Showing posts with label Stop the Spending Summit. Show all posts
Showing posts with label Stop the Spending Summit. Show all posts
Wednesday, October 28, 2009
Watchdogs sound alarm on spending
Kevin Landrigan writes up yesterday's "Stop the Spending Summit", featuring some of the leading state budget experts in New Hampshire who are also my boss.
Charles Arlinghaus, president of the Josiah Bartlett Center for Public Policy, said lawmakers in 2012-13 face a shortfall of $637 million when one-time stimulus grants totaling $550 million go away as well as other one-time fixes.
To close the current budget, lawmakers deeply cut aid to cities and towns for revenue sharing and retirement costs but those get restored after July 1, 2011.
“That’s the starting problem for the budget next year,” Arlinghaus said. “I don’t know how many of you have decided to run for re-election or not; God help you.”
Presentations from "Stop the Spending Summit"
The House Republican Office has posted the powerpoints from Steve Norton, Charlie Arlinghaus, and John Stephen from yesterday's "Stop the Spending Summit".
Steve Norton's is full of great charts showing how New Hampshire spends money compared to the rest of the nation. John Stephen's contains specific suggestions for curbing spending growth in New Hampshire. And Charlie Arlinghaus looks at the size of New Hampshire's budget hole both this biennium and next.
Steve Norton's is full of great charts showing how New Hampshire spends money compared to the rest of the nation. John Stephen's contains specific suggestions for curbing spending growth in New Hampshire. And Charlie Arlinghaus looks at the size of New Hampshire's budget hole both this biennium and next.
Tuesday, October 27, 2009
Live Blogging the "Stop the Spending Summit"- Gene Chandler
Representative Gene Chandler, Senior Assistant Republican Leader, former Speaker, NH House
Chandler says the crowd far exceeded expectations, which shows that people are agreeing that spending is the problem. He notes that unlike the Tax Summit, this event was open to the public to attend and ask questions.
Representative Norm Major urged the audience to attend next week's briefing on the national and state economy at the State House, and to support his bill to require "Truth in Budgeting".
The Stop the Spending Summit is wrapping up ahead of schedule.
Chandler says the crowd far exceeded expectations, which shows that people are agreeing that spending is the problem. He notes that unlike the Tax Summit, this event was open to the public to attend and ask questions.
Representative Norm Major urged the audience to attend next week's briefing on the national and state economy at the State House, and to support his bill to require "Truth in Budgeting".
The Stop the Spending Summit is wrapping up ahead of schedule.
Live Blogging the "Stop the Spending Summit"- Neal Kurk and Doug Scamman
Representatives Neal Kurk and Doug Scamman- House Finance Committee
Neal Kurk says over the past 15 to 20 years, he's concluded that there are great ideas to control spending, but says they are not getting implemented because of the budget process. He says the House has four to six weeks to review and approve the budget, which prevents long-term planning and reform.
He says New Hampshire is relatively effecient not because the Legislature micro-manages the budget, but because it forces department heads to manage their budgets with "back of the budget" cuts.
Kurk says major changes will require building a consensus now for the next budget process. He says working with Democrats to reduce demand through "Community Corrections" could reduce the prison population over six years. He says there isn't the information or time to do these reforms during the budget process.
He says the Legisalture should ask if current programs are fulfilling their mission. He says his sacred cow is L-CHIP, but he agreed to slaughter it this year. He says HHS killed the Multiple Offenders Program because it allows offenders to get their licenses back without paying for the program. But Kurk says he doesn't know if the program gets results. He says the state doesn't know if alcohol and drug abuse prevention programs actually work. He says an outside consultant found no difference between having the program, and not having it. But he says the Legislature won't cut funding for it.
Kurk argues that the Legislature need the political will to say "We can't afford feel-good." He would change the dynamics of programs to pay per service, versus per outcome or per patient. He agrees that transparency will give voters and lawmakers better information heading into budget season.
