By PAULA TRACY, InDepthNH.org

CONCORD – Democratic leaders in the state House and Senate said they see hope for the coming legislative session to do what 49 percent of the voters in November voted for them to do, adding they plan an active voice throughout the budget process.

On their list is more affordable housing, prevention of downshifting of costs to real estate taxpayers, opposing the expansion of Education Freedom Accounts and offering childcare help and working on improving retirement benefits for Group II workers.

Republicans will have their turn at the microphone on Wednesday when they lay out their priorities at a press conference. 

The Republicans enjoy large majorities in both the House and Senate and have retained the Executive branch with Gov.-elect Kelly Ayotte moving paintings and boxes into the corner office just after the Democrats were speaking in the lobby of the Legislative Office Building. 

“We are no strangers to working in the minority and getting things done,” said the House Democratic Leader, state Rep. Alexis Simpson, D-Exeter, at a press conference Tuesday ahead of the start of the new legislative session.

Deputy House Leader Laura Telerski, D-Nashua, said a looming and possibly massive revenue shortfall, which she claimed was brought on by Republican controlled legislation of the past, will impact various state departments including Fish and Game, tourism and education.

Standing next to a graphic showing various headlines of articles in state news coverage, she noted that following budget hearings last fall, the legislature is now preparing for one of the most contentious budget sessions in years.

“We heard from the Director of Fish and Game who warned that the agency will have to make cuts that will negatively impact public safety, our environment and the economy. We heard from leaders in the tourism industry who made clear that budget cuts would weaken the tourism sector and result in the loss of an estimated $68 million in state revenue and we heard from education leaders who warned that reduced state aid could burden local districts leading to higher property taxes and significantly scaling back vital services for special education services,” Telerski said. 

The Democratic leaders said they think there are bipartisan areas of agreement on improving low-income housing availability and clean water protection. Even some agreement on possibly legalizing cannabis for adults could be on the table. But they oppose the Republicans’ efforts to expand the Education Freedom Account program and want to see the full funding of the Group II retirement plan.

Though the first order of business in any two-year term is crafting a budget, Deputy Senate Democratic Leader, Sen. Cindy Rosenwald, D-Nashua, charged that Republican’s past recklessness got the state in the potentially financially troubling situation with revenue falling the past six months and daunting bills expected. 

And she said the last place she would go to fill any hole is the state’s rainy day funding, because of potential negative consequences to the state’s credit rating which would drive up borrowing costs.

“Get ready for a Republican distraction from Republican failure. That is what we have seen time and again the last few sessions. Here’s what happened on their watch. They’ve recklessly cut sources of revenue when they knew we could not make it up by shifting the tax burden from the wealthiest on to hard working and retired Granite Staters and their property tax,” she said referring to the elimination of the Interest and Dividends Tax which was repealed Jan. 1, 2025.

That will mean about $80 million less in the coffers from investment portfolios which have been filling. The tax used to be at 5 percent but was phased out over the past three years to this past year when it was at 3 percent. 

The state is also facing $75 million a year commitment from lawsuits related to suits alleging abuse at the state Sununu Youth Services Center and tens of millions of dollars of shortfalls for critical health-care needs looming in May “before the budget even gets done,” Rosenwald said.

“Republicans have simply refused to practice fiscal responsibility and we have a looming deficit for this biennium that might be over $20 million. All of this botched leadership means Republicans have left us with less money to address the issues Granite Stater’s care about. Less money to fund schools, build affordable housing, fund the services we need to thrive. Things like health care, child care, end homelessness and fund addiction and mental health services. In fact, Republicans are talking about doing the opposite and moving us backwards potentially forcing broad cuts in all these services amid the housing and affordability crisis Granite Staters are in. Put simply, Republicans have run up the tab and now they are passing the bill on to you,” Rosenwald said.  

Sen. Rebecca Perkins Kwoka, D-Portsmouth, Senate Minority Leader, said Democrats have legislation filed to address the needs of those who elected them to the House and Senate.

“We start by making sure every Granite Stater can afford to live here,” she said and legislation to expand the Housing Champions Program which has awarded funds to communities and will bring legislation to provide relief for municipal property taxes by ensuring the state pays its fair share of the public employee retirement plan for Group II.

The latter would be the priority if there is any unexpected revenue, they said, which they would certainly welcome.

Childcare help is also a Democratic priority, Perkins Kwoka said.

But they plan a fight over education funding on multiple fronts.

“We need to rein in the irresponsible (Education) voucher program, something we will do as we shape the budget…we need to ensure our public schools are fully funded to move forward. We may be in the minority, but we are going to continue to get us back to what matters to Granite Staters,” Perkins Kwoka said. 

Republican leaders plan a similar press conference Wednesday at 9 a.m. where they will lay out their priorities for the coming next two years.

Expected on the Republicans’ list are passing a responsible state budget, improving the state’s business climate, fiscal responsibility, expanding the Education Freedom Account program, drug treatment and recovery and reducing the cost of energy.

Democrats also have reducing energy costs and fiscal responsibility on their list, too.