By PAULA TRACY, InDepthNH.org
CONCORD – Along party lines, the Senate Finance Committee voted 6-2 Tuesday to pass its version of a budget for the next two years at about $16 billion despite Democratic concerns that it does not meet the needs of the citizens of the state who are just trying to get by.
But Republicans said the Senate version of the budget is responsive to public concerns and a needed “readjustment” from the past few years when the money was flowing in heavily from the federal government for post COVID-19 relief.
That money has since dried up as have a number of revenue lines which have disappeared or contracted.
The new governor, Republican Kelly Ayotte proposed a $16 billion budget based on revenue projections this winter.
It looked to retain most current services while asking department heads to reduce their asks, which they did.
The House next passed a $15.5 billion budget April 10 which was $513.5 million less than the governor’s budget, based on revenue projections trending downward.
But they heard loudly from hundreds at a public hearing that the House went too far in cutting services, particularly to the most vulnerable.
Revenue estimates trended upward for Senate budget writers to be roughly between the House and Governor’s estimates.
The proposed Senate budget fits the needs of the state for it to be balanced and is likely to pass on Thursday when the full Senate votes.
It is expected to go to a committee of conference between the House and Senate if passed because there are a number of key differences financial and policy between House and Senate versions which will have to be worked out.
Some key highlights to the recommended Senate House Bill 1 and 2 which will be voted on by the 16-8 Republican controlled Senate are:
– Medicaid provider rates have been restored from the House contemplation of 3 percent cuts, a cost of $52.5 million.
– It fully funds the wait list for those with developmental disabilities needs, restoring it from House cuts by $31 million.
– It uses $15 million in federal funds for childcare workforce programming.
– For Corrections, it restores 75 out of 100 positions cut in the House budget, which sought a 10 percent cut.
– It restores some funding and changes some policies related to the Arts Council, Office of the Child Advocate, the Human Rights Commission and the Commission on Aging.
– Community mental health services are also restored from the $15.5 billion House budget by $38 million.
– It funds $11.5 million for water improvements and directs $55 million in PFOS settlement funds to public water systems impacted by the “forever” chemical.
– It dedicates more than $100 million to the former YDC settlement fund for victims in the state’s care including $80 million estimated from the future sale of the Sununu Youth Services Center property in Manchester.
– It restores funding for the courthouses in Hooksett and Goffstown.
– It includes $10 million for people with developmental disabilities and acquired brain disorder in community residences.
– It restores the full 30 percent revenue sharing to cities and towns under the rooms and meals tax from the House cuts. That revenue sharing has doubled to communities since the Senate pushed to increase it four years ago.
– The proposed Senate version sends more than $2.1 billion to local schools under the student-centered education funding formula.
– It restores $10 million for local wastewater projects.
– It expands the Education Freedom Accounts program to all families, regardless of income.
– It restores funding from the House version for the UNIQUE college scholarships program for Granite State students attending New Hampshire colleges.
– It provides $85 million in state funds for the University System of NH, an increase from the House version of $67 million.
– It includes back of the budget cuts for state departments totaling $95.5 million which will be determined by department heads.
The vote on both House Bill 1 and the trailer bill, House Bill 2 in the Senate Finance Committee was 6-2 with Republican Senators Regina Birdsell, R-Hampstead, Tim Lang, R-Sanbornton, Chairman James Gray, R-Rochester, Senate President Sharon Carson, R-Londonderry, and Dan Innis, R-Bradford supporting them.
Opposing the measures were the two Democrats on the Senate Finance Committee, Sen. Cindy Rosenwald, D-Nashua, and Sen. Rebecca Perkins Kwoka, D-Portsmouth, who was filling in for Sen. David Watters, D-Dover, who was sick.
Each senator took a turn to explain their votes as follows:
SENATOR CINDY ROSENWALD
Rosenwald thanked Gray for his leadership on the hard work that went into this version of the budget but said it raises costs for Granite Staters and does nothing to solve the biggest problem, funding to help with a lack of affordable housing.
She said while it is better than the House budget, it raises local property taxes by cutting the distribution of state support to municipalities through the rooms and meals tax and does not help with prescription drug affordability. She said it jeopardizes health and human services programs because of the $51 million back of the budget cut and elimination of nearly 100 positions.
“Finally, the budget pretty much guts the renewable energy fund,” she said.
SENATOR REBECCA PERKINS KWOKA
The fellow Democrat said she too wanted to thank all for their work but she could not support the proposed budget, as well.
She said in the end it represents a reduction in services and an increase in premium costs which will lead to more uncompensated care and a drag on the workforce.
Perkins Kwoka noted language related to dropping diversity and inclusion language would impact the workforce as well as people will not want to come here to work and raise a family.
SENATOR DAN INNIS
The Republican said it is easy to focus on the negatives in a budget but he is hopeful about some aspects which are positive.
“I am personally disappointed in our funding of higher education for the University System and the Community College system,” he said, noting that if you go back to 2006, adjusting for inflation the state is funding higher education at half the rate it was then.
“We’ve restored Medicaid funds that came over from the House. That is a good thing, a very positive thing that we did. We worked on the arts and brought back the (Arts) council. That is tremendous. We made good investments in transportation and while some may not like it, Education Freedom Accounts are going to be with us and I think that is really important. Because there is a study in Ohio that was done that shows that black children, boys, and kids in long term poverty are the beneficiaries of voucher programs,” Innis said.
SENATOR TIM LANG
As a novice on the Finance Committee Lang called it a daunting task to learn what is going on but he wanted to focus on the positive in the document.
He pointed to rooms and meals tax which are expected to go up and put back revenue sharing to the way it was before the House proposed cutting it, so municipalities will see revenue sharing. There are investments in ground water protection and waste water, help with housing development in policy, and more funding for education.
“Again in the face of declining enrollments we are still spending more money to support our education needs,” Lang said.
SENATOR REGINA BIRDSELL
While there are some things Birdsell said she does not support, including the Group II retirement benefits proposal, there are many things she does support including fully funding the developmentally disabled wait list, a suicide hot line being brought back and lots of money for education.
SENATOR HOWARD PEARL
He said solid waste management has been a big issue in the state in recent years and he is pleased that an amendment is included in the proposed Senate budget which will help with the development of a Landfill Site Evaluation Committee and allow for public input at the municipal level to look at future needs in that area.
He said there is a good path forward as well for in-home long-term care.
SENATOR SHARON CARSON
The Senate President said it has been a long time since she was on a Finance Committee and frankly she said it was like being in the deep end of a pool drinking from a fire hose.
She thanked all, noting that everyone was agreeable even though they did not always agree. She particularly thanked the staff of Office of Legislative Budget for their help and Chairman James Gray.
SENATOR JAMES GRAY
Gray said he wanted to talk about vouchers.
He said he has received hundreds of emails from people who were opposed to his support of Education Freedom Accounts and dropping family financial qualifications to receive vouchers.
He said his response to them is that vouchers are actually giving taxpayers a break.
He said there is legislation that allows communities to share superintendents and resources and noted he and his wife were parents who chose to sacrifice to pay for private schools during their children’s formative years.
“I am being vilified because I think that people like me, the hard-working people of New Hampshire, can save money for the local government by accepting a voucher,” Gray said.
“But please, look at vouchers on an even keel. They can save local dollars,” he said.