Gov. Chris Sununu is crowing about New Hampshire’s fiscal policy making the grade, and that grade is “AA+”
Sununu released a statement Wednesday touting the Granite State’s credit rating upgrade from S&P Global, noting it’s the state’s first “in decades.”
“Good fiscal management delivers good results,” Sununu said. “For the first time since 1995, S&P Global has upgraded the state’s general obligation debt rating to reflect the strong, sustainable, and efficient position we have put ourselves in over the last few years.
“Our limited government approach has remained flexible and nimble — allowing us to reinvest in key areas of need while putting the individual ahead of the system.”
New Hampshire now joins Massachusetts and Vermont as the three New England states with AA+ ratings. Rhode Island and Maine are ranked at AA, while Connecticut lags behind at AA-.
S&P Global’s general obligation debt report found that New Hampshire’s improved economic and demographic growth trends “continue to perform near or above those of the U.S. and regional peers.”
“The state’s workforce returned to pre-pandemic levels and population growth continues to outpace the New England Region,” the report added.
The upgrade, according to the agency, reflects “our view of the state’s demonstrated commitment to controlling expenditure growth, preserving revenue stability, and building higher reserve balances across recent economic cycles that we believe position it to sustain financial stability in the current and future biennial budgets.”
New Hampshire’s rating upgrade marks the latest victory for Sununu and the GOP-controlled legislature. Earlier this month ,the Granite State was recognized as tops in the nation for taxpayer return on investments (ROI) for the ninth year in a row. Last June, New Hampshire was named the best in the country for childhood well-being. Additionally, New Hampshire also lays claim to first in overall freedom by the Cato Institute, first in public safety by U.S. News & World Report, and first in economic freedom by the Fraser Institute.
Meanwhile, New Hampshire’s neighbor to the south has the seventh-highest per capita state debt according to a Forbes analysis. That same analysis found New Hampshire had the third-lowest per capita debt burden.
Massachusetts was also ranked near the bottom this month (#41) in taxpayer ROI and is currently running behind state tax collections to the tune of $186 million compared to a year ago.
The commonwealth’s adoption of “sanctuary” illegal immigration policies continues to be a drain on finances, as a 1983 law guarantees a “right to shelter” for families and pregnant women – even if they’ve entered the country illegally.
Massachusetts House Ways and Means Committee Chairman Aaron Michlewitz, a Democrat from Boston, told State House News Service on Tuesday the budget lawmakers are currently dealing with is “the most challenging one I’ve ever had to deal with.”
“Massachusetts is also seeing a migrant crisis like no other state in the nation, one that has put our emergency family shelter system and our budget at a breaking point at the moment,” Michlewitz added.
Massachusetts has reported spending upwards of $395 million to shelter and care for its illegal immigrant population.
This and other examples mean a ratings downgrade could be in store for the Bay State, according to Paul Craney of Massachusetts Fiscal Alliance, a nonprofit advocate for small government.
“Massachusetts and New Hampshire are taking two very different approaches,” Craney told NHJournal. “New Hampshire is embracing limited government, more personal freedom, and a very low-to-non-existent tax obligation.
“Massachusetts is doing the complete opposite, trying to tax nearly everything they can. Eventually creditors will determine what taxpayers have already concluded — New Hampshire is where you go if you want to grow your business or keep more of your hard-earned money.”
