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 9:8-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

State Operating Budget

Federal Funds

Tax Revenues:•General Fund•Education Fund

Other funds:•Highway•Turnpike •Fish and Game •“Other Funds”

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 06EDUCATIONAS INCLUDED IN SECTION 1.06 1458,949,429 1470,180,444ESTIMATED SOURCE OF FUNDS FOR CATEGORY 06EDUCATIONAS INCLUDED IN SECTION 1.06FEDERAL FUNDS 247,118,324 246,840,903OTHER FUNDS 966,347,656 969,827,486GENERAL FUND 237,302,514 245,351,289SWEEPSTAKES FUNDS 8,180,935 8,160,766TOTAL 1458,949,429 1470,180,444 TOTAL APPROPRIATION AS INCLUDED IN SECTIONS1.01 THRU AND INCLUDING 1.06 5111,164,942 5236,012,880ESTIMATED SOURCE OF FUNDS AS INCLUDED INSECTION 1.01 THRU AND INCLUDING 1.06FEDERAL FUNDS 1478,263,227 1507,005,507OTHER FUNDS 1694,862,406 1716,948,101GENERAL FUND 1563,832,988 1625,753,043HIGHWAY FUNDS 276,455,391 286,354,455FISH AND GAME FUNDS 12,364,494 12,562,280SWEEPSTAKES FUNDS 8,811,202 8,810,152TURNPIKES FUNDS 76,575,234 78,579,342TOTAL 5111,164,942 5236,012,880

9

What the Budget Looks like, 2HB 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 >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>TOTAL 988,861,604 991,740,026 ESTIMATED SOURCE OF FUNDS FOR OFFICE OF THE DEP COMMISSIONER FEDERAL FUNDS 900,901 945,946 GENERAL FUND 90,709,723 92,939,021 OTHER FUNDS 897,250,980 897,855,059 TOTAL 988,861,604 991,740,026

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 9:13-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 Governor’s 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.html