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New Economic Study Highlights Significant Impact of Keeping Taxpayer Funds in State

New Economic Study Highlights Significant Impact of Keeping Taxpayer Funds in State

Results Show New Hampshire Could Gain Nearly $200 Million in Economic Growth

CONCORD, New Hampshire – The New Hampshire Bankers Association (NH Bankers) released a study examining the economic impact of keeping taxpayer funds in state. Prepared by Polecon Research, the economic study looks specifically at public funds invested in the New Hampshire Public Deposit Investment Pool (NH PDIP) and finds New Hampshire stands to gain significantly from public funds being re-invested in the state.

Background: In 1992, PDIP was created for New Hampshire’s public entities like school districts, cities, towns, counties and the State, as an option for investing funds that are designed to meet the short-term investment needs of public entities. As of June 30, 2023, over $530 million of state and local government and agency deposits managed through NH PDIP leave the state and are invested in a variety of debt and financial instruments issued by financial institutions and organizations around the world. The public funds deposited with PDIP and thereafter invested outside of New Hampshire are neither insured nor collateralized, unlike funds deposited with New Hampshire’s banks.

If taxpayer funds presently deposited with PDIP were instead required to stay local, they would significantly help grow New Hampshire’s economy by increasing access to credit for local small businesses, increase state and local revenues, grow jobs and increase personal wealth for Granite Staters. The report finds:

  • If PDIP funds were kept in NH in 2023, it would have increased the state’s GDP by nearly $200 million.
  • Conservatively projects an additional $182 million available for NH business lending, primarily benefiting small businesses with fewer than 50 employees.
  • Projects an increase of $60.5 million in local tax and fee revenues and $56.2 million in state revenue over the next five years.
  • Interest from bank deposits in New Hampshire, coupled with boosted tax revenues from business lending and state GDP growth, could reach $52.2 million annually at a 9.85% yield.
  • Projects personal income to increase by as much as $205 million.
  • The total return on public funds deposited in New Hampshire banks will remain greater than the current reported yield on funds placed in out-of-state organizations and investments through the NH PDIP.

Senator Cindy Rosenwald, D-Nashua, said, “For many people this study is eye-opening. We have a real opportunity to grow our economy by being intentional about how public funds are invested. That’s why I filed the GLOW Act (Growing Local Opportunities for Wealth). I encourage others to review the study detailing the significant economic benefits and carefully consider keeping taxpayer funds local.”

Kristy Merrill, President and CEO of NH Bankers added, “This study shows there is significant economic opportunity for the Granite State if we ensure that taxpayer funds stay local. Doing so will grow our economy, increase access to credit for small businesses and go towards important needs like affordable housing, increase state and local tax revenues and job growth. We’re thankful for Senator Rosenwald’s leadership in moving the GLOW Act forward (SB 553) in the upcoming 2024 legislative session to work towards capturing the potential laid out in the study.  We look forward to working closely with legislators on this commonsense proposal that will benefit all Granite Staters if passed.”

The full report is attached to this release and can also be found at

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