NH budget cuts spending by 14.8%

[Keith and stuff]

NH budget cuts spending by 14.8%

The NH budget passed the NH House and NH Senate and then went to Committee of Conference. The final budget cut spending by 14.8% and passed without Gov. Lynch's signature.

In direct appropriations, the budget passed by lawmakers yesterday spends 14.8 percent less from the state general fund and 9 percent less overall than the two years ending this month, according to the Office of the Legislative Budget Assistant.

The budget passed 19-5 along party lines in the Senate, where Republicans praised the budget as a responsible answer to challenging circumstances. Sen. Chuck Morse, chairman of the Finance Committee, described the budget as a "transformational change" that would set the state on a course of fiscal responsibility. He said the bill was the first biennial budget since World War II to spend less than the previous two years.

LOTS of revenue sources were cut including:

REVENUE CHANGES:

— No new or higher taxes.

— Allows temporary $30 motor vehicle registration surcharge to end. Fee raised $90 million toward highway projects.

— Cuts cigarette tax 10 cents to $1.68 per pack. Up to $16 million in annual revenue lost [though, in theory, maybe no money will be lost.]

— Cuts the saltwater fishing license from $15 to $10.

— Reduces the marriage license fee from $50 to $45.

— Reduces condominium fees and license fees for pet shops.

— Counts on $10 million from sale of site of Laconia prison.

— Repeals the 10 percent gambling tax on winnings over $600.

There were lots of big impacts including:

BIG IMPACTS:

— Cuts payments to hospitals for caring for the poor by $115 million.

— Cuts aid to University System of New Hampshire $84 million, almost in half, [maybe] resulting in higher tuition, [likely] layoffs.

— Reduces funding for community colleges by $11 million.

— Spends $187 million less than the governor recommended on social services.

— Lays off perhaps as many as 500 state workers once lump-sum agency budget cuts are implemented.

— Reorganizes the court system into a circuit court resulting in perhaps three dozen layoffs.

— Increases workers' pension costs to reduce employers' pension costs and reduces benefits for non-vested workers.

— Requires governor to negotiate $50 million in benefit or personnel savings by Sept. 1. More layoffs are possible.

Sources:
http://www.concordmonitor.com/articl...94&CSGroupId=1
http://www.timesunion.com/news/artic...ts-1438943.php

[libertybrewcity]

i like the budget, but I feel like they got slammed for cutting cigarette taxes and then cutting education spending. That seemed like a bad move

[Keith and stuff]

It's funny because VT just increased the cigarette tax by 38 cents per pack while NH is cutting it by 10 cents per pack for 2 years depending on if it brings in more money or not. I think if people learn (but will they?) about the reason it was cut, they won't be so upset.

As for education funding, I don't think the majority of folks in NH will care when the cost of a degree at a government university or community college goes up 7% next year as that is pretty common. A poll showed it was an OK move. However, the budget does increase K-12 education spending.

[Keith and stuff]

I don't think people understand just how big a deal this is. Here is what redstate said about Texas when the TX state government cut the budget this year. "In so doing, it will be the first state in 50 years to actually implement a real reduction in spending." http://www.redstate.com/leon_h_wolf/...dget-spending/

Of course, the NH budget was cut by an even larger amount.

And there is new good news. http://www.nashuatelegraph.com/news/...y-on-same.html

O’Brien, R-Mont Vernon, promised to go beyond this past year’s budget reduction of 11 percent by next year setting high hurdles for anyone who wants to increase taxes.

He also vowed to continue eliminating government regulations on businesses, with the hope that New Hampshire can further distance itself from high national unemployment by attracting companies.

...

This year, there were 43 bills that sought to deregulate government control of business, he said. Legislators will continue to improve regulations so they meet specific goals rather than harass businesses, he said.

In case you don't fulling understand what the Speaker of the NH House said, NH has the lowest unemployment rate in the East (East of the MS River.)

[kylejack]

NH has casinos?

[Keith and stuff]

NH has casinos?

Not by the standard modern definition because NH doesn't have slot machines and I think betting on sports is illegal in NH. But there was a time in NH's history when around 20% of the state budget came from casino type gambling and those places were never shutdown. In fact, they have expanded since then. However, other states have allowed gambling so the percentage of the NH budget that comes from gambling has continuously decreased.

In the 60s I beleive, NH was the first state to create the state lottery.

NH still allows gambling and has tracks that allow off site horse and dog betting (unfortunately?, the market has spoken and there is no longer a market for on site activities like that in New England) along with poker, black jack, roulette, craps and other games. NH also has card rooms, where a large percentage of the profit has to go to charities, that are allowed to run poker, black jack, roulette, craps and other games. NH also has bingo and pull tabs among other games.

While I would love to see gambling expanded in NH, there is one thing about the NH system that still to this day has not caught on in many other place, and I'd love to see that changed. The legal age to gamble in NH is still 18. Unfortunately, while many states have copied NH in allowing gambling, almost all of them have made the gambling age 21 instead of 18.