Governor Hassan Calls for Strengthening Rainy Day Fund While Addressing Critical Priorities

Statement

Continuing her efforts to maintain fiscal responsibility while addressing critical shared priorities, Governor Maggie Hassan today called for strengthening the Rainy Day Fund and reiterated her support for providing additional resources to address critical priorities, such as combating the heroin and opioid crisis.

In a letter to Senate President Chuck Morse and Speaker of the House Shawn Jasper, Governor Hassan outlined that with strong revenues, the Rainy Day Fund is projected to reach its statutory limit of 10 percent, or $140-$150 million, of general fund unrestricted revenues by the end of this biennium, even after providing additional resources to address critical priorities.

"Revenues are already $80 million above plan this year, and expected to exceed plan by a similar amount next year," Governor Hassan wrote. "With these revenue surpluses, combined with the $30 million from the MTBE lawsuit slated to go in the Rainy Day Fund, we are on track -- for the first time in recent history -- to potentially fill the Rainy Day Fund to its statutory limit of 10 percent, or $140-$150 million, of general fund unrestricted revenues by the end of this biennium. This important milestone has the potential to improve New Hampshire's bond rating over time, reducing long-term costs to our taxpayers."

The Governor also outlined that strengthening the Rainy Day Fund can be accomplished while also addressing critical priorities. Governor Hassan reiterated her support for pending legislation to provide additional resources to address the heroin and opioid crisis, continuing to urge the legislature to support additional funds for prevention, treatment and recovery programs; supportive housing; a statewide drug court program; assistance to help support local and state law enforcement in their efforts to stop drug trafficking; technology upgrades to the prescription drug monitoring program; and an additional attorney to at the Department of Justice to focus on opioid-related crimes and issues.

In addition, the Governor recommended action to fully fund the State's education funding formula for Fiscal Years 2016 & 2017, the Police Standards and Training Council and retirees' health insurance. She also highlighted support for Senate Bill 349, which would reform the State's tax system to make it easier for startups to attract investment capital.

"In the months since the budget went into effect, our state's financial situation has continued to significantly improve," Governor Hassan wrote. "Although late in the legislative session, we still have an opportunity to continue to work together to further our shared priorities -- protecting public health and safety, ensuring our state is on a solid financial footing, and investing in building a stronger economic future."

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