NH state revenues have tightened as growth has slowed down according to analyst Phil Sletten of the NH Fiscal Policy Institute. He said it’s still a good revenue situation and we are able to fund the priorities laid out in the state budget, however, “seeing essentially no growth in some of these revenue sources is potentially concerning for the future.”
Members of the Ways and Means Committee developed cautious projections about our revenue for the next two years in anticipation that the current economic expansion may slow down. Through the legislative process this past Spring, those revenue estimates were increased by both the Legislature and Governor. That, combined with a decrease in the business tax rate this year, gave many of us on the Ways and Means Committee doubts about the ability to fund our priorities.
The recently adopted budget by both the Legislature and Governor is dependent on continued economic expansion at a rate that we have seen in years.
I'll keep this post updated with revenue developments.