N.H. Entering An “Uncertain Time” With “Withering” Economic Advantage

NHPR

The State House dome in the distance.

A recent report from the Center for Public Policy Studies was uncharacteristically ominous, warning that the state is entering an “uncertain time,” and that the New Hampshire advantage “is withering away, and may erode further in years to come.”

Dennis Delay, the report’s author, is referring to the state’s slow economic recovery compared to its neighbors; shrinking workforce; reduced capital investment; and disappointing migration patterns.

The report itself warns of decreasing Federal support for state programs and potential job loss from unmitigated federal tax increases and spending cuts this January (aka “The Fiscal Cliff.”)

There is good news, though.

• Companies are moving to New Hampshire from Massachusetts. Aspen Technology in Burlington, MA is expanding to Nashua, NH; and BurstPoint Networks is moving from Westborough, MA to Merrimack, NH. The report says “the biggest reason for the move is the pool of senior technical talent available in New Hampshire.”
• The tourism industry is reporting strong sales this year.
• The state had a $13 million surplus this year, from spending cuts — despite several million in lost revenue due to the decreased tobacco tax.
• The state’s unemployment trust fund is improving after being depleted during the Great Recession. Employers will owe $140 less in unemployment insurance taxes per employee beginning January 1.