|
|
|
|
 PreshowReturn to index of stories... |
The Manchester Boston Regional Airport is an economic engine for the state. All indicators here -- suggest business is booming. But, how are other companies faring in NH with rising healthcare and energy costs. And, just how business-friendly is NH? We'll ask those in the know. That's Now on NH Outlook, where NH Talks. |
| Hello/Intro Return to index of stories... |
We're coming to you from the Manchester-Boston Regional Airport, one of the fastest growing transportation hubs in the country. Last year, over 4 million passengers flew in and out of this airport, and over 200 million pounds of cargo was processed here. Many regard it as a crucial engine in NH's economy. Hello, I'm Beth Carroll. Welcome to NH Outlook. It's clear the Manchester-Boston Regional airport plays a major role in the region's transportation system -- creating opportunities for NH businesses and the state's important tourism industry as well. It's considered a "key" driver for economic growth. Manchester is the 3rd largest "cargo" airport in New England. And, while cargo activity "elsewhere" has remained flat in recent years, HERE there has been steady growth due to the convenience of moving products in and out of the region. Moving people is its main source of revenue. It continues to capture a growing share of the region's airline passenger business and those numbers are expected to "double" in the next 10 to 15 years. The airport contributes a billion dollars annually to the NH economy -- and, by the year 2015 that number is expected to jump to 1.5 billion. It is an indicator of the strength of the economy -- which is why we thought it a fitting backdrop for today's program on the state's economic climate -- and, doing business in NH. With no income or sales tax.NH consistently ranks in the top ten when it comes to business-friendly states. But, with rising health and energy costs and pressure for more revenue.how are businesses really faring in the state? Here to talk about that and more: Jeff Feingold , editor of the NH Business Review, Jim Roche, president of the NH Business and Industry Association, which represents companies that employ some 80-thousand workers in NH, and Larry Thibodeau the founder and president of Hampshire Fire Protection, which is based in Londondery with just under 100 employees. Welcome! Q JEFF: Let's talk about the airport. 500 million in capital improvements in recent years. It appears to be prepared for growth into next decade? |
| Thanks/Goodbye Return to index of stories... |
My thanks to Jeff Feingold, Jim Roche and Larry Thibodeau for sharing their perspectives on doing business in NH. Special thanks to our host: the Manchester-Boston Regional Airport. And, thank you for watching NH Outlook, where NH talks. I'm Beth Carroll. I'll see you around NH. Contact New Hampshire Business Review Privacy Policy and User Agreement © 2005, New Hampshire Business Review, A Division of McLean Communication 150 Dow St., Manchester, NH 03101 624-1442 |
| biz climate Return to index of stories... |
Climate Change Two items in the past week suggest that New Hampshire and Dartmouth are undergoing important and welcome changes in their climate towards business, particularly with regard to early-stage companies. First, in a report released by the New England Economic Partnership that looked at the New England economy thru 2011, we learnt that New Hampshire will be the only New England state to match or exceed the nation's economic growth rate. The Partnership looks at a wide variety of data in their forecasts -- including income and job growth, and housing prices. This is bad news for the rest of the region, but great news for the Granite State. Anyone who is here can tell you, too, that the growth is not confined to southern New Hampshire. The Keene area, the Upper Valley, and Littleton are all places with red hot business growth. I got a chance to see this NH business growth first-hand a few weeks when I visited Ryan Fitzsimons '96 of Gigunda Group. Ryan could have located his incredibly successful company anywhere, but he's kept it in New Hampshire. I was visiting their new headquarters amongst the restored mills in Manchester, and realized that their next-door neighbor was another company founded by a Dartmouth alum: JetBoil, co-founded by Dwight Aspinwall '84. Like Gigunda, Jetboil could have established their company anywhere, but they chose to stay in New Hampshire, even as they have grown tremendously. I'm starting to see more and more of this, especially in the Upper Valley. Rather than being a place to retire, the Upper Valley is becoming a destination for talented young people with families and entrepreneurial energy. If this trend continues, the Granite State and the Upper Valley will be in good economic shape in the future. Another sign of positive business climate change occurred earlier this week with 2nd annual business plan competition sponsored by the undergraduate Club of Dartmouth Entrepreneurs. The winning team produced a really cool product called Nightrunner, which is aimed at replacing those clunky headlights used by runners and outdoor athletes, particularly in this part of the world, in the winter time when there isn't much daylight. The D has a great article about the team here, and you can learn more about the product and team here. But the cool thing, from my perspective, is how accepted it is for Dartmouth students to innovate and try to commercialize their projects. This is a far cry from how things were at Dartmouth only a few years ago. Just ask Ryan Fitzsimons to describe what it was like for him as a student entrepreneur at Dartmouth back in the day. And like the state itself, I think this climate will produce long-term economic benefits for Dartmouth and ultimately strengthen the institution itself. Now, if we could just get a better airport around here. 12:21 PM in Dartmouth startups, Upper Valley | Permalink TrackBack TrackBack URL for this entry: http:/www.typepad.com/t/trackback/839594/18962212 Listed below are links to weblogs that reference Climate Change: Comments Post a comment If you have a TypeKey or TypePad account, please Sign In You are currently signed in as. Sign Out Name: Email Address: URL: Remember personal info? Borealis Ventures DEN: Dartmouth Entrepreneurial Network VentureBeat New York Times Business June 2007 Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 |
| R &D Return to index of stories... |
