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CONCORD - A new 10-year improvement proposal for the state's parks says they are badly under-funded, and recommends legislative action to get more money into the system.
State House Dome: Court fight may unbalance NH budget
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By TOM FAHEY
State House Bureau Chief
Sunday, Jun. 28, 2009
WE MAY HAVE a two-year budget, but it could wind up with a big hole in it.
Balancing the budgets for the year that ends Tuesday, and for the coming fiscal year, hangs on the idea of taking $110 million in surplus from the medical malpractice insurance fund run by the Joint Underwriting Association.
The board offers cut-rate coverage to doctors, saving them about 10 percent on malpractice.
Last week, the doctors and hospitals who are part of the JUA won their first round in Belknap County Superior Court. Justice Kathleen McGuire threw the Attorney General's Office off the case. She said the JUA is not a state agency, so the AG can't represent it while representing the Insurance Department, which is part of the lawsuit.
This case could slow down a bit while JUA's new lawyer gets up to speed.
But it means more than that. It means nobody touches the $110 million the state needs to balance its books, not only next year, but in the fiscal year that ends Tuesday.
McGuire said JUA "is not part of the executive branch of state government. Rather, it is akin to the New Hampshire Retirement System which the New Hampshire Supreme Court has held is an independent entity rather than an executive department or agency. If the JAU isn't part of the executive branch, can a governor dip into its reserves? Good question.
The first impact the standoff hits at the end of July, the date the new budget calls for a transfer of $65 million onto state books for the 2009 fiscal year. Another $45 million is supposed to come out for the 2010 fiscal year.
The state accountants are trying to figure several scenarios, including an appropriate move if the state ends up winning its case. We could end up listing the entire JUA account, at roughly $175 million, as the state's money. Given McGuire's initial finding, however, we'd better keep hunting for cash.
As for how critical the issue is to the budget, remember McGuire is interpreting law the Legislature creates, and can easily change.
Rep. Dan Eaton, D-Stoddard, said he's not worried about the situation now.
"Like all lawsuits, it will play itself out. My suspicion is it will be two years before it reaches a resolution so it's not going to affect this budget," he said.
DOG RACING DILEMMA: The future of dog racing in New Hampshire is up in the air. Granted, tracks don't even have to run actual races anymore to make money off simulcast betting. The state loses money every time they come out of the gate.
The House pulled out $500,000 in costs of supervising live racing when it passed the budget. It directed the tracks to find a way to cover their own costs. Tracks already are billed directly for lab testing of race animals.
The Senate put all the supervision money back in.
By the time it emerged from the committee of conference process, the bill contained money for one year of supervision. After that, racing will stop unless tracks find a way to cover all costs, or the Legislature allocates more money for it when they return in January.
NO FREE FUNERALS: The state will no longer pick up the cost of funerals for those who die while they are covered by Medicaid.
Sen. Kathy Sgambati, D-Tilton, said the change saves money, and was in all versions of the budget as it worked its way through the Legislature.
"Charitable organizations and localities will have to support those individuals, Sgambati told the Senate during debate.
'EMPEROR SUNUNU' DECIDES: Charlie Bass? Kelly Ayotte? Fred Tausch? Ovide Lamontagne?
Or, maybe John E. Sununu will be the GOP candidate for U.S. senator. At least that's what John H. Sununu, GOP chairman, hinted to the Portsmouth Herald last week.
He said his son, who lost to U.S. Sen. Jeanne Shaheen in November, will decide this week whether he'll run for the seat U.S. Sen. Judd Gregg will leave open with his departure in 2010.
In a statement that quickly ran through political circles, Sununu said, "I think if my son runs, there will not be a primary." The Herald said he told them that he expects Ayotte, reportedly being courted as a candidate by the national party, to step aside.
Victoria Bonney, state Democratic Party spokesman, said Sununu is clearly warning other candidates to stay away.
"I feel badly for a Republican candidate, who before he or she can run will have to wait for Emperor Sununu to decide if his son is going to get in the race. He shouldn't hold back candidates who want to run because he wants his son to go unopposed," she said.
Calls to the GOP Friday went unreturned. Hmmm.
BLASTING DEMS, AGAIN: Earlier in the week, chairman Sununu stuck to his recent pattern of delivering body blows to Gov. John Lynch and Democrats.
