While preliminary estimates indicate that state revenues remain above plan for the fiscal year to date, April's initial revenue report reinforces that we must continue our efforts to promote economic growth while carefully managing the state budget.
State agencies remain focused on meeting all budget targets and increasing efficiency in order to protect taxpayer dollars. We also are continuing to work with all stakeholders to address the fiscal and legal challenges posed by the MET ruling, as well as to improve our long-term financial standing by strengthening the state's Rainy Day Fund.
By working together, I know that we can resolve these challenges, build on the bipartisan progress that we have made and keep New Hampshire's economy moving forward.
Preliminary estimates showing state revenues underperforming by
approximately $20 million in April adds another issue to a growing list of
financial concerns facing the state. This shortfall creates a further complication
as the legislature works to address the Medicaid Enhancement Tax, our
inadequate rainy day fund, and credit watches issued by Moody’s and Standard
and Poor’s.
It is imperative that Executive Branch departments evaluate their budgets and
take all necessary steps to ensure they can meet their lapses and spending
targets. Careful fiscal management will be critical to ensure our budget
remains balanced, and I’ve asked Senate Finance Chairman Jeanie Forrester to
work with department and agency heads to evaluate their current financial
positions to determine if legislative steps are required over the next month.
Further, I would again urge the House to pass Senate Bill 415 which would
transfer over $15 million into the state’s rainy day fund immediately. It should
be painfully obvious at this point that any effort to spend any portion of this
surplus would be ill-advised and harmful for our state’s fiscal standing.
Significant work remains prior to the end of session to develop long-term
comprehensive solutions to address the issues before us, and I remain
confident we will come together to do so. In the meantime, there is no reason
we cannot take pragmatic steps to protect taxpayers and stabilize the state’s
finances.
Last year we set clear priorities that received broad support in both chambers of the legislature. The
previous budget left us both a modest surplus and a significant legal liability we must address. We
encourage the Senate to take action to fund the mental health settlement.
We are hard pressed to lock away dollars in the rainy day fund before we have paid all our bills we
established priorities in our budget and offset those priorities with back of the budget cuts on the basis of
conservative revenue estimates. We remain optimistic that we will finish the biennium with a surplus.