By State Senator Jeb Bradley
A Little Good News, Some Mixed News But Even More Bad News in Concord: The recent release of New Hampshire’s revenue receipts simultaneously offers glimmers of hope while raising even more concerns about the State Budget enacted in June.
First the good news: The “Rainy Day Fund” which is the State’s hedge against economic downturns ended the fiscal year with $56 million more of a cushion than anticipated. Governor Lynch froze new hiring, deferred equipment purchases, and curtailed out of state travel to produce these savings.
Despite the fact that Governor Lynch and Democratic Legislators approved an overall spending increase in 2007 of 11.17% and in 2009 of 10.48%, the Governor’s executive orders curbed the worst excesses of the Legislature’s spending blitz that has increased expenditures from $9.36 billion to $11.5 billion during that time.
This $56 million in the Rainy Day Fund will be a critical one-time buffer if the State loses its NH Supreme Court appeal of the JUA (Joint Underwriting Association) lawsuit. This lawsuit comes from a budget provision attempting to simply “take” $110 million from a fund designed to keep a lid on physician’s medical liability insurance costs. The State’s attempted money grab has already been ruled in violation of both the State and Federal Constitutions by the Superior Court.
The mixed news is that business tax revenues were only 4% lower than expectations. While it is preposterous to call any shortfall good news, in comparison to last year’s business tax receipts that were off by 25%, being 4% below expectations is a slim glimmer of hope. However, it's also a warning that if the trend continues the State will face a nasty budget deficit.
Despite the good and the mixed news, NH is far from out of the budget woe woods as the bad news dwarfs the good. Other revenue sources are badly underperforming, despite many taxes being increased in the budget. Receipts from the rooms and meals tax, communication tax, and real estate tax are all down by about 9%. The interest and dividend tax is down a whopping 25%. Even tobacco taxes are down slightly. In the three months since the budget was enacted revenues are down a total of $26 million or 6.4%. Should this trend continue the deficit will only grow.
Now that the state employees union has rejected the proposed contract that would have implemented 19 furlough days, Governor Lynch must begin a series of layoffs to save a mandated $25 million. Whether he will run into roadblocks if the union files a grievance for each position eliminated or political roadblocks from his allies in the Legislature – these savings may be questionable.
So with all these budget monkey wrenches, it is certainly understandable that its authors are quick to claim that the national economy is to blame and that revenues are likely to rebound when the economy turns around. But that is a cavalier attitude based on wishful thinking rather than rational evidence.
NH’s unemployment rate just jumped to 7.2% which means nearly 25,000 people have lost jobs this year. As bleak as that is, the national numbers are worse --- much worse. Since the federal stimulus legislation was enacted in February, 2.7 million Americans have lost their jobs and the national unemployment rate is at a 26 year high of 9.8%. The human toll of these numbers is staggering for individuals, families and businesses struggling to stay afloat.
Some pundits have tried to argue that things are getting better as only 263,000 Americans lost their jobs in September vs. 741,000 in January. While true, any signs that employers may be thinking of adding jobs in the future is at odds with the evidence. Job losses continue, while overtime and the average length of the work week both fell. Employers don’t need to hire anytime soon and consumer spending which drives our economy continues its retreat.
So NH Legislators who voted for huge spending increases --- not to mention the property tax hikes from cost shifting and 61 additional tax and fee hikes in the last two budgets --- are desperately praying for a rebound in the economy to produce the revenue they need to balance their budget. Voters should not hold their breath waiting for miracles.
Instead what Democratic Legislative Leaders are planning is a TAX SUMMIT to discuss new and innovative ways to separate taxpayers from their hard earned dollars. Will these leaders recommend an income tax, a sales tax, a tax on mortgage refinancing, an entertainment tax, or new levies on New Hampshire businesses? Every one of these taxes or others could be on the table at a time that 53,330 New Hampshire people are out of work.
After hiking spending 23% in the last two budgets, raising property taxes and 61 other tax and fee hikes one would think that Democratic Legislative Leaders appetite for new and varied taxes would be satiated. Most NH voters are shaking their heads wondering if a SUMMIT to REDUCE SPENDING is too much to ask for. Isn't it time for the Democrats to turn off the tax hike spigot and focus on fiscal discipline?
As tough as things are for families and businesses across NH, they will get much worse if taxes continue to climb to meet revenue shortfalls.
