New Hampshire faces $84.8 million shortfall this year
Shortfall on pace for $86.6 million next year; total budget gap close to $300 million
(CONCORD) The Josiah Bartlett Center for Public Policy has published a new report estimating the revenue shortfall facing the New Hampshire budget at $84.8 million for Fiscal Year 2010. The projection is based revenues through March 31, and a study of the spring revenue figures for the past ten years.
The report, authored by Josiah Bartlett Center President Charlie Arlinghaus, breaks the state budget into ten major revenue categories, and projects how each source of funds is performing compared to both the Legislature’s projections and historic averages.
“Based on historical trends, the state is currently on track to be $84.8 million short of its budgeted revenue in the fiscal year ending June 30,” Arlinghaus writes.
Arlinghaus concludes that next year’s revenue shortfall will also top $80 million, unless economic conditions improve quickly.
“The budgeted revenue for FY2011 includes no additional taxes or rate changes. It assumes a 2.2% growth in total revenues over the prior year,” Arlinghaus continues. “If we assume the same 2.2% increase off the new FY2010 base, revenues would be an additional $86.6 million below the amount budgeted to balance spending in the budget.”
“The two-year revenue shortfall of $171 million is the largest component of a budget deficit that is close to $300 Million.”
Read the full report at jbartlett.org.