Posts by Phil Sletten
State revenue collections in December, a key month for State revenues, offered both good news for the State’s overall financial picture and more cautionary signs for underlying revenue strength.
According to the analysis, about 23 percent of New Hampshire households did not have non-retirement savings, such as money in a checking or savings account, totaling more than $2,000 in 2022. That figure rose to 30 percent for Granite Staters in rural northern and western New Hampshire, 32 percent for Manchester residents, and 31 percent for Granite Staters of color statewide.
As many Granite Staters ring in the New Year, they may also find themselves reaching deeper into their wallets to pay certain State fees. Starting January 1, 2026, up to 58 new or increased State fees and fines take effect in New Hampshire, primarily for motor vehicle registrations but also potentially for accessing health services.
State revenue collections in November yielded the first monthly surplus since the State’s fiscal year began on July 1. However, the sources of the surplus provided mixed indications about State revenue trends in the future, and offered no concrete assurance that revenue surpluses would continue in the coming months.
Most families in the United States have their Thanksgiving traditions: turkey, pie, gratitude, and perhaps at least one confidently delivered “fact” that isn’t actually a fact. This year, we’ve got you covered.
State revenues collected in October fell below the State’s target amounts for the month, primarily because of the repeal of the Interest and Dividends Tax resulting in difficult-to-predict final revenues as taxpayers collect refunds. Other revenue sources offered a mixture of signals, with some major revenue sources performing well and others slipping behind expectations.
State revenues collected in September were below the State’s target amounts for the month, giving the first clear indication of the new fiscal year that declining business tax revenues are not yet turning the corner back to growth.
The federal government ran out of funding for many of its operations on October 1, leading to a “shutdown” of many activities. Much of the federal government will keep running, but the exact scope of services that will be put on hold until funding resumes is governed by a combination of laws and decision-making by the federal officials.
New Hampshire’s economy has been moving beyond the impacts of the COVID-19 pandemic, but some of the changes appear to be here to stay.
May is not a critical month for State revenue collections, but policymakers in the State Budget’s Committee of Conference have been seeking any additional information they can find that could help inform final revenue projection negotiations for the budget. As a result, revenues in May have received more scrutiny than usual as policymakers look for hints about the future.
The U.S. House of Representatives passed the latest budget reconciliation bill, referred to as the One Big Beautiful Bill Act (OBBBA), on the morning of Thursday, May 22. Changes were made to the bill up until the final day of passage, including a 42-page amendment Wednesday evening.
New Hampshire State revenues in December fell short of their target for two key funds by a combined $20.4 million (6.6 percent), nearly doubling the State’s revenue deficit halfway through the fiscal year.
As 2025 approaches, the New Hampshire Fiscal Policy Institute rounded up 10 fiscal facts to help inform the Granite State’s public policy conversations in the New Year.
Seven quick takeaways from the one-year and five-year American Community Survey datasets that provide greater understanding about the lives of Granite Staters.
State revenues slipped further behind expectations in November as key sources the State had been relying on for revenue growth fell behind the prior fiscal year’s receipts. Lower business tax receipts added to the year-to-date revenue deficit, with revenues thus far this fiscal year $76.4 million (20.9 percent) behind last year’s combined business tax collections.
The Legislature will work to pass a new state budget in 2025. After four budget cycles that began with surpluses, the next cycle may be more challenging. Service reductions are not a certainty for the new budget, but policymakers face significant headwinds to sustain past investments.
New Hampshire maintained the lowest official state-level poverty rate in the nation in 2023, but other poverty-related data show that the Granite State does not have the least economic hardship by all measures.
The TCJA, when passed in 2017, included a 2025 end date for several key policies to reduce the projected ten-year cost of the entire piece of legislation. Different sets of assumptions led to an array of cost estimates from federal agencies for the legislation as written, ranging generally from $1 trillion to $2 trillion in forgone revenue during the ten-year window.
New data released by the U.S. Census Bureau provide key insights into the economic well-being of Granite Staters. The American Community Survey’s 2023 state-level data showed that median household income recovered to 2021 levels after adjusting for inflation, following a decline in 2022. While the median household income increased, the poverty rate held steady at 7.2 percent, reflecting that nearly 100,000 New Hampshire residents had very little income despite purchasing power growing for the median household.
A new analysis from Pew Charitable Trusts suggests that the majority of states have tax revenues below their 15-year growth trendlines, and inflation-adjusted tax collections were relatively stagnant for the first five months of calendar year 2024.