New Hampshire Gets a “D” For Its State Finances

New Hampshire continues to be a sinkhole state when it comes to state finances. Repeated decisions by state officials have left the state of New Hampshire with a staggering debt burden of $3.1 billion, according to Truth in Accounting's (TIA) analysis of New Hampshire's most recent financial filings. That burden equates to $5,900 for every New Hampshire taxpayer, which is $500 worse than in 2015.

These statistics are troubling, but what's more troubling is that state government officials continue to obscure large amounts of retirement debt on their balance sheets, despite new rules to increase financial transparency. This skewed financial data gives state residents a false impression of their state's overall financial health.

Truth in Accounting is a Chicago-based nonprofit think tank that analyzes state financial reports when they are published. According to its report for 2016, New Hampshire only has $2.1 billion of assets available to pay bills totaling $5.2 billion. This means that the state has $3.1 billion shortfall and a $5,900 taxpayer burden™ which is each taxpayer's share of state bills after its available assets have been tapped. TIA's Taxpayer Burden™ measurement incorporates both assets and liabilities, not just pension debt.

Because of an accounting rule implemented last year, New Hampshire had to report its pension debt on its balance sheet. This year, the state's reported pension debt grew from $834.3 million in 2015 to $898.7 million in 2016. Despite reporting most of its pension debt, the state continues to hide much of its retiree health care debt. New Hampshire's total hidden debt amounts to $1.6 billion. A new accounting standard will be implemented in two years that will require states to report this debt on the balance sheet.

The bottom line is that New Hampshire would need nearly $6,000 from each of its taxpayers to pay all of its bills, so it has received a “D” for its finances. In addition, the state's financial report was released 215 days after its fiscal year end, which is considered untimely according to the 180 day standard.

See how New Hampshire stacks up against Maine, Massachusetts, and Vermont in 2015 and 2016: http://www.statedatalab.org/c/Xt4qgr3Kd7b2810.

Click on the link to go to an interactive chart at Truth in Accounting’s State Data Lab.