Senate budget writers finalized an $11.8 billion state spending plan Wednesday that would expand the number of mental health beds, reduce business taxes and give the Concord School District money to help switch heat sources.
The Senate Finance Committee passed the plan in a 4-2 vote along party lines. Republicans said the budget spending is within the state’s means and helped tackle health issues, such as the mental health crisis. Democrats argued it didn’t go far enough and shortchanged higher education, public health and workforce training initiatives.
The budget will next go to the Senate floor for a vote, but the real test will be in the House. The lower chamber was unable to pass a budget earlier this year after House conservatives joined with Democrats to oppose the spending plan put forward by GOP leaders.
The Senate budget does differ from those crafted by the House Finance Committee and Gov. Chris Sununu. It doesn’t include $50 million in property tax relief sought by Speaker Shawn Jasper. And it also leaves out money for full-day kindergarten, which Sununu had put in his budget proposal. Those dollars are part of a separate, stand-alone bill making its way through the Legislature.
Senate President Chuck Morse praised the plan Wednesday, saying he believes the tax cuts will drive growth. The last state budget included a round of cuts to the business profits and enterprise tax rates, which took effect last year. The next round would begin in 2019 and gradually lower the rates to 7.5 percent and 0.5 percent, respectively.
“It’s a solid budget that provides what New Hampshire needs,” said Morse, a Salem Republican. “We certainly have had lists of things that we couldn’t fund, like increased funding for the university system, that we just can’t get to in this budget if we’re going to live within our means.”
Democratic Sen. Dan Feltes said the budget fell short in funding prevention services for child protection, substance abuse and workforce development programs.
“I don’t think additional business tax cuts are going to help us fill those positions, we need people trained and skilled up to fill those positions,” said Feltes of Concord.
Morse said Senate Finance came together on mental health. The budget spends roughly $17 million to expand the number of psychiatric beds and to expand services meant to keep people out of the hospital.
The Senate spending proposal would also:
– Set up an office of the child advocate to provide independent oversight at the Division for Children, Youth and Families and fund more child protection workers to investigate reports of abuse and neglect.
– Give roughly $6 million in additional funds to the Community College system, but deny any increases to the University System, which will still get $81 million a year.
– Break up the Department of Resources and Economic Development. The Department of Cultural Resources would be combined with the divisions for forestry and lands into a new Department of Natural and Cultural Resources. It creates a new Department of Business and Economic Affairs.