Innis: NH Needs 5-Year, Strategic Budgeting Plan

NEW CASTLE, NH — Politicians are constantly talking about government spending and taxes. Statements like, “New Hampshire has a spending problem,” are cute, simplistic, and make for good campaign mailers, but we need more than political soundbites. We need solutions.

New Hampshire does have a spending problem. New Hampshire also has a tax problem. The source of both of these problems is a budget that is determined in two year increments, with little forward planning or strategy.

New Hampshire’s budget is complex and it must cover a wide range of services from roads and bridges to education to drug abuse and addiction. Some of these needs are predictable like the lifespan of a bridge, a highway, or a building. Some things like the current opioid epidemic are difficult or impossible to predict.

What Concord needs is a long-term strategic plan for both revenues and expenses which will insure that our money is being used wisely and appropriately. Successful business owners develop long-term strategic plans when it comes to budgeting, just as working families develop long term plans to pay for college, retirement or even a new car or family vacation. Yet, our state government too often practices economic short-termism and takes us to the brink of an income or sales tax.

Over the past several budget cycles, state spending has increased at a rate exceeding income growth and inflation. This is unsustainable, and dangerous.

Every time a new budget is discussed, there are things that politicians think need to be done, things that they want done, and there are real needs that must be met. As the discussions continue, some things are added to the budget, some are not, and many compromises are reached. Compromise is sometimes a nasty word in government, but good planning can help to insure that compromises are based on data, long-term thinking, and the projected needs of our state and its citizens, and not political gamesmanship.

A solid strategic budget plan would cover a five-year time frame and it would improve government efficiency and effectiveness. A five-year budget plan would provide predictive funding for agencies, allowing them to invest wisely and plan for their own future.

The days of living in a one or two-year budget cycle and wastefully trying to spend all of the money by the end of the year would end. We have all heard the stories of government units spending like crazy at the end of the fiscal year to insure that all funds are used, which justifies more money the following year. Such behavior is bad for taxpayers, wasteful, and just wrong. Strategic budgeting and planning will eliminate such conditions and encourage frugality.

A budget is, quite simply, a plan of action for government. It reflects priorities. What is the strategy that the state wants to employ? To figure that out, Legislators should begin with an assessment of both external factors (business, the federal government, tourism, etc.) and internal factors (state contracts, tax revenues, etc.) that may affect revenues and expenses over the short term and the long term. This will help lawmakers to begin the process of thinking about the issues that have been identified over the coming years. Where are there gaps in projected revenues and expenses? How can those gaps be closed? Where are we in terms of education, energy, infrastructure, human services, and other important areas that will impact our growth and prosperity? These are questions that can be answered clearly only when we plan and think strategically.

We all want government to be accountable, to spend our money wisely, and to invest in the future of our state. We must demand that lawmakers think about the long-term future when it comes to taxes and spending. It is irresponsible to allow government spending to grow faster than inflation and faster than our paychecks every single year. Clearly such a scenario is a recipe for disaster.

Throughout my career I have engaged in strategic planning and strategic thinking and I have been responsible for multi-million dollar budgets. Through my work managing a $30 million annual budget at UNH (leaving behind a surplus each year) and building two successful hotel companies that created jobs and tax revenue for the state, I have engaged in long-term thinking and I have built and implemented plans that work. I will bring that experience and perspective to budget planning in Concord. As a member of the New Hampshire state Senate, I will commit to my constituents, and to the state, that I will work to insure that we start thinking strategically and over the long-term in Concord. It is our duty to use your dollars wisely and to curtail the growth of government. I am firmly committed to both.

Dan Innis is a candidate for NH State Senate District 24.