House OKs R&D credit Published: Friday, Jun. 8, 2007 After a long floor fight and a roll call vote, the New Hampshire House passed its version of a research and development tax credit late Thursday afternoon. While the bill still has to be reconciled with the Senate version, it does look like some version of the credit is now likely to become a reality. Supporters of the bill argued that the credit – capped at $50,000 a year per company, and $1 million a year in total state spending – would pay dividends when it comes to private high-tech investment, which has stalled in recent years. That’s because, they say, the state is one of only 10 states nationwide, and the only one in New England, without such a credit. But supporters weren’t helped by a study paid for by the tax credit’s main advocate – the Business & Industry Association – which said the tax wouldn’t pay for itself. But critics seized on a study that found that, while $1 million might generate $1.8 million in new research and development spending and some 70 jobs, it would result only $50,000 return in taxes. Critics seized on this finding and argued that it would only encourage businesses to do what they were going to do anyway. “We need … to ensure that it is not simply used to line the pockets of companies already profiting from defense contracts,” Rep. Dennis P. Vachon, D-Northwood. Opponents also pointed to the mid-1990s, when the state repealed an R&D tax credit because very few companies took advantage of it. “We have the most business-friendly structure without a credit,” said Rep. Roger Wells, R-Hampstead. “This is all hat and no cattle.” But Rep Susan Almy, D- Lebanon, argued right before the vote that the “small investment” will be used as “part of a package to attract business” and by “encouraging exiting business to innovate we can create a synergy that will attract more students into science and technology. We need that innovation to secure the state’s future economy.” The House passed the measure, 199-104. Another proposal backed by the BIA passed even more easily, but it could be held up over a tussle with another bill trying to close corporate tax loopholes. That bill would continue the Community Redevelopment and Opportunity Program tax credit, which gives credits to those that build in economically disadvantage areas. So far few firms have taken advantage of it, but the bill would try to make it more attractive by increasing the value created for jobs and simplifying the rules while still keeping an $825,000 cap on the entire program. The House passed the bill, but tacked on an amendment that redefines the term “business activity” for the purposes of the business profits tax and specifying that it include “employment of business assets.” A bill with similar language had been retained by the Senate, so on Thursday the Senate tacked the CROP bill onto the trailer bill to the budget in an attempt to keep the CROP measure going. The House also moved forward a bill clearing the way for the construction of renewable energy facilities in the North Country, again leaving Public Service of New Hampshire – at least as a regulated utility – out of the picture. Resigned to what was essentially the elimination of PSNH from the picture, which has already occurred in both chambers, many former opponents reluctantly supported the bill. “It does not bring jobs to the North Country very quickly,” said John Thomas, R-Belmont, who was hoping for another vote on allowing PSNH to be involved, but he was overruled by House Speaker Terie Norelli, D-Portsmouth. Thomas still maintained that the regulated utility, by passing any savings realized by fast-tracking such plants to the ratepayers in the state, while “merchant” plants would pass it on to investors, mainly located out of state. He also thought a large utility like PSNH is more likely to go ahead with its project. Rep. Neal Kurk, R-Weare, in questioning Thomas, suggested that the bill would actually result in rate increases to the public. But Michael A. Kaelin, D-Lyndeborough, argued independents were “lining up” to build plants in the North Country, but would back out if they had to compete against a utility that could pass along the risk to ratepayers and could monopolize the fuel from the area by undercutting prices. While that might bring down costs in the long run, it would eventually result in higher prices, Kaelin said. The bill – which has to return to the Senate because of an amendment studying various aspects of the program, including examining whether to let public utilities into the game, -- passed 237-83. – BOB SANDERS Click Here For Four Free Issues to NH Business Review Contact New Hampshire Business Review Privacy Policy and User Agreement © 2005, New Hampshire Business Review, A Division of McLean Communication 150 Dow St., Manchester, NH 03101 624-1442 |
| housing slump Return to index of stories... |
Top execs feel good about economy By JEANNINE AVERSA, The Associated Press Published: Wednesday, Jun. 6, 2007 WASHINGTON – The country’s top corporate executives foresee pretty good business prospects even as the economy makes its way through a sluggish spell. A survey by the Business Roundtable released Tuesday also showed that most executives expected sales, capital investment and hiring to remain at current levels or be boosted in the coming months. Chief executive officers “see favorable business conditions continuing,” said the group’s chairman, Harold McGraw III, president and chief executive officer of The McGraw-Hill Cos. “While the survey does suggest that the U.S. economy is settling into a somewhat softer consolidation phase, as long as consumers keep spending, the economy can continue to move ahead,” he added. For all of this year, the Business Roundtable executives predict the economy will grow by 2.6 percent, which would be the slowest in four years. The new forecast is lower than the 2.9 percent projection released in early March. Other forecasters, however, think the economy’s growth this year will be slower, at around 2.2 percent, mostly reflecting the impact of the painful housing slump. “I think it is a more positive picture in CEOs’ minds,” McGraw told reporters. Federal Reserve Chairman Ben Bernanke said Tuesday that he expects the economy to bounce back from an extremely weak first quarter. The economy’s growth slowed to a pace of just 0.6 percent in the first three months of this year, the worst quarterly performance in more than four years. The Fed chief said he believes some of the forces that figured prominently in that poor performance – including a bloated trade deficit, cutbacks by businesses in inventory investment and weak federal defense spending – will be partially reversed “in the near term.” Even if that happens, the housing market will remain a drag on overall economic growth, he added. But housing’s troubles, he said, should not seriously spill over into other business sectors. In the survey, 92 percent of chief executives said they expected their sales to hold steady or increase over the next six months. That’s up from 85 percent in the previous survey in March. On the hiring front, 75 percent said they expected to hold payrolls at current levels or boost payrolls, down slightly from 78 percent in the earlier survey. Meanwhile, 87 percent said they would hold capital investment steady or increase it. That compared with 91 percent in the previous survey. “What I think you are seeing there is a cautiousness,” McGraw said. The Business Roundtable is an association of CEOs of major corporations, representing a combined work force of more than 10 million employees and $4.5 trillion in annual revenues. The quarterly survey, conducted May 11 through May 23, was based on the responses of 100 of the group’s 160 member companies. *** Housing woes stunt growth of economy By JEANNINE AVERSA, The Associated Press Published: Saturday, Oct. 28, 2006 WASHINGTON- For everyone suffering through the housing slump, the economy feels your pain. Economic growth slowed to a snail’s pace of 1.6 percent in the just-finished quarter – the most sluggish showing in more than three years. The main culprit behind the subpar performance: a housing market that has turned sour. Investment in homebuilding was cut by the largest amount in 15 years. “A downturn in the housing market packed a wicked punch for the U.S. economy... but it was not a knockout blow,” said Stuart Hoffman, chief economist at PNC Financial Services Group. The latest snapshot of economic activity released by the Commerce Department on Friday stirred fresh debate about the country’s financial health heading into the elections Nov. 7. The new reading