New Hampshire state budget and finances

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New Hampshire budget and finances
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General information
Budget calendar:
Biennial
Fiscal year:
2015
State credit rating:
AA (as of 2014)
Current governor:
Margaret Hassan
Financial figures
Total spending (state and federal funds):
$5.1 billion (estimated for 2014)
Per capita spending:
$3,827.22 (estimated for 2014)
Total state tax collections:
$2.4 billion (2013)
Per capita tax collections:
$1,791.98 (2013)
State debt:
$18.4 billion (as of 2014)
Per capita state debt:
$13,951 (as of 2014)
State budgets and finances
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Total state expendituresState debtTax policy in New Hampshire
Note: This page utilizes information from a variety of sources. As such, the currency of the information varies somewhat. The information presented on this page reflects the most recent data available as of February 2015.
Between fiscal years 2013 and 2014, total spending in New Hampshire increased by approximately $148 million, from $4.9 billion in fiscal year 2013 to an estimated $5.1 billion in 2014. This represents a 3 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned New Hampshire a credit rating of AA.[1][2][3]
In New Hampshire in fiscal year 2014, estimated spending per capita was $3,827, the fifth-lowest in the nation.

Spending

Definitions

The information below comes from the National Association of State Budget Officers (NASBO). These spending figures are broken into three broad categories in order to facilitate comparison between the states.[3]

  • State funds: State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."
  • Federal funds: Federal funds are "funds received directly from the federal government."
  • Total spending: Total spending is calculated by adding together the totals for state and federal funds.

These figures exclude spending from the sale of bonds.

2014 expenditures

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[3]

In New Hampshire in fiscal year 2014, estimated per capita spending was $3,827, a smaller amount than in any neighboring state.

Total estimated state spending, FY 2014 ($ in millions)
State State funds Federal funds Total spending Population Per capita spending
New Hampshire $3,375 $1,703 $5,078 1,326,813 $3,827.22
Maine $5,330 $2,696 $8,026 1,330,089 $6,034.18
Massachusetts $41,752 $15,135 $56,887 6,745,408 $8,433.44
Rhode Island $5,259 $2,543 $7,802 1,055,173 $7,394.05
Vermont $3,382 $1,771 $5,153 626,562 $8,224.25
Per capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census estimates.[4]
Source: National Association of State Budget Officers

Spending by function

See also: State spending by function as a percent of total expenditures
Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in New Hampshire can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[3]

In New Hampshire in fiscal year 2013, higher education accounted for 2.2 percent of total government spending. Compared to neighboring states, only Vermont spent a smaller share of its budget on higher education.

State spending by function as a percent of total expenditures, FY 2013
State K-12 education Higher education Public assistance Medicaid Corrections Trans-
portation
Other
New Hampshire 23.4% 2.2% 1.7% 25.6% 2.0% 10.0% 35.0%
Maine 16.9% 3.6% 2.3% 32.7% 1.8% 8.2% 34.6%
Massachusetts 11.2% 10.1% 2.7% 18.7% 2.3% 6.6% 48.5%
Rhode Island 14.9% 13.0% 1.4% 24.8% 2.6% 6.3% 37.0%
Vermont 32.0% 1.8% 2.3% 28.3% 2.9% 10.9% 21.7%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Spending trends

Between 2009 and 2013, the share of the New Hampshire state budget spent on higher education decreased from 5.2 percent to 2.2 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[3][5][6][7][8]

Spending by function from 2009 to 2013 (as percentages)
Year K-12 education Higher education Public assistance Medicaid Corrections Transportation Other
2013 23.4% 2.2% 1.7% 25.6% 2% 10% 35%
2012 23.5% 2.7% 1.9% 23.9% 2.1% 10.1% 35.9%
2011 22.3% 4.0% 2.0% 25.7% 2.0% 9.5% 34.5%
2010 19.0% 5.0% 1.8% 24.9% 1.9% 9.2% 38.1%
2009 22.4% 5.2% 1.9% 26.5% 2.2% 10.8% 31.1%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[3]

Revenues

2013 revenues

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[9]

In New Hampshire in 2013, per capita tax collections totaled $1,792, a smaller amount than in any neighboring state.

