Budget Basics 2010

8/8/2019 Budget Basics 2010

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Understanding andExplaining The NewHampshire State Budget

Charlie Arlinghaus,

Josiah Bartlett Center for Public Policy


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New Hampshire OperatingBudget

State OperatingBudget

Federal FundsTax Revenues:

General FundEducation Fund

Other funds:HighwayTurnpikeFish and GameOther Funds

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New Hampshire State Budgety 24 month budgety 2 one-year componentsy Balanced Budget lawy July 1 June 30 Fiscal Yeary Capital and Operating separate

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G eneral and Education Revenuesy Combined to Balance as if one fundy Diverse basket 10 sources=81%y FY 2010 - $1,980M ($2,343M-$363M)y Business combined $611M=31%y Meals & R ooms; Tobacco; Liquor; Interest & Dividends;

R ETT; Insurance; Communications, Lottery y Medicaid Enhancement

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Other: Court fees, securities revenue, utility taxes, beer tax, utility stateproperty tax, racing, tobacco settlement

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U nrestricted revenue : $1,853M(not including state property tax)


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Spending (44% of total)

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y Education: Trust fund ($958m) plusy Just the General Fund 6 Categories


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Spending (100% of total)

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y The S ix Categories ( A ll Funds)


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This Fund and That Fund

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y Total $11.5 billion Biennial Budget


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Employee costsy 12,000 classified employees at $45,800y Wages approximately $600My Benefits approximately $250My R etirement approximately $50M

y $900M = 15% of annual costs

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Local Aid?y 2009 Education 1.017By 2010 Education 1.026B

y 2009 Municipal $125My 2010 Municipal $93M

y Combined is 45% of GF/ETF Spending

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Spending Trendsy H ow to Measure 2 yr? Biennial?y Over Twenty years:

y General Fund 4.5% annualy Biennial increase avg. 8.7%y GF + ETF 10 yr avg. 2.55%y Inflation 20 yr 2.6%y 1989 adjusted $1,025,000

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Spending Growth 1989-2009

74%

154%

311%

0%

50%

100%

150%

200%

250%

300%

350%

Inflation General Fund GF + ETF

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2 equals $2.2 Billion


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How do we Balance?y Surplus S tatementy Budget minus lapses (net approp.)y Unrestricted revenuey Fund balance plus ETF surplusy Two year total, not annually

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Rainy Day Fundy R evenue S tabilization R eserve A ccounty Surplus in, deficit outy When does it rain? RSA 9:13-Ey Suspended last two budgets

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The New Legislature, 2011y Budge Submissions- October 1, 2010- November 1, 2010y Tentative Budget - D ASy Governor s A ddress February 15, 2011y 6 weeks each: H ouse, Senate, Conferencey S tarting point: $600-900M projected deficit?

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The Deficity General and Education Fundsy 2010-2011: $88 M One-timey FY2011 fast forward: $691My $1 6.8 x 2=$ .y Plus $ . temporaryy $691 Milliony Assume zero tax, zero spend (or+10. )

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Mind the Gap

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Mind The Gap

4419

5058

44734369

4300

4400

4500

4600

4700

4800

4900

5000

5100

2006-07 2010-2011

Expenditures

Revenues


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C apital Budget and Debty Operating v. Capitaly $239 My General Fund v. General Obligationy Self-supportingy Debt Issued offset by Debt retiredy Growth $644M to $823M (28% - 4 yr)y Differing Opinions

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The $6. Billion Debt Mountainy Pensions: . B +?y

OPEB: $2. Billiony Other Health: $ 96 milliony Judicial: $1 .8 million

y 20 years ago zero*

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Information where?y Monthly Revenue and Historical:http://admin.state.nh.us/accounting/reports.aspy

Budget Document (LBA)http://www.gencourt.state.nh.us/lba/indexbudget.html

Treasurer: Bond Statement

http://www.nh.gov/treasury/Divisions/DM/DMdocs.htm

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Documents

Budget Basics 2010