As a member of the Senate Finance and Ways and Means committees, I work to ensure that taxpayer dollars are used wisely.
During my first term, Republicans drafted a budget that responsibly addressed our state’s needs. That budget, coupled with federal tax reform, left New Hampshire with a $200 million surplus.
The budget passed this year by Democrats increased state spending a whopping 13.2%, increased taxes and fees and created a $93 million structural deficit.
Gov. Chris Sununu’s proposed budget didn’t raise fees or taxes. It responsibly met our needs by using the state’s surplus on one-time expenses through the Capital Infrastructure Revitalization Fund, funding municipal projects to offset costs to local taxpayers.
The Democrats’ budget raised taxes on every resident and business in New Hampshire, imposing taxes on pre-paid phones, hot tubs and swimming pools, and increasing motor vehicle records and license fees. I voted against it.
Regardless of two years of record-high employment and the highest per capita income in the country, Democrats proposed increasing business taxes by 12.5%.
Our business climate is among the best in the region and businesses are moving in from other states and expanding current operations. Business tax increases will torpedo our robust economy.
While Democrats trumpet that this budget will provide local property tax relief with a $40 million distribution to cities and towns, they conveniently fail to mention their pork handouts that will increase local property taxes more than $300 million: a 1.5% retirement COLA for public sector employees costing towns a whopping $143 million; changes in firefighter workman’s compensation provisions increasing towns’ premiums; and reactionary PFAS/PFOS water quality standards with no credible assessment of costs to municipalities or a way to pay for them – all paid for by local property taxes.
Democrats raided $6.5 million from the drinking water and groundwater trust fund, which provides funding for towns and water districts to complete important water projects. A $1.65 million grant from this fund helped a well supply and development project for the Plymouth Village Water and Sewer District. Given the emerging water quality compliance issues, we shouldn’t be raiding the fund that helps communities pay for drinking water projects.
Education funding remains a major issue for our communities. However, the education funding formula proposed by Democrats never had a public hearing and didn’t allow any public input. It revives donor towns, creating fiscal inequities between communities.
I introduced amendments to examine unfunded state special ed mandates and to add an individual taxpayer burden factor to the school funding formula. Neither survived.
There were several important proposals that did enjoy broad bipartisan support, including legislation I co-sponsored to end the 4% yearly reduction of stabilization grants to school districts and restore them to 100%, and to build on past Republican successes by reauthorizing Granite Shield, increasing the number of caseworkers at DCYF, increasing funding for mental health services and fully funding the developmental disabilities waitlist. Included was an appropriation of $50 million to the state school building aid program, which would have helped Rumney and Haverhill with state aid to advance two sorely needed school construction projects.
At the beginning of this session, Gov. Sununu stated that he would not approve a budget that spent beyond our means, increased taxes or created a structural deficit. The Democrat budget failed on all three counts. Then, Democrats grandstand with three days of presentations in Concord to bemoan the effects of vetoing a budget that never was – a complete waste of time.
When they want to begin drafting a fiscally responsible bipartisan budget that addresses the needs of our state, I’ll be back in Concord working for you.
But I won’t be part of political theater that does nothing to produce a budget.
(Bob Giuda of Warren represents District 2 in the New Hampshire Senate.)