By GARRY RAYNO, InDepthNH.org
CONCORD — The Senate Capital Budget Committee this week begins work on the $132.5 million capital budget the House approved earlier this month.
The chair of the House Public Works and Highways Committee Rep. David Milz, R-Derry, told the Senate committee Thursday the House plan cuts about $11 million from the $143.5 million general fund capital budget recommended by Gov. Kelly Ayotte, mostly by saving $20 million she had allocated for Career and Technical Education (CTE) projects in Milford and the Jaffrey-Rindge School District that were voted down at the communities’ annual school district meetings this spring.
Milz said the House committee left $1 in the Milford project as a placeholder and indicator of its support for the project if school district voters change their minds in the future.
Sen. David Watters, D-Dover, said he was concerned about the two CTE projects noting they are usually approved automatically when they are requested at the state level.
Was there some way to fund half of it and the other half in the next capital budget, he wondered, but several other committee members said all the money should be approved at one time.
Milz noted there is optimism the Milford project may go forward as soon as next year and then it could be included in the next capital budget.
He said the House committee was able to use that money to leverage $122 million in federal funds for state airports and military projects and for additional money for the Community College System of New Hampshire and the state Veterans Home.
However, the House committee removed $12 million from the $20 million the Governor included in her budget for the University System of New Hampshire.
Milz said the $12 million was for a new project at the University of New Hampshire to renovate Morse Hall, but the committee retained $8 million for projects already approved at Plymouth State University and at Keene State College. Those projects include ongoing renovations at the Hyde Hall Innovation and Entrepreneurship Center at Plymouth, and renovations at Redfern, Morrison and Keddy at the Keene campus.
The House added $1.5 million for Americans with Disabilities Act compliance and IPC compliance for electronic equipment at the Tarr building North and South at the Veterans Home campus.
The governor had included $1.83 million in work at the home including $1.3 million to replace three air handlers at the facility that the House left intact.
Former House Public Works and Highways chair John Graham of Bedford, who is on the Veterans Home board, said the board approves of the additional work the House added noting the ADA work is a necessity.
The House also added $6 million to the $20 million the governor included in the capital budget for replacing the Aerial Tramway at Cannon Mountain State Park and ski area.
And the House added $2 million of work for the Pease Development Authority on the Market Street Marine Terminal warehouse and main wharf and for riprap at Rye and Hampton harbors.
The House also added $2.4 million for cyber security across the state’s IT network.
At the public hearing, Rep. Thomas Kaczynski, R-Rochester, argued to remove $450,000 in state funds for work on the North Coast Railroad through Belknap and Strafford counties owned by Boston Sand and Gravel. He made a similar argument unsuccessfully before the House last month when the capital budget, House Bill 25, was approved.
Kaczynski argued freight rail is one of the most profitable businesses in the country and the state should not be subsidizing the work and other work on the rail line owned by CSX.
Kaczynski said last year CSX’s net income was $3.47 billion, a 36 percent profit margin, and invested $2.2 billion in infrastructure around the country.
Boston Sand and Gravel is a multi-million-dollar Massachusetts company with seven businesses and 450 employees that bought the rail line in 1986 to move sand from Ossipee to Boston five days a week, he said.
“Why are we subsidizing a rich company,” Kaczynski asked, “Why do we give them the money?”
He said he was told the state has been giving them the money for some time, but no one knows why.
He said the argument that helping pay for the maintenance keeps trucks off the roads is overrated, it is just cheaper to move the sand by rail.
Even if the state did not give them the money the two companies would continue to operate, Kaczynski argued.
Senate President Sharon Carson, R-Londonderry, asked if there is an agreement between the state and Boston Sand and Gravel and was told there was not.
Committee chair, Rep. Mark McConkey. R-Freedom, said Eastern Propane also uses the railroad to deliver propane to the Lakes Region, noting the work is to replace rails and ties and it is very expensive.
The House committee also added $1.32 million to upgrade and modernize license plate producing equipment to the capital budget.
The work is currently done by prisoners at the Men’s State Prison in Concord but is anticipated to move to the Department of Safety.
Several members of the committee expressed concern about the move saying they believe it should remain at the prison.
The committee begins meeting with state agency heads Friday at 9 a.m. in Room 100 of the State House to discuss their requests for the capital budget.
Garry Rayno may be reached at garry.rayno@yahoo.com.