April 7, 2009
The House was briefed on the Budget on Monday. The Chair of Finance noted that this was a very difficult budget where all must share in the pain. This is a budget which increases overall spending by 13.9%. The budget which is funded by General Fund dollars (money raised and spent in NH) is increasing 2.9%. The budget is missing one key factor-school construction aid to our cities and towns, estimated at $83 million. Inclusion would double the state general fund spending. The House rejected the Governor’s proposal to bond this item (borrowing to help pay for borrowed money), but did not fund it in the operating budget, leaving it to the Senate to resolve. The proposed budget is funded through increases in the rooms and meals and tobacco taxes, and new taxes on capital gains, gambling winnings, estates over $2 million. The new taxes equate to $300 for every person in our state–$1200 for a family of four.
Republicans presented an alternate budget yesterday. The budget would require no new or increased taxes, and represent a 2.6% decrease in general fund spending. We recognize that many are struggling to support their families and they should not have additional tax burdens imposed upon them by the state. The budget funds revenue sharing to cities, and school construction aid (which will prevent larger local property taxes). The contrast in this time of recession is a budget which lives within the revenue means, and one which continues to search for revenue sources regardless of the impact upon the citizens. The House will vote on the budget tomorrow.