By PAULA TRACY, InDepthNH.org
CONCORD – Whether there is enough money in this upcoming state budget for increased funding to support affordable housing – a public priority – is hanging in the balance as the Senate Finance Committee continues to review spending options.
This week, the Senate Finance Committee placed “on hold” a recommendation on whether or not to support Senate Bill 81 https://gc.nh.gov/bill_status/billinfo.aspx?id=977&inflect=2 along with a host of other bills with financial impacts as they work to craft recommendations for the Senate to approve.
As written the bill would add $5 million more from the Real Estate Transfer Tax for affordable housing.
Democrats on the committee said the state should move forward with the measure noting polls have found that the public overwhelmingly supports efforts to increase affordable housing.
But Republicans, including the bill’s sponsor, said this may not be the time to add more funding for affordable housing.
The state’s projected revenues are down and tough decisions need to be made as the clock winds down toward a deadline.
The process that goes forward every two years began in February with the new governor’s budget proposal. It had higher revenue projections than exist today.
The House took its turn next and revenue projections were much lower and generated a $16 billion budget which includes layoffs, terminations of programs, increased fees.
Hundreds came out to a public hearing and laid out concerns for cuts in the House version.
The Senate Finance Committee is now in the driver’s seat to craft a product that has better revenue numbers than the House but is not as optimistic as the governor’s.
The Senate Finance Committee announced at its outset that it would recommend restoration funding for Medicaid providers premiums, money for the developmentally disabled wait list and the community mental health program. Those were the important issues raised by the public at the hearing.
But given that, it leaves little wiggle room to pay for a long list of other initiatives which the Senate has, including some like more funds for affordable housing.
Sen. Cindy Rosenwald, D-Nashua, a member of Senate Finance, said Monday she wanted to move forward with funding this measure.
She noted in her own community an apartment building which was developed using this program and 80 percent of the units are for affordable housing.
“It is basically across the street from one of the hospitals and it is a place where nurses and other staff members could afford to live,” she said. Projects like this have widespread support. Businesses say a lack of adequate affordable housing is making it hard to find workers.
Sen. Dan Innis, R-Bradford, the bill’s sponsor, said he is a pragmatic person and recognizes the budget situation.
“As much as I hate to say it, I am willing to let it go this time. As we move into next year, and we see where our revenues are and how the budget is playing out we may be able to move back toward this,” Innis said on Monday.
Sen. David Watters, D-Dover, said the Senate has discussed an increase in this program over many biennia, and it has been a proven successful program.
“It seems to me that this is the one thing we can do something about for housing policy on a program that has worked,” he said.
He said some dollar amount should be allocated to increase the fund and that should be discussed.
Sen. Tim Lang, R-Sanbornton, said he would consider supporting funds for that if money can be found elsewhere.
Last week, the Senate did take positive action on some zoning changes that some say will help alleviate the housing crisis like House Bill 631 permitting residential buildings in commercial zoning, which was promoted by Innis and has passed the House.
But not all Republicans supported those changes including Sen. Denise Ricciardi, R-Bedford, who said it would force cities and towns to handle financial burdens of the bill on their own and for that reason it is an unfunded mandate. These costs to comply, she said, could run into the tens of thousands of dollars.
It also supported HB 685 permitting construction of manufactured housing in all residentially zoned areas by right.
MEETING WITH THE GOVERNOR
Members of the Senate Finance Committee met Tuesday morning with Gov. Kelly Ayotte before their scheduled meeting.
If the House and Senate can agree on a budget, it still has to get a signature from Ayotte.
The committee plans to meet again Wednesday at 11 a.m., Thursday after the full Senate meets in session, and Friday at 1:30 p.m.
CLOSING HOOSKETT AND GOFFSTOWN COURTS
Erin Creegan, general counsel for the court system addressed concerns Tuesday that the Hooksett court will be closed under the House passed budget.
She said in order to make the 4 percent cut, it was hard to find a way to make the decision on how to meet that requirement.
“We are lean and very personnel heavy,” she said. There was a need to close two of the 32 court locations under the House budget directive.
An issue was geographic dispersal. She said they first looked at closing Candia and Claremont courts but settled for Goffstown and Hooksett due to geography reasons and proximity to other courts.
Sen. Howard Pearl, R-Loudon, said it is a concern for local police departments to be out of their jurisdiction and was particularly concerned about the possible closure of the Hooksett court.
He said he would not support the cuts and would like to look at some other options and financial breakdown, which she said she would get for the committee. The committee put this issue “on hold” as well.
YDC CLAIMS AND AUDIT
Senators received the results of an audit of the YDC Claims program, which was sought by Senate President Sharon Carson, R-Londonderry, about a month ago.
The state is being sued by hundreds of former residents of the Youth Development Center (now known as the Sununu Youth Services Center) who claim they were sexually and physically abused there as children incarcerated as juveniles.
Just how much to set aside for claims is an issue as the budget goes forward, though Ayotte did not place funds in her proposed budget for the fund.
Sen. James Gray, R-Rochester, said there are several things going on with the governor’s office in this regard and they are in discussions with YDC Claims, noting that the sale of the YDC facility in Manchester and its proceeds as the state moves the services to Hampstead, and whether it could be folded in at some point to help pay the settlement costs.
Rosenwald had questions about the fund and said she read the audit through March 31. She asked if the state is committed to paying out $156 million.
GRAY SAYS NO TO HOUSE SWEEP OF 5 PERCENT OF ALL DEDICATED FUNDS
Committee Chairman Gray said he opposes the House decision in its budget to take a sweep of 5 percent of all dedicated funds.
“I don’t think it’s allowable and the thing to do,” he said, though there was no vote on Tuesday.