addressing this multifaceted challenge requires a comprehensive approach. First, state policymakers must prioritize funding for public higher education, ensuring that institutions have the resources necessary for operational stability, high-quality instruction, and student support. At the same time, government and higher education institutions should explore diversified funding strategies, including private donations, public-private partnerships, and collaborations with local businesses to reduce dependence on student tuition. Universities themselves can also work to improve resource efficiency, optimize course offerings, and implement workforce-aligned programs that equip students with skills that are in high demand, thereby strengthening both educational outcomes and economic impact.
The broader community also plays a critical role in advocating for educational investment and equitable access. Parents, students, and civic organizations can engage in policy discussions and push for legislative action that safeguards higher education funding. Transparency and public reporting from research institutions, think tanks, and the media provide essential accountability, helping the public understand trends in funding, tuition, and student outcomes. Recognizing higher education as both a personal opportunity and a public good is vital: investing in colleges and universities strengthens workforce capacity, enhances economic competitiveness, and promotes social mobility across generations.
NHFPI’s research underscores the long-term risks of continuing the current underfunding trajectory. Without meaningful increases in investment, New Hampshire may face continued tuition hikes, rising student debt, diminished educational quality, workforce skill gaps, and a weakened economic base. Public higher education is not merely an expenditure; it is an investment in human capital, innovation, and long-term prosperity. Ensuring accessible, high-quality education for all students is central to the state’s economic resilience and social well-being.
In conclusion, New Hampshire’s public higher education system faces a critical juncture. Chronic underfunding touches multiple dimensions of society, from student financial burdens to workforce readiness, research capacity, and social equity. State policymakers, educational institutions, and community stakeholders must work together to address these challenges through increased funding, diversified revenue streams, equitable access initiatives, and careful resource management. Sustained investment in public higher education will provide young Granite Staters with opportunities to achieve their potential, while simultaneously driving the state’s economic growth, social cohesion, and long-term competitiveness.
As NHFPI senior policy analyst Nicole Heller emphasizes, “Investing in students is investing in New Hampshire’s future. Supporting our public colleges and universities provides pathways to success for students and lays the foundation for economic growth and social progress across the state.” For New Hampshire’s decision-makers, balancing fiscal pressures with educational needs will shape the state’s talent pool, economic strength, and social fabric for decades to come. The choices made today will determine whether New Hampshire can equip its citizens with the skills, knowledge, and opportunities necessary to thrive in a rapidly evolving economy.
The path forward requires a holistic understanding of the interplay between state budgets, tuition costs, workforce needs, and social equity. Only through sustained attention and comprehensive policies can New Hampshire public higher education recover from decades of underfunding and emerge as a robust engine for student success, workforce development, and statewide prosperity. Every dollar invested in education is not just a cost—it is an investment in human potential, economic vitality, and the long-term future of the Granite State.