By GARRY RAYNO, InDepthNH.org
CONCORD — There is no joy in Mudville.
The long awaited April state revenues will not provide any optimism for Senate budget writers as they begin the grueling process of making spending fit the available money without tax increases the Republican leadership has already taken off the table.
The single largest month for the state coffers, April ended with revenues down $35 million below the revenue plan for a balanced budget returning $774.1 million when estimates were for $809.1 million.
For the year to date, revenues total $2.66 billion, which is $41.6 million below estimates and $194.8 million less than a year ago.
The biggest concern is in the all important business taxes which produced $240.3 million, which is $27.2 million below estimates and $44.3 million less than a year ago.
For the year to date, business taxes have produced $890.6 million, which is $156.3 million below estimates and $134.5 million less than a year ago.
According to the Dept. of Revenue Administration, the decrease in business tax revenue from the prior year was due to a decrease in corporation estimates, returns, extensions and tax notice payments.
The now repealed interest and dividends tax also was well below estimates for the month, returning $29.4 million in April, which is $9.2 million below estimates and $57.1 million below a year ago.
For the year to date, the tax has produced $92.7 million, which is $12.5 million above estimates, but $68.6 million less than a year ago.
According to DRA, the decrease in April’s collections compared to last fiscal year was due to a decrease in estimates, as a result of the tax being repealed, as well as an increase in refunds.
The state’s second largest tax source, the rooms and meals tax, returned $25.3 million for April, which is $1.6 million above estimates, and $1.1 million more than a year ago.
For the first 10 months of the 2025 fiscal year, the levy has produced $284.6 million, which is $9.9 million more than estimates, and $7.6 million more than a year ago.
According to DRA, the March activity collected in April for taxable meals was up 4.6 percent and hotels were up 5.1 percent.
Other positive news was the “other” category, which contains interest payment on money the state has invested from past surpluses and federal COVID relief and recovery money.
In April the category took in $8.1 million, which is $3.8 million above estimates, but $7.1 million less than a year ago.
The Statewide Education Property Tax is collected in April and is estimated to collect $363 million a year, but collected $1 million more this year.
The utility property tax and returns from the Lottery Commission were the only other two levies above estimates for the month, the rest were below estimates including the tobacco, real estate transfer, beer and communications taxes, as well as transfers from the Liquor Commission and Securities revenue.
Budget writers had hoped for good news in order to reduce some of the more draconian cuts made in the House proposed budget like $57 million in state aid to the University System of New Hampshire, and hundreds of millions of dollars in cuts to the Department of Health and Human Services, and other significant cuts to the Corrections Department and Attorney General’s Office, as well as eliminating the State Council on the Arts, the Human Rights Commission, the Children’s Advocate’s Office and the family planning program.
The news was a little better for the Highway Fund, which is mostly from the gas tax and vehicle registrations, as it has collected $224 million for the year to date, which is $7 million more than estimates, and for the Fish and Game Fund, mostly from hunting and fishing license, has collected $10.6 million, which is $600,000 more than estimates.
The Senate Finance Committee holds a public hearing on the House’s proposed budget Tuesday at 1 p.m. in Representatives Hall, and will meet Friday at 1 p.m. in Room 103 of the State House to begin its initial work on the budget.
The Senate Ways and Means Committee will meet Wednesday at 9:30 a.m. in Room 100 in State House to vote on the revenue estimate they will give the Senate Committee for the next biennium that begins July 1.
Garry Rayno may be reached at garry.rayno@yahoo.com.