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Modest Revenue Growth in Both House and Governor’s Plans

March 26, 2013 Common Cents

Hassan 3 in Joint FinanceBoth the House and the governor forecast fairly modest revenue growth based on current sources of revenue during the next two years.

The revenue differences between the two plans will likely come down to proposed policy changes. Most notably, the governor’s budget relies on casino gambling for $80 million over the biennium. The full extent of revenue-related policy changes that the House may endorse is not yet know, but it is expected to approve most of the Governor’s recommendations, with the obvious exception of gambling.

The governor’s budget assumes that New Hampshire’s current tax and revenue system will yield $4.36 billion for the General and Education Funds for FY 2014-15, leaving aside collections from the Medicaid Enhancement Tax (MET).  The House projects that the same funds will accrue $4.34 billion in revenue, aside, again, from the MET. The roughly $20 million difference between those two sums is due largely to an assumption by the House that the cigarette tax rate will not rise to $1.78 per pack on August 1, which it will almost certainly do under current law.

What’s more, these figures represent relatively modest rates of growth from the current biennium.  The governor’s baseline projection for General & Education Fund revenue amounts to an increase of about 3 percent from what the state anticipates collecting in FY 2012-13.  The House expects underlying General & Education Fund revenue growth of just 2.4 percent, a slightly slower pace, again due, in part, to the assumption about the tobacco tax rate

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Elections Highlight Continuing Questions About Keno Revenue

8 Nov 2017

tree with coins

While results are still preliminary, Keno gaming appears to have been legalized in seven cities around New Hampshire as a result of Tuesday’s votes. The margin of victory in Rochester for Keno legalization was reportedly only one vote and may still be subject to change or recount, but voters appear to have legalized Keno gaming in Berlin, Claremont, Laconia, Manchester, Nashua, Rochester, and Somersworth. Voters in Concord, Dover, and Keene voted against Keno gaming legalization. Franklin had legalized Keno gaming previously, and the Portsmouth City Council decided to not put Keno on the ballot. Other municipalities, including the City of Lebanon, may make decisions regarding Keno legalization next year. These results have implications for State policy and finances.