VNH's 60 Second NH Tax Update with
Charlie Arlinghaus...

1. What created the problem in the current NH budget?

New Hampshire passes a two-year budget. The budget passed for the two years that end in June 2009 included the largest spending increase of the last 20 years. It was 17.5% higher than the budget for the previous two years. To support that highest-in-recent-history spending, legislators used revenue estimates that were very optimistic even in the face of warnings
about a weakening economy.

In the first of the two budget years, revenues fell short of budgeted levels by $71 million. In the second year, they will fall short another $250 million. Therefore, for the budget to end in balance, lawmakers must make $321 million of changes. So far, the governor has proposed $80-90 million of cuts, tax and fee increases of about $10 million, and borrowing about $50 million. Lawmakers
will need to cut an additional $150 million from the last 8 months of a 24 month budget.

Question 2.

Will next year’s budget be any better?