State revenue got a helpful one-time shot in the arm. Now what?
Analysts fear that once it’s gone for the remainder of the fiscal year, overall revenue will lag unless other accounts, which have been underperforming to date, pick up the pace
Federal stimulus bill will bring a windfall to New Hampshire
State to get over $1.8 billion in measure president is expected to sign on Friday
The American Rescue Act, which President Biden said he will sign into law on Friday, will shower New Hampshire with over $1.8 billion.
Altogether, the act will distribute $195.3 billion among states, based on their share of nationwide unemployment, with the proviso that each state receives, at a minimum, the amount it was allocated by the Coronavirus Relief Fund through the CARES Act.
Another $130.2 billion will be distributed to local governments based on population.
In New Hampshire, state revenue fell by $54.6 million between fiscal years 2019 and 2020. The $1.25 billion allotted to state government represents 2,289% of this foregone revenue – the fifth highest multiple among the 50 states, trailing only Pennsylvania (10,621%), Arkansas (8,210%), New Jersey (4,365%) and Iowa (3,111%).
At the same time, the act provides another $558.2 million for distribution to local governments in New Hampshire.
The funding for state and local governments amounts to $1,033 for every man, woman and child in the state, above the nationwide average per capita distribution of $1,066.