"This is a disastrous budget that will have a devastating impact on New Hampshire families as they struggle to make ends meet during these difficult economic times," he said in a statement. "But as bad as this budget is for today, it is infinitely worse for New Hampshire's future and its long-term job outlook and fiscal stability."
He echoed Republicans who said the budget wrongly counts on one-time money, like the JUA funds and federal stimulus. Writing a budget that way leaves a big hole to fill in two years, he said.
During House debate, Eaton waved off the one-time money argument.
"Every budget I have ever voted on in this chamber has had the dark cloud of one-time money hanging over it," he said.
Democrats joined Lynch in warning that failure to pass the budget would mean spending cuts would not take effect, and new revenues would not start flowing.
Democratic chair Raymond Buckley said his party"passed a balanced budget that included deep cuts and reforms, protected the state's most vulnerable from the effects of this economic crisis and kept the overall increase at less than 1 percent. A breakdown by the Legislative Budget Assistant's office found the budget spends 3 percent less in general funds than the previous budget. GOP critics point out a lot of money was shifted off the general fund ledger, such as traffic fines, school building aid and liquor revenues. Add that back in, and the true increase is closer to 7 percent, they say.
REGISTRATION FEES JUMP: An LBA list of 33 tax and fee changes shows the single biggest boost comes from the surcharge on motor-vehicle registration fees, which is supposed to go away on July 1, 2011. Cars cost an extra $30, vehicles from 5,001 to 10,000 lbs. cost an extra $45, and heavier trucks are assessed based on weight. Motorcycles cost an extra $10. The total new revenue over two years comes to $85.5 million, destined for the state highway fund, secondary road improvements and local aid.
Other big revenue producers in the next two years are the higher tobacco tax, up 45 cents to produce $59.2 million over two years, the rooms and meals tax hike, bringing in $61.4 million. The campsite tax alone will bring $9 million over the two years. The extension of the interest and dividend taxes to limited liability corporations will mean $30 million.
Taxing gambling winnings at 10 percent will produce almost $14 million. Not bad for a state that just rejected expanded gambling. The fact is, people wagered roughly $642 million in legal gambling venues last year.
Sen. Lou D'Allesandro, D-Manchester, the Legislature's leading gambling proponent, said," "We have this mirage that gambling doesn't exist. And if it should somehow come to exist in the real world, bang, we tax it."
RUSSELL RETIRING AT 78: Liquor commissioner Patricia Russell said she's concluded that at age 78, she's ready to relax.
"I'm just getting tired," she said last week. Appointed by Gov. Shaheen in 1999, she has been commuting from Keene to Concord ever since.
She leaves as Liquor Commission chair Mark Bodi gears up for changes in SLC operations he secured in the new budget. That includes selling the state warehouse for $30 million and opening up to eight private-agency stores.
Russell is leaving what she called, "a perfectly oiled machine with absolutely fantastic employees." She said she got along great with Bodi, whom she's known for 40 years. They also served in the Legislature together in 1976. Back then, former Democratic party chair Chris Spirou brought a crop of youngsters into the House that included Secretary of State Bill Gardner and Banking Commissioner Peter Hildreth.
Tom Fahey is State House bureau chief for New Hampshire Union Leader and Sunday News.
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YOUR COMMENTS
I thought this State di not have an income tax so that those with the money could create jobs!!??
OK, so where are the jobs?
- Dan, Belmont
Len Lobao, Danville writes: "NH does not receive federal funds for our highways and infrastructure because we do not participate in it's mandatory seat belt law."
Not true Len. NH receives plenty of federal highway money. We would have gotten a little more if we passed a "primary" adult seat belt law. The money would have have been worth the price of freedom.
- Brian, N. Sutton
We should forclose our home so we can pay for their taxes. Or maybe they will lets keep our jobs so we can pay their taxes.
- BoB, Alton
NH gets FHWA funding for the highways.
The $3.7 million for a seatbelt law would had requirements it be spent to increase seatbelt use... not to fix the roads/bridges.
The FHWA funds come from the federal gas/diesel tax. It gets used for several items including by many municipalities as grants for bike paths.
- John Edward Mercier, Belmont
The Dems almost never have primaries so you got to be kidding me they are bad mouthing Sununu Sr. If he doens't have a primary it is because he is the front runner no one can beat. Party chairs don't appoint anyone. Heck the crazy Dem can change parties and run in any republican race.
