Dietsch: NH's 2025 Budget Surprise

Now Covid moneys are gone, NH faces its worst budget crisis in a decade. The GOP cut $160 million in Interest and Dividends taxes in 2025. Business tax revenues fell $30 million below plan for September alone because of the GOP's four business tax cuts. Kelly Ayotte wants to expand vouchers, adding $80 million in costs. The state faces 1,100 remaining lawsuits for child abuse at the former Sununu Youth Center.

What is the GOP plan to cover the deficit?

· They've told departments to cut 5%, despite cost increases.

· They've delayed Disproportionate Share Payments to hospitals that rely on these dollars to provide essential services. The result is likely to be yet more hospital closings or sales to national for-profit chains.

· They've tried to remove the Constitutional requirement that NH provides an adequate education to children. The result would be that school districts would lose an average of $5,250 per student in state adequacy funding. Towns would have to pick up the tab.

· They are considering reneging on the state share of town road funding.

· They may revoke the small contribution to municipal pensions that they finally reinstated last year, after it was dropped in 2011.

What would that mean for property taxpayers and renters? Yet higher costs.

What is the alternative? The Democratic Plan is to:

· Keep the I&D Tax but raise the deduction level. So retirees who rely on interest and dividends for living expenses owe nothing, but the wealthy would continue to pay.

· Repeal the education voucher plan's $27 million budget.

· Accept the Superior Court Rand decision: Property-rich towns must pay their share of school funding. They would no longer have negative Statewide Educational Property Tax rates.

November 5th elections will decide which path New Hampshire follows.