On June 23, the House passed the Senate/House reconciled budget, a budget Governor Hassan has now vetoed. HB 1, the numbers budget (appropriations) passed with a 196 to 161 vote, with 148 Democrats and 13 Republicans in opposition. HB 2, the legislation in support of HB 1, passed on a vote of 196 to 164, with 150 Democrats and 14 Republicans opposed.
The House then moved to vote on a continuing resolution to fund programs based on last year’s budget. A continuing resolution allows the State to keep on funding programs while discussions on a compromise budget continue.
The Democrats offered an amendment to peg the continuing resolution to the House budget just passed, which would have included 2016/2017 budget increases, but the Republicans balked and the final tally was 150 to 208, with the amendment defeated.
The continuing resolution, based on 2015 budget numbers, then passed on a voice vote.
The three main points of contention were:
– A business tax break passed by the Senate and agreed to by the House. Proponents of the tax break argued that it would encourage businesses to move to New Hampshire. Opponents agreed with the Governor that it would create a revenue gap of $21 million for the biennium, with larger reductions in the future.
– The failure to address State employees’ pay raise of 2%, an agreement negotiated by the Governor and the employees’ union.
– The refusal by the House and the Senate Republicans to address Medicaid Expansion renewal in the budget. Senate Republican leaders Senators Morse and Bradley have argued that Medicaid Expansion needs to be dealt with on its own in 2016.
Supporters of Medicaid Expansion point to successes achieved so far. About 40,000 people have signed up; there has been a 17% drop in emergency room visits. The state bills for uncompensated care paid to hospitals should also go down.
The Senate was able to restore funding to many programs, including Meals on Wheels, Servicelink, mental health programs, tourism promotions, and Health and Human Services. They were helped by higher revenues coming in due to the recovering economy.
Speaker Jasper expects us to return to Concord in September or October to vote on the budget. Meanwhile, the Senate/House Republicans and the Governor will sit down and discuss possible areas of compromise. It is likely that better revenues will make this possible.
I predict the 2% State employees’ cost of living increases will be in the new budget. But I do not see Republicans changing their minds about the business tax and would be very surprised to see them agree to include Medicaid Expansion in the budget, especially in a presidential election year.
I do believe, though, that Senators Morse and Bradley are earnest in their desire to reauthorize Medicaid Expansion, considering that the federal government pours about $400 million a year into the New Hampshire economy in support of the program! This money would otherwise go to other states.
Accusations by Republicans that the Governor’s veto was due to Governor Hassan positioning herself for a senatorial run against incumbent Kelly Ayotte do not make much sense, since the veto means the Governor will have to spend the next six months dealing with the budget instead of campaigning.
In related news, the Supreme Court, in a vote of six to three, reaffirmed the constitutionality of the Affordable Care Act.
In other news, CLAD, the Coalition of Legislators Against Downshifting, held another meeting with Franklin Mayor Ken Merrifield as featured speaker. About 40-plus state representatives attended and were told that Franklin will lose approximately $704,000 in State funds, funds that would have to be partially replaced by local property tax increases.
New Hampshire Public Radio recently put out an interactive map of New Hampshire showing the effects of downshifting costs to the towns. You visit AndoverBeacon.com/Downshift and then click on your hometown to find the exact number.
Andover will lose $66,405 in money from the state, or an average of about $60 per taxable property over the next two years; Danbury and Salisbury will each lose approximately $30,000.
Please note that both parties are to blame for downshifting: the Democrats in 2008 and 2009, and the Republicans in 2010 and now. This is an issue that will not go away, and CLAD will continue its work in 2016 in order to find solutions which would restore full funding to the towns.
I am crafting a bill (HB 334) that would prohibit Internet service providers from sharing our personal information with third parties.
I am also concerned about the lack of broadband availability in areas of Danbury and Salisbury. Should anyone have issues in Andover, please let me know. I will find out whether legislation would help us correct this issue. It is scandalous that broadband providers are asking underserved areas $4,000 per household for coverage.
It is likely that the next few months will be quiet in Concord while negotiations on the budget are going on.
I wish everyone a happy Fourth of July. I will be flipping pancakes with the Andover Lions Club in the morning on the Fourth and will be on the Village Green with campaign materials from the various candidates. I am always available at 735-5440 or at MarioRatzki@nullgmail.com.