Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts

Thursday, June 20, 2019

Failure to Invest




Every two years, the governor creates a budget and hands it off to the House. The House Finance Committee uses the governor’s budget as a sort of template, and writes a whole budget (in two parts), that includes where money needs to go, and where it’s coming from. When it passes the House, it moves on to Senate Finance, where it is further altered. One reason for this is that by the time a budget reaches Senate Finance, there are better state revenue estimates to work with. Any House bill that is amended by the Senate goes back to the House, where they vote to concur with the changes, or not concur. In the event of non-concurrence, the House can either let the bill die, or ask for a committee of conference. The budget for the next biennium is currently being worked on in two committees of conference.

Governor Sununu began threatening to veto the budget in early March, weeks before it ever reached the Senate. He was all puffed up and boasting of his extensive collection of red pens, and how he was going to veto all the “dumb ideas.” That was also two months before he suddenly announced, after months of hinting at a Senate campaign, that he was going to run for reelection. 

One of Sununu’s pet peeves is the paid family and medical leave program that is included in the budget. He and his minions have labeled it an income tax, and bray about that at every opportunity. Sununu cooked up a voluntary family leave plan with Governor Scott of Vermont, using state workers as the pool. The Vermont legislature had no interest in this plan, and created an entirely different one, just as NH did. Maine is also working on a family leave program. 


It’s the kind of benefit offered in states that are thinking ahead. In NH, we bemoan the fact that our young people don’t stay here. They don’t stay because a college education here will saddle them with the highest student loan debt in the nation, and when they leave school, they can’t find a good paying job, nor can they afford housing. NH also bemoans the fact that we can’t attract skilled workers.

I have a friend who is among the 16 percent of NH residents who works in Massachusetts. He does this because he couldn’t get a good paying job in his technical field here in the state he lives in. He’ll be eligible for the Massachusetts paid family and medical leave program that begins at the first of the year. By working out of state he gets better pay and better benefits. That is how a state attracts skilled workers. 

NH has the lowest minimum wage in New England, at $7.25. NH bemoans the fact that there aren’t enough workers to fill all the jobs that need doing, many of them being low wage service jobs, but we don’t want to pay people to do the work. The low wages combined with the cost of housing may have something to do with that lack of workers. The governor is expected to veto the bill that would increase the minimum wage to $12 an hour.



Governor Sununu, on the other hand, is the highest paid governor our state has ever had. Governors in recent decades accepted reduced pay, as a nod to the poverty of our state agencies, and as a note of humility from the wealthy. (Poor people are not elected governor in NH, or anywhere else.) Governor Hassan was paid $110,400 each of the four years she served. Governor Lynch reduced his pay by $4,000 in 2009, during the recession. Governor Craig Benson didn’t even take a salary during his term. He gave his pay as bonus money for state workers. Sununu is being paid $20,000 a year more than Governor Hassan was. He received a pay raise on his first day in office – a raise negotiated by the state employee’s union, the same union he’s refused to negotiate a contract with, because the contract includes…you guessed it, pay raises. 

I love this state, but sometimes our arrogance is stupefying. We think that people will just come here to spend copiously, without our investing in the reasons they come – like our state parks, which continue to be inadequately funded by user fees.

New Hampshire has been skating by on spending little for decades, with GOP legislatures putting off work that needed to be done because they wanted to create the illusion that The Pledge works. Meanwhile, the state is being sued again for the terrible way we fund education, and the governor is getting ready to make a big Trumpian noise and veto a budget that does something good for workers and families. Other states are investing in workers and families, and attracting skilled workers, and NH is making the same mistakes over and over again, and expecting different results. 


Published as an op-ed in the June 21 edition of the Conway Daily Sun newspaper 





Thursday, June 22, 2017

Grade A Bunkum



By the time you read this, NH may have a budget for fiscal years 2018 and 2019. It’s also possible that we may not.

