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Managing Spending Pressures: Strategies for the New Hampshire State Budget

Explore the challenges in the New Hampshire budget from 1989 to the present, current deficits, and strategies to address them. Learn about revenue shortfalls, spending reductions, and growth projections for a balanced budget.

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Managing Spending Pressures: Strategies for the New Hampshire State Budget

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  1. It’s Only Money Spending Pressures and the New Hampshire State Budget

  2. New Hampshire Operating Budget

  3. Growth 1989-2009

  4. Current Problem: 2010-2011 • 2009 is part of 2010-2011 • Revenue Shortfall - $40 million (x2?) • ARRA Shift - $18.4 million • JUA case - $110M (3 years/2 years) • Likely Problem 2010-11 = $208M

  5. The Next $627 Million Problem • Planned FY2011: $2497-2309 = 188 • Begin 2012-13: 189x2 +$376M • One-time spending reductions: • Bonding, Municipal, M&R freeze, OPEB, personnel, temp. retirement. • Two year total: $251 million • Starting Point for 2012-13: $627 Million Deficit

  6. Just Grow • Can we grow our way out of the current problem? • “If revenues return to historical levels in terms of their growth…we’ll then be on an even keel going forward” • 4% growth = $92M in 2012 • 3/3 tax/spend is $18 million worse

  7. Spending Strategies • Hunt and Peck or • Directed Management • The Peterson Problem

  8. Strategies and Suggestions • Peterson problem – pressure • Coalitions beat politics • Nothing is too small • Victory at the margins • Roller Coaster management • Strict rainy day fund • Better Balanced Budget Bill • Transparency

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