New Hampshire: The Real Facts

Charles Arlinghaus writes in the Union-Leader: "Lynch moves from tax-and-spend to borrow-and-spend"

IT IS NOW widely accepted that the current state budget is in deficit. What is less well known is that the budget to be debated early next year will be worse. Many proposed changes will not help, but will just postpone the problem until the next budget debate, held at the politician's favorite time: after the next election.

Although tax revenues are coming in substantially higher than last year, they are significantly below the estimates used to balance the two-year budget passed last year. In all, state revenues will be around $200 million below the budgeted amount. That hole could be larger or smaller depending on the economic performance of New Hampshire over the next 13 months, but $200 million is a reasonable approximation.

For the purposes of the existing budget, which continues for another 13 months, spending and revenues need to be adjusted by about $200 million. But the problem is deeper for next year because the existing budget was on a shaky foundation to begin with.

For the rest of the story, click here.