10.27.2009
10.21.2009
The Road to an Income Tax
By James E. Rivers
Years from now if the citizens of New Hampshire are seeing income taxes taken out of their paychecks, they will be able look back to the week of October 19, 2009 in “tax history” as the turning point—a time when the foundation for a broad based tax was laid. House Ways & Means committee Chair Susan Almy, a Lebanon democrat who has long been a strong advocate for any tax, but especially an income tax, has put together a legislative “summit” that will convene this week to, “consider changes to the state’s tax laws.”
Rep. Almy first tried to keep this gathering of legislators a secret to avoid having the voters learn that an income tax would be included on the agenda. When the news of a “tax summit” was leaked to the media, Speaker Norelli told us not to fret because Gov. Lynch had pledged to veto an income tax. That’s comforting. Correct me if I am wrong, but isn’t he the same governor who, after telling us that marriage should be between a man and a woman, turned around and signed the gay marriage bill into law?
It is curious that one of the main speakers being brought to the table by Rep. Almy is Jeff McLynch, the Northeast Regional Director for the Institute for Taxation and Economic Policy--an advocate for an income tax. In fact, in March he appeared before the House Ways & Means committee to testify in support of a bill that would establish an income tax. “I am here today to offer testimony on House Bill 642, which would improve New Hampshire’s tax system, both by generating additional revenue and by shifting greater responsibility for such revenue onto those state residents with a greater ability to pay,” he told the committee.
This “summit” should come as no surprise. Democrats actually been “laying the groundwork for an income tax” the moment they took control of the State House three years ago. Rather than controlling spending and forcing the state to live within its means, they chose instead to create the first $10B budget based on over zealous revenue figures. When the state’s income failed to meet their lofty projections to pay for their 25% increase in general fund spending over two budgets, they chose instead to create, or increase, more than 40 taxes and fees, and used more than $400 million in one-time money while downshifting millions of dollars to the local property tax payer.
In response to their fiscal missteps over the past three years, the Democrats’ answer is to hold a “tax summit” to try and find more sources of revenue to match their out-of-control spending. In fact, it was House Democratic Majority Leader Dan Eaton of Stoddard who best explained the Democrats’ position on the floor of the House last session when he told his colleagues “…it makes sense to know how much you’re spending before you decide how much money to raise.”
The beloved poet Robert Frost, in his poem The Road Not Taken, urged us all to ignore the “safe,” risk-free options and to make choices that offer greater risk and greater rewards. The State of New Hampshire has reached that fork in the road. The question remains, do we take the easy way out and follow other states by enacting broad based taxes to cover the over-spending, or do we continue to take the road less traveled and strive to become more fiscally responsible with our spending? The Democrats have spent the state into a huge deficit and now they are asking us to “study” an income tax. Hopefully the voters of this state are paying attention.
James E. Rivers
House Republican Office
Years from now if the citizens of New Hampshire are seeing income taxes taken out of their paychecks, they will be able look back to the week of October 19, 2009 in “tax history” as the turning point—a time when the foundation for a broad based tax was laid. House Ways & Means committee Chair Susan Almy, a Lebanon democrat who has long been a strong advocate for any tax, but especially an income tax, has put together a legislative “summit” that will convene this week to, “consider changes to the state’s tax laws.”
Rep. Almy first tried to keep this gathering of legislators a secret to avoid having the voters learn that an income tax would be included on the agenda. When the news of a “tax summit” was leaked to the media, Speaker Norelli told us not to fret because Gov. Lynch had pledged to veto an income tax. That’s comforting. Correct me if I am wrong, but isn’t he the same governor who, after telling us that marriage should be between a man and a woman, turned around and signed the gay marriage bill into law?
It is curious that one of the main speakers being brought to the table by Rep. Almy is Jeff McLynch, the Northeast Regional Director for the Institute for Taxation and Economic Policy--an advocate for an income tax. In fact, in March he appeared before the House Ways & Means committee to testify in support of a bill that would establish an income tax. “I am here today to offer testimony on House Bill 642, which would improve New Hampshire’s tax system, both by generating additional revenue and by shifting greater responsibility for such revenue onto those state residents with a greater ability to pay,” he told the committee.
This “summit” should come as no surprise. Democrats actually been “laying the groundwork for an income tax” the moment they took control of the State House three years ago. Rather than controlling spending and forcing the state to live within its means, they chose instead to create the first $10B budget based on over zealous revenue figures. When the state’s income failed to meet their lofty projections to pay for their 25% increase in general fund spending over two budgets, they chose instead to create, or increase, more than 40 taxes and fees, and used more than $400 million in one-time money while downshifting millions of dollars to the local property tax payer.
