Governor Maggie Hassan issued an Executive Order Wednesday that would freeze state hiring and purchasing, as well as out-of-state travel. The governor says the freeze is needed following a dramatic drop in revenue last month.
Gov. Hassan says April education and general fund revenues fell short by almost $22 million. Prior to that, the state had been running a roughly $25 million surplus. She says the shortfall has lowered the state’s cushion to just below $4 million.
She will go before the state’s Joint Fiscal Legislative Committee next week to present the order and seek the committee’s approval. Hassan attributes the sudden drop to recent changes in state tax code and businesses applying for more tax credits.
Revenues from business taxes and the interest and dividends tax brought in less money than a year ago.
She also asked the legislative and judicial branches to impose similar hiring and spending freezes.