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Jan152014

NH Senate Republicans Support Rebuilding Rainy Day Fund 

The New Hampshire Senate

Republican Majority Office

“New Hampshire’s Rainy Day Fund balance is inadequate.”

Concord, NH – New Hampshire Treasurer Catherine Provencher strongly recommended today that the Legislature transfer $15 million to help restore the state’s depleted Rainy Day Fund. Senate Republicans have called for such a transfer to rebuild New Hampshire’s lagging financial reserves. Provencher gave an informational briefing to the Senate Finance Committee on the state’s Revenue Stabilization Reserve Account, commonly known as the Rainy Day Fund.

“New Hampshire’s Rainy Day Fund balance is inadequate,” Provencher told the Finance Committee. “The entire $15 million should be allocated to the Rainy Day Fund.”

Finance Committee Chair Jeanie Forrester (R-Meredith) echoed Provencher’s recommendation.

“As the Treasurer explained so well, we need to restore our state’s fiscal reserves by placing the entire $15 million we have available in the Rainy Day Fund,” Forrester said.

Senate President Chuck Morse (R-Salem) also spoke on the need to rebuild the Rainy Day Fund.

“It is important that we begin to build up our reserves in the State’s Rainy Day Fund.  Our current fund balance of $9 million is less than 1 percent of our total operating budget and is about $100 million below a level that bond rating agencies would consider adequate,” Morse added.

 

BACKGROUND

The Fiscal Year 2013 Budget produced a surplus of over $72 million. The current budget anticipated spending $57 million of that surplus, leaving $15 million that could be saved.

Governor Hassan and Senate Democrats favor spending more of that surplus, in addition to the $57 million already being spent.  Senate Republicans want to set aside the remaining $15 million in the Rainy Day Fund, as Provencher recommends.

The Rainy Day Fund currently hold just $9.3 million, its lowest point in 22 years.

 

ATTACHMENT: Treasurer’s Rainy Day Fund Presentation

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