Proposed Spending Cap Could Lock In Current Spending Cuts for a Decade

Capping Assistance Would Affect Few but Add to Economic Hardship for Some Children

In any given month in 2010, some 11,000 people looked to New Hampshire’s Financial Assistance for Needy Families (FANF) program for help in meeting everyday needs. Of that number, nearly three in four were children, many of whom are being cared for by relatives, in the absence of a parent. The cash benefits available under FANF are temporary in nature, generally contingent upon meeting some form of work or education requirement, and fall well short of securing even the most basic of essentials.  In fact, the average monthly FANF payment of $507 amounts to less than half the poverty level for a parent and child.

Nevertheless, policymakers are weighing new restrictions upon the families that rely upon the program. In particular, legislation now before the House of Representatives – HB 1658 – would prohibit women who have a child while participating in the program from receiving any additional assistance related to that child. This Issue Brief presents an overview of the federal Temporary Assistance to Needy Families (TANF) program and its New Hampshire incarnation, FANF, and aims to provide a context for considering greater restrictions on families already struggling to make ends meet. … Continue Reading

Testimony before the Commission to Study Business Taxes

The legislative Commission to Study Business Taxes met Monday, February 6, to receive public input on its draft report recommending changes to New Hampshire’s tax system. Taken together, the recommendations would mean a substantial revenue loss for the state.  Had the recommendations been in place for the current biennium, they would have reduced state revenue by a conservative estimate of $100 million. This kind of revenue loss would likely require major cuts to public services, including infrastructure and education that are critical to attracting new businesses. NHFPI Executive Director Jeff McLynch testified that the proposals may hurt economic growth, not help.

His testimony follows: … Continue Reading

Testimony Regarding Education Tax Credits

The House Committee on Ways and Means met Monday, January 23, to receive public input on legislation that would create a tax credit for businesses that contribute to private scholarship organizations. The money would be used for subsidies to students attending private, religious or home schools.

House Bill 1607 would be costly for state officials to implement and would divert scarce public resources to private interests. In particular, state aid to public schools would likely be cut even though there is no evidence students receiving subsidies to attend non-public schools do any better than their public school peers. … Continue Reading