Doug Scamman says anyone who doesn't believe that New Hampshire has a very severe problem shouldn't have come, and that anyone who wants to solve it by raising taxes in sadly mistaken. He is concerned about continued bonding for school construction, which will push spending into the future for projects that have already been built.
Scamman says the $627 million shortfall in the next budget will actually grow as frozen state positions come back into the budget. He says if the state had gone without a position being filled for two years, it shouldn't have to fill it now.
He argues that the Legislature goes through the budget very carefully to find small areas of savings, but that without these "hunt and peck" savings, there will be no overall savings. He says this oversight helps Department heads to find more savings in their operations.
Scamman says state government can be more effecient by looking at its programs from the beginning, rather than relying on past practices. He says the Legislature in the last session never set budget goals, or set a process to meet them. He says by drifting through the budget, the Finance Committee failed to find savings, but some responsible agencies brought forward good ideas. He says the Legislature can reduce spending, and has no need to increase taxes.
Neal Kurk says over the past 15 to 20 years, he's concluded that there are great ideas to control spending, but says they are not getting implemented because of the budget process. He says the House has four to six weeks to review and approve the budget, which prevents long-term planning and reform.
He says New Hampshire is relatively effecient not because the Legislature micro-manages the budget, but because it forces department heads to manage their budgets with "back of the budget" cuts.
Kurk says major changes will require building a consensus now for the next budget process. He says working with Democrats to reduce demand through "Community Corrections" could reduce the prison population over six years. He says there isn't the information or time to do these reforms during the budget process.
He says the Legisalture should ask if current programs are fulfilling their mission. He says his sacred cow is L-CHIP, but he agreed to slaughter it this year. He says HHS killed the Multiple Offenders Program because it allows offenders to get their licenses back without paying for the program. But Kurk says he doesn't know if the program gets results. He says the state doesn't know if alcohol and drug abuse prevention programs actually work. He says an outside consultant found no difference between having the program, and not having it. But he says the Legislature won't cut funding for it.
Kurk argues that the Legislature need the political will to say "We can't afford feel-good." He would change the dynamics of programs to pay per service, versus per outcome or per patient. He agrees that transparency will give voters and lawmakers better information heading into budget season.
Doug Scamman says anyone who doesn't believe that New Hampshire has a very severe problem shouldn't have come, and that anyone who wants to solve it by raising taxes in sadly mistaken. He is concerned about continued bonding for school construction, which will push spending into the future for projects that have already been built.
Scamman says the $627 million shortfall in the next budget will actually grow as frozen state positions come back into the budget. He says if the state had gone without a position being filled for two years, it shouldn't have to fill it now.
He argues that the Legislature goes through the budget very carefully to find small areas of savings, but that without these "hunt and peck" savings, there will be no overall savings. He says this oversight helps Department heads to find more savings in their operations.
Scamman says state government can be more effecient by looking at its programs from the beginning, rather than relying on past practices. He says the Legislature in the last session never set budget goals, or set a process to meet them. He says by drifting through the budget, the Finance Committee failed to find savings, but some responsible agencies brought forward good ideas. He says the Legislature can reduce spending, and has no need to increase taxes.
Live Blogging the "Stop the Spending Summit"- John Stephen
John Stephen- Former Commissioner, New Hampshire Department of Health and Human Services
Stephen says his experience as Commissioner of the state's largest department convinces him that New Hampshire doesn't have a revenue problem; it has a spending problem.
He's worked as a consultant in other states, and says New Hampshire should adopt the best practices nationally to control spending. He says there isn't a lack of will to reign in government, but that the "tyranny of custom" prevents new, innovative ideas from taking hold.
Stephen says the state accounting system prevents managers from getting good information. He says New Hampshire is being left further behind other states, which have improved how they deliver services. Catching up would allow New Hampshire to lower its high business tax burden.
