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SUMMARY
Budget for
Fiscal Years ending
June 30, 2018-2019
TABLE OF CONTENTS
Budget Highlights 2
Modest Increases in Spending Levels 5
Budget Cuts Agency Requests 6
Developmental Disability Funding 7
Percentage of Long Term Care Clients 8
Retiree Health Insurance 9
General & Education Surplus Analysis 10
General & Education Unrestricted Revenue 12
Source of Funds 13
General Fund & Total Funds Expense by Category 14
Department Expenditure Summary 15
Expenditures By Activity 17
Surplus Statements
Highway Fund 26
Fish & Game Fund 27
Governors Executive Budget Summary 2
First, to create a fiscal and regulatory environment that promotes greater job growth, job retention, workforce development and economic
opportunity for all.
Second, to both enhance and strengthen opportunities and services for children and families.
And third, to improve the safety and well-being of New Hampshires citizenry.
A true balanced budget without an income or sales tax, and without increasing fees or other taxes of any kind.
New Hampshire will continue the responsible reductions in its business taxes.
True balance is achieved by ensuring that spending in Fiscal Years (FYs) 2018 and 2019 is based entirely on revenue for FYs 2018 and 2019,
and does not anticipate nor rely on revenue carried forward as surplus from prior fiscal years.
One-time revenue sources are used strictly for one-time expenditures, and are not appropriated for ongoing spending.
Balancing spending for FY 2018 and 2019 on revenue for FY 2018 and 2019, and using one-time money only for one-time spending were and
continue to be - guiding principles for developing this budget, and will stand in stark contrast from the past administration.
The budget does not contain the same budgeting and accounting tactics used by prior administrations.
The budget was developed by using conservative revenue projections, rather than unrealistic assumptions, speculative revenue sources, or by
kicking the can down the road in order to achieve an appearance of balance.
Nearly $500 million was cut from state agency budget requests without any layoffs, and targets resources to where they are needed most.
General and Education Fund spending will increase by just 2% in FY 2018 and 1% in FY 2019.
Because Medicaid payments are estimates in the budget, they must be reconciled to actual costs on a regular basis. Rather than waiting until
after the next election, the Commissioner of the Department of Health and Human Services will make quarterly reports to the Governor and
Legislative leadership.
This budget includes a payment to settle the Dover education funding lawsuit and other payments that will be required by the end of the year.
The Rainy Day Fund is increased to a total of $100 million. Barring any unexpected expenses, savings beyond that will be directed to the Infra-
structure Revitalization Fund (IRF).
This budget strategically moves the states economic development efforts to a broader Department of Business and Economic Affairs to coordinate
agencies to improve our economy, spur job growth and provide opportunities for both businesses and workers. There will be a Small Business
Governors Executive Budget Summary 3
Advocate as part of this department to represent the interests of New Hampshires small business owners before state agencies during the design
and discussion of any new rules, regulations or policies.
The Governor is tasking Taylor Caswell of the Community Development Finance Authority to help build a board of partner agencies to ensure
that economic development is collaborative and effective.
Through reorganization, the state will allow for the comprehensive management and promotion of New Hampshires most treasured natural and
cultural assets coordinated into a revamped Department of Natural and Cultural Resources, and acknowledging the natural beauty of the state
and the creative arts economy as both parts of the New Hampshires advantage.
The Department of Revenue Administration is reorganized to include a Division of Taxpayer Services to improve the experience for taxpayers
and the efficiency of the department.
Retiree health costs are growing rapidly and would cost an additional $25 million if nothing were done. Rather than force retirees to pay all of
the increase, this budget proposes that the state and the retirees share in the increase equally.
The increased cost of pay and benefits including the pay raise is $31.5 million in FY2018.
This budget and this administration recognize local control in public education as the touchstone of policymaking, and that state governments
role in shaping education policy should be limited and focuses strictly on benefitting students and their families.
A major goal of this budget is to expand educational opportunity and choice for kids and their families.
This budget fully funds the adequacy formula.
