Delay in Revenue Estimates Leaves 

House in the Dark

Concord --Changes in the way the New Hampshire House is being allowed to review revenue estimates is threatening the system of checks and balances and preventing the legislature from playing its proper role in shaping the state budget.  That’s the view of two veteran state lawmakers who have expressed dismay at the way the process has been changed in the current budget cycle. 

Former Chairman of House Finance Neal Kurk of Weare, and former Chairman of House Ways & Means Norman Major of Kingston, two legislators who have played a key role in shaping state budgets in recent years, warn that preventing the House from preparing estimates of expected revenue removes a necessary check on the state revenues estimated by the governor to balance his budget.

Rep. Major pointed out that, in each of the last three budget cycles, the Ways & Means committee prepared estimates of expected state revenues for the upcoming two year budget cycles before the governor presented his or her budget.  This also gave guidance on spending levels to the budget writers on the House Finance committee.

“State revenue estimating is a process that requires continuous interaction over time with economists and agency heads and an understanding of the variables affecting the various revenue streams,” said Major. “This cannot be accomplished in a vacuum or without investing sufficient time in the learning process,” he added.

Rep. Kurk pointed out that delaying revenue estimates will reduce their accuracy.  “When revenue estimates are first done early in the session, there are fewer committee hearings on bills and the members of  Ways & Means can devote their full attention to the more difficult ‘first go’ at the numbers.  When this is done later in the session, public hearings are much more time consuming and the committee cannot devote sufficient time to do its job properly.”

For some reason, the process was changed for the current budget cycle and the Ways & Means committee will receive revenue estimates after the governor delivers his budget.   With agency heads already committed to the governor’s revenue numbers, an independent legislative estimate will be difficult, if not impossible, to produce.  As a result, there will be a less reliable check on the revenues estimated by the governor to balance his budget.

“The legislative process only works when there is an open, free-flow of information,” said Major. “The legislature should never be kept in the dark on this or any important issue,” he concluded.

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