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The Way to Yes: Lawmakers Pass $11.6 Billion Budget Package
By Dan Gorenstein on Wednesday, June 24, 2009.
Democrats have muscled through an unpopular budget as the state faces a historic budget deficit. The strongest praise the plan has received is that it’s a compromise that nobody truly hates. Critics charge that the majority party didn’t cut more spending, while others blame lawmakers for walking away from a sweet revenue deal- expanded gambling. New Hampshire Public Radio’s Dan Gorenstein reports. There might not be a new budget if it weren’t for Republican Senator Bob Odell. Two Senate Democrats, Lou D’Allesandro and Betsi DeVries bucked leadership and voted against the proposal. They opposed it because they believed a plan to bring video slots to racetracks and the North Country was superior policy to a series of fees, taxes and spending cuts. But with the gaming provision and several controversial tax proposals removed, Odell felt this compromise outweighed the alternative. TAPE: to tell the business community and our fellow citizens in our communities, there is uncertainty to reign, another 30, 60, 90 days and we don’t know what the outcome will be there may be more taxes, more spending, fewer taxes, who knows? To speculate on that today is a venture I wouldn’t want to do. On the floor, some Senators expressed disgust for the budget. One called it a terrible piece of legislation. Another- joking about decision to apply the rooms and meals tax to campgrounds- said you sleep on the dirt, eat your own food and the state still taxes you. Democratic Senator Maggie Hassan took exception. TAPE: easy to make jokes about it. easy to demagogue it. but the reality of budgeting is you do need to find the revenues, you do need to be fair. As Hassan spoke, protesters outside the capitol rallied, calling on the lawmakers to reject the budget. Over the last several days, perhaps the loudest voice of dissent has come from those who believe this budget spends too much money. Democrats, Republicans and think tanks have cut up the numbers and are issuing competing estimates of how much more money this budget spends than the previous one. It’s a theme Republican lawmakers like Senate Minority leader Peter Bragdon latched on to as they denounced the proposal. TAPE: we’ve seen numerous newspaper articles and columns saying that we’ve cut spending, spending is down, spending is down. Ladies and gentlemen spending is not down. And we are in tough economic times and if you can convince raising spending 10% in total, or even 6.5% in the general budget is lean, then good luck to you. The budget now goes on to the Governor where his signature is assured. He congratulated legislators for passing a plan that avoided some of the more controversial proposals, including a capital gains tax, expanded gambling, an entertainment tax, or suspending a business credit. As one lawmaker said, this budget doesn’t have new taxes, it nibbles around the edges, it’s really the New Hampshire way. But those who oppose the proposal say there’s a reasonable chance some of the anticipated revenues won’t come through. Senator Lou D’Allesandro says even though lawmakers rejected slots, they are gambling with this budget plan. TAPE: you’ve got money counted coming from gaming revenues, you’ve got money counted coming from campground revenues, you’ve got money counted coming from LLC tax loopholes. All of which are suspect. Very suspect. One of the biggest questions going forward is whether the move to take $110 million dollars from a state-created medical malpractice fund will survive legal challenge. The budget also relies on the governor reducing $25 million in state personnel costs. The governor says as he continues to negotiate with state employees, he expects some mix of furloughs and layoffs will be required to realize the savings. No one knows how the larger economic environment will affect the state over the coming months. But many familiar with the budget believe it’s possible more cuts, or more money will be needed. Post a comment
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