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It’s Only Money

It’s Only Money. Spending Pressures and the New Hampshire State Budget. New Hampshire Operating Budget. Growth 1989-2009. 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)

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It’s Only Money

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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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