This budget proposes a targeted full-day kindergarten program that will provide financial support to communities that choose to establish full-day
kindergarten programs. Under the new program, the Department of Education would be directed to distribute $18 million over the biennium to
communities that have approved full-day kindergarten. State aid would be allocated among communities based on a measure of relative need,
with factors including: a communitys relative property wealth to that of the rest of the state; participation rates for free and reduced lunch pro-
grams compared to statewide averages; and communities with high percentages of English language learner students.
Funding for charter schools is stabilized and enhanced in this budget by linking funding to the states average per pupil expenditure; expanding
support for charter schools; eliminating uncertainty and volatility for administrators, teachers and parents; and securing a beneficial alternative
learning environment for students.
The states higher education system is a critical part of ensuring New Hampshires students have an opportunity to learn beyond their high school
years, and this budget creates the Governors Scholarship program with $5 million to directly assist the states high school students attend New
Hampshire colleges and universities.
The Governors Scholarship is designed to provide aid to no less than 1,000 students.
The budget increases funding for the developmentally disabled by $57 Million the largest increase in recent history and substantial by any
measure.
Governors Executive Budget Summary 4
The state will move ahead in making long term care part of managed care. Ensuring the same people have responsibility for the full continuum of
care helps align the interests of home care and nursing care. Keeping patients at home as long as possible is in the best interests of the individual
and also in our financial interest. This is one of those rare instances where human interests and financial interests are aligned.
The budget creates a $5 million workforce fund, and working with the Commissioner of Department of Health and Human Services and the
Legislature, the state will identify where this fund can make the most difference in care. With the support of the Commissioner, we are moving
125 vacant positions to pay for the fund.
The opioid crisis is the most critical public health and safety issue in New Hampshire, and this budget establishes within Office of Substance
Abuse a specialist to work with the states Drug Czar to coordinate policy focused on treatment, recovery and prevention providing pathways
for individuals battling addition back into the community.
This budget doubles the Alcohol Abuse Prevention and Treatment Fund, an increase of more than $3 million.
New Hampshire has some of the highest energy rates in the nation, and it has become both an economic development issue and an affordability
issue. This budget will dedicate 20% of the renewable energy fund to supplement our current electricity relief programs for low-income families.
The budgetincreases funding for behavioral health by $ 3 million to strengthen New Hampshires community mental health safety net.
This bill increases staffing levels based on the recommendations provided in the Quality Assurance Review of the Division of Children, Youth
and Families. This is not a choice but a moral obligation and is the start of transformational changes needed within the department. We need
new leadership but also a new approach to the way we protect our most vulnerable children. We will work to rethink how we partner with the
community to not just shore up the existing system but build a better modelwith the best practices from around the country.
PUBLIC SAFETY, SECURITY AND INFRASTRUCTURE
$2,500
1.2%
$2,497.1
2.2%
$ Millions - Combined General and Education Funds
$2,450 $2,467.5
$2,400 $2,415.2
Additional Est.
$2,350 Adjustments
$2,346.0 Budget
$2,300
$2,250
FY17 FY18 FY19
Governors Executive Budget Summary 6
$6,353.7
$6,350
$6,300 $6,292.2
$6,250
$6,200
($ Millions)
$6,150
$6,125.6
$6,100
$6,052.9
$6,050
$6,000
$5,950
$5,900
FY18 FY19
Governors Executive Budget Summary 7
$259.7
$248.9
$250
$231.8
$218.3 $219.7
$200.7 $198.7
$200
$184.2 $187.8
$167.7
$159.6
($ Millions)
$150
$100
$50
$0
FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19
Governors Executive Budget Summary 8
70.0%
69.6%
67.8%
65.0%
60.0%
61.8% 60.6%
59.7% 59.8% 59.4% 59.7% 60.2% 59.63% 59.43% 59.70%
59.14% 59.14%
50.0%
40.0% 38.2%
35.0%
32.2%
30.4%
30.0%
20.0%
10.0%
0.0%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018** 2019**
Years
* Caseload per SFY17 HB1 Budget
** Caseload per Efficiency Budget
Nursing Facility Clients (NF) CFI Clients (CFI)
Governors Executive Budget Summary 9
State Retiree Health Benefits - General Funds (1) State Retiree Health Benefits - All Funds (1)
(In Millions) (In Millions)
$45 $100
$40 $90
$80
$35
$70
$30
$60
$25
$50
$20
$40
$15
$30
$10 $20
$5 $10
$0 $0
2014 2015 2016 2017* 2018* 2019* 2014 2015 2016 2017* 2018* 2019*
(1) Represents actual or budgeted retiree health benefit general funds. (1) Represents actual or budgeted retiree health benefit expenditures excluding
those expenditures funded by pharmaceutical rebates, Medicare Part D Subsidy,
and other prescription drug program federal subsidies.
