by Charles M. Arlinghaus
The state House of Representatives is poised to directly challenge both the governor and the state’s future economic development. A proposed raft of tax and fee increases is a clear and negative market signal to businesses about the policy environment in New Hampshire.
It’s no secret that the state’s fiscal house is in chaos. We have a current-budget deficit of around $250 million and face a $600 million shortfall in the next budget. The governor’s proposed first step is a package that includes spending cuts and borrowing plus the fifth increase in the tobacco tax in six years.
Read Related: Measuring The Revenue Shortfall
Revenue on track to fall $84.8 million short in first half of budget
by Charles M. Arlinghaus
In New Hampshire’s two-year state budget, spending is balanced with an estimate of how much each tax will raise. Historically, the state has estimated revenue conservatively and generally exceeded budget estimates. That caution has allowed budget writers some…