- Sunshine, Henniekr
John Concord: You'd better read Sue's "commentary" - her opinion - again and then apologize. I don't know what you and Gary Kerr have been sniffing but it's affecting your brain cells.
Anyone is welcome to write an opinion. And others are free to disagree or not. To attack someone's opinion in the manner you two have done is in the poorest of taste. At least others who don't agree have the good manners to be civil about it.
- Sandy, Thornton
Why do I get the feeling that the motor-vehicle fees will not be temporary?Why should I believe that in the next two years the state will not "need" more money and that this temporary fee will become permanent.I also have doubts that the 85.5 million will actually go to the state highway fund, secondary road improvements and local aid (I wonder who local aid is?).With this much money being raised (taxed) for state highways I will watch with interest what happens to Route 101 from West Milford to Keene.This road is supposed to be the main East to West route across southern NH and its condition is more like a town secondary road in several areas.
- Scott Bragdon, Wilton
Rep. Dan Eaton, D-Stoddard, said he's not worried about the situation now.
"Like all lawsuits, it will play itself out. My suspicion is it will be two years before it reaches a resolution so it's not going to affect this budget," he said.
How can it not affect the budget? Oh, I know, they'll legislate around it, and steal it bold as brass.
Folks, you better read this as "we're going to spend it any way, whether we have a legal right to it or not, and we'll approve a faulty, but balanced on paper, budget" as they thumb their noses at us all.
Personally, I think every legislator that voted for it, and the Gov, if he signs the budget, should be arrested, convicted, and impeached for the conspiracy to steal $110 million from JUA, with the AG's approval.
Eaton needs to dig his head out of the sand... but Stoddard enjoys a town rate of $8 per $1000, so he's sitting just fine with a low tax bill, and probably on a good sized home with all the amenities.
Do the right thing you legislative muckey mucks, and bring it back to committee and do your jobs as you were elected to do... too bad if have to actually craft a real, honest, balanced budget that includes the things that the majority wants, during your summer break...if you'd done it right in the first place, these pages wouldn't be filled with rage and you'd enjoy your well earned vacation.
And might as well face it now, in '10 I'll wager most of you are history. Buckley, Lynch, and Kelly for sure.
- Kevin, Keene
Let me ask all you democrat bashers out there some questions, and be honest. Do you vote for your town and school budgets every year? These budgets increase yearly with few exceptions and are almost always passed. Has your property tax more than doubled in the last ten years? Well you MUST be voting for higher school and town budgets!Are you saying if the legislature was republican controlled the state's budget would go down?You must be intoxicated.Some of the budget increases come from unfunded mandated programs from the federal government that we MUST fund. Have you called your federal reps.? Some are due to employee contracts with the state (who deserve a good paying job like anyone else) through wage and benefit increases.Some are due to energy,fuel and transportation costs and so on.NH does not receive federal funds for our highways and infrastructure because we do not participate in it's mandatory seat belt law. We must use state revenue to build and repair our roads and infrastructure.As the state population grows and the years go by the state budget grows like a families budget grows. The republican party had it's chance to help the homeowner with it's back breaking property tax for years when they had control of the legislature, BUT DID NOT.They also could have started the widening of rte 93 years ago BUT DID NOT. now it will cost ten times more to do.They were elected to STATE GOVERNMENT, but did nothing to raise state tax revenues when even I know the state budget like everyone elses would increase.They opted to shift the tax increases to our local government and school system. I do not want more taxation,just releif from the yearly property tax increases.Do not be fooled by this crybaby,blame the other guy bull from the republican's.They are just as much to blame for where we are as a state as ANYONE.It seems the republican party would like the state bird to be the ostrich, guess where their heads are at!TIRED OF HEARING THE BLAME GAME.So do we vote for the town and school budgets or not?They increase just like the state budget does.Why aren't these republicans screaming,MAKE YOUR TOWN AND SCHOOL DISTRICTS CUT BACK THEIR BUDGETS,VOTE "no"ON TOWN AND SCHOOL BUDGETS! Like they are saying about the democratic state budget. I called my state rep to ask her if she would support a small sales tax constitutionally garanteeing the revenue to be soley used for school funding to reduce the ever increasing property tax burdon,after all there are alot of tourist's who visit NH who will buy. She told me "it would be suicide to run on any tax increase,forget it". So hear we are,another day with no solution.I just can't blame the democrats while letting the republican's off the hook. Can you?