Governors Executive Budget Summary 10
Appropriations Net of Estimated Revenues (1,503.6) (971.6) (2,475.2) (1,542.1) (974.1) (2,516.2) (1,573.1) (974.0) (2,547.1)
Less Lapses 47.0 13.0 60.0 48.7 - 48.7 50.0 - 50.0
Total Net Appropriations (1,456.6) (958.6) (2,415.2) (1,493.4) (974.1) (2,467.5) (1,523.1) (974.0) (2,497.1)
GAAP & Other Adjustments - -
Current Year Balance 44.6 (41.7) 2.9 45.3 (48.7) (3.4) 49.6 (39.7) 9.9
Fund Balance Transfers (To)/From:
Rainy Day Fund (7.0) (7.0) - -
Fish & Game Fund (FY17 0.7 transfer incl in Approp) - - -
Education Trust Fund (41.7) 41.7 - (48.7) 48.7 - (39.7) 39.7 -
Infrastructure Revitalization Fund (84.4) - (84.4) - - -
Balance, June 30 0.0 (0.0) - (3.4) - (3.4) 6.5 - 6.5
Reserved for Rainy Day Account 100.0 100.0 100.0 100.0 100.0 100.0
Reserved for Infrastructure Revitalization Acct 84.4 84.4 84.4 84.4 84.4 84.4
Balance, June 30 (GAAP) 184.4 (0.0) 184.4 181.0 - 181.0 190.9 - 190.9
Governors Executive Budget Summary 11
ACTUAL
FY 2014 FY 2015 FY 2016
General Education Total General Education Total General Education Total
Reserved for Rainy Day Account 9.3 9.3 22.3 22.3 93.0 93.0
Balance, June 30 (GAAP) 31.2 0.0 31.2 71.3 0.0 71.3 181.5 (0.0) 181.5
Governors Executive Budget Summary 12
Actuals Projected
FY 16 FY 17 FY 18 FY 19
Business Profits Tax 427.0 392.1 404.0 411.8
General and Education Funds Unrestricted Revenue, Exclusive of Net
Medicaid Enhancement Tax Revenue Business Enterprise Tax 272.3 261.4 269.2 273.4
$3,000
(In Millions) Subtotal 699.3 653.5 673.2 685.2
Meals & Rentals Tax 301.3 316.7 334.1 350.8
$2,500 Tobacco Tax 227.1 212.9 215.0 217.2
Transfer from Liquor Commission 139.8 144.0 144.0 144.0
$2,000 Interest & Dividends Tax 89.3 94.1 96.0 98.9
Insurance Tax 123.4 124.3 120.3 120.0
$1,500
Communications Tax 52.4 49.1 46.6 44.3
Real Estate Transfer Tax 134.5 138.5 151.0 160.1
$1,000
Court Fines & Fees 13.5 13.4 13.7 13.8
Securities Revenue 43.7 43.6 44.9 46.3
$500
Utility Tax 5.9 6.0 6.0 6.0
Beer Tax 12.9 13.1 13.2 13.2
$0
Other 78.3 78.3 79.9 80.6
2010 2011 2012 2013 2014 2015 2016 2017* 2018* 2019* Transfers from Lottery Commission 75.9 75.0 75.0 75.0
Fiscal Year * Estimate Transfers from Racing & Charitable
3.3 2.6 2.0 2.0
Gaming Commission
State Taxes & Fees Statewide Property Tax Local and Non Local
Tobacco Settlement 41.5 39.0 35.0 35.0
Utility Property Tax 43.3 41.8 42.0 42.4
State Property Tax 363.1 363.1 363.1 363.1
Medicaid Recoveries 9.1 9.1 9.1 9.1
- - - -
Total 2,457.6 2,418.1 2,464.1 2,507.0
Governors Executive Budget Summary 13
BUDGET SUMMARY
TOTAL FUNDS
SOURCE OF FUNDS
(In Thousands)
DESCRIPTION FY 16 FY 17 FY 18 FY 19
