New Hampshire state budget
From Sunshine Review
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New Hampshire faced a $275 million shortfall for FY 2009 and projected $1 billion deficit for FY 2010-2011 if just maintenance agency budget requests were met. Gov. John H. Lynch proposed a $2.97 billion General Fund budget for the FY 2010-2011 biennium at 1% less than the FY 2008-2009 biennium.
[1] The total $11.6 billion biennium budget passed by the General Court (Legislature) and signed by Gov. Lynch in June of 2009 is already in serious trouble and in a deficit that may require a special legislative session.[2] Critics of the budget claim it did not cut enough while relying on one-time federal money and unrealistic revenue figures.[3]
$110 million for the budget was to come from the New Hampshire Medical Malpractice Joint Underwriting Association, which was blocked by legal action in July 2009. Superior Court Judge Kathleen McGuire sided with the policyholders, ruling that the state's claim to the malpractice money is unconstitutional. The case has gone to the New Hampshire Supreme Court.[4] The state employee union rejected Gov. Lynch's plan of taking 19 unpaid furlough days to balance the budget after receiving 2 years of 10% salary raises. Gov. Lynch announced in October of 2009 250 layoffs of state workers to save $25 million after the union rejected the furlough plan.[5]
[edit] Budget Background
New Hampshire does not have a state income tax.[6] New Hampshire operates on a biennium, covering two fiscal years at a time. A fiscal year begins on July 1 and ends on June 30 of the following year, however the biennium begins July 1 of odd-numbered years. According to the state Constitution the Governor must pass a balanced budget and cannot carryover deficits. [7] Initially individual state agencies submit their budget requests in the fall, prior to the Governor's completion of the recommended budget. At the beginning of the Legislative session the Governor presents a recommended budget to both the House and the Senate. But before the bill can be enacted into law the bill must pass both houses in the Legislature. [8]
[edit] Budget figures
The following table provides a history of New Hampshire's expenditures and gross domestic product (GDP).
| Fiscal Year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $6.2 [9] | $43.5 [9] |
| 2001 | $6.6 [9] | $44.3 [9] |
| 2002 | $7.1 [9] | $46.2 [9] |
| 2003 | $7.7 [9] | $48.2 [9] |
| 2004 | $8.3 [9] | $51.4 [9] |
| 2005 | $8.7 [9] | $53.5 [9] |
| 2006 | $9.0 [9] | $56.1 [9] |
| 2007 | $9.4 [9] | $57.3 [9] |
| 2008 | $9.8 [9] | $58.6 [9] |
| 2009 | $10.2* [9] | $60.0* [9] |
- NOTE: The figures for FY 2009 won't be finalized until the end of the fiscal year.
- See New Hampshire state budget (2008-2009) for more information.
[edit] Accounting Principles
The Office of Legislative Budget Assistant (LBA) was created in 1953 to conduct investigations, analyses, or research into the financial activities of New Hampshire State government entities. Pursuant to RSA 14:31, the Office consists of two divisions, the Audit Division and the Budget Division. The legislative budget assistant is appointed by the joint legislative fiscal committee prior to the beginning of each regular session of the legislature, and is responsible for the proper execution of the respective functions of the audit and budget divisions. The LBA's audit reports are published online. Jeffry A. Pattison is Legislative Budget Assistant.[10]
The Institute for Truth in Accounting (IFTA) rates New Hampshire “Tardy” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider New Hampshire's CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.[11] New Hampshire's CAFRs are prepared and published online by the New Hampshire Department of Administrative Services, Division of Accounting.[12]
The Division of Accounting Services is headed by the State Comptroller and is divided into two bureaus:[13]
- Bureau of Accounting
- Responsible for developing, administering, and maintaining the State's integrated financial system (IFS) of governmental appropriation accounting and State's payroll.
- Bureau of Financial Reporting
- Monthly Revenue Focus - The State's Monthly Unrestricted Revenue Report.
- Annual Reports - The State's Annual Report to the Citizens, Comprehensive Annual Financial Report, the Supplemental Budgetary Financial Data Report, and the State Owned Real Property Report.
- Interim Reports - Unrestricted Revenue Financial Review, Monthly Fund Appropriation and Undesignated Fund Balance, 10 year Trend and other special reports as requested.
Stephen C. Smith is Acting Comptroller.[14]
| Credit Rating | Fitch | Moody's | S&P |
| New Hampshire[15] | AA | Aa2 | AA |
[edit] Accounting transparency checklist
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[edit] The good
- The website has Comprehensive Annual Financial Reports (CAFR) dating back to 1998.[16]
- An independent auditor’s report is published on page 12 of the document.[17]
- It provides supplements to the budget workup, starting on page 72.
- The budget is posted using organized and consistent methods of financial reporting.
- New Hampshire law requires a balanced budget and a deficit is forbidden.[18]
- It includes all costs incurred by the government, including long-term liabilities, starting on page 29 of the document.[17]
- The CAFR compares estimated and actual budgetary numbers, such as on page 72 of the document.[17]
[edit] The bad
- The New Hampshire office was somewhat tardy in submitting the budget.
- The CAFR is posted in a PDF format, so it’s not searchable online.