The budget process begins with the Governor, who presents his budget to the House and Senate. It contains his priorities, the things he would like to see funded in the next biennium. The House Finance Committee then uses the Governor’s budget as a blueprint for the budget they design. There are hearings where every government agency lists their needs, and public hearings where residents can express their budget priorities. Eventually they finish it and it comes out of committee, and goes to the full House for a vote. After passing it goes to the Senate Finance Committee, where they tinker with it. The House flies blindly, without revenue projections, but the projections are in by the time it gets to the Senate. When they finish tinkering, the bill comes out of committee and goes before the full Senate. If it passes, it goes back to the House, where it is sent to a Committee of Conference, where members of the House and Senate work out their differences, agree to concur, the budget is voted on by both bodies, and then prances off to the Governor’s desk.

This year, the budget process has been a disaster from the very beginning. For the first time in recorded history, the House failed to pass a budget. The creation of a budget became the responsibility of the Senate. The Senate Finance Committee had the same hearings with various government agencies, interested parties, and a public hearing for voters. Once they finished, the committee voted it ought to pass, and then it went to the full Senate for a vote. The Republican Party has control of the Senate, so the votes fell along party lines. The budget went back to the House for concurrence but there was no concurrence to be had, so a Committee of Conference was put together so that both bodies could work out an agreement. They have. The only Democrat on the Committee of Conference was removed when she refused to sign off on the CoC report. The House and the Senate will each have voted on this budget by the time you read this column.

Opinion pieces by the majority party are springing up like mushrooms (and you know what mushrooms grow in) in newspapers around the state. There is much chest thumping about “living within our means, “business tax cuts,” and “job creating.” The writers assume you won’t put two and two together. If the last round of business tax cuts were such a tearing success, why are we running the state as if it were impoverished? They claim the tax cuts will allow businesses to hire more and keep young people here. That’s pure grade A bunkum they’re selling.  

The state fails to invest in higher education, infrastructure, and affordable housing. Even if young people wanted to stay in a state so unwilling to invest in itself, there isn’t any place for them to live. This week there are four and a half pages of help wanted ads in the Conway Sun and 6 apartments for rent. It’s the same all over the state. Rather than wake up and smell the future, thanks to The Pledge we continue to elect people who perpetuate the foolishness that it’s still 1975.The business tax cuts just mean that the burden will continue to be shifted to the homeowner in the form of property tax.

Attaching keno to the full day kindergarten funding is being touted as a “compromise” instead of the poison pill that it really is. The education of our children should not be attached to uncertain gambling revenues, and, again, if those business tax cuts are working so well why is this necessary? A cynical person might wonder if this weren’t the plan all along. Our Trump supporting governor made himself sound human on the campaign trail by touting support for full day kindergarten. If the kenogarten bill fails, he can blame Democrats AND not have to cough up state money for education, something Republicans in this state are profoundly opposed to. It’s a win-win for him.


The Republican Party is fighting an internal war, between the regular old right wing and the far extremist right wing of the party.  The self-styled Freedom Caucus thinks the regular right wing is spending too much money, and doesn’t hurt enough people. The Democrats don’t think the budget spent enough money. The regular right wing probably could have negotiated with the Democrats, to pass a budget, but they didn’t want to, because this isn’t about what’s best for the state. This is about ideological purity, and party loyalty. To negotiate with the Democrats would be seen as weak. They’d be called RINOs. They’d be primaried in their next elections for not being hard core enough. The Republican Party has abdicated its responsibility to NH voters, and chosen ideology over New Hampshire.  




Published as an op-ed in the June 23 edition of the Conway Daily Sun newspaper 

Thursday, April 13, 2017

Obstruction is Easy




In the process of crafting a budget for our state, first the Governor gives the legislature his or her budget. This year it was written by our new governor and his  budget advisor  Charlie Arlinghaus of the Josiah Bartlett Center, a far right wing think tank. The House Finance Committee then uses the governor’s budget as both a model and a jumping off point for creating their own version. At crossover, the budget goes to the Senate where they tinker with it, and then send it back. The differences are hammered out in a committee of conference where everyone works hard to ensure that there isn’t enough money to run the state as if it mattered, and then it’s done.

