Governor Jeanne Shaheen announced today that she will ask state lawmakers to enact a hiring freeze, in order to shore up state finances.
NHPR's David Darman has more.
Governor Jeanne Shaheen says state revenues are 12 million dollars short of budget projections through February, and that prudent action is necessary now, before the situation becomes any worse.
19 42?., I?m going to be asking the fiscal committee next week, to approve a hiring freeze, and a freeze on equipment purchases and out of state travel for any items or positions that are partially or wholly funded by the general fund. 19 110
The governor says the hiring freeze will not extend to law enforcement positions.
The state?s 12 million dollar shortfall works out to about one percent of the state budget. While that may seem minor, the governor and other fiscal watchdogs are being careful, because this current slowdown could be a sign of more serious shortfalls in the future.
The Consensus Revenue Estimating Panel shares that concern. The state convened the panel to estimate tax receipts. Economist Russ Thibeault is a member of the panel. Thilbeault says one vital state tax shows a very worrisome trend, while another surprised the panel with its results during this recession.
05 29 The business profits tax per se is running, somewhere around 40 percent below plan. And the business enterprise tax is running something like 50% above plan. 05 42 so there?s sort of an offset there that?s been beneficial... 05 53
Other taxes have not offset these business taxes. Thilbeault says room and meals tax receipts declined about 3 percent, as people cut back on restaurant meals, and as others who usually visit the state stayed away.
07 58 there are fewer business travelers to the state. The effect of September 11th wherein business travel was cut back significantly is reflected in these numbers. The cancellation even of something seemingly as small as the cancellation or rescheduling of the nascar race as a result of the September 11th, also had an effect on this tax? 07 124
The legislative committee that oversees spending will consider the governor?s request for a hiring and out of state travel freeze next week. In the meantime, the governor?s trade mission to Mexico will go on as planned this Spring. The governor?s office says that?s because the governor pays her own way on these trips, as does each business that comes along.