In response to their fiscal missteps over the past three years, the Democrats’ answer is to hold a “tax summit” to try and find more sources of revenue to match their out-of-control spending. In fact, it was House Democratic Majority Leader Dan Eaton of Stoddard who best explained the Democrats’ position on the floor of the House last session when he told his colleagues “…it makes sense to know how much you’re spending before you decide how much money to raise.”
The beloved poet Robert Frost, in his poem The Road Not Taken, urged us all to ignore the “safe,” risk-free options and to make choices that offer greater risk and greater rewards. The State of New Hampshire has reached that fork in the road. The question remains, do we take the easy way out and follow other states by enacting broad based taxes to cover the over-spending, or do we continue to take the road less traveled and strive to become more fiscally responsible with our spending? The Democrats have spent the state into a huge deficit and now they are asking us to “study” an income tax. Hopefully the voters of this state are paying attention.
James E. Rivers
House Republican Office
10.16.2009
Democrats saving the day???
By former State Representative Lee Quandt
Mmm. Mmm, Mmm, democrat Donna Schlachman said the democrats have saved the day; Mmm, Mmm, Mmm.
A recent Op-ed piece by Rep Donna Schlachman was in the local newspaper touting the typical liberal propaganda as to how the democrats have saved the free world with their fiscal responsibility, and how the republicans are all evil. Republicans are not evil. They might be having a problem pulling the party together. Some are not too smart, but, they are not evil. I know. I deal with them on a daily basis. We are trying to build up trust in the party; however that is another column for another day. About the only thing that was factual in Rep. Schlachman’s piece is that there is a seventy six million dollar rainy day fund.
If you believe the state is in good financial health, stop reading because you won’t believe what I’m going to say anyway.
Months of negotiations between Gov Lynch and the SEU ended in a stalemate. The Governor and his Democratic controlled legislature threatened and used tactics of intimidation at every session. After the employees could go no further with the negotiations, the best deal they could get was put before the membership. I was flabbergasted. After ten months of threats and intimidations by the Governor and the democratic controlled legislature, the employees voted against the contract language. Some members even stated “I know I will probably get laid off; but, I will see these people at the polls.”
Right now the state has 1,357 vacant positions, for a total savings of approximately ninety eight million dollars. I’ve been told we have about seventy six million more that could be saved by getting rid of the consultants/private contractors.
While Donna and the Democrats have lost sight of the political and economic ball, and are constantly threatening the employees with another 750 layoffs, the whole program got away from them. They probably should have paid more attention to this than their crazy liberal social agenda.
What the Governor and democrats don’t realize is that the state employees run the state, pay bills, plow roads, process the hiring of other employees through personnel, take in money and pay out money. In other words, they make the state run. Who knows more about how an organization works other than the employees. It is like the old saying in the military, “if you want to know what is going on, ask a SGT”. When your employees come to you with proposals for huge savings and you reject them, what does that make you? How about the south end of a north bound horse?
You will hear how the liberal democrats try to reach out to the Republicans. Does it sound like it? They are not only trying to change the facts and divert the discussion away from how bad they stuck it to the state employees, they are also hiding behind a vail of bogus Op-ed pieces of how they screwed up the budget and the State.
The republicans share a small responsibility in this mess. They have not done a very good job of getting the word out as to what has happened and what is going on, but again, that’s another column for another time.
Mmm, Mmm, Mmm, the democrats are not doing so well, Mmm, Mmm Mmm.
Mmm. Mmm, Mmm, democrat Donna Schlachman said the democrats have saved the day; Mmm, Mmm, Mmm.
A recent Op-ed piece by Rep Donna Schlachman was in the local newspaper touting the typical liberal propaganda as to how the democrats have saved the free world with their fiscal responsibility, and how the republicans are all evil. Republicans are not evil. They might be having a problem pulling the party together. Some are not too smart, but, they are not evil. I know. I deal with them on a daily basis. We are trying to build up trust in the party; however that is another column for another day. About the only thing that was factual in Rep. Schlachman’s piece is that there is a seventy six million dollar rainy day fund.
If you believe the state is in good financial health, stop reading because you won’t believe what I’m going to say anyway.
Months of negotiations between Gov Lynch and the SEU ended in a stalemate. The Governor and his Democratic controlled legislature threatened and used tactics of intimidation at every session. After the employees could go no further with the negotiations, the best deal they could get was put before the membership. I was flabbergasted. After ten months of threats and intimidations by the Governor and the democratic controlled legislature, the employees voted against the contract language. Some members even stated “I know I will probably get laid off; but, I will see these people at the polls.”