Not this year. This year, a cabal of obstructionists calling themselves the Freedom Caucus decided they didn’t like the budget. It spent too much money, they said. This cabal is comprised of legislators who are still angry that their leader, Bill O’Brien was defeated in his second bid to become Speaker, after what was widely acknowledged as a disastrous first term in that position. Even though O’Brien is no longer part of the legislature, he’s driving this bozo bus. This is the same O’Brien who, in 2013, gave a floor speech congratulating the House on the passage of what he called, “An O’Brien budget.” Minutes before, he’d actually voted against it.  

The Freedumb caucus is comprised of the same guys who want to make changes to the SNAP program that will cost the state more to administer, while saving no money, so you know they have the best interests of taxpayers at heart. These are the same guys who have been obstructing and delaying  at every opportunity since 2013.They’re libertarians, Free Staters, and Tea Partiers,  puffed up with manly pride that they’ve made a stand against Big Gummint Spending!

They refused to vote for the budget. The Democrats refused to vote for it, too, but not for the same reasons. The Democrats had some very modest (timid) additions they wanted to see added in. They offered to work out a compromise with Speaker Shawn Jasper, who rebuffed them half a dozen times.  Apparently he was unable to make a deal with the Freedumb caucus, even after he brought the governor in to yell at them, and so, for the first time ever, the House failed to send a budget to the Senate. This means that when the Senate comes up with a budget, the House will have no bargaining chips in the Committee of Conference. The one thing we can be sure of is that there won’t be enough money in this budget to run this state like a business, which is often presented as a goal.  The GOP should be incredibly embarrassed by this failure, yet none are brave enough to speak against the hostage taking actions by the O’Brienistas.

Obstruction is easy. The GOP has been specializing in it since 2009 when Obama took office. On the local level, we’ve had a Democrat in the corner office since one-term Republican Governor Craig Benson. As long as a Democrat held the executive power, the libertea branch of the GOP was free to obstruct anything and everything – and they certainly did, often just for the sake of doing it. With a Republican majority, there’s no one left for them to obstruct except each other.

Obstruction is easy. Governing is hard.

Passing ideological legislation is not governing. It’s easy when you have the majority. What is increasingly beyond the ability of the Republican Party is compromise, as this group illustrates so perfectly. Unless they get their way, they’re going to stomp their big boy feet and no one will get to use the playground swings.

As I’ve said before, this is what you get when you elect people who hate government to be the government.  





I’m often asked, “How do these people keep getting reelected?” Stories about what they do, how they behave, and how they vote are few and far between. This is a group of about 30 and most of them are men. Locally, this group includes Ed Comeau, Lino Avellani, and Glenn Cordelli. Ask yourselves why you keep electing them.

Then ask your other Republican representatives why they are silent. Ask them why you should keep voting for them, when party loyalty means more to them than their role as an elected representative of the people. Finally, ask them if they are a little ashamed that their party has been taken over by tantrum throwing toddlers.

Obstruction is easy. Governing is hard. 


From the NH Legislative Handbook:


 Members should at all times conduct themselves in a way that exhibits the utmost respect for their elected office, their constituents and the people of the State of New Hampshire.



published as an op-ed in the April 14 edition of the Conway Daily Sun newspaper



Wednesday, September 16, 2015

Feeding the Unicorn




At the end of the last legislative session, Governor Hassan vetoed the state budget that was written by the far right libertea crowd, with an assist from the Koch brothers. This week, the Governor announced that a compromise had been reached.

All summer long, the NH GOP has attacked the governor for vetoing their budget. Their budget enacted business tax cuts that would have left $90 million dollar holes in future budgets, yet they claimed it was responsible. Somehow, magically, a pristine white unicorn would ride in on that wave of tax cuts and fart rainbow fairy dust all over the state, and all that needs funding would somehow magically be funded. Infrastructure! State parks! State employees! Feed that unicorn some beans!

NH does not ever budget in a fiscally responsible way. Most of us wouldn’t patronize a business that was attempting to run with broken equipment and a leaky roof, because the owner was too cheap to invest in his business. That is exactly the business model by which we run our state.

Our Republican brethren are still mired in the trickle down theories embraced by their beloved/invented Saint Ronnie. That those theories have been disproven time and time again doesn’t matter to these folks. They are incapable of grasping reality. They have no plan for the future.

