OP/ED: Good Financial Managers Needed in NH, Washington

In the 2010—2012 term, the New Hampshire legislature passed a budget that was 11 percent smaller than the prior budget, reduced spending by over $1.2 billion and general fund spending by $536 million or 18 percent.  After Democrats increased state spending by a whopping 25 percent and raised over 100 taxes and fees to pay for it, they avoided any debate on the issues or discussing of their record and instead resorted to personal attacks.

The ugly state of the New Hampshire budget came about  because in 2008—2010, those in leadership in New Hampshire allowed themselves to become giddy about the largess flowing to the state as a result of the first Obama stimulus bill, and lost all perspective of the financial implications of using one-time funds to fill operating expenses.

Though the President promised that his unprecedented spending would result in an economic recovery, the economy did not in fact rise and fill the gap between the increased level of state spending and the state economy’s revenue returns.

Instead, it resulted in an $800 million budget gap and required immediate and determinate action to fix it.  Fortunately, in 2010, New Hampshire voted serious and competent leaders into office. Though we can certainly stand to improve, New Hampshire is no longer in a fiscal crisis.  We have moved from 50 to 46 in business taxes nationally, according to the non-partisan Tax Foundation. Unfortunately, the same progress cannot be claimed at the federal level.

In 2008, then candidate Barack Obama called adding $4 trillion to the national debt “irresponsible” and “unpatriotic,” and he promised to cut the deficit in half by the end of his first term.  Instead, President Obama has presided over four consecutive trillion-dollar deficits. 

Though from day one the President has consistently blamed his predecessor for all the problems the nation faces, now running for a second term he is making an incredible effort to avoid taking responsibility for the state of our economy but trying his best to take credit for anything else that could be politically expedient. 

Fortunately here in New Hampshire House Speaker Bill O’Brien and State Senator Finance Chair Chuck Morse resolved to make some tough but necessary decisions and put the interests of the citizens of New Hampshire above concern for their images knowing they would be unjustly attacked by the left throughout the process.

When Republicans took over we had inherited a $900 million budget deficit. Rather than default to the usual solution of more taxes and fees, we lived up to our word and closed that deficit without creating or increasing a single tax.  In fact, we reduced or eliminated 20 taxes and fees.

Included in those tax and fee cuts were several reductions in business taxes.  As a result of these actions and based on Republican reforms, the employment reports by the state Department of Employment Security showed that unemployment had dropped an entire point down to 5 percent--the sixth best in the nation.

This is how businesses respond to state government that is a partner, not an adversary.

New Hampshire also moved from 50 to 46 in business taxes nationally, according to the non-partisan Tax Foundation. Forty-six is far from desirable—but it’s certainly a step in the right direction.

Good leadership requires more than decision-making capability—it also requires sound judgment.  When the President decided to focus his first two years of political capital on passing an historic tax that will affect every man, woman and child for years to come--instead of on fixing the economy—he clearly demonstrated that his election was a mistake. 

The hallmarks of the Obama presidency—41 straight months of unemployment above 8 percent;  employer sponsored health care premiums passing $20,000 this year for the first time ever; presiding over the three largest deficits in American history; and a 2013 budget that calls for $1.9 trillion in new taxes--are painfully lackluster, never mind disastrous,  compared to Governor Romney’s track record of successes in both the private and public sectors, both in which he left a financially solvent system regardless of how they were inherited. 

Since President Obama took office, every New Hampshire resident’s share of the debt increased $16,500, and the State of New Hampshire’s share of the national debt has increased almost $22 billion.

This November, let’s vote to keep the good financial managers of our state in office, and be sure that they are being supported, instead of hurt, by the decisions of our country’s next President.

Marilinda Garcia, of Salem, serves on the N.H. House of Representatives Finance Committee.