- Len Lobao, Danville
Gary Kerr, what is your problem with Sue? Of course her post is an opinion, hers! All of these posts are the opinions of the writers. Calm down and get a grip. Just because a writer doesn't agree with your ideas, doesn't mean he/she is writing a fact!
That said, is it just me, or does anyone else feel like maybe we should look at other Republican candidates? Like AG Kelly Ayotte, if she's interested. I liked Sen Sununu on many issues, but did not agree with him on many and felt he was not conservative enough for me. (Just my opinion.)
But maybe the NH GOP needs to stop forcing the old retreads down our throats and look for some new Conservative blood and let the voters decide.
The very last thing we need in NH is someone who has been part of the old system of corruption, greed and lobbyists. We have enough crooks who refuse to listen to us now.
- Melvin, Keene
Unbelievable that taxes that got leveled across the citizens of NH.
Was there any public input on these or was unilateral robbery of our wallets.
How many people this is going ot affect negatively. Not everyone can afford to go up to Bretton Woods for the weekend and not everyone can go and blow money at the greyhounds. Many people go camping a pop trailer or tent and the state has the audacity to charge them 9% tax. This is one of the poorest lamest excuse for a budget.
Anybody who thinks this money is going to to roadway impovements is out of their cotton pickin' minds. This is nothing than a free grab of our sticky fingered politicians reaching deeper into our wallets.
We aren't living in a world mandated by laws from our legislature, we are in a 3 ring circus with some of our legislature reigning as the Freak Show.
- Jack Alex, Manchester
Lynch reappointed Ayotte over many other capable Democrat prosecutors. What deal was struck with Lynch and a Democrat Executive Council to keep her job? Did she sell her soul?
Ayotte as Senator is as tainted as Newman. Gregg's fingerprints are all over it, and Fergus lost as party chair. An early declaration now will force her to take positions on many issues and undermine her effectiveness as Attorney General. There's no turning back.
New Hampshire Republicans are tired of one party rule. Democrats are the ones really funding her campaign. The bench is strong with potential candidates in Sununu and Tom Thomson.
Should a primary be necessary it benefits the party, and she's better off on the Supreme Court. Call her bluff.
- Steve, Manch
I have to say that Forest Gump said it best, stupid is as stupid does.
I do hope that next election is a complete change for all that are in office now. I will not vote for anyone running for re-election next time around.
Folks better wake up soon, sales, and income tax is next, they won't let gambling is thia state. There worried about crime, how could it be any worse then the crime that is in Concord.
- Rick, Manchester
To Sue in Manchester....
Before you put your foot in your mouth again, try to learn the law. The liquor Commission has 3 members...two of which are the same party as the governor. This has been the law since the Commission came into existance. Since there is already a Republican on the Commission (Mr. Simard), guess what?? Governor Lynch, a man who won an overwhelming victory in the last election gets to pick another Democrat to fill Ms. Russell's position!! I guess its cheaper to complain from the cheap seats rather than to offer some real solutions. Before you write yet another misguided commentary, at least learn the law.
- John, Concord
Tax FREE N.H.? A real "old wives' tale"!
NH nows has developed a new rule of economics: If business is poor (as it is now), RAISE fees (AKA taxes)!
What a fiction this state promotes! Look at the raise in FEES and you can just imagine what this does to the unemployed and the elderly on fixed incomes .
It is time for the state to also live on a fixed income. If WE don't have the money, then the state should follow suit.
TEMPORARY FEES? There is not such thing!
The voters of NH elected reps whose ONLY motive is to raise TAXES (aka fees)!
I do realize that I am just dreaming as this STATE now knows nothing about being frugal.
What have the LIBERALS done????
- E.R., Jaffrey
- Sue, Manchester "Any Republican will be more acceptable than a Democrat like Shaheen after what she and they just did to us yesterday. " That statement is only an opinion and just because you believe it does not make it fact.
- Gary L. Kerr, Chichester
If I was governor. First thing I would have done is to veto this budget. Tell law maker to stop robbering the poor and give to the rich.
Balance the Budget and fight higher taxes. But the Dem. have it all wrong.Spend,Spend higher taxes that not the answer.
- mo, plymouth
Any Republican will be more acceptable than a Democrat like Shaheen after what she and they just did to us yesterday.
Same for Hodes and Porter. Their 15 minutes of fame is up... wait til the poor and middle class find out about the huge TAX they just passed.
- Sue, Manchester
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