By GARRY RAYNO, InDepthNH.org

CONCORD - The new administrator for the Youth Development Center settlement fund received approval for $20 million rather than the full $55 million sought from the Joint Legislative Fiscal Committee.

During the Friday session, panel members informed new administrator Gerard Boyle, a former circuit court judge, that the state lacked sufficient resources for the larger amount but might identify additional funding in October once the revenue surplus for fiscal year 2026 becomes clear.

The state has already committed roughly $250 million toward claims, spread across a decade, yet no settlements have occurred in the past year following legislative changes to the program.

The administrator role shifted from the state Supreme Court to the governor's office, with the updated law granting the Attorney General authority to veto proposed settlements.

Lawmakers omitted full funding for the promised $75 million yearly payment in the current biennium budget after Gov. Kelly Ayotte included no allocation to address claims from about 1,700 former Sununu Youth Services Center residents alleging physical, sexual, and mental abuse by state employees during their childhoods.

The sole claimant to reach trial obtained a $38 million superior court jury award, which the state is now appealing.

Resolving every claim through settlement could total around $1 billion for the state, whereas court proceedings might exceed that figure and extend over ten years or longer.

Boyle indicated at the meeting that hearings could resume in August, with awards distributed over ten years except for those under $100,000.

"This represents one of the most troubling and sensitive periods in state history," Boyle stated, cautioning that court proceedings would inflate expenses and prolong administrative burdens.

He reported reductions in staff and salaries at the administrator's office to improve long-term viability.

"As the fund stands now," Boyle noted, "resources will be depleted by October of this year."

The $55 million request would sustain operations through fiscal year 2027, enabling renewed settlement efforts and demonstrating commitment to victims and counsel.

Average settlements over the initial three years reached $560,000, rising to $601,000 after legislative adjustments to encourage resolutions.

Boyle proposed introducing mediation involving the Attorney General's Office and an experienced mediator to resolve matters prior to hearings.

This approach would accelerate case resolutions and increase throughput, he explained.

"My objective is to conclude this process within three years," Boyle added.

Attorney General John Formella endorsed the funding request.

Committee chair Ken Weyler, R-Kingston, urged cost efficiencies, observing that the program has appeared excessive at times and that attorney fees at 33 percent should decline with greater efficiency.

"We share the aim of directing most resources to claimants," Formella responded.

He clarified that 33 percent represents a cap, not a minimum, and early cases approached that level but should decrease for firms managing multiple claims.

Formella backed the mediation initiative as an efficient path forward.

"We will pursue that option where feasible and funding permits," he stated.

Sen. James Gray, R-Rochester, noted current unavailability of the full $55 million but openness to revisiting after fiscal year close in October.

He highlighted unmet agency cuts and overtime needs in corrections due to staffing shortages.

The $20 million would address existing obligations plus about $5 million for new claims, equating to $50 million over ten years.

"Drawing further from the rainy day fund carries serious consequences," Gray said, referencing the $67 million used for fiscal year 2025 balance.

Boyle warned the $20 million would cover needs only until early November, halting further hearings.

Sen. David Watters, D-Dover, expressed concern that delayed funding undermines assurances to victims and attorneys, potentially pushing more toward courts and raising overall costs.

Boyle referenced the $38 million jury verdict as evidence of higher court risks.

Senate President Sharon Carson, R-Londonderry, recalled evolving estimates from $100 million to additional tens of millions and past transparency issues with fund usage.

She noted predatory loans taken by some victims and that the fund had covered some repayments, emphasizing state non-responsibility.

She urged ongoing dialogue with legislators.

Rep. Mary Jane Wallner, D-Concord, pointed to recent reports showing withdrawn or denied claims and inquired about future trends.

Boyle anticipated continuation, citing delays prompting returns to superior court or incomplete documentation leading to denials.

Wallner sought active court case counts, which Formella promised to provide later.

The committee approved the $20 million unanimously.

The panel also endorsed over $8 million for corrections overtime.

Previously, unfilled positions funded overtime amid roughly 50 percent vacancy rates, but budget cuts eliminated that flexibility.

Commissioner William Hart told Sen. Gray that next year's overtime would likely match this year's $25 million despite recruitment progress.

Hart described streamlined certification for law enforcement transfers via Police Standards and Training.

The request passed unanimously.

Garry Rayno may be reached at garry.rayno@yahoo.com.