on the economy, which fell short of the 2.1 percent pace analysts were forecasting, disappointed economists, rattled investors and gave Republicans and Democrats plenty to argue about. Economic matters are expected to influence voters’ choices when they go to the polls. President Bush’s approval rating on the economy is at 40 percent among all adults surveyed in an AP-Ipsos poll. That remains near his lowest ratings. Those surveyed trusted Democrats more than Republicans to handle the economy. The Bush administration quickly sought to downplay the slowdown in economic activity. “Everybody expected this. You have a combination of rising energy prices and also rising interest rates, and now you’ve seen a reverse on both,” said White House Press Secretary Tony Snow. Commerce Secretary Carlos Gutierrez said the latest economic growth figures displayed the economy’s resilience even as the housing market has cooled. “I would not panic about this,” he said in an interview with The Associated Press. Democrats countered that the slowdown in economic growth reveals that the administration and the Republican-controlled Congress are doing a poor job handling the economy. “Just because the president looks through his rose-colored glasses and sees a strong economy doesn’t make it so,” said House Minority Leader Nancy Pelosi of California. “He refuses to see the millions of Americans who are working hard and are unable to get ahead.” Sen. Jack Reed, D-R.I., said the cooling in economic growth “undercuts the president’s claim that his tax cuts are working.” The third quarter’s performance was the weakest since a 1.2 percent growth rate eked out in the first quarter of 2003, when a nervous nation hunkered down for the start of the Iraq war. The latest reading underscores just how much speed the economy has lost this year. In the first three months of this year, the economy grew at a brisk 5.6 percent pace, the strongest growth spurt in 2½ years. But growth slowed to a 2.6 percent pace in the second quarter as consumers and businesses tightened their belts in response to rising energy prices and the impact of two-plus years of climbing interest rates. ? Go to nashuatelegraph.com's forums Subscribe to The Telegraph. Partners: Cabinet Press | NH.com | NH Business Review | NH Events | New Hampshire Magazine |
| health care Return to index of stories... |
Healthcare costs are still keeping executives awake at night. In fact, healthcare will be the greatest source of cost pressure on companies for the first half of 2007, say more than half of the CEOs polled in the Business Roundtable's latest Economic Outlook Survey. And even though healthcare cost increases for U.S. employers moderated a little in 2006, those cost hikes are still climbing twice as fast as inflation and wage growth, reports the Henry J. Kaiser Family Foundation. In 2007, businesses will pay more for employer-sponsored healthcare. Costs will rise by an average of 7.7 percent, to $8,340 per employee in 2007, reports a Hewitt Associates analysis of health plans sponsored by 400 major employers. Towers Perrin, likewise, predicts that employers will pay an average of 6 percent more for employee health benefits in 2007. PriceWaterhouseCoopers says that employers could face double-digit hikes in their healthcare costs in 2007, unless they trim their worker benefits packages. Business leaders looking for the best place to expand their companies need to include healthcare measures in their site research. "Healthcare is indeed one of the many, many factors that we look at when we are determining where to put a new potential plant," says Daniel Sieger, spokesman for Toyota Motor Manufacturing North America. "As part of the site location process in an area, our human resources group assesses a variety of healthcare services. For instance, does the area have an established industrial healthcare infrastructure, and are there wellness programs that reach out into the community.” CHARLESTON, W.Va. - A new report ranks New Hampshire as third in all 50 states based on the performance of their health-care systems. The report was released by the Commonwealth Fund in West Virginia. It is the first study to rank states on the performance of health care systems. The Commonwealth Fund in a report out today that details 32 measures of cost, insurance coverage and medical quality, ranking states by how well they perform on each of the measures. THE COST OF PROVIDING EMPLOYEES WITH HEALTH insurance coverage is increasing at a double-digit rate. Businesses are seeking to solve the problem by decreasing their premium contributions, changing the products they offer or the insurer and even reducing coverage. CPAs can help suggest cost-saving strategies to reduce the impact of insurance premiums on the bottom line. THE YEAR 2003 SAW BOTH LARGE AND SMALL employers facing cost pressures. Many employers are passing costs on to employees by raising deductible and copay levels and shifting more of the premium expense. The goal is to save money by making employees more accountable for their medical expenditures. companies have tried many things, such as decreasing premium contributions, shifting costs to employees, changing the products offered or the insurance carrier and reducing coverage and eligibility. These are some of the cost-saving strategies financial managers and other CPAs can suggest when human resource executives ask for help reducing the impact of health insurance costs on the company’s bottom line. A difference in top priorities appears between Congress and America’s small-business owners. One is primarily interested in coverage and the other cost. If lawmakers can help reduce costs, small businesses can help increase coverage in the long-run.” |
| trade Return to index of stories... |
Article published May 25, 2007/ Granite State exports plunge 12.2 percent in February According to the latest annual trade statistics compiled by the World Trade Organization, Germany remained the world’s leading exporter of goods in 2006 as German companies sold $1.112 trillion in goods to the rest of the world. American exporting companies had one of their best years in 2006. National exports jumped 14 percent in 2006 – the best annual export growth in more than a decade – to an all-time high of $1.037 trillion, holding second place in the worldwide trade rankings.In the latest WTO annual report, however, there are signs that third-place China will outpace the United States this year. Chinese exports surged by 27 percent in 2006, outstripping the growth performance of all major exporting countries. Although for 2006 Chinese exports hit a record high of $969 billion – $68 billion less than American exports – WTO reports that in the second half of 2006 its merchandise exports started to exceed those of the United States.It is apparent that China at its current pace of export growth will overtake the United States in 2007 as the world’s second-biggest exporter. We can also project that in two to three years China will push aside Germany and become the world’s leading exporting country. So how well have New Hampshire’s exporters done so far this year? During the January-February period, exports of goods from New Hampshire, seasonally adjusted, increased by an annual rate of 1.6 percent from the same period of 2006. As a result, New Hampshire ranked 40th in export growth among the 50 states during the first two months of this year.Exports from New Hampshire companies plunged 12.2 percent in February from January, following an increase of 8.8 percent in the previous