He says New Hampshire should be a leader in innovation. He says the state had to both decide if its should provide a service, and be sure it knows how to measure the outcome. He suggest a top to bottom review of state government.
Stephen says Medicaid spending increases from 2004 to 2007 averaged 1% per year, down from double digits averages in previous years. That shows that there are savings to find.
Stephen wants departments to submit 5% reduction budgets each biennium, a constitutional amendment to give the Governor a line-item veto, a cap on dedicated funds. He says services, such as legal departments, can be consolidated across state departments.
He argues that current law mandated a "maintenance budget" prevents departments from cutting unnecessary programs. New Hampshire is one of just seven states without a line-item veto. He points to efforts in New York and Wisconsin to consolidate financial management, human resources, and other overhead services across state departments.
Stephen says capping the more than 250 dedicated funds in the budget would give the Legislature more flexibility over the budget, rather than walling off millions of dollars in fund surpluses.
He says Lousiana has done great work on transparency through LaTrac, and proposes New Hampshire do the same.
Stephen says popular but unnecessary programs should be cut, and that the state incurs huge indirect costs through its contracts, which are not reviewed by the Legislature. He wants to state to divest itself of unused buildings and property, and cut down on the vehicle fleet. He also proposes eliminating the Certificate of Need Board.
He says policy changes in Medicare and Medicaid would save the state money, and proposes giving all departments the same flexibility that he used at DHHS. He says the Legislature has to eliminate programs if they can't demonstrate or measure their results.
Stephen says New Hampshire spends more per beneficiary than the national average for a range of health services. Other states have adopted a managed care approach to lower costs, while maintaining patient choice. He says these reforms have allowed Oregon and Texas to lower their state medical costs by managing the disease rather than responding to emergencies.
Stephen says his experience as Commissioner of the state's largest department convinces him that New Hampshire doesn't have a revenue problem; it has a spending problem.
He's worked as a consultant in other states, and says New Hampshire should adopt the best practices nationally to control spending. He says there isn't a lack of will to reign in government, but that the "tyranny of custom" prevents new, innovative ideas from taking hold.
Stephen says the state accounting system prevents managers from getting good information. He says New Hampshire is being left further behind other states, which have improved how they deliver services. Catching up would allow New Hampshire to lower its high business tax burden.
He says New Hampshire should be a leader in innovation. He says the state had to both decide if its should provide a service, and be sure it knows how to measure the outcome. He suggest a top to bottom review of state government.
Stephen says Medicaid spending increases from 2004 to 2007 averaged 1% per year, down from double digits averages in previous years. That shows that there are savings to find.
Stephen wants departments to submit 5% reduction budgets each biennium, a constitutional amendment to give the Governor a line-item veto, a cap on dedicated funds. He says services, such as legal departments, can be consolidated across state departments.
He argues that current law mandated a "maintenance budget" prevents departments from cutting unnecessary programs. New Hampshire is one of just seven states without a line-item veto. He points to efforts in New York and Wisconsin to consolidate financial management, human resources, and other overhead services across state departments.
Stephen says capping the more than 250 dedicated funds in the budget would give the Legislature more flexibility over the budget, rather than walling off millions of dollars in fund surpluses.
He says Lousiana has done great work on transparency through LaTrac, and proposes New Hampshire do the same.
Stephen says popular but unnecessary programs should be cut, and that the state incurs huge indirect costs through its contracts, which are not reviewed by the Legislature. He wants to state to divest itself of unused buildings and property, and cut down on the vehicle fleet. He also proposes eliminating the Certificate of Need Board.
He says policy changes in Medicare and Medicaid would save the state money, and proposes giving all departments the same flexibility that he used at DHHS. He says the Legislature has to eliminate programs if they can't demonstrate or measure their results.
Stephen says New Hampshire spends more per beneficiary than the national average for a range of health services. Other states have adopted a managed care approach to lower costs, while maintaining patient choice. He says these reforms have allowed Oregon and Texas to lower their state medical costs by managing the disease rather than responding to emergencies.
