NH Public Policy
New Hampshire Center for Public Policy Studies

NH General and Education Funds Revenues Have Leveled Off

After a stronger than expected performance in the last biennium, New Hampshire state revenues are showing signs of hitting their “cruising altitude,” or put differently, producing virtually no growth. 

Analysis of data from the NH Department of Administrative Services by the New Hampshire Center for Public Policy Studies finds that state General and Education Fund revenues, after a strong Fiscal Year 2016 and first half of Fiscal Year 2017, have begun to level off.

“This is due to a marked slowdown in the growth rates of our four ‘workhorse’ revenue streams”,” said Center economist Greg Bird. These four taxes are the state’s Business Profits Tax, Business Enterprise Tax, Meals and Rentals Tax, and its Real Estate Transfer Tax.

The other 15 revenue streams that feed the state’s General and Education Funds have remained static for the past two-and-one-half years, Bird says. The Department of Administrative Services released its September revenue report yesterday.

“This doesn’t mean the sky is falling,” said Bird. “The state revenue picture is still strong. But what this may signal is that, in the current biennium, the state may have less leg room to deal with unexpected expenses and potentially less likelihood of a significant revenue surplus than it had in the recent past. Growth in State Revenue has come to a halt.” 

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