month. At their February mark, foreign sales registered $214.3 million, seasonally adjusted, which is $29.7 million less than the volume recorded in January. Manufactured goods overshadowed shipments abroad, accounting for 86 percent of all state exports. Foreign shipments from New Hampshire’s manufacturers decreased in February by 13.4 percent from the previous month to $184.4 million, adjusted for seasonal variation. On an annual basis, overseas sales from state factories were $1.2 million, or 4.2 percent, higher than in February of last year. Exports of non-manufactured goods fell 4.1 percent in February to $29.8 million, adjusted for seasonal variation. For the country as a whole, U.S. exports of goods dropped 2.9 percent in February to $88.4 billion, after rising steadily in the six prior months. The decrease in national exports reflected declines in capital goods, consumer goods and industrial supplies and materials. What is the outlook for global economic growth in 2007? In its April report on trade and its prospects for 2007, the WTO predicts that “economic fundamentals in the major economies are strong enough to keep global economic growth close to 3 percent,” compared with a growth rate of 3.7 percent in 2006. The WTO also predicts global trade in goods to “slow down to about 6 percent in 2007, or 2 percentage points less than in 2006.” The projections suggest that export orders for New Hampshire companies will continue to come in from foreign buyers but at a slightly slower pace than in 2006. Evangelos Simos, chief economist of the consulting and research firm Infometrica Inc., is editor for International Affairs in the Journal of Business Forecasting and department chair at the University of New Hampshire’s Whittemore School of Business & Economics, University of New Hampshire. He may be reached at eosimos@infometrica.com. -------------------------------------------------------------------------------- |
| airport Return to index of stories... |
Q&A with: Airport Director Kevin Dillon By Jack Kenny Published: Friday, May. 25, 2007 ENLARGE PHOTO ‘The city’s been very good to me,’ says Kevin Dillon, who steps down in June as director of Manchester-Boston Regional Airport for a new job in Orlando, Fla. Expansion of terminal and parking facilities, lengthened runways, increased navigational aids, the widening and reconfiguration of Brown Avenue and a passenger count exceeding 4 million a year are a few of the developments that have occurred in the nearly eight years Kevin Dillon has been airport director in Manchester. Even the name of the facility — now Manchester-Boston Regional Airport — has been changed, both to reflect and promote the facility’s growing share of the region’s airline passenger business. A New York native, Dillon held managerial positions at both LaGuardia and JFK and at Boston’s Logan International Airport before taking the job at Manchester in August 1999. He will be leaving in June to become deputy executive director at Orlando International Airport in Florida. -------------------------------------------------------------------------------- Q. Any mixed feelings about leaving Manchester for Orlando? A. The city’s been very good to me, and I’m always thankful for the opportunity I had here. I think there’s been a lot that’s been accomplished over the eight years I’ve been here. Certainly going to Orlando is a great opportunity. Orlando being a world-class tourist destination, a lot of the traffic is leisure traffic. But what a lot of folks don’t realize is that Orlando as a city has grown considerably, and there’s been quite an increase in business traffic as well. So there are a lot of exciting things happening down there. Q. What will you miss least about being airport director here? A. The snow. Q. Your record at the airport on your watch is pretty well known. Is there any one thing in which you take particular pride? A. Well, I think just overall, being able to put the airport’s infrastructure in a position to allow us to move from a small-hub facility to a medium-hub facility I think is an accomplishment, and it’s an accomplishment for which I give an awful lot of credit to the city. But I think probably one of the things I’m most proud of is turning around the relationship that the airport had with the local communities. You know, when I came to the airport they were somewhat strained. There was a challenge, I think, in getting the communities to realize that we wanted to be a good neighbor and tried to be a good neighbor and I’m proud of what we’ve been able accomplish in terms of that relationship. Q. What’s next for the airport? What’s on the drawing board? A. I think you’re going to continue to see the airport grow. There’s no doubt that new airlines and new destinations are there for the future. One of the things I feel very good about is that we just participated in a study with the FAA where they anticipate between 7 and 9 million passengers per year here in the next 10 to 15 years. We’re now at 4 million. So you could get a doubling of traffic by 2020. What it shows is that during that time period Manchester Airport will continue to be the fastest-growing airport in New England Q. So the drop in passengers last year isn’t a trend? A. Well, last year was down compared to the year before. That truly is related solely to the economics of the aviation industry. The bankruptcies that many carriers found themselves in forced them to reduce seats. The market demand is as strong as it’s ever been and it’s growing. The problem we had is we simply couldn’t get enough airline seats to meet that demand. Now that’s turning around, I’m pleased to say at this point. In fact, it was just this past month that we recovered all of those seats that we lost, so I’m expecting that you’re going to see growth at the airport resume. In addition to passenger numbers, I think what you’re going to see is the airport progressing into the international arena. That’s one of the things that, had I stayed here, I would have made a priority. Q. Will that mean new runways? A. One of the things I’m very proud of that I was able to accomplish in recent years is the infrastructure that will allow all of these things to occur in the future. We have the runway system in place, we have the terminal facility in place, we have customs and immigration at the airport, the cargo facilities — all the things that will allow the airport to continue to grow and prosper in the future. Q. So are we pretty well done for the immediate future as far as building out the airport? A. We are. I think what you’ll see going forward are demand-driven projects. I think you’ll probably see a couple of more terminal expansions, you’ll probably see additional parking lots created, but outside of that, the core infrastructure that allows an airport to be an airport — appropriately sized runways, appropriate navigational aids —that’s all in place at this point. Q. What about additional landing and arrival gates? A. We have ability to build out to 23 gates right now. All of the permitting is done. At this point it’s just a matter of when the airlines show up and when the passengers show up. Q. So there are no target dates for that? A. I’d say you will not see the need for an addition at the terminal for another five years. That’s why from an infrastructure standpoint, from a financial standpoint, the airport is very well positioned, and I feel very good about that. Q. A comparison of style is often made between you and your immediate predecessor here, Fred Testa. How do you see it? A. I think in this business there’s a time for everybody. You have to be the right person for the time, and I think when Fred was here, there aren’t too many people who could accomplish what he accomplished. I think you needed a person who was ready to go out there, full steam ahead. I think once things are in motion, there are different qualities that you need to bring to the table. In a lot of respects, Fred and I complemented one another in moving things along. Q. And what qualities will be needed in your successor? A. I think you’re going to need someone who’s an aviation professional, who truly understands the business, but somebody who can continue to understand the importance of community relationships. And the ability to build consensus, I think, is probably the number one quality that the city needs to find in someone. Click Here For Four Free Issues to NH Business Review |