Federal Funds $1,604,442,645 $1,755,519,528 $1,850,969,096 $1,868,631,388
General Funds 1,392,029,384 1,440,976,448 1,542,073,843 1,573,148,677
Education
Highway Fund 226,698,230 224,986,562 233,229,984 237,343,785 Highway Fund Fund
4% 17%
Turnpike Fund 134,182,442 158,378,125 147,433,553 141,373,442 General Funds
Fish & Game,
25%
Fish and Game Fund 12,330,135 14,109,328 13,157,558 13,572,090 Liquor,
Sweepstakes
Sweepstakes Fund 8,991,255 9,677,718 10,248,180 10,315,892 & Other Funds
21%
Liquor Fund 55,392,128 61,910,994 69,500,864 76,245,080
Turnpike Fund
Other Funds 1,970,992,001 2,125,723,345 2,186,385,846 2,205,049,275 3%
Federal Funds
TOTAL $5,405,058,220 $5,791,282,048 $6,052,998,924 $6,125,679,629 30%
01 GENERAL GOVERNMENT $258,248,250 $273,341,487 $278,508,039 $289,105,719 $471,825,419 $520,239,659 $555,733,304 $573,713,017
ADM OF JUSTICE & PUBLIC
02 247,328,309 268,358,989 283,445,810 289,488,535 559,069,780 632,530,873 669,261,550 681,202,002
PROTECTION
RESOURCE PROTECTION &
03 33,343,721 37,092,516 38,693,601 38,706,817 227,174,138 319,202,365 324,754,075 324,394,782
DEVELOPMENT
04 TRANSPORTATION 875,923 1,023,665 1,033,361 1,065,264 559,328,719 603,773,185 615,609,882 617,312,218
05 HEALTH & SOCIAL SERVICES 640,969,632 646,979,943 727,747,872 743,855,002 2,224,247,242 2,287,666,505 2,446,240,390 2,486,878,185
06 EDUCATION 211,263,549 214,179,848 212,645,160 210,927,340 1,363,412,922 1,427,869,461 1,441,399,723 1,442,179,425
STATE TOTALS $1,392,029,384 $1,440,976,448 $1,542,073,843 $1,573,148,677 $5,405,058,220 $5,791,282,048 $6,052,998,924 $6,125,679,629
ACTUAL PROJECTED
2016 2017 2018 2019
Balance, July 1 (Budgetary) 338.6 545.6 539.8 529.9
Additions:
Gasoline Road Toll 126.3 125.9 125.9 125.9
Motor Vehicle Fees 114.2 113.5 114.6 115.7
Miscellaneous 0.8 0.9 0.6 0.6
Total Unrestricted Revenue 241.3 240.3 241.1 242.2
Less: Cost of Collections (25.1) (29.7) (28.0) (28.7)
Unrestricted Revenue 216.2 210.6 213.1 213.5
Other Credits (Bonds/Notes Auth, Unissued) 191.0 1.4 1.4 1.4
Total Additions 407.2 212.0 214.5 214.9
Deductions:
Net Appropriations (221.0) (225.0) (233.2) (237.4)
HB 1 / HB 2 Other Adjustments
Surplus Transfer
Less: Lapses 23.0 10.2 11.0 11.0
Net Appropriations (198.0) (214.8) (222.2) (226.4)
Federal Funds Match
Reserve for I-93 Project
Other Debits (2.2) (3.0) (2.2) (2.2)
Total Deductions (200.2) (217.8) (224.4) (228.6)
Current Year Balance 207.0 (5.8) (9.9) (13.7)
Balance, June 30 (Budgetary) 545.6 539.8 529.9 516.2
GAAP Adjustments (510.2) (510.0) (510.0) (510.0)
Balance, June 30 (GAAP) 35.4 29.8 19.9 6.2
Governors Executive Budget Summary 27
ACTUAL PROJECTED
2016 2017 2018 2019