Every biennium the
legislature creates a new state budget. This budget is required to be balanced
every year. This happens no matter what party currently holds the majority in
the House, the Senate, or the Governor’s office. Right now the legislature is
winding down. The Committee of Conference reports will have been voted on by
the time you read this.
As always, the most
interesting item to watch is the budget wrangling. The House got started a bit
late this year; probably because the O’Brienistas created so many diversions
that everything was late. On days when the House is session, bills that will be
coming up for a vote fall into two categories in the calendar: Consent and
Regular. The Consent Calendar is comprised of bills that come out of committee
with a unanimous vote to either pass or kill. They’re generally
non-controversial, and are easily dispatched with voice votes. O’Brienistas made
it a “thing” this session to yank as many bills off the consent calendar as possible,
just to gum up the works and create delay.
Rep. Neal Kurk chairs the House Finance Committee. Kurk has long been a fiscal conservative, but generally someone who could be sensible when the situation called for it. This biennium apparently Kurk was so giddy at GOP control of both houses that he’s thrown caution and good sense out the window in favor of ideology. He partnered up with Free Stater Dan McGuire to create a hastily written budget that was guaranteed to ensure that NH would continue lose ground economically and hurt a lot of people along the way.
Rep. Neal Kurk chairs the House Finance Committee. Kurk has long been a fiscal conservative, but generally someone who could be sensible when the situation called for it. This biennium apparently Kurk was so giddy at GOP control of both houses that he’s thrown caution and good sense out the window in favor of ideology. He partnered up with Free Stater Dan McGuire to create a hastily written budget that was guaranteed to ensure that NH would continue lose ground economically and hurt a lot of people along the way.
The original version included
$88 million in DOT cuts, which meant rest areas and some bridges would be
closed. Half the workforce would be eliminated. Federal funds would be lost,
the widening of I-93 would be jeopardized, and some 2500 miles of roads and
1000 bridges would have been turned over to cities and towns to pay for. Apparently
Meals on Wheels was a socialist program that needed to be cut, and Service Link
was completely de-funded. Dan McGuire proposed $2 million in cuts to the NH
Veteran’s Home, which would have resulted in 25 veterans losing their place to
live. Some changes (the proposed cuts to the Veteran’s Home were too much for
even the most rabid members of the right) were made, and eventually the budget
found its way to the Senate. The Senate made some cosmetic changes and added
business tax cuts. Because when you claim that there isn’t enough money to
adequately fund the needs of the state, the only thing to do is cut
revenue!
A recent op-ed in the Laconia
Sun penned by Senators Jeb Bradley and Jeanne Forrester claimed that the Senate
decided to reduce business taxes at the end of the budget process. On January
8, Senator Bradley introduced a bill to lower the business profits tax (BPT).
On January 8, a bill Bradley co-sponsored was introduced to lower the business enterprise
tax. (BET). Those bills were both passed
by the Senate and Bradley tabled both. The intent from the very beginning of
the session was to lower business taxes. To pretend otherwise is disingenuous
at best. They’re telling us on the one hand that we must live our means while
the other hand is slashing the means we live on.
The lowering of the BET and
the BPT are touted as the way to bring business to our state. The fact that
businesses actually want good infrastructure, lower utility costs, and an
educated work force is lost on our representative ideologues, who are firmly
steeped in the kind of economic policies that have failed to work since the
Reagan administration. NH is a wealthy state, yet we refuse to raise sufficient
revenues to fix the things that need fixing and invest in the future. As a
result, we have the 11th worth infrastructure in the United States.
Award winning NH civil engineer Darren Benoit tells us that if we start right
now, it will cost us $1.5 billion to fix everything. NH also ranks at about 100th
place out of the 50 states for state funding of our university system. We want
an educated workforce, but we do not want to pay for it. If a budget is a
statement of our values, than it’s painfully clear that the budget writers
don’t value our state or its people.
The budget for tourism, the
second largest industry in our state was level funded in this budget. This will
not hurt the southern part of the state. It is likely to impact the North
Country. Be sure to thank your GOP representatives for voting against the best
interests of our area. It’s also worth pointing out that this budget fails to
invest in repairing our state parks, something that would also benefit the
tourist economy.
A variety of
self-congratulatory legislators are boasting that the substance abuse treatment
budget was increased. It was but the Senate added those increases. They were
not in the original House budget. The increases came about because even the
most rabid ideologues couldn’t pretend that there aren’t significant numbers of
young people dying from heroin overdoses.
Another aspect of all of this
that goes unmentioned by our budgeteers is the downshifting of costs. Items the
state doesn’t adequately fund (like infrastructure) get passed on to the
counties and municipalities, which will likely be passed on to you, in the form
of an increase in your property taxes.
As I write this, the Governor
has stated her intent to veto the budget unless changes are made. The NH GOP is
wailing about the need to compromise. Their definition of “compromise” appears
to mean that the House Republicans get to write the budget; the Senate
Republicans get to change it, and the Republicans of both bodies compromise
with each other in the Committee of Conference. The CoC process included the
compromise of closed door meetings with Greg Moore of the Koch funded Americans
for Prosperity. After all that internal GOP compromise (with a dash of
Koch-promise) the Governor is expected to meekly sign it, displaying her willingness to compromise.
This budget fails to address the
needs of our state and blows a big hole in future budgets by cutting business
taxes. It guarantees that nothing will ever get fixed properly, because we will
have to live within our deliberately decreased means.