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The Fiscal Collapse of a Once Proud State by Charles M. Arlinghaus | ||
| Not too long ago we believed in balanced budgets. But that’s all changed. Other states made the tough decisions. We did not. Today the State of New Hampshire is just another failed enterprise hoping the federal government will cut them a check before the debt capsizes that ship. | |||
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Wishful Thinking Outnumbers Cuts and Tax Increases in New Hampshire Budget Package by Grant Bosse | ||
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Borrowing, transfers, and wishful thinking draw the actual spending cuts and tax increases included in a $295 million budget deal unveiled Tuesday, June 8 at the State House. House and Senate budget writers have crafted a package that includes nearly $72 million in spending cuts, which doesn’t include an $18.5 million increase in HHS spending. It also contains $4.99 million in tax increases, $51.21 in lapses and transfer among state agencies, $65 million in borrowing, and $112.87 million in speculative revenues that may never be realized. |
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Mortgaging the Future Can New Hampshire borrow its way to a balanced budget? by Grant D. Bosse | ||
| Governor John Lynch’s proposed solution to New Hampshire’s current budget crisis includes three major provisions to borrow money: refunding current debt, issuing new bonds to meet next year’s debt service payments, and borrowing money from the University System of New Hampshire. This report examines those three ideas, how much they would increase New Hampshire’s debt level, and the arguments for and against new borrowing to meet short term budget pressures. | |||
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Measuring The Revenue Shortfall Revenue on track to fall $84.8 million short in first half of budget by Charles M. Arlinghaus | ||
| Summary: Using a historical projection model, state revenues can be projected to fall $84.8 million short of the amount budgeted to balance spending in the first year of the two-year budget. Revenues in the second year of the budget are built off the first year’s projection plus 2.2% growth over that base. At that rate of growth, revenues would be an additional $86 million out of balance in the second of the two budget years. The combined revenue shortfall of $171 million is the largest component of a budget deficit greater than $250 million that legislators must resolve to balance the state’s finances. | |||
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Governor Waives Hiring Freeze 71 Times in 2008 Annual cost $3.9 million. 25 waivers denied, saving $1 million a year by Grant D. Bosse | ||
| Governor John Lynch approved 71 exceptions to his hiring freeze in Fiscal Year 2008, at an annualized cost of nearly $3.9 million, or $464,000 in FY08 alone. Governor Lynch and the committee he charged with reviewing waiver requests approved 74% of agency requests acted upon in FY08. A report submitted in advance of tomorrow’s meeting of the Legislative Fiscal Committee understates both the number and the cost of these waivers. Of the 104 agency requests to waive the hiring freeze acted upon before the end of the Fiscal Year, 71 were approved and 25 denied, for an approval rate of 74%1. The annualized General Fund cost of salaries and benefits for these positions is $3,877,673. An additional five waiver requests were pushed into Fiscal Year 2009, and will be included in our analysis of that’s year waiver process. | |||
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Understanding The State Budget: A Rising Tide of Taxes and Fees by Charles M. Arlinghaus | ||
| The budget for fiscal years 2010 and 2011 passed in June of 2009 and additional legislation passed this year include 38 new or increased taxes and fees that are projected to raise an additional $318 million over the two years of the budget. A study of the total number of tax and fee increases over the last decade shows a consistently high number with the exception of the 2003-2004 legislature. However, the current total for this legislature at 38 is nearly double the 19.5 average of the last four budgets. | |||
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The views expressed herein represent the author’s and not necessarily those of the staff or Board of Directors.