Live Blogging the "Stop the Spending Summit"- Charlie Arlinghaus
Charlie Arlinghaus- President, Josiah Bartlett Center for Public Policy
Arlinghaus looks at the spending pressures within the New Hampshire budget. He breaks down the state budget in federal funds, tax revenues including the General Fund and Education Trust Fund, and dedicated funds such as Highway, Turnpike, and Fish and Game Funds.
He says inflation over the past twenty years has been 74%, General Fund spending has gone up 154%, and adding the Education Trust Fund means spending has gone up 311%.
He says the current budget problem has resulted from revenues coming in short of expectations, a shift of ARRA funds from 2010 to 2009, and the probable loss of $110 million from the JUA Lawsuit. He says the likely problem will be $208 million.
But Arlinghaus argues the budget hole in the next biennium starts out at $627 million, once the state stops getting stimulus money and restores one-time spending reductions. He says that assumes the Legislature addresses the current budget hole of $208 million.
He quotes Governor Lynch's argument that the state could grow its way out of its budget problems with 4% annual growth. But Arlinghaus says that rate of growth would only produce an additional $92 million per year. He says if taxes and spending both grow at the same rate, the problem gets worse.
He says there are two strategies for cutting spending; Hunt and Peck or Directed Management. He says the Legislature should find small ways to save money like cutting the Film Commission, But he says the large savings comes when the Legislature directs Commissioners to find better ways to provide services at lower costs. Arlinghaus recounts the experience of Governor Walter Peterson, who asked his department heads to come up with savings. He says the Commissioners who came back with realistic program cuts were on his side, and those who proposed cutting the most popular programs are not being helpful.
Arlinghaus argues that the way to control spending is to put pressure on state agencies to spend less, build coalitions for lower spending, and take every dollar in savings every time we can, no matter how small. He says victory is at the margins. Since the economy and budgets are like a roller coaster, the Legislature has to be strict in supporting its Rainy Day Fund and pass a better Balanced Budget Bill. He says transparency is a great way to get the public on the side of smaller government, and says the Josiah Bartlett Center will be working to put the state's budget, spending, and revenue information online for the public to see.
Arlinghaus looks at the spending pressures within the New Hampshire budget. He breaks down the state budget in federal funds, tax revenues including the General Fund and Education Trust Fund, and dedicated funds such as Highway, Turnpike, and Fish and Game Funds.
He says inflation over the past twenty years has been 74%, General Fund spending has gone up 154%, and adding the Education Trust Fund means spending has gone up 311%.
He says the current budget problem has resulted from revenues coming in short of expectations, a shift of ARRA funds from 2010 to 2009, and the probable loss of $110 million from the JUA Lawsuit. He says the likely problem will be $208 million.
But Arlinghaus argues the budget hole in the next biennium starts out at $627 million, once the state stops getting stimulus money and restores one-time spending reductions. He says that assumes the Legislature addresses the current budget hole of $208 million.
He quotes Governor Lynch's argument that the state could grow its way out of its budget problems with 4% annual growth. But Arlinghaus says that rate of growth would only produce an additional $92 million per year. He says if taxes and spending both grow at the same rate, the problem gets worse.
He says there are two strategies for cutting spending; Hunt and Peck or Directed Management. He says the Legislature should find small ways to save money like cutting the Film Commission, But he says the large savings comes when the Legislature directs Commissioners to find better ways to provide services at lower costs. Arlinghaus recounts the experience of Governor Walter Peterson, who asked his department heads to come up with savings. He says the Commissioners who came back with realistic program cuts were on his side, and those who proposed cutting the most popular programs are not being helpful.