State tax collections by source ($ in thousands)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes Total 2013 population Per capita collections
New Hampshire $400,369 $945,290 $272,852 $99,027 $553,197 $99,368 $2,370,103 1,322,616 $1,791.98
Maine $38,636 $1,779,873 $260,918 $1,531,504 $171,987 $101,532 $3,884,450 1,328,702 $2,923.49
Massachusetts $4,795 $7,455,326 $945,922 $12,876,192 $1,888,449 $730,363 $23,901,047 6,708,874 $3,562.60
Rhode Island $2,331 $1,516,423 $138,518 $1,088,992 $144,310 $49,859 $2,940,433 1,053,354 $2,791.50
Vermont $971,718 $983,226 $106,509 $663,027 $105,635 $48,815 $2,878,930 626,855 $4,592.66
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
New Hampshire tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. In New Hampshire, individual income taxes accounted for 4.2 percent of total state tax collections, a smaller share than in any neighboring state.[9]

State tax collections by source (as percentages)
State Property taxes Sales and gross receipts Licenses Individual income taxes Corporation net income taxes Other taxes
New Hampshire 16.89% 39.88% 11.51% 4.18% 23.34% 4.19%
Maine 0.99% 45.82% 6.72% 39.43% 4.43% 2.61%
Massachusetts 0.02% 31.19% 3.96% 53.87% 7.9% 3.06%
Rhode Island 0.08% 51.57% 4.71% 37.04% 4.91% 1.7%
Vermont 33.75% 34.15% 3.7% 23.03% 3.67% 1.7%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Current fiscal year budget

See also: Historic New Hampshire budget and finance information

Fiscal years 2014 and 2015

DocumentIcon.jpg See budget bill: House Bill 1 and House Bill 2

New Hampshire state budget -- 2014
New Hampshire State Legislature
Text:House Bill 1 (this is only one of two bills that encompass the 2014-2015 biennial budget)
Legislative history
Introduced:February 27, 2013
House:April 3, 2013
Vote (lower house):194-172
Senate:June 6, 2013
Vote (upper house):13-11
Conference:June 26, 2013
Conference vote (upper house):24-0
Conference vote (lower house):337-18
Governor:Maggie Hassan
Signed:June 28, 2013

On February 14, 2013, Governor Maggie Hassan presented her proposed budget for the 2014-2015 biennium to the state legislature. The governor's proposed operating and capital budgets can be accessed here.[10]

Under her proposal, counting all state funds and federally financed programs, state spending would increase 10.2 percent, from nearly $10.1 billion to nearly $11.1 billion. General fund spending would increase by 7.1 percent, from more than $2.6 billion to nearly $2.8 billion.[10]

The governor's proposal presumed an increase of 2 percent in baseline revenue from state business and other taxes in fiscal year 2014 and 1.9 percent in fiscal year 2015. The governor also proposed casino gambling and an increase in the state's cigarette tax by $0.20 per pack to generate additional state revenue.[10]

Spending increases in the governor's proposed budget included:[10]

  • $40 million in fiscal year 2014 and $42 million in fiscal year 2015 for community colleges;
  • $75 million in fiscal year 2014 and $90 million in fiscal year 2015 for the state university system;
  • expansion of the state’s Medicaid program;
  • more money for mental health services; and
  • $38 million to build a new women’s prison.

Hassan signed the 2014-2015 biennial budget into law on June 28, 2013. It consisted of two bills: House Bill 1 and House Bill 2.[11]

State debt

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, New Hampshire had a state debt of approximately $18.4 billion. Its state debt per capita was $13,951. The report revealed that state governments faced a combined $5.1 trillion in debt. The obligation amounted to $16,178 per capita in the nation.[12]

Total state debt, 2014
State Total state debt State debt per capita Per capita debt ranking
New Hampshire $18,425,567,000 $13,951 27
Maine $16,717,250,000 $12,577 35
Massachusetts $129,550,263,000 $19,493 12
Rhode Island $18,863,153,000 $17,960 16
Vermont $7,866,666,000 $12,566 36
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

Public pensions

See also: New Hampshire public pensions and New Hampshire public employee salaries

A 2012 report from the Pew Center on the States noted that New Hampshire’s pension system was funded at 59 percent at the close of fiscal year 2010, well below the 80 percent funding level experts recommend. Consequently, Pew designated the state's pension system as cause for "serious concern."[13]

Credit ratings

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[14][15]

The table below lists the Standard and Poor's credit ratings for New Hampshire and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[16]