Right now the state has 1,357 vacant positions, for a total savings of approximately ninety eight million dollars. I’ve been told we have about seventy six million more that could be saved by getting rid of the consultants/private contractors.
While Donna and the Democrats have lost sight of the political and economic ball, and are constantly threatening the employees with another 750 layoffs, the whole program got away from them. They probably should have paid more attention to this than their crazy liberal social agenda.
What the Governor and democrats don’t realize is that the state employees run the state, pay bills, plow roads, process the hiring of other employees through personnel, take in money and pay out money. In other words, they make the state run. Who knows more about how an organization works other than the employees. It is like the old saying in the military, “if you want to know what is going on, ask a SGT”. When your employees come to you with proposals for huge savings and you reject them, what does that make you? How about the south end of a north bound horse?
You will hear how the liberal democrats try to reach out to the Republicans. Does it sound like it? They are not only trying to change the facts and divert the discussion away from how bad they stuck it to the state employees, they are also hiding behind a vail of bogus Op-ed pieces of how they screwed up the budget and the State.
The republicans share a small responsibility in this mess. They have not done a very good job of getting the word out as to what has happened and what is going on, but again, that’s another column for another time.
Mmm, Mmm, Mmm, the democrats are not doing so well, Mmm, Mmm Mmm.
10.09.2009
My Nobel prize
By Ron Dupuis
Next year, “I, your mildly humorous yet succinct columnist” am going to win the Nobel Peace Prize. Here is the plan. Right before the nominations are due, the announcement will be that my intentions for the next year will be to bring all the leaders of the world together to join hands and sing We Are the World. or Kumbaya, or some other nonsensical globally recognized song that promulgates peace throughout land. The next step will be to find a friend (no easy task in itself) to nominate me. BINGO, the prize is mine. Not for what I have accomplished, but instead, like Barack Obama, for what I intend to do.
Barack Hussein Obama mmm, mmm, mmm.
Children all over the country, mostly at school venues led by teachers, are singing the praises of the president. On the surface this practice seems somewhat harmless. In a worst case scenario this practice by members of the NEA could be considered as early political indoctrination of our children. Let’s wait and see how many praises these teachers practice when the President extends the school day, or the school year, or both, as he stated he will do.
A few reflections
President Obama's "transparency" in government: Yes Mr. President, we see right through Tim Guithner, Rep Charlie Rangle and all the Marxist, Socialist you have in your shadow government (Czars)
If all of Obama"s Czars are in one office building should we call it the Kremlin?
How many people have looked up to find out what comes after a "trillion"?
How many un-insured people are there in America; 40 million, 30 million, 20 million?
Does that figure include the free for life health care promised to us veterans?
Hopefully all Republicans of good taste will stop comparing President Obama to Adolf Hitler. Hitler got the Olympics for Berlin.
Next year, “I, your mildly humorous yet succinct columnist” am going to win the Nobel Peace Prize. Here is the plan. Right before the nominations are due, the announcement will be that my intentions for the next year will be to bring all the leaders of the world together to join hands and sing We Are the World. or Kumbaya, or some other nonsensical globally recognized song that promulgates peace throughout land. The next step will be to find a friend (no easy task in itself) to nominate me. BINGO, the prize is mine. Not for what I have accomplished, but instead, like Barack Obama, for what I intend to do.
Barack Hussein Obama mmm, mmm, mmm.
Children all over the country, mostly at school venues led by teachers, are singing the praises of the president. On the surface this practice seems somewhat harmless. In a worst case scenario this practice by members of the NEA could be considered as early political indoctrination of our children. Let’s wait and see how many praises these teachers practice when the President extends the school day, or the school year, or both, as he stated he will do.
A few reflections
President Obama's "transparency" in government: Yes Mr. President, we see right through Tim Guithner, Rep Charlie Rangle and all the Marxist, Socialist you have in your shadow government (Czars)
If all of Obama"s Czars are in one office building should we call it the Kremlin?
How many people have looked up to find out what comes after a "trillion"?
How many un-insured people are there in America; 40 million, 30 million, 20 million?
Does that figure include the free for life health care promised to us veterans?
Hopefully all Republicans of good taste will stop comparing President Obama to Adolf Hitler. Hitler got the Olympics for Berlin.
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