New Hampshire Department of Corrections Faces $10.8 Million Overtime Budget Overrun

The New Hampshire Department of Corrections (DOC) has exceeded its fiscal year 2025 overtime budget by $10.8 million, prompting a formal request to the state’s Executive Council to reallocate funds within the department to cover the gap.

The request was reviewed by the five-member Executive Council on Wednesday. While the council approved the reallocation, members expressed concern about the department’s budgeting and staffing practices. The council, which holds fiscal oversight authority over the state executive branch, questioned the DOC’s financial planning and the sustainability of current staffing models.

Where the Overtime Money Is Going

Most of the additional overtime spending is concentrated at the state’s three correctional facilities. The men’s prison in Concord will receive $4.5 million of the overage, while the men’s prison in Berlin is allocated $3 million. The women’s prison in Concord is set to receive about $900,000.

The shortfall is the result of continued staffing shortages within the department, which have required correctional officers to work significant overtime—much of it mandatory. New Hampshire, like many other states, has struggled to recruit and retain staff in its corrections system, a trend reflected nationwide.

Staffing Shortages Continue, Though Slightly Improved

According to the documents submitted to the Executive Council, the vacancy rate among correctional staff remains high. In January 2024, the department reported a 52% vacancy rate. As of May 2025, that number had improved slightly to 43%. Despite the progress, nearly half of the department’s positions remain unfilled.

In many cases, overtime shifts are not optional. The department can mandate that officers remain on duty beyond their scheduled shifts to meet minimum staffing requirements. This practice has contributed to the rising costs and strains within the workforce.

Union Contracts and Pay Increases Drive Additional Costs

Beyond the staffing shortages, recent union-negotiated pay increases have further expanded the department’s personnel expenses. These include a 10% general wage increase for all staff, followed by an additional 2% raise. Correctional officers now receive double overtime pay for hours worked beyond 80 in a pay period, as well as double time for holiday shifts.

Additional increases were negotiated for specific roles: nursing staff received a 30% raise, and behavioral health workers received increases up to 35%.

While these increases are aimed at improving retention and recruitment, not all of the funding needed to cover the raises has been allocated. According to the department’s internal documents, some of the negotiated increases remain unfunded, creating what is now an $8.3 million projected deficit in the DOC’s personnel budget.

Covering the Gap with Vacancy Funds

To address the shortfall, the department has been using funds from unfilled staff positions to cover overtime costs. While this strategy allows the DOC to meet its current payroll needs, it highlights a broader structural issue: the department is relying on the assumption that large numbers of positions will remain vacant.

This budgeting approach is unsustainable if hiring rates improve or if vacancies decrease more quickly than anticipated. In such a case, the department would need additional appropriations to fund both new hires and the continuing cost of overtime and pay raises.

Request for Additional State Support Expected

In addition to the internal reallocation approved by the Executive Council, the DOC is expected to request further funding from the state’s pay and benefit adjustment fund. This fund is designed to support state agencies when compensation expenses outpace initial budget estimates.

Such a request would require additional approvals and may be subject to further scrutiny from both the Executive Council and legislative budget writers.

Leadership Transition Amid Scrutiny

The budget overrun comes on the heels of an abrupt leadership change at the department. Former DOC Commissioner Helen Hanks resigned last month. While no official reason was provided for her departure, the timing coincides with growing concerns among some lawmakers about department practices during her tenure.

No successor has been publicly announced at this time, and the department remains under close observation as it navigates budgetary and staffing pressures.

Wider Implications

The current financial strain highlights the broader challenges facing correctional systems across the country. With fewer people applying for corrections jobs and experienced officers leaving the field, departments are left balancing safety, fiscal responsibility, and labor demands.

In New Hampshire, the continued reliance on overtime and vacancy-based budgeting raises questions about long-term workforce planning. While recent pay increases may help reduce vacancies over time, they also create immediate financial pressures that the state must resolve.

The situation also underscores the importance of careful fiscal oversight and the role of the Executive Council in managing midyear budget adjustments. As the DOC works to stabilize staffing levels and realign its budget, further updates are expected during the next funding cycle.