New Hampshire State Budget

1
New Hampshire State Budget

• 24 month budget
• 2 one year components
• Balanced Budget law
• July 1 June 30 Fiscal Year
• Capital and Operating separate

2
Balanced Budget Law

• RSA 98-B
• Each fund must be balanced
• Expenditures for biennium balanced by
• Estimated revenue
• Money remaining from prior biennium
• Bonding (debt) prohibited for operating
  expenditures

3
New Hampshire Operating Budget
4
Education Trust Fund

• Created in 1998
• Response to Claremont case
• Transparency re tax increases
• Not a real trust fund
• Transfers to and from General fund
• Statewide Property Tax
• Separate or Combined?

5
General and Education Revenues

• Combined to Balance as if one fund
• Diverse basket 10 sources 81
• FY 2008 - 1,980M (2343-363)
• Business combined 611M 31
• Meals and Rooms Tobacco Liquor Int/Div RETT
  Insurance Communications, Lottery
• Medicaid enhancement

6
Unrestricted revenue 1,980M

• Business Taxes - 611 30.8
• Meals and Rooms - 214 10.8
• Tobacco - 164.3 8.3
• Liquor - 133.1 6.7
• I D - 117.6 5.9
• Real Estate Transfer 116.3 5.9
• Insurance 95.9 4.8
• Communications - 79.8 4.0
• Lottery - 75.5 3.8
• Medicaid Enhancement - 111.7 5.6
• Other Court fees, securities revenue, utility
  taxes, utility state property tax, beer tax,
  racing, tobac. settlement

7
Spending

• Education Trust fund (897m) plus
• Operating Budget 6 Categories
• General Government - 337M - 21.5
• Justice 251M 16
• Resources 47M 3
• Transportation 1M 0.1 (highway, turnpike
  funds)
• Health and Social 690M - 44
• Education 237 15 (plus education fund)
• What is a PAU?

8
What the Budget Looks Like

• TOTAL APPROPRIATION FOR CATEGORY 06
• EDUCATION
• AS INCLUDED IN SECTION 1.06
  1458,949,429 1470,180,444
• ESTIMATED SOURCE OF FUNDS FOR CATEGORY 06
• EDUCATION
• AS INCLUDED IN SECTION 1.06
• FEDERAL FUNDS
  247,118,324 246,840,903
• OTHER FUNDS
  966,347,656 969,827,486
• GENERAL FUND
  237,302,514 245,351,289
• SWEEPSTAKES FUNDS
  8,180,935 8,160,766
• TOTAL
  1458,949,429 1470,180,444
• TOTAL APPROPRIATION AS INCLUDED IN SECTIONS
• 1.01 THRU AND INCLUDING 1.06
  5111,164,942 5236,012,880
• ESTIMATED SOURCE OF FUNDS AS INCLUDED IN
• SECTION 1.01 THRU AND INCLUDING 1.06
• FEDERAL FUNDS
  1478,263,227 1507,005,507
• OTHER FUNDS
  1694,862,406 1716,948,101
• GENERAL FUND
  1563,832,988 1625,753,043

9
What the Budget Looks like, 2

• HB 0001 PAGE 456 06/22/07
  -------- FISCAL YEAR 2008 -------
  -------- FISCAL YEAR 2009-------
• 06 EDUCATION
• 03 DEPARTMENT OF EDUCATION
• 02 OFFICE OF THE DEP COMMISSIONER
• 02 FINANCIAL AID TO DISTRICTS-ST.
• 05 ADEQUATE EDUCATION GRANTS
• 90 HARDSHIP GRANTS F
  5,000,000
  5,000,000
• 91 ADEQUATE EDUCATION GRANTS
  890,360,565
  890,360,565
• 92 CHARTER SCHOOL TUITION
  1,779,840
  2,377,579
• TOTAL
  897,140,405
  897,738,144
• ESTIMATED SOURCE OF FUNDS FOR
• ADEQUATE EDUCATION GRANTS
• 09 AGENCY INCOME
  897,140,405
  897,738,144
• TOTAL
  897,140,405
  897,738,144
• gtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgtgt
• TOTAL
  988,861,604 991,740,026
• ESTIMATED SOURCE OF FUNDS FOR

10
How Big is the Budget?

• Total 10.3 billion 2 years
• General Fund - 3.2B 31
• Federal Funds - 2.98B 29
• Education Fund - 1.8B 17
• Other Other Funds - 1.6B 15
• Highway Fund - 562M 5.4
• Turnpike Fund - 155M 1.5
• Fish and Game - 25M 0.2

11
Spending Trends

• How to Measure?
• Over Twenty years
• General Fund 5.1 annual
• Biennial increase ave. 10.4
• GF ETF 9 yr ave. 3.5
• Inflation 20 yr 3.0
• 1989 adjusted 1,065,399

12
How do we Balance?

• Surplus Statement
• Budget minus lapses (net approp.)
• Unrestricted revenue
• Fund balance plus ETF surplus
• Two year total not each

13
Rainy Day Fund

• Revenue Stabilization Reserve Account
• Surplus in, deficit out
• When does it rain? RSA 913-E
• Suspended last 2 budgets

14
Other Funds

• Highway
• Constitution gas tax
• Gas 137M (16 of 18)
• Registrations 75M, other 37M
• Where is the turnpike?
• Highway Spending Cap
• Fish and Game

15
Is there a current deficit?

• Revenue 71.8 100
• Spending Executive Orders
• Lapses
• School Construction
• Revenue Changes
• Balance 2008 v. 2009

16
The New Legislature, 2009

• October 1, 2008
• Tentative Budget
• Governors Address
• Starting point 300M?

17
Information where?

• Monthly Revenue and Historical (Administrative
  Services)
• http//admin.state.nh.us/accounting/reports.asp
• Budget Document (Legislative Budget Office LBA)
• http//www.gencourt.state.nh.us/lba/indexbudget.ht
  ml