| TAXES Return to index of stories... |
How entrepreneur-friendly is New Hampshire? Individuals thinking of starting their own small business may find the government policies of a number of other states more welcoming than New Hampshire’s, according to the results of a survey conducted by the Small Business and Entrepreneurship Council. The 2006 SBEC Small Business Survival Index found New Hampshire’s public policy environment to rank 18th when it comes to being an entrepreneur-friendly state. The state’s tax policy was ranked 20th, and its energy costs were ranked 47th. South Dakota, Nevada and Wyoming were listed as the three most entrepreneur-friendly, while Washington, D.C., New Jersey and California were listed as the least friendly to entrepreneurs. New Hampshire fared the best of all New England states on the comprehensive list, which had Vermont, Massachusetts, Maine and Rhode Island ranked at No. 42, 43, 47 and 48, respectively. Connecticut was ranked 32nd. In terms of tax policy, New Hampshire’s 20th-place ranking also was ahead of the other New England states, with Connecticut listed at 28; Vermont, 39; Massachusetts, 41; Rhode Island, 46; and Maine 47. Only Hawaii, Massachusetts, Connecticut and Alaska ranked below New Hampshire when it came to energy costs, however. The 11th annual Small Business Survival Index rated 50 states and Washington, D.C. according to the impact, on their small businesses and entrepreneurs, of 29 government-imposed or government-related costs including income, capital gains and property taxes, health-care insurance regulations, minimum wage and Right to Work legislation. To view the results of the 2006 SBEC’s Small Business Survival Index visit www.sbsc.org/home. -- TRACIE STONE -------------------------------------------------------------------------------- The State of New Hampshire, which levies no state sales or income tax, is considered one of the most favorable climates for doing business in the nation. Because so much is provided at the state level, few incentives are offered at the city-town level. In fact, by state law, New Hampshire cities are prohibited from offering tax breaks to private industry. In Nashua, the Office of Economic Development is a one-stop source for resources needed to start or expand a business. The city's revolving loan fund, in partnership with private financial institutions, provides small businesses and industries with gap financing. Keeping a state competitive in today’s global market can be difficult, but there is one factor lawmakers have direct control over: the quality of state tax systems. The Index measures how well a state’s tax system encourages investment by maintaining a broad tax base and low rates. “Labor and capital are more mobile than ever,” says Chris Atkins, staff attorney and co-author of the Index. “In the global competition for jobs, no state can afford to be saddled with a tax system that unduly punishes new business investment.” Rankings The ten best states in the Tax Foundation’s 2007 State Business Tax Climate Index are as follows: 1. Wyoming 2. South Dakota 3. Alaska 4. Nevada 5. Florida 6. Texas 7. New Hampshire 8. Montana 9. Delaware 10. Oregon *** Individuals thinking of starting their own small business may find the policies of a number of other state governments more welcoming than New Hampshire's, according to the results of a survey conducted by the Small Business and Entrepreneurship Council. The 2006 SBEC Small Business Survival Index rated New Hampshire's public policy environment 18th when it comes to being an entrepreneur-friendly state. The state's tax policy was ranked 20th, and its energy costs were ranked 47th. South Dakota, Nevada and Wyoming were listed as the three most entrepreneur-friendly, while. |
| sales tax Return to index of stories... |
NH business execs more positive about business climate than those in neighboring states Also, 47 percent of N.H. business executives feel the main disadvantage of a state sales tax would be loss of retail sales from border state residents Manchester, NH - New Hampshire middle market companies feel more positive about the economic climate in New England than do their counterparts in Massachusetts, Rhode Island, and Connecticut, according to a Middle Market Business Survey released today by Citizens Bank. The survey of 553 business executives at mid-sized companies in New Hampshire, Massachusetts, Connecticut, and Rhode Island found that 30 percent of all respondents feel New England's business climate is better than other regions of the country, while 34 percent feel it is about the same as other regions. That compares to 48 percent of New Hampshire respondents reporting that New England's business climate is better than other regions, and 39 percent saying it is about the same. Citizens Bank conducted a similar survey last year. Interestingly, respondents' perspectives on the strength of the U.S. business climate dropped precipitously from 2004 to 2005 - but their views of the New England business climate held steady. In 2004, 54 percent of all respondents felt the U.S. business climate was getting better, while in 2005, that percentage sank to 39 percent. Meanwhile, 31 percent of all respondents felt the New England business climate was getting better in 2004 and, as mentioned above, that percentage dropped to only 30 percent in 2005. "The good news is that many New Hampshire executives remain optimistic about the regional economy," said Tom Metzger, President and CEO of Citizens Bank of New Hampshire. "The strength of middle market businesses is an important component to the overall health of the state's economy, so we are encouraged by this news." New Hampshire executives were also asked how they felt about the implementation of a state sales tax, to which the majority responded that it would have a negative impact on the state, the business community, and the individual residents. At the same time, 40 percent did not feel that a sales tax would directly impact their own business. The main disadvantages of a sales tax, New Hampshire respondents said, would be a loss of retail sales from border state residents and an increase/shift of the tax burden on residents. However, New Hampshire respondents felt that a state income tax would have less of a negative impact than would a sales tax, with the main disadvantages of a sales tax being less disposable income and that businesses would either leave the state or be deterred from moving to the state. Echoing last year's survey, 41 percent of all respondents said they plan to increase their workforce this year, with the majority planning to increase their workforce by five to 10 percent. Only about five