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Issue Position: State Budget

Issue Position

Location: Unknown

According to the Legislative Budget Assistant's information sheets the budget was increased 17.5% in 2008-09. School Building Aid was bonded in 2009 restricting the Room and Meals tax to pay future debt service on building aid. Best guess has it that it will take $30m in the next biennial budget to cover that action. The House acted to restore $5 million to cities and towns in room and meals revenue, but it was dropped in the Senate. Current leadership claims to have balanced the budget at the end of 2010, but it was balanced with one time federal monies utilizing the American Recovery and Reinvestment Act allocations. The budget also included borrowing $80 million from the 2011 ARRA education fund allocation, $60million appropriation from the sale of (yet unidentified or practical) state property and $25 million borrowed from UNH. The $25 million borrowed from UNH was then bonded through the Capital Budget creating costs to both the state (having to pay interest on the bond) and the University (by losing interest). Even if the current revenues revive, the 2011-12 the legislature will have to make the necessary decisions to cut spending or identify new revenue sources. As your State Senator I will work hard to bring NH's budget into balance utilizing sound budget practices.

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