Arlinghaus argues that the way to control spending is to put pressure on state agencies to spend less, build coalitions for lower spending, and take every dollar in savings every time we can, no matter how small. He says victory is at the margins. Since the economy and budgets are like a roller coaster, the Legislature has to be strict in supporting its Rainy Day Fund and pass a better Balanced Budget Bill. He says transparency is a great way to get the public on the side of smaller government, and says the Josiah Bartlett Center will be working to put the state's budget, spending, and revenue information online for the public to see.
Live Blogging the "Stop the Spending Summit"- Steve Norton
Steve Norton- Executive Director, NH Center for Public Policy Studies
Norton says the primary dynamic in New Hampshire's budgets is that we've spent more money than we've raised. He shows that General Fund spending under HB 1 has increased by an average of 9.2% each biennium since 1990. That represents the amount the Legislature intended to spend, rather than the amount actually spent.
He says the General Fund budget is not always the best indicator of what's actually being spent. He says looking at Total Funds is a better barometer. That has increased by 14% per biennium since 1990.
Norton says revenues have declined considerably while spending has increased. He says the budget hole in the next biennium will likely require hard choices.
Norton says that New Hampshire government is just above the national average in state employees per capita, but fourth lowest in per capita state spending. He breaks down state spending by function, with most going to education and health and human services, followed by Justice, General Government, and Transportation.
He says is the Legislature wants to get a handle on rising costs, it has to address education, health care, and the pension system. He says there are real ways to reduce spending, such as eliminating programs, and not so real ways, such as reducing appropriations in areas where the spending is mandated by law, such as HHS caseloads.
Norton outlines some of the drivers of state spending. He says New Hampshire prisons spend slightly more than the national average per prisoner, but the state corrections system spends less than the New England average. He says the state is reaching a decision point on whether to build a new prison.
On Medicaid, Norton says New Hampshire's expenditures have risen more slowly than the rest of the country. He says New Hampshire is slightly less generous in granting Medicaid eligibility, and reimburses providers at the national average. He says the real cost driver is that New Hampshire spends much more per beneficiary than the national average.
He says the NH Retirement System has been hit hard by stock market losses, and has funded just 67.8% of the system.
On education, he says New Hampshire spends slightly more than average per pupil, but that the Claremont Lawsuit has caused New Hampshire's state education spending to grow at the fastest rate in the nation.
He says the way to control spending is to follow Executive Orders put in place to cut down on last year's budget, claiming that the state saved $200 million from what it had planned to spend.
Norton says there are ways to address Medicaid, Retirement, Corrections, and Education, and those are the major cost drivers in the New Hampshire budget. He says the state does not measure how much it spends on a monthly basis, and that you can't manage what you can't measure.
He says lawmakers should ask what is the price of government, what outcomes they want to achieve, and how well they are delivering them.
Norton says the primary dynamic in New Hampshire's budgets is that we've spent more money than we've raised. He shows that General Fund spending under HB 1 has increased by an average of 9.2% each biennium since 1990. That represents the amount the Legislature intended to spend, rather than the amount actually spent.
He says the General Fund budget is not always the best indicator of what's actually being spent. He says looking at Total Funds is a better barometer. That has increased by 14% per biennium since 1990.
Norton says revenues have declined considerably while spending has increased. He says the budget hole in the next biennium will likely require hard choices.
Norton says that New Hampshire government is just above the national average in state employees per capita, but fourth lowest in per capita state spending. He breaks down state spending by function, with most going to education and health and human services, followed by Justice, General Government, and Transportation.
He says is the Legislature wants to get a handle on rising costs, it has to address education, health care, and the pension system. He says there are real ways to reduce spending, such as eliminating programs, and not so real ways, such as reducing appropriations in areas where the spending is mandated by law, such as HHS caseloads.
Norton outlines some of the drivers of state spending. He says New Hampshire prisons spend slightly more than the national average per prisoner, but the state corrections system spends less than the New England average. He says the state is reaching a decision point on whether to build a new prison.
