Americans for Prosperity Points to New Report Showing Need to Protect Rainy Day Fund, Continue Pension Reform Efforts

Jan 16, 2014 by AFP

MANCHESTER – Americans for Prosperity – New Hampshire (AFP-NH) today pointed to a report on the fiscal conditions of the 50 states, released by the Mercatus Center, which shows that New Hampshire has work to do to improve its long-run fiscal solvency and short-term cash flow.  The report demonstrates that the Granite State ranks 33rd for long-term fiscal solvency and 28th for short-term solvency.  AFP-NH called for the state to take the steps to better those results by moving the $15.4 budget surplus into the Rainy Day Fund and to continue efforts to reform the state’s pension system.

“This report reminds us that New Hampshire, despite its efforts to balance the state budget, has both short-term and long-term work to do to keep our fiscal house in order,” said Greg Moore, AFP-NH State Director.  “That should start with the legislature moving quickly to protect the state surplus by using it to shore up the meager Rainy Day Fund.  Additionally, it also means taking significant steps to make structural changes to the heavily underfunded state pension system.  With these steps, New Hampshire can make significant positive gains in improving our financial position and give the citizens the type of accountable government they deserve.”

Overall, the state ranked 22nd for overall fiscal condition.  This was despite having three of the four components falling in the bottom half of states nationally.  However, the state benefitted significantly from ranking 3rd in service-level solvency, which, according to the report, “reflects whether state governments have the resources to provide their residents with an adequate level of services.”

“This report clearly demonstrates that, despite the protests on the Left, New Hampshire state government currently has the resources to provide appropriate services,” added Moore.  “The notion that the state needs additional taxes is, and always has been, a ruse used to simply grow government.  What the state needs is more fiscal restraint and not more empty rhetoric designed to destroy the New Hampshire Advantage.”