Policy Blog NH

Looking Toward the Next Budget Conversation

Interest in the state budget is increasing as the next legislative session approaches.  Steve Norton talked about the state budget recently with the BIA’s Economic Development and Fiscal Policy Committee.  You can find the presentation at http://bit.ly/6HP4xH.  States across the country are also having these conversations.  

What Do November Estimates of State Revenue Mean?

For the twelve months ending November 2009, New Hampshire revenues destined for the General Fund and Education Trust Fund are 3.6% less than for the twelve months ending a year earlier.   What does that mean for the future?  Given the difficulty of predicting anything about the economy right now, no one is really sure.  However, we do know that 2010 revenues will fall short of estimates unless the next 7 month period shows a 3% increase above the same period last year.  In other words, revenue estimates produced as part of last year’s budget process could be accurate, but only if the economic situation is clearly on the mend and the free-fall in state revenues has stopped.   Has it?