Revenue - Estimates for 2012-13

Your choice here, which will determine much of what you do later, is based on how well you think the state economy will fare over the next two years. You can adopt the Governor's projections, which will not change the numbers in the tally above. But if you think that forecast is too optimistic - as do budget writer in the House and Senate - you'll choose one of the lower growth rates, resulting in a drop in the revenue available to you. You can also chose revenue numbers forecast by the Center.

• $0
  Governor's revenue estimate (5.7 percent growth over last biennium)

  Assumes robust economic growth coming out of the recession.
• -$277,000,000
  NH House revenue estimate (0.1 percent decline below last biennium)

  Assumes continued sluggish economic growth, with flat tax receipts.
• -$236,000,000
  NH Senate revenue estimate (1 percent increase over last biennium)

  Assumes very cautious growth in economy over next two years.
• -$91,000,000
  NHCPPS revenue estimate (3.5 percent increase over last biennium)

  Assumes cautiously optimistic growth.

Revenue - Gambling revenue

Gov. Hassan has included in her budget plan $80 million from a one-time license fee for the development of a state-regulated casino.

• $80,000,000
  Legalize expanded gambling with a single casino in NH. Revenue this biennium is associated with one-time, up-front license fee, not actual gambling activities.

Revenue - Tax & Fee Reductions

Cutting these taxes would reduce the amount of money available for state services, but supporters of the cuts say they would improve NH's overall business climate.

• -$10,000,000
  Allow some business owners to claim a deduction on certain business taxes.
• -$32,500,000
  Cut the tax on Meals & Rooms from 9% to 8%

  This tax was increased two years ago to help balance the last budget.
• -$6,800,000
  Eliminate the tax on gambling winnings
• -$27,600,000
  Lower the Business Profits Tax by 0.5%
• -$20,000,000
  Reduce the cigarette tax by 10 cents per pack

Revenue - Tax Increases

Republican leadership in the House and Senate have vowed not to increase or add new taxes, so any of these proposals are unlikely to be a part of the 2012-13 budget.

• $20,000,000
  Add an 8% estate tax on estates worth more than $2 million

  Imposing this new tax would possibly result in declines in other state taxes, including the Interest and Dividends Tax.
• $5,000,000
  Increase the cigarette tax

Spending - Aid to cities and towns

The Governor's budget includes many cuts in state support to cities and towns. Without significant changes in local budgets, those cuts would likely result in increases in local property taxes. You can choose to reverse some of those cuts below, or make further cuts.

• $29,000,000
  Fully fund School Building Aid to school districts

  The Governor proposed cutting these payments to schools, a move that districts say would require property tax increases. Checking this option would reverse that cut.
• -$5,000,000
  Reduce the portion of Meals-and-Rooms tax revenue typically shared with cities and towns
• $28,600,000
  Restore Catastrophic Aid payments.

  This aid helps school districts cover high-cost special-education students. The Governor's budget would cut the program by about $30 million, which school districts said would have to be offset by local tax increases.
• $50,000,000
  Restore revenue sharing with cities and towns to levels from 2008-09.
• $85,000,000
  Restore state's share of public employee retirement costs

  Municipal officials say failure to restore this cut would result in higher property taxes and deep personnel cuts at the local level. The Governor, House and Senate have eliminated the state's share, saying it would be offset by reforms in the pension system.

Spending - Education

• -$3,100,000
  Cut all funding for drop-out prevention program
• -$11,400,000
  Cut state funding for Community Colleges

  This represents a roughly 36% cut in state funding below current levels.
• -$80,000,000
  Cut state funding to state University System

  This represents a 45% cut in state funds below current levels.
• $17,500,000
  Increase state funding for Community Colleges to current levels
• $10,000,000
  Increase state funding for University System to current levels

Spending - Health and Human Services

Measuring the impact of many of these proposed spending changes is difficult. Some might result in reduced services for those now receiving assistance. Some might result in greater pressure on municipal services and non-profit groups.

• -$700,000
  Cut emergency preparedness funds
• -$25,900,000
  Cut funding to Community Mental Health Centers

  Would likely reduce services for several thousand mentally ill adults and children
• -$3,700,000
  Cut state funding for several health programs for the elderly, including Foster Grandparent Program, Alzheimer's Caregivers Program, and ServiceLink Resources Center.
• -$2,500,000
  Cut subsidies for adoptive or foster care parents
• -$21,900,000
  Cut various services for the developmentally disabled (including supports for families on Medicaid)
• -$10,300,000
  Eliminate childcare subsidies for working families to offset other cuts to Health and Human Services
• -$1,700,000
  Eliminate funding for several public health services, including a tobacco quitline, STD prevention, and family planning.
• -$4,500,000
  Eliminate monthly cash assistance for unemployed parents on Medicaid
• -$7,250,000
  Eliminate the Children In Need of Service program, which serves at-risk youths or those with repeated behaviorial problems
• -$300,000
  Reduce funding for Domestic Violence Program by half
• $17,300,000
  Restore funding for people waiting to receive services for developmental disabilities
• -$115,000,000
  Restrict some payments to state hospitals meant to offset the cost of uncompensated charity care.

  Hospitals say this cut would require them to increase charges to the privately insured or limit their services.
• -$30,000,000
  Shift the state's Medicaid program to a managed care model

  Proponents say this would increases efficiencies and savings in Medicaid, the largest single expense in the state budget.

Spending - Other state programs

• $160,000,000
  Allow current education funding law to remain in effect, increasing state funding for some districts, decreasing it for others
• -$2,800,000
  Cut funding for NH Legal Assistance, which provides legal services to the poor.
• -$1,800,000
  Cut funding to the Department of Cultural Resources
• -$4,510,000
  Cut funds to LCHIP, the state conservation program
• -$1,000,000
  Cut staff at various pollution control and water management offices
• $4,500,000
  Increase funds for LCHIP
• $3,600,000
  Increase spending on charter schools to keep up with student enrollment projections
• -$5,700,000
  Lease operations at the Cannon Mountain ski slope.

  This would save the need for state funds to operate the ski resort, which is in state-owned parkland.
• -$1,700,000
  Reduce spending on travel and tourism promotion

Spending - Payroll Expenses

• -$20,000,000
  Cut pay and benefits for state workers across the board

  This would have to be negotiated with the state employees union.
• -$5,300,000
  Cut payroll costs at the Department of Revenue Administration.

  Department says this would result in the possible loss of 20 auditor positions.
• -$14,000,000
  Cut payroll expenses at the Department of Safety

  Department says this would likely result in the loss of roughly 24 state troopers.
• -$13,000,000
  Cut spending at Department of Corrections.

  Could result in the transfer of 600 NH inmates to out-of-state or private prison facilities.
• -$3,000,000
  Layoff roughly one dozen lawyers in the Attorney General's Office

  This would require the closure of the state Consumer Protection Bureau, according to the AG's office.
• -$5,400,000
  Require retired public workers to pay more for their healthcare costs.

Spending - Surplus or Deficit?

Congratulations on getting through the budget process. Check the "difference" figure below the revenue/spending tallies at the top of this page. If that number is positive, you balanced the budget. You can either go back and increase spending, or you can save that amount in the state's Rainy Day fund. If that number is negative, however, you're still in deficit. Go back to the start of the calculator and either make further spending cuts or adopt some new sources of revenue. Either way, the budget must end in balance. Good luck! Have feedback? Email dbarrick@nhpolicy.org.