State credit ratings, 2004 to 2014
State 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
New Hampshire AA AA AA AA AA AA AA AA AA AA AA
Maine AA AA AA AA AA AA AA AA AA- AA- AA
Massachusetts AA+ AA+ AA+ AA AA AA AA AA AA AA AA-
Rhode Island AA AA AA AA AA AA AA AA AA AA AA-
Vermont AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+ AA+
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

Federal aid to the state budget

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies considerably from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[17]

The table below notes what share of New Hampshire’s general revenues came from the federal government in 2012. That year, New Hampshire received approximately $1.7 billion in federal aid, 29 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[17]

Federal aid to state budgets, 2012
State Total federal aid ($ in thousands) Federal aid as a % of general revenue Ranking
New Hampshire $1,693,289 29.02% 34
Maine $2,883,526 36.15% 12
Massachusetts $12,920,153 28.8% 36
Rhode Island $2,310,656 33.76% 23
Vermont $1,904,382 34.79% 18
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

Stimulus

According to Recovery.gov, the official government website for the Recovery Accountability and Transparency Board, under the American Recovery and Reinvestment Act, New Hampshire received $893.2 million in federal stimulus funding from the American Recovery and Reinvestment Act between February 2009 and June 2013.[18]

Budget process

The state operates on a biennial budget cycle. The sequence of key events in the budget process is as follows:[19][20]

  1. Budget instruction guidelines are sent to state agencies in August.
  2. State agencies submit their requests by October 1.
  3. Agency hearings and public hearings are held in November.
  4. The governor submits his or her proposed budget to the New Hampshire State Legislature by February 15.
  5. The legislature adopts a budget in May. A simple majority is required to pass a budget.
  6. The biennial budget cycle begins in July.

New Hampshire is one of only six states in which the governor cannot exercise line item veto authority.[20]

In New Hampshire, the governor is required by statute to submit a balanced budget. However, the legislature is not required by law to pass a balanced budget.[20]

Agencies, offices and committees

The following standing committees in the New Hampshire General Court deal with budget and finance matters:[21][22]

  1. Capital Budget Committee, New Hampshire State Senate
  2. Finance - Division I Committee, New Hampshire House of Representatives
  3. Finance - Division II Committee, New Hampshire House of Representatives
  4. Finance Committee, New Hampshire State Senate
  5. Ways and Means Committee, New Hampshire House of Representatives
  6. Ways and Means Committee, New Hampshire State Senate

Studies and reports

U.S. PIRG "Following the Money" report

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites are with regard to state government spending.[23] According to the report, New Hampshire received a grade of C+ and a numerical score of 75, indicating that New Hampshire was "middling" in terms of transparency regarding state spending.[23]

Budget and finance ballot measures

Voting on
state and local
government budgets,
spending and finance
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Policy
Budget policy
Ballot measures
By state
By year
Not on ballot
See also: Spending and finance on the ballot and List of New Hampshire ballot measures

Ballotpedia has tracked no ballot measures relating to state and local budget and finance matters in New Hampshire

Recent news

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New Hampshire state budget and finances - Google News Feed

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Contact information

Administrative Services Budget Office
State House Annex, Room 120
25 Capitol Street
Concord, NH 03301-6312
Phone: 603-271-3204
Fax: 603-271-6600

See also

External links

Additional reading

References

  1. Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
  2. InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
  4. United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
  5. National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
  6. National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
  7. National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
  8. National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
  9. 9.0 9.1 Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014
  10. 10.0 10.1 10.2 10.3 The Concord Monitor, "Hassan’s budget: A casino, more money for mental health and higher education, a new women’s prison," February 14, 2013
  11. New Hampshire Governor's Office, "Press Release: Governor Hassan Signs FY 14/15 Budget into Law," June 28, 2013
  12. State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
  13. Pew Center on the States, "The Widening Gap Update,” accessed October 17, 2013
  14. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
  15. Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
  16. Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
  17. 17.0 17.1 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
  18. Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
  19. National Conference of State Legislatures, "State Experiences with Annual and Biennial Budgeting," updated April 2011
  20. 20.0 20.1 20.2 National Association of State Budget Officers, "Budget Processes in the States, Summer 2008," accessed February 21, 2014
  21. New Hampshire State Senate, "Standing Committees," accessed March 19, 2015
  22. New Hampshire House of Representatives, "House Committees," accessed March 19, 2015
  23. 23.0 23.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014