Thu December 1, 2011
November Revenues In Doubt
Lawmakers are bracing themselves that when the state releases November revenues, New Hampshire could be tens of millions in the red.
The source of the shortfall- hospitals.
Without getting too deep into the details, the most recent budget made significant changes to a tax paid by hospitals.
That change cost them $120 million dollars.
A coalition of hospitals is now suing the state.
In the short-term some facilities might withhold what they owe on what’s called the Medicaid Enhancement Tax.
With so much at stake, Steve Norton with the Center for Public Policy Studies says hospitals don’t want to give the state a dime more than is necessary.
“The tax matters. So they are really looking at what they are doing, closely.”
Norton estimates the state could wind up $30 million short for November.
Senate Finance Chair Chuck Morse said if that happens, the governor might need to make cuts to keep the budget in balance.