New Hampshire’s budget often requires action to avoid a deficit. The budget ending this June 30 is no exception. We have a deficit, and the governor can and should act today in the same manner as all of her predecessors. Spending cuts now are both necessary and preferable to waiting and hoping.

February saw the national unemployment rate decrease from 7.9% to 7.7% with the Establishment Survey Data showing 236,000 jobs added over the month. Looking further into the data there are a few signs of growth but there are some discouraging ones as well.

New Hampshire’s gas tax and highway fund are little understood even as the legislature votes today on doubling the state’s gas tax. The state’s highways are paid for with user fees and only with user fees, revenues are stagnant even if costs aren’t, the Department of Transportation is one of the more efficient branches of government, but many gimmicks still surround highway funds and the diversion of resources.

In New Hampshire, not only is spending on highways paid for entirely with user fees like gas taxes and registration fees but the user fees are often diverted to other uses. The largest recipient is the Department of Safety, ostensibly to pay for state troopers but smaller amount of money have been transferred to other departments as varied as Cultural Resources, Health & Human Resources, and the Board of Land & Tax Appeals.

The state’s budget laws are often ignored. The general public knows this and so routinely believes that, no matter what they hear, some wool is being pulled over their eyes. The details often prove the public right. This year’s budget includes a diversion of $28 million of supposedly dedicated highway fund revenue in violation of a law that is only a few years old and already being ignored.

According to the foreclosure tracking firm RealtyTrac, 512 New Hampshire residential properties received foreclosure notices in January. While this is an increase from the 405 in December, the number of filings seen last month is substantially lower than the 2012 monthly average.

The governor’s budget address last week, while surprisingly incomplete, did reveal some troubling trends as well as a few pieces of good news. There are a lot of details we can’t figure out until she finishes the budget detail (which was due last Friday) but we do have a sense of the priorities she has set.

Today, the governor presents her budget to the Legislature. Every program and priority of the administration is part of the budget. The discussions and negotiations over those priorities include dozens of decisions that must balance revenue estimates and spending priorities.

Charlie Arlinghaus February 6, 2013 As originally published in the New Hampshire Union Leader As the governor and legislature struggle to put together a balanced budget, regulators are consider two budget dangers: helping the federal government regulate the new federal health law (the health care exchange) and a costly expansion of Medicaid. Lawmakers should move […]

There is a common misconception that the state has not studied this idea recently; however two lengthy studies have been completed in the past six years. One was done in 2007 by the Passenger Rail Taskforce looked at service to Manchester and the other in 2010 by TranSystems for the NH Rail Authority, NHDOT and the Nashua Rail Planning Commission which looked at the entire corridor to Concord. While neither study recommends for or against introducing commuter rail, they provide a wealth of information as to how much the route would cost.

From the studies it is clear that constructing the route in its entirety to Concord would cost roughly $300 million and require subsidies of $11 million a year to operate.