state aid grants
The information contained in this article is not intended as legal advice and may no longer be accurate due to changes in the law. Consult NHMA's legal services or your municipal attorney.
Part One: State Aid to Municipalities Has Not Kept Up with Inflation
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.
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.
The information contained in this article is not intended as legal advice and may no longer be accurate due to changes in the law. Consult NHMA's legal services or your municipal attorney.
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.
