Birdsell: Despite Veto, a Good Budget for Granite Staters

By state Sen. Regina Birdsell

It’s been an exciting session in the Legislature and for a first time Senator, it was a learning experience. Being one of 24 Senators is quite different being one of 400 Representatives, and I wanted to give you an end of the session update on what was accomplished.

Our biggest accomplishment was the budget, even with the governor’s veto. The Senate Finance Committee spent many hours crafted a budget that met and exceeded the needs of our most vulnerable citizens, and boosted our economy to create jobs.

The budget fully funded vital social services such as; Meals on Wheels, Service Link, Developmental Disabilities, and the DD Waitlist. It also increases support for Substance Abuse programs by 75%. It ensured the 10-bed Crisis Unit at NH Hospital could open on time, restored the Governor’s cuts to nursing homes, and provided a 5 percent rate increase for home health care providers.

This budget would help the economy of New Hampshire, by rejecting the $130 million in tax increases Governor Hassan placed in her budget, and would help New Hampshire’s small and medium size businesses by reducing business tax rates for the first time in 20 years. This would help companies employing 95% of our private sector workforce. We are currently 48th highest in the nation in business taxes, according to the Tax Foundation, and ranked 10th worst in job creation since the end of the last recession, according to the Pew Charitable Trust.

Both Massachusetts and Rhode Island have reduced their business tax rates below New Hampshire and because of our high taxes, Governor Abbott of Texas is openly recruiting businesses out of New Hampshire. This budget protects our fisheries by providing them over $1 Million in disaster relief, and our towns with a $5 Million increase in Meal and Rooms aid in FY17.

The funding of education at all levels increased in this budget. The University System would see an increase of $12 Million, an increase of 8% over the current biennium. The Community College System funding increased to ensure a tuition freeze for the next two years. We phased out the cap on schools receiving less than full funding under the Adequacy formula. And Charter Schools would receive $1,000 more per student in FY17.

We enhanced public safety by finding sustainable funding streams for Homeland Security and the Detectives Bureau. We increased roadwork through the Department of Transportation, taking advantage of a federal pilot program that will reduce debt service on the I-93 project. The budget fully funded state assistance for municipal road and bridge projects, as well as highway maintenance.

Finally, the budget protected dedicated funds and reduced highway fund diversions.

Three of the primary reasons Governor Hassan vetoed the budget, were Business Taxes, State Worker Contract, and Medicaid Expansion. The reasons in favor of business tax cuts are explained above, and despite the Governor’s rhetoric, they are fully paid for in this budget.

While the Governor agreed to a State Worker’s Contract that included two pay raises, she did not offer the Legislature any way to pay for its $30 Million cost. I know the Finance Committee tried to find a way to fund the pay raise in FY17, however Governor Hassan rejected that compromise. In the meantime, 69% of the employees will continue to receive their step increases and the cost of health insurance benefits for retirees has been reduced.

The Governor would like the Legislature to extend the Medicaid Expansion Program beyond the December 2016 sunset clause. However, we have no idea how much the Federal Government will be able to contribute, if anything, beyond December 2016. Nor do we know if the program is actually reducing the cost of Uncompensated Care, as promised. We’ll know more in 2016, when the Legislature will consider whether to continue the program. Until I know more, I can’t support extension.

Finally, I would like outline some of the consequences of the Governor’s Veto.

• Substance abuse programs will not receive the increased funding that is needed and substance Abuse Disorder Benefit will not be offered under Medicaid.
• Health and Human Services will be forced to operate without additional funding.
• Nursing homes and home health care providers will not receive rate increases.
• State agency consolidations and reforms will be postponed.
• Funding for tuition freeze at the Community Colleges will be blocked.
• Highway funding savings will be stalled.
• Funding for Mental Health Settlement, Department of Corrections overtime and Charter Schools will not happen.
• Reform at the Sununu Center will be delayed.
• New Hampshire will remain the 48th highest business taxes in the nation.

It’s been a productive year. But our work is not complete without a budget. We will return later this summer to finish the job, despite the Governor’s veto.

State Sen. Regina Birdsell represents District 19, which includes the towns of Derry, Hampstead, and Windham.