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NH Budget Snapshot: Little Hope at this Point for True Fiscal Responsibility

September 26, 2018June 11, 2009

taxes

[New Hampshire State Representative DJ Bettencourt (R-Salem) provides the following snapshot of where the state’s budget stands today…]

Guest Post by DJ Bettencourt

It was the hope of many Granite State conservatives that the State Senate would rectify issues with the House version of the budget for fiscal year (FY) 2010-2011. Among the most notable problems with the proposed budget were excessive spending, implementation of a capital gains tax, re-implementation of the “death tax,” and the raising of several other taxes (rooms and meals tax, tobacco tax, and numerous fines and fees). Alas, no such rescue came.

Last week the Senate passed its version of the budget that ensured the debate over New Hampshire’s financial plan would not be a division of fiscal philosophy of higher taxes and extravagant spending versus lower taxes and responsible spending. Instead, the debate would revolve around disagreements about which taxes to raise and which areas would receive the dividends of irresponsible spending. That lack of budget debate is not only regrettable but utterly dangerous for the financial well-being of our state.

Here are a few of the highlights (or lowlights, as the case may be) of the Senate’s proposed budget:

Guest Post: Gambling has not saved budgets in other states

September 26, 2018February 3, 2009

slot machine

by Michael Biundo

If we want definitive proof that expanded gambling won’t make our state budget permanently flush, all we have to do is look at the states that rely on gambling revenue today.

First, a quick look at New Hampshire. In 2008, only seven states experienced a higher percentage growth in state spending than New Hampshire. Politicians and think tanks agree that New Hampshire in 2009 is facing a budget shortfall of somewhere between $300 million to $400 million.

In the face of this historic shortfall, the gambling debate is once again heading for a legislative showdown. This year, the pro-gambling lobby thinks our current budget woes will act as its ace in the hole.

Unfortunately for the pro-gambling crowd, the current budget deficit was caused by excessive spending and over-estimated revenue, a problem that will not be cured by adding a new revenue source, either gambling or a broad-based tax.

I am not personally opposed to gambling. And I agree with gambling proponents like Chuck Morse, who has been quoted as saying: "If the state is looking for new revenue to address this budget challenge, it can’t afford to risk our economic advantage by implementing a sales or income tax." The problem is that not unlike the slot machines the gambling lobby would like to bring to New Hampshire, expanded gambling could pay off in the short run, but the long run it will certainly end in more deficit spending, with the taxpayers once again reaching into their pockets.

According to the Center on Budget and Policy Studies, all states that count gaming as a source of tax revenue are currently facing or are projected to face large budget deficits of their own.

Nevada is looking at a budget deficit of $536 million. The Nevada Gaming Control Board recently released its report on gambling, and the final numbers show a statewide decrease in gambling revenue of 14.8 percent. Illinois’ casino revenue is down a whopping 20.3 percent, which translates to $150 million to $160 million, all while Illinois faces a $2 billion state budget deficit this year.

New Jersey is facing a $2.1 billion deficit, and slots revenue was down 7.2 percent in July. New York’s own Seneca Gaming Corporation has reported a drop of $17 million for the fiscal year of 2008 while New York faces a projected $13.7 billion deficit for 2010.