Sununu Vetoes Committee Of Conference FY2020-2021 Budget Proposal

CONCORD, NH — Gov. Chris Sununu has vetoed HB 1 and HB 2, the committee of conference budget proposals on Friday, as expected. In a veto message issued this afternoon, the governor stated that he the budget proposed in conference would "reverse" the success of the past four years which including lowering business tax burdens from the highest in New England that have helped to create a "thriving economy" in the state that is outperforming all of New Hampshire's neighbors – increasing jobs in the state as well as business tax revenue. During the past few years, more than 27,000 more Granite Staters are working, he noted. The state's labor participation rate is the highest in state history.

"The Legislature's proposed budget for fiscal years 2020 and 2021 reverses this winning formula in a manner that both threatens the state's economic growth and leaves the next Legislature with a massive fiscal deficit," he stated on June 28, 2019. "This budget takes us down the wrong path, and the people of New Hampshire will never support it."

Sununu was also critical of nearly $200 million promised to local municipalities and school districts calling the money "a recipe for pulling the rug out from underneath these communities in the coming years" adding that in the future, when the Legislature restores "budgetary order" the funding "will be the first to be cut."

Sununu said the proposal put the state and its booming economy at risk. But, he added, "I stand ready to work with the Legislature to develop a budget that keeps our state on our current successful path. There is no reason to wait. My door is open – let's get this done."

Democrats in the state Senate blasted the veto.

"It's deeply discouraging that the governor chose today to put big businesses before the people of New Hampshire when he vetoed the state budget," stated Senate President Donna Soucy, D-Manchester. "While the Senate remains committed to ongoing budget negotiations, the governor’s veto today delays implementation of statewide children’s mobile crisis services, jeopardizes critical funding to address the mental health and substance use disorder crises, and kicks the can down the road on education funding and property tax relief."

Senate Majority Leader Dan Feltes agreed calling the veto "reckless, tone-deaf, and Trumpian."

He added, "With so many crises facing our children, our families, and our state, Governor Sununu’s veto of an entire state budget over one issue he didn't 'win' on is just not the New Hampshire way ... Our families, our economy, and our property tax payers all deserve better. They deserve a budget."

However, House Republican Leader Richard Hinch, R-Merrimack, praised the decision to veto the budget.

"Republicans in the House stood united against the Democrats' fiscally irresponsible deficit-ridden spend-a-thon budget, and we fully support the governor’s decision to veto HB1 and HB2," he said in a statement. "This budget raises taxes on our citizens, jeopardizes our economic success, and puts us at a real risk for an income tax or capital gains tax in order to dig ourselves out of an impending structural deficit."

Instead, Hinch called for a "fiscally responsible" budget that "uses realistic revenue estimates, and most importantly, is balanced" that don't lead to income or capital gains taxes.

"I look forward to taking a very active role and working in good faith with our Democratic colleagues in the House and Senate over the summer to come up with a bipartisan product that will benefit our state," he added.

New Hampshire Democratic Party chairman Ray Buckley called the budget veto "a new low, even for Sununu," likening it to a political tantrum.

"Sununu has now denied Granite Staters property tax relief, investments in education, and mental health and substance use disorder treatment services — just because he's upset he can't give tax cuts to his corporate out of state special interests," Buckley said. "Sununu's veto is going to be expensive for Granite Staters — and also for Sununu's political career."

While Democrats control both houses of the Legislature, they don't have veto-proof majorities.

Both the House and the Senate did approve a continuing resolution yesterday to keep the state open for business at its current funding levels through October 2019.

New Hampshire Patch is updating this story in real time. Check back for updates.

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