On Medicaid, Norton says New Hampshire's expenditures have risen more slowly than the rest of the country. He says New Hampshire is slightly less generous in granting Medicaid eligibility, and reimburses providers at the national average. He says the real cost driver is that New Hampshire spends much more per beneficiary than the national average.
He says the NH Retirement System has been hit hard by stock market losses, and has funded just 67.8% of the system.
On education, he says New Hampshire spends slightly more than average per pupil, but that the Claremont Lawsuit has caused New Hampshire's state education spending to grow at the fastest rate in the nation.
He says the way to control spending is to follow Executive Orders put in place to cut down on last year's budget, claiming that the state saved $200 million from what it had planned to spend.
Norton says there are ways to address Medicaid, Retirement, Corrections, and Education, and those are the major cost drivers in the New Hampshire budget. He says the state does not measure how much it spends on a monthly basis, and that you can't manage what you can't measure.
He says lawmakers should ask what is the price of government, what outcomes they want to achieve, and how well they are delivering them.
Live Blogging the "Stop the Spending Summit"- Sherm Packard and Peter Bragdon
House Republican Leader Sherman Packard (R-Londonderry) welcomed a packed room to the "Stop the Spending Summit" at the Grappone Conference Center in Concord. The House Republcian Office is sponsoring the event in response to the Democratic House Leadership's Tax Summit last week.
Packard says the large turnout emphasizes how much people care about spending in New Hampshire.
"We do not have a revenue problem in Concord. We have a spending problem."
He says Democratic leadership planned last week's summit as a step on the road to an income tax, but thinks it backfired as most speakers argued against higher taxes during a recession.
Bragdon quoted Governor Mel Thomson's adage, "Low taxes are the result of low spending." He argues that the state should address spending before it tackles taxes.
Bragdon outlined spending by the State Senate itself. He says inflation for the past two years has totaled 0.5%, but the Senate Budget has gone up 38% over the same time. House spending has gone up 53% over those three years. Bragdon argues that if House and Senate leadership can't control their own spending, we can't expect them to control spending for the rest of the state.
Packard says the large turnout emphasizes how much people care about spending in New Hampshire.
"We do not have a revenue problem in Concord. We have a spending problem."
He says Democratic leadership planned last week's summit as a step on the road to an income tax, but thinks it backfired as most speakers argued against higher taxes during a recession.
Bragdon quoted Governor Mel Thomson's adage, "Low taxes are the result of low spending." He argues that the state should address spending before it tackles taxes.
Bragdon outlined spending by the State Senate itself. He says inflation for the past two years has totaled 0.5%, but the Senate Budget has gone up 38% over the same time. House spending has gone up 53% over those three years. Bragdon argues that if House and Senate leadership can't control their own spending, we can't expect them to control spending for the rest of the state.
Live Blogging the "Stop the Spending Summit"
We will be providing updates to the "Stop the Spending Summit", held by the House Republican Office, throughout the morning.
9:30am Welcome, Rep. Sherm Packard, House Republican Leader
Sen. Peter Bragdon, Senate Minority Leader
9:40am Steve Norton, Executive Director, NH Center for Public Policy Studies
10:10am Charlie Arlinghaus, President, Josiah Bartlett Center for Public Policy
10:50am John Stephen, former Commissioner of Health and Human Services
11:20am Representatives Neal Kurk and Doug Scamman, House Finance Committee
11:45am Wrap-up, Rep. Gene Chandler, Senior Assistant Republican Leader
9:30am Welcome, Rep. Sherm Packard, House Republican Leader
Sen. Peter Bragdon, Senate Minority Leader
9:40am Steve Norton, Executive Director, NH Center for Public Policy Studies
10:10am Charlie Arlinghaus, President, Josiah Bartlett Center for Public Policy
10:50am John Stephen, former Commissioner of Health and Human Services
11:20am Representatives Neal Kurk and Doug Scamman, House Finance Committee
11:45am Wrap-up, Rep. Gene Chandler, Senior Assistant Republican Leader
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