Should NH spend more to recruit business?

The New Hampshire Division of Economic Development is responsible for growing granite state businesses and recruiting new businesses from out-of-state.  According to the Division's supporters, New Hampshire is not spending enough on business recruitment. 

The Division received a budget of $2.3 million in 2015.  Vermont, by comparison, budgeted roughly $4.5 million for economic development in 2015. 

New Hampshire also has little to offer in the way of business incentives, such as tax breaks and grants.  In 2012 the New York Times reported that just three states spent less than New Hampshire on business incentives per capita.

Division supporters argue that regardless of New Hampshire's objective business-friendliness, the state needs to increase funding for the Division to compete with other states' advertising and recruitment.

Right now the state budget making its way through the legislature includes roughly $400,000 in additional funding for the Division over two years. 

$400,000 is a relatively tiny cut of New Hampshire's next state budget.  However, lawmakers are struggling to cover big ticket items, like Medicaid and the Department of Transportation, without raising taxes. 

Some legislators may argue New Hampshire will get a better return on that $400,000 elsewhere, particularly since the Division of Economic Development is difficult to evaluate.

A 2014 performance audit from the Office of the Legislative Budget Assistant concluded that the Division lacked goals and performance measures.

"While the Division is able to highlight individual success stories ... we were unable to determine if its programs were effective in promoting new business growth, supporting expansion of existing businesses, or attracting new businesses to the State," the audit concluded.