percent of respondents plan to decrease their workforce. And 42 percent of respondents plan to increase capital expenditures this year while 10 percent plan to decrease capital expenditures. Citizens Bank conducted the Middle Market Business Survey to gain a better understanding of what motivates and concerns mid-sized businesses - an important segment of New England's economy. The survey questioned 553 business executives at middle-market businesses in Massachusetts, New Hampshire, Rhode Island, and Connecticut. Survey respondents had either total or substantial responsibility for choosing finance-related products and services for their businesses. The overall margin of error is +/- 4.1%. The survey was conducted from August 9 to September 19, 2005. Citizens Bank New Hampshire, with 76 branches and 168 ATMs, is a $9 billion state-chartered, full-service commercial bank headquartered in Manchester. Citizens Bank New Hampshire is a subsidiary of Citizens Financial Group, Inc., a $148 billion commercial bank holding company headquartered in Providence, R.I. Citizens has more than 1,600 branches, approximately 3,100 ATMs and more than 27,000 employees in a 13-state retail branch network and non-branch offices in more than 30 states. Citizens is the eighth-largest commercial banking company in the United States ranked by deposits. Citizens is owned by RBS. Site Map | Privacy | Security | Terms of Use © Copyright 2007 Citizens Financial Group. All rights reserved. Member FDIC |
| ed funding Return to index of stories... |
Attorney: NH courts won't impose new tax By JOHN DISTASO Senior Political Reporter Friday, Jun. 8, 2007 CONCORD – If the current legislative session ends without a constitutional amendment allowing the targeting of state adequate education funds, it will not mean the courts will now step in to impose a new tax or tell lawmakers how much to spend, according to a leading attorney closely involved in the issue. William Chapman of Concord, who represented Londonderry and other school districts in a lawsuit against the state that was decided last year, said yesterday that as long as state lawmakers agree on legislation spelling out a detailed definition of the components of an adequate education by the end of the month, there will be no court takeover of the state education funding process. The state Supreme Court ruled in September 2006 that lawmakers and the governor must "define with specificity the components of a constitutionally adequate education" by July 1. The court said that should lawmakers "fail to do so," it would then "be required to take further action to enforce the mandates" of the state constitution. It said it may appoint a special master "to aid in the definition of a constitutionally adequate education" or send the case to a trial court judge "for further factual development and a determination of whether the state is providing sufficient funding to pay for an adequate education." The House and Senate have now passed separate versions of legislation defining an adequate education. A committee of conference will likely be set up to hammer out a compromise. Chapman said that if an adequate education bill is signed into law, lawmakers and Gov. John Lynch "will have met the obligation imposed on them by the Londonderry decision." The question will then be, he said, whether, and how quickly, lawmakers will proceed in addressing three other requirements imposed by the court: Determine the cost of an adequate education; Fund an adequate education with constitutional taxes; Ensure the delivery of an adequate education through accountability. Chapman said his problem with the Legislature's adequacy bills is the time line for arriving at an adequate education cost. The bill passed by the Senate sets up an oversight committee to figure the cost and report it to elected state leaders by Feb. 1, 2008. It says the Legislature will then "complete the determination of the cost of an adequate education. as expeditiously as possible. but no later than the end of the 2008 fiscal year," on June 30, 2008. The House bill sets no specific time line for determining a cost. Chapman said his clients in the coalition that sued the state in the Londonderry case will soon meet "to figure out our next step." He said he suspects that "not only our clients, but all school districts, are going to say the time line is out of kilter with the budgeting time line all school districts follow." He said districts begin their budgeting process in the fall and conclude prior to town meetings in March. If lawmakers wait another year to set the cost, let alone find a funding source, the districts "won't know what their revenue will be." Chapman said he saw "no reason why the study committee can't meet this summer, work with the Department of Education and come up with a cost and why lawmakers can't approve it in the fall," presumably in a special session. He said he suspects that the districts will try to convince lawmakers on the committee of conference to "move up their timetable." But even if they do not, he said, another court challenge is unlikely. "That is not a very attractive option," he said. "You're asking one independent branch to tell another how to do its business. I'd hope legislators would act more responsibly understanding what the time line is for putting budgets together." A constitutional amendment would allow lawmakers to eventually target state adequate education aid to needier school districts at the expense of wealthier ones, as Lynch has proposed. The wealthier districts would have been required to use their own locally raised property taxes to pay for some aspects of adequacy. The constitutional amendment, which some lawmakers last night were trying to find ways to revive after a big defeat on Wednesday, would effectively overturn a key passage in the September 2006 Londonderry decision that says: "Whatever the state identifies as comprising constitutional adequacy it must pay for. None of that financial obligation can be shifted to local school districts, regardless of their relative wealth or need." With the amendment dead, the state must now pay the full cost of adequacy to all school districts. Any targeting to needy communities must be done with additional funds. The cost difference could be immense, and some lawmakers warn that a broad-based tax is inevitable. Chuck Douglas of Concord, who tried to facilitate an agreement among lawmakers on a constitutional amendment, asked, if the pending adequacy definitions become law, "What are the costs?" He said he does not believe the court can impose a tax, but it could eventually step in and establish a cost that lawmakers and the governor would then be obligated to pay. "If the Legislature doesn't pay for it, what happens?" Douglas asked. "Does the Merrimack County Sheriff take John Lynch to jail? "The point is that it's going to become a very confrontational setting," Douglas said. "Those who want an income tax were salivating over the whole thing. They'll get their wish. They'll get a huge confrontation." YOUR COMMENTS -------------------------------------------------------------------------------- The voices of UnionLeader.com readers: Where in the NH Constitution is it stated that the State must provide an education for your children? If anyone cared to read the Constitution they would see that it does not. The State Supreme Court does not have the power to require the State to to do something that is not explicitly stated in the Constitution. Therefore the Court does not have the power to require the state to provide an "adequate education". The people of NH need to tell the State Supreme Court to stop "legislating from the bench". I urge NH to wake up and stop this madness. Centralized control of education will only make things much worse. If you don't believe me just look at Vermont. Vermont has already gone down this path. Students in Vermont schools are doing worse since central control was implemented and taxes have gone up drastically. Remember when the town of Killington wanted to secede and join New Hampshire? This act was a direct result of the tax burden placed on the town by centralized control of education. - David Noel, Burlington, VT CommentNH blogosphere & eventsPrintEmailPage topSite Search ?PRIOR EDITIONS ?NEWS ARCHIVE All trademarks and copyrights on this page are owned by their respective owners. © 1997-2007. |
