Garry Rayno’s State House Dome: State Revenue Picture Still Unclear Until Later This Year | New Hampshire State House Dome

The lapse issue is why Gov. Maggie Hassan last month issued an executive order, which lawmakers approved, freezing hiring, out-of-state travel and equipment purchases with state general fund money. She also talked about a special session later this year to approve budget cuts. Even before the state’s books closed Monday at midnight, rumors were floating around the Statehouse that June revenues were not looking good, to the tune of a $7 million to $9 million shortfall, which would mean revenues had missed their target by $8 million to $10 million. As if to knock down the naysaying, Hassan issued a statement Tuesday saying revenues are about on target, with continued problems coming with the interest and dividends and businesses taxes, which were $22 million below estimates for April, precipitating the freeze on spending. “June and fiscal year revenues appear close to on-target, driven primarily by a strengthening economy that has helped the meals and room tax and the real estate transfer tax make up for the underperformance in other areas,” said Hassan. “We continue to see shortfalls in business taxes and the interest and dividend tax, which appear to be related, at least in part, to a number of changes in the state tax code in recent years, as well as to businesses beginning to apply various tax credits and carry forwards accrued during the recession.” She went on to call for bipartisan support for budget adjustments that may need to be made.
For the original version of the article including any supplementary images or video, visit http://www.unionleader.com/article/20140706/NEWS0604/140709521&source=RSS

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