Governor Shaheen’s call this week for state departments to prepare reduced budget proposals and reports of high unemployment rates in Derry, all suggest an economic slowdown in the state. For the state’s poorer residents, that could mean some tough times ahead. NHPR’s Dan Gorenstein reports.
Governor Shaheen’s call this week for state departments to prepare reduced budget proposals and reports of high unemployment rates in Derry, all suggest an economic slowdown in the state. For the state’s poorer residents, that could mean some tough times ahead. NHPR’s Dan Gorenstein reports.
New Hampshire isn’t alone in feeling the affects of a sluggish economy. And while people continue to lose their jobs, Kevin Carey policy analyst for the Center on Budget and Policy Priorities, says states are facing the most difficult fiscal conditions since the last recession in the early 90’s.
1:46 Many states have begun their fiscal years, and revenues have continued to lag behind estimates and so I think there is a growing sense of alarm about revenue situations, and state policy makers are beginning to question whether immediate action is necessary rather than waiting till the next session of legislation which begins in January.
Earlier this week, Governor Shaheen announced a revenue surplus of $35 million, which will triple the state’s rainy day fund. September revenues also exceeded projections by four million. Despite the windfall, the governor still hopes to stimulate the Granite state economy.
:05 I announced a series of measures to both try to do some things to stimulate the economy and recognize that it is slowing…We will be trying to expedite all capital projects to encourgage the spending on those, so we can get those projects out into the economy and people working and buying materials. We are also asking depts. to come up with contingency plans to provide for cuts should they be needed in the future.
For Ellen Shemitz, president of the Children’s Alliance of New Hampshire, budget cuts aren’t the solution. During the last recession, Shemitz says the belt was buckled too tightly.
6:30 We do tend to start pulling in the belt buckle in a way that leads to turn to a downturn or problems for kids down the line. We are right now a state that ranks 42nd in the nation in terms of investments in social services for children and families.
Shemitz is concerned that even during the prosperous late 90’s child poverty in New Hampshire increased by 11%.
State senator Katie Wheeler, a democrat from Durham, says the government might have to make some unpopular decisions for the benefits of the entire population.
4:38 I think the state could do some policy changes with affordable housing, to really work on incentives to encourage communities to develop affordable housing. We might need to talk about rent control. That’s not a popular topic. But we really can’t afford to have a lot more homeless people.
Ann and her husband Brad, a 30-something couple in Belmont, understand the term downsizing. Brad, a senior technician with a firm in Massachusetts, was laid off in the middle of July. Before being fired the couple earned around 50 thousand dollars with health benefits through Brad’s work. Now, they can only afford benefits for their daughter, even though Ann suffers from two pre-existing conditions.
Ann says finding work isn’t easy.
18:39 There’s really good days when you know this is going to be it, and then for some reason it doesn’t work out. Then you get up and do it all again the next day…It’s not like getting up for work every morning. It could be a full time job, just looking for work.
Brad spends much of his days at the unemployment center. He researches on the internet, prints out leads, assembles resumes, and makes phone calls. He also does a lot around the house, and tries to keep as busy as he can. Ann and Brad are hopeful, but they are also realistic.
19:58 Especially what is going on around you right now, there will be a lot of downsizing and laying off…when it’s really going to affect all of us I don’t know, but as more time goes by without him having a job, it makes me nervous, and him.
In 1996, the federal government reformed welfare for those who received temporary assistance to needy families, or TANIF, funds. Most notably were new work requirements and a sixty-month time limit. September 30th of this year marked the end of that limit for many states.
In New Hampshire, three cases were closed. But the state also worked with others to see what services could be available to them and remove them from the TANIF rolls. As of August of this year, Department of Health and Human Services Mary Ann Broshek says some three thousand-seven hundred families receive TANIF money. And during an economic slowdown, many may be in need of government assistance. Broshek says there is a way.
4:58 For other people, there is what is known as the hardship exemption. Under federal law, we can have 20% of our cases that receive assistance for more than five years. Each state gets to define what that hardship criteria is.
Broshek says some of the ways individuals can qualify for the hardship exemption is if their hours at work have been cut, are receiving unemployment, or the state’s unemployment rate reaches 7%. For NHPR News I’m DG
