state aid grants

How We Fund Our Public Services in New Hampshire

The property tax system is the primary method of financing local governments in New Hampshire, while State tax revenues come from a wide variety of sources.  Unfortunately, New Hampshire’s tax system fails to meet at least two critical criteria for evaluating state tax systems – it neither generates revenue in an equitable manner nor does it yield an amount of revenue adequate for maintaining essential public services.

Municipal State Aid and Revenue Sharing: An In-Depth Review

As we continue to battle the unprecedented pandemic, the state begins preparing its biennium budget for fiscal years 2022 and 2023, and state agencies have already submitted budgets which include significant cuts to programs and operations requested by the Governor.  Towns and cities are also preparing their budgets and bracing for cuts to revenue sharing and state aid in amounts yet unknown—and all the while, continuing to prepare for providing essential public services, including unanticipated COVID-related mitigation expenses.

Municipal State Aid and Revenue Sharing: Critical Needs Amidst Challenging Budget Times

Editor's Note: NHMA would like to recognize and acknowledge the significant foundational contributions of former Government Finance Advisor, Barbara T. Reid, in the development of this important advocacy publication.

Status Update on "Delayed and Deferred" State Aid Grant Projects

In November 2008, funding for state aid grants (SAG), including landfill closures, public drinking water and wastewater facilities, was suspended by the legislature resulting in a backlog of 127 eligible and completed projects which did not receive any state support in fiscal years 2009-2013. Historically, the legislature has supported these public works projects (pursuant to RSA 486, RSA 486-A and RSA 149-M) for municipalities to receive from 20% to 30% of grant assistance toward principal and interest payments on eligible environmental infrastructure projects.

Legislative Efforts Bear Fruit

When NHMA members think about the benefits they receive for their dues, they tend to focus on the legal services, the many training opportunities for local officials, and publications like Town and City. All of those are important, of course, but another very large part of the equation is the legislative advocacy that profoundly influences state laws affecting municipalities.