| health care -jim r Return to index of stories... |
News Releases 04/17/07 Mandating benefits doesn't solve healthcare crisis News By Jim Roche, president and CEO of the Business and Industry Association Just ask business owners and managers, particularly small business owners and managers, what keeps them awake at night. One of the first things they’ll mention, if not the first, is the rising cost of healthcare benefits for their employees. And for good reason. A recent study by the New Hampshire Center for Public Policy Studies, “16 Cents of Every Dollar: Health Care Costs in New Hampshire ,” states: The cost of health insurance policy is going up 10% per year…the average family health insurance plan in New Hampshire increased from $7,525 in 2000 to $11,156 in 2004. A one-person plan went from $2,790 to an average of $4,084 in 2004. Two-person coverage cost $8,495 in 2004. Employers are struggling under the weight of 10% annual increases in their share of health care for employees. Monthly healthcare premiums today cost nearly as much as monthly home mortgage payments 20 years ago. Unlike most monthly mortgage payments though, health insurance premiums aren’t locked in for 30 years. They keep increasing. The reasons for rising healthcare costs are many and complex. But what may be impacting health insurance costs the most are mandates. Health insurance mandates require health insurers to cover certain procedures and services from healthcare providers, and particular patient populations. They are not optional. Insurers can’t leave them out, and businesses shopping for health insurance cannot pick and choose among the benefits that best suit their employees. Mandates are part of state law and must be included in every health insurance policy. Most people don’t realize the number of mandates already in law or the amount these mandates add to the overall cost of a health insurance policy. Each year the Council for Affordable Health Insurance tracks the increase in mandates state by state. It also estimates the costs associated with these mandates. According to the CAHI, healthcare mandates may account for a little less than 20% to more than 50% of the total cost of a health insurance policy. Currently, New Hampshire has 38 healthcare mandates. You might think this would include all medical procedures and services, but it doesn’t. In fact, this legislative session alone, numerous new healthcare mandates have been proposed. Most, if not all, will increase the cost of health insurance for employers and employees alike. Let’s look at one example. Our state Legislature is poised to expand healthcare coverage for dependents from ages 18 to 26. Supporters of this proposal claim these young adults cannot obtain health insurance on their own, so this is one small, inexpensive way to reduce the cost of the uninsured to our state. Inexpensive? Hardly. Recently, the New Hampshire Center for Public Policy Studies analyzed the cost impact of this particular mandate. In a report titled, “Health Care Coverage in New Hampshire Estimates of Proposed Expansions,” researchers concluded this mandate alone “…would result in $7.7 million in new medical costs to be insured through the private insurance system.” It makes you wonder, what is the cost of mandating infertility treatments? Or the cost of mandating hormone treatments for transsexuals? Bariatric surgery for diabetics? Prostate cancer screening? Early childhood intervention services? Midwifery services? You get the picture. All of these mandates are being considered this legislative session and may eventually pass. The Business and Industry Association opposes new or expanded healthcare mandates. While mandates make coverage more comprehensive, they also drive up health insurance costs. Supporters argue that one or two mandates may only add 1 or 2 percent to the cost of premiums. But it is the combined cost of many mandates that make health insurance unaffordable. Advocates believe that expanding health insurance coverage through mandated benefits will decrease healthcare costs through greater access to preventive care and less use of costly emergency services. But that’s the same argument supporters used to create the existing 38 health insurance mandates in New Hampshire, and health insurance premiums continue to rise at a 10% annual clip. Our healthcare system still relies heavily on employer-sponsored health plans. If health insurance becomes unaffordable to employers, it becomes unaffordable – and potentially unavailable – to employees. Employers may elect to shift more of the cost burden to employees or stop offering health insurance as a fringe benefit. If that happens, how have mandates helped solve the problems of affordability and access to health care? The health care situation in New Hampshire, and in the rest of the country, is a deep, complex, multi-faceted issue. Instituting more and more health insurance mandates in New Hampshire will not solve the healthcare cost crisis here. It will only make it more difficult for employers to continue providing health benefits for their employers. A federal solution to this national challenge is required, not the Band-Aid approach of mandate on top of mandate currently underway in New Hampshire. Return Business and Industry Association - New Hampshire's State Chamber of Commerce 122 North Main Street Concord, NH 03301 | Telephone: 603.224.5388 | Fax: 603.224.2872 Site Map | Contact Us | Privacy Policy |
| biz roundtable Return to index of stories... |
BIA is New Hampshire's leading business advocacy group. Its member companies employ 80,000 people throughout New Hampshire and contribute $5 billion per year in payroll to the state's economy. The BIA holds the charter as New Hampshire's state chamber of commerce. |
| Web Promo Return to index of stories... |
VERSION ONE: Did you know that New Hampshire Outlook is available online on demand at nhptv.org? We've been streaming our broadcasts since the program premiered in September 2000. Whether you want to watch this show again, email it to a friend, search and watch past programs or get more information on thousands of stories and topics, you'll find it all at nhptv.org/outlook. VERSION TWO: Would you like to watch this show again? Maybe you want to email it to a friend? Are you looking for more information about our New Hampshire stories and interviews? You can do all that and more at nhptv.org/outlook. VERSION THREE: Would you like to watch this show again or email it to a friend? You can do all that and more at nhptv.org/outlook. |
| bckground Return to index of stories... |