[edit] Economic Stimulus Package
New Hampshire is expected to receive $750 million from the $787 billion dollar economic stimulus.[19] All told, the federal stimulus plan would create or save 16,000 jobs in New Hampshire, based on White House estimates. [20]
For more information on how the federal stimulus funds are being used in the state of New Hampshire, visit the state recovery website.
According to preliminary reports, New Hampshire is expected to receive:
- $258.3 million for education [21]
- $250 million in Medicaid funding [21]
- $129.4 million for transportation [21]
- $47 million for special education [22]
- $200 million for state stabilization funding [22]
[edit] Budget transparency
New Hampshire currently has no statewide, official spending database online.
[edit] Website evaluation
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Nh.gov is the website for the state of New Hampshire.
- Main article: Evaluation of state websites
[edit] The good
- Budget is published.[23]
- State officials are listed with contact information in a searchable database.[24]
- State tax information provided.[25]
- Current state contracts are posted.[26]
- Annual financial audits are published.[27]
[edit] The bad
- Site has a search function but is somewhat difficult to navigate.
- Does not contain information on state ethics, lobbying, and how to make public records requests under the New Hampshire Right to Know Law.
[edit] Legislation
None.
[edit] Government tools
The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:
| State Database | Searchability | Grants | Contracts | Line Item Expenditures | Dept/Agency Budgets | Public Employee Salary | Exemption Level |
|---|---|---|---|---|---|---|---|
| None | n/a | n/a | n/a | n/a | n/a | n/a | n/a |
[edit] Limitations and Suggestions
[edit] Economic Stimulus Transparency
- The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.[28]
- New Hampshire will receive an estimated $592,154,447 [29]
- The economic recovery website to show how legislators and government officials in New Hampshire are spending Federal funds is available here.
[edit] Error in ARRP
On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.[30][31]
The ARRP website invented three or four more Congressional Districts in New Hampshire, creating 2,879.1 jobs in these non-existent Districts (2,873.9 of which were in the 00 Congressional District, though one does not exist), using $197,167,473.[32]
[edit] Support for creation of the database
[edit] Independent transparency sites
None.
[edit] Public employee salary information
None.
[edit] See Also
New Hampshire taxpayer-funded lobbying
[edit] External links
- Model transparency legislation from the American Legislative Exchange Council is available at this link.
- Josiah Bartlett Center for Public Policy
- New Hampshire Department of Administrative Services, Budget Office
- New Hampshire General Court
- New Hampshire state site
[edit] Additional reading
- Gov. John Lynch,"Inaugural address," January 8,2009
- Gov. John Lynch,"Budget Address," February 12,2009
[edit] References
- ↑ New Hampshire Legislative Budget Assistant, "Governor Executive Summary," February 12, 2009
- ↑ The Dartmouth, "Lynch’s N.H. budget plan contested," August 4, 2009
- ↑ Hillsborough County Republicans, "Chaos in Concord as Lynch Budget Falls Apart," July 31, 2009
- ↑ Insurance Journal, "New Hampshire Argues Claim to $110M Malpractice Fund," October 15, 2009
- ↑ Concord Monitor, "NH gov explains layoffs in letter to supporters," October 20, 2009
- ↑ Govspot.com, "Which states have no income tax," retrieved October 31, 2009
- ↑ INPUT,"State Budget Process Tutorial," retrieved April 15,2009
- ↑ State of New Hampshire,"Annual Financial Reports," retrieved April 15,2009
- ↑ 9.00 9.01 9.02 9.03 9.04 9.05 9.06 9.07 9.08 9.09 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 US Government Spending,"New Hampshire State and Local spending," retrieved April 15,2009
- ↑ Office of Legislative Budget Assistant Web site, retrieved October 31, 2009
- ↑ Institute for Truth in Accounting, “The Truth About Balanced Budgets—A Fifty State Study,” Page 35
- ↑ New Hampshire Department of Administrative Services, Division of Accounting Web site, retrieved October 31, 2009
- ↑ New Hampshire Department of Administrative Services, Division of Accounting Web site, retrieved October 31, 2009
- ↑ The National Association of State Auditors, Comptrollers and Treasurers Web site, retrieved October 31, 2009
- ↑ State of Indiana, “State Credit Ratings-as of June 24, 2009"
- ↑ New Hampshire CAFRs
- ↑ 17.0 17.1 17.2 New Hampshire CAFR, 2008
- ↑ Institute for Truth in Accounting, New Hampshire
- ↑ Associated Press,"Lynch: Use NH stimulus funds carefully," April 8,2009
- ↑ American Recovery and Reinvestment Act,"Impact," retrieved April 15,2009
- ↑ 21.0 21.1 21.2 New Hampshire Union Leader,"Stimulus: How NH stacks up," April 7,2009
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs namedStimulusGov - ↑ Budget
- ↑ Directory search
- ↑ Dept of Revenue
- ↑ Contracts
- ↑ Audit Reports
- ↑ National Taxpayers Union, "A Letter to the Nation's Governors: Ensure Transparency and Accountability by Posting Stimulus Expenditures Online," March 10, 2009
- ↑ Wall Street Journal,"Stimulus Spending by State," April 9,2009
- ↑ $6.4 Billion Stimulus goes to Phantom Districts, Watchdog.org, November 17, 2009
- ↑ Stimulus Creates Jobs in Non-Existent Congressional Districts, Watchdog.org, November 16, 2009
- ↑ New Hampshire, Watchdog.org, November 16, 2009
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