State Budget Surplus Hits $70 Million
CONCORD - The Department of Administrative Services has determined the state budget surplus is at $70 million, Gov. John Lynch announced today [October 4, 2010].
According to the unaudited financial statements, measures taken by the Governor and legislature to address a potential $300 million revenue shortfall have resulted in a $70 million surplus for Fiscal Year 2010, the first year of the current two-year budget.
"We came together to address an enormous challenge and close a significant revenue shortfall in just a few short months. Through our strong fiscal management, we were able to not only balance the budget, but also generate a $70 million surplus, and we did it without a sales tax, without an income tax, without an estate tax and without a capital gains tax," Gov. Lynch said.
"This report affirms what three independent rating agencies have already found: New Hampshire is on sound fiscal footing. At a time when other states are still struggling to close substantial holes in their current budgets and are slashing aid, we balanced the budget and protected essential services," Gov. Lynch said.
Gov. Lynch worked with state agencies to strictly manage state spending, and as a result state agencies returned $44 million in lapses, which is $23.6 million more than called for in the original Fiscal Year 2010 budget.
Meanwhile, revenues for Fiscal Year 2011 are more than $2 million above projections, and business taxes for the month of September are above plan by over $1 million.
"We are seeing revenues beginning to come in stronger, particularly business taxes, which is a good sign that New Hampshire continues to lead the region in economic recovery. But we still face many challenges ahead and we must continue to watch spending and revenues very closely," Gov. Lynch said. "Our strong fiscal management has put us in better position to meet future challenges."
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