The Democrats aren’t much better. They make a little noise, but ultimately they cave in to the pledge politics that rule our state. Governor Hassan has made a deal that is politically expedient, but it’s not responsible. It will, however, allow her to run for the US Senate, without too much GOP braying about how she vetoed their budget. The agreement also gives cover to those House Republicans pondering a run for governor.

This budget does not ensure that there is enough money to run our state in a responsible way. The Department of Corrections doesn’t have sufficient staff, so they are soliciting volunteers to work as file clerks. The site reminds us that these are unpaid, volunteer positions. There will be a background check, they say. There will be a two-hour orientation. There is no mention of confidentiality.  This is a perfect illustration of how dysfunctional our state has become.

Volunteers. Remember former Governor Craig Benson’s volunteers? He had an entire shadow government comprised of his Cabletron cronies who were called “volunteers.” He refused to give us the names of the volunteers or list their duties – at least not until the scandals started breaking. Volunteer Linda Pepin negotiated a no-bid contract for state employees health care, despite the fact that she wasn’t qualified or empowered to do so. She took only one bid. Benson fired Pepin. He asked his AG, Peter Heed to look into the matter. Heed was a Benson appointee, (that was bad enough) and he included Kelly Ayotte, (then assistant AG) in the investigation. Ayotte had been Benson’s attorney only months before. The Benson administration was rife with corruption, which is why he only served one term. It’s also why Republicans never trot him out as a success story. Oh, and he still hasn’t paid the artist he commissioned to paint his portrait which was intended to hang in the State House. Sleazy till the end.

Volunteers are wonderful. We rely on them to keep our towns running, in so many ways. We should not rely on them to fill positions that should be filled by paid employees, or to run our state government, a la Benson.


The budget agreement does not include reauthorizing the NH Health Protection Program, (aka expanded Medicaid) which insures some 40,000 low-income working folk in our state. The NH GOP spent the summer carping about the heroin epidemic, and how the governor was allegedly contributing to it by refusing to sign off on their odious budget. As treatment experts have said again and again, the NHHPP is one of the best tools they have in the fight against addiction, because it pays for substance abuse treatment. It appears their concern for the dead and the dying was no more than a cudgel for them to beat the governor with. In the governor’s statement, on this agreement, she states that she is taking Republican leadership at their word that they will take up legislation reauthorizing the NHHPP as soon as possible. Given that these are the same folks who refused to honor the contract negotiated in good faith between the state and the state employees, I don’t share her willingness to take them at their word.

What this budget does is tread water in the name of political expediency. What it does not do is move our state forward in any way. This budget kicks the infrastructure can down the road, as it has been kicked by previous legislatures for decades now. We will still have hundreds of bridges on the state’s red list for being structurally impaired. It will not move us from our pathetic ranking of 50th place in state spending on our state university system. NH college students will continue to graduate with the highest debt load in the nation.

None of this, by the way, is attractive to business. Big businesses locate in states that have robust infrastructure. They want good roads, bridges, ports, and airports. They want to move their employees to states where housing is affordable. NH has the second highest property taxes in the nation. Our telecommunications infrastructure is lacking, especially in the top half of the state. The companies that serve our telecommunication needs are few and hardly competitively priced.


Better feed that unicorn some beans.
  


Published as an op-ed in the Sept. 18 edition of the Conway Daily Sun newspaper.




Wednesday, August 26, 2015

Jordan Ulery: 11 Years of Taking Orders From Special Interests

NH State Rep. Jordan Ulery, being interviewed at his 11th ALEC Conference shows why he shouldn't be anywhere near a state budget:






There's no thought for the future, no interest in planning ahead, only an interest in not spending any money. That's their idea of success. This is why NH, the 7th wealthiest state in the nation has the 11th worst infrastructure. 

That Ulery brings the model legislation written by pHARMA, Exxon Mobile, the NRA, or the Charles G. Koch Charitable Foundation  back to NH and tries to pass them off as something created here at home is shameful. 


Eleven years of taking marching orders from special interests! Bravo, Representative Ulery! 

Thursday, June 25, 2015

Deliberately Decreasing Our Means



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.

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.





Published as an op-ed in the June 26 edition of the Conway Daily Sun newspaper.