The airport now plays a major role in New England’s regional air transportation system, creating increased opportunities for New Hampshire businesses and the state’s important tourism industry. An economic impact study conducted in 2002 by Leigh Fisher & Associates, a national aviation consultant, showed that the airport and airport-related businesses now contributes over $715 million to the local economy during that year. The study also concluded, using a conservative “multiplier” to forecast increased economic contribution in the future, that Manchester Airport will contribute over $1.5 billion annually to the New Hampshire economy by the year 2015. Manchester Airport is identified as a key driver for economic growth in the north of England Manchester Airport is New England’s third largest cargo airport, processing more cargo each year than all other regional airports in New England combined. While cargo activity at many airports has remained relatively flat during the past several years, cargo at Manchester has experienced steady growth. One of the main reasons for this growth is that New England businesses have realized the convenience of using Manchester Airport to move products in and out of the region. founder and president of the largest fire protection company in New Hampshire. Hampshire Fire Protection, headquartered in Londonderry, NH, 90 employees, including T We look forward to a wide-open discussion between our panel members. Despite a slump in the housing market, Taxes and Business Climate. New Hampshire is a low cost state in a high cost region. New Hampshire offers one of. the lowest tax burdens in the country for. ** State Business Tax Climate Index by Curtis S. Dubay and Chris Atkins Background Paper No. 52 Executive Summary The Tax Foundation presents the 2007 edition of the State Business Tax Climate Index as a tool for lawmakers, the media, and individuals alike to gauge how their states’ tax systems compare. Policymakers can then use the SBTCI to pinpoint changes to their tax system that will explicitly improve their state’s standing in relation to competing states. How much states collect in taxes is critical, but how they take it is also important. In other words, quite apart from whether a state’s total tax burden is higher than in other states, it can enact a set of tax laws that cause great damage to the economy. The SBTCI is designed to measure the competitiveness of each state’s tax system so lawmakers, the media and the public alike can gauge how their state compares to other states. They can also use the SBTCI to pinpoint specific changes that will increase the competitive standing of their state. Good state tax systems levy low, flat rates on the broadest bases possible, and they treat all taxpayers the same. Variation in the tax treatment of different industries favors one economic activity or decision over another. The more riddled a tax system is with these politically motivated preferences the less likely it is that business decisions will be made in response to market forces. The SBTCI rewards those states that apply these principles in five important areas of taxation: individual income taxes, major business taxes, sales taxes, unemployment insurance taxes, and taxes on wealth or assets such as property. The SBTCI places 113 variables into five component indexes that each measure a different sector of a state’s business tax climate. The five component indexes are the Corporate Tax Index, Individual Income Tax Index, Sales Tax Index, Unemployment Tax Index and Property Tax Index. The total score for each state is calculated based on the scores on each of the five component indexes. Using the economic literature as our guide, we designed these five component indexes to score each state’s business tax climate on a scale of zero to 10. Each component index is devoted to a major area of state taxation and each has two equally weighted sub-indexes, some of which include several categories and variables under them. Overall, there are 10 sub-indexes and 113 variables The ten best states in the Tax Foundation’s 2007 State Business Tax Climate Index are as follows: 1. Wyoming 2. South Dakota 3. Alaska 4. Nevada 5. Florida 6. Texas 7. New Hampshire 8. Montana 9. Delaware 10. Oregon The ten worst states in the Tax Foundation’s 2007 State Business Tax Climate Index are: 41. Minnesota 42. Maine 43. Iowa 44. Nebraska 45. California 46. Vermont 47. New York 48. New Jersey 49. Ohio 50. Rhode Island |
| Key: economy Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 6/17/2007 HOST: Beth Carroll Length: 25:00 Now on New Hampshire Outlook -- where New Hampshire Talks: The Manchester Boston Regional Airport is an economic engine for the state. But, how are other companies in New Hampshire faring? Just how business-friendly is NH? We'll ask that question and more in this next half hour. We're coming to you from the Manchester-Boston Regional Airport, one of the fastest growing transportation hubs in the country. Last year, over four million passengers flew in and out of this airport, and over two hundred million pounds of cargo was processed here. Many regard it as a crucial engine for New Hampshire's economy. Hello, I'm Beth Carroll. Welcome to NH Outlook. It's clear the Manchester-Boston Regional airport plays a major role in the region's transportation system -- creating opportunities for NH businesses and the state's important tourism industry as well. And with no income or sales tax, NH consistently ranks in the top ten when it comes to business-friendly states. But, with rising health and energy costs and pressure for more revenue -- how are businesses really faring in the state? Here to talk about that and more: Jeff Feingold, editor of the NH Business Review, Jim Roche, president of the NH Business and Industry Association, and Larry Thibodeau the founder and president of Hampshire Fire Protection. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS:Jeff Feingold\ NH Business Review, Dave Juvet\ NH Business and Industry Association, Larry Thibodeau\Hampshire Fire Protection |
| Key: transportation Return to index of stories... |
NEW HAMPSHIRE OUTLOOK Air Date/Time: 6/17/2007 HOST: Beth Carroll Length: 25:00 Now on New Hampshire Outlook -- where New Hampshire Talks: The Manchester Boston Regional Airport is an economic engine for the state. But, how are other companies in New Hampshire faring? Just how business-friendly is NH? We'll ask that question and more in this next half hour. We're coming to you from the Manchester-Boston Regional Airport, one of the fastest growing transportation hubs in the country. Last year, over four million passengers flew in and out of this airport, and over two hundred million pounds of cargo was processed here. Many regard it as a crucial engine for New Hampshire's economy. Hello, I'm Beth Carroll. Welcome to NH Outlook. It's clear the Manchester-Boston Regional airport plays a major role in the region's transportation system -- creating opportunities for NH businesses and the state's important tourism industry as well. And with no income or sales tax, NH consistently ranks in the top ten when it comes to business-friendly states. But, with rising health and energy costs and pressure for more revenue -- how are businesses really faring in the state? Here to talk about that and more: Jeff Feingold, editor of the NH Business Review, Jim Roche, president of the NH Business and Industry Association, and Larry Thibodeau the founder and president of Hampshire Fire Protection. PRODUCER/REPORTER: Beth Carroll NAME OF PARTICIPANTS:Jeff Feingold\ NH Business Review, Dave Juvet\ NH Business and Industry Association, Larry Thibodeau\Hampshire Fire Protection |