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House passes tax cuts, doesn’t pass them on: When is a tax cut bill that passes the House not really a tax cut bill? 

New Hampshire saw the question asked and answered on Feb. 16 when two tax cut proposals were approved by the full House. In a rare parliamentary move, House Republican leaders then stopped, or “tabled” the bills, preventing them from being considered by the Senate, where they would have received a second round of public hearings, committee considerations, and floor votes.

Norma Love of the Associated Press reported that House Ways and Means Committee Chair Rep. Stephen Stepanek (R-Milford) urged the House to cut the rooms and meals tax (House Bill 166) and a telephone tax (House Bill 37), which combined would shave as much as $64 million from revenue estimates for the 2012-2013 biennium budget. But, after the bills passed by wide margins, Stepanek offered a motion to table the bills because, he said, “We do not have the necessary funds (now) to pass this tax reduction.”

Former House Speaker and Democratic House leader Terie Norelli (D-Portsmouth) said the parliamentary move was a “sleight of hand gimmick” that allows House Republicans to get the public relations benefit of tax cuts without having to deal with the revenue-draining consequences of their actions.

“We have been told they plan to do this with every tax cut bill,” Norelli tells Front Door Politics. “If you don’t have the money (for tax cuts), why bring it forward? What kind of public policy is this?” she asks.

Norelli says that during her four years as Speaker and more than 14 years in the House, she had never seen such a parliamentary tabling action for revenue or spending bills. She says bills that pass the House are rarely—if ever—tabled, the exception being new information or a study that could cause House members to reconsider their votes. Norelli expects the tax cut proposals will emerge later in the session during budget negotiations with the Senate. In her estimation, that would mean less transparency, public input and legislative debate.

Stepanek agrees that tax cuts could be revived later in the session during budget negotiations with the Senate—if there’s money to pay for them.

Some rank and file Republicans were not pleased with Wednesday’s tabling motion, and 31 voted against it. According to the Associated Press story, Rep. Tony Soltani (R-Epsom) said the tax cuts should have been moved to the Senate. “We give you a tax cut and take it away. Why can’t we be honest about it?” Soltani asked.

The House Republican Office did not return a call seeking comment and further clarification for this dispatch. —Michael McCord

draft state budget unveiled: The battle over the 2012-2013 New Hampshire state budget has officially commenced. Gov. John Lynch made the case for his $4.7 billion budget proposal to lawmakers at a public hearing on Feb. 17.

Fresh off his budget address to the Legislature on Feb. 15, Lynch faced questions from members of the joint House and Senate Finance committees. Among many details still to be deciphered, Lynch’s budget proposal would:

• Cut state general fund spending to $160 million less than it was in 2008-2009.

• Eliminate about 1,100 state job positions (including current vacancies) and fire around 255 state workers.

• Eliminate the state’s subsidy for municipal retirement costs—yet recommend reforms that will save municipalities, school districts and the state $1.5 billion over the next 20 years.

• Cut $20 million in uncompensated care payments to hospitals to fund federally optional Medicaid services, such as prescription drugs, nursing services and wheelchairs.

• Close visitor welcome centers and four Motor Vehicle substations.

Lynch said the budget was a result of “re-thinking every aspect of state government” and making hard choices given the drop-off in federal stimulus funding and the slow pace of economic recovery.

“We have pored over every line in every budget,” Lynch said on Feb. 15. “We’ve asked not only whether a program was worthy, but also whether it was the most important thing for us to continue to do as a state. For programs that we believe should continue, we asked how they could be done more efficiently.”

One question Lynch is likely to continue hearing is how he justifies his 2012-2013 revenue projections. They are $300 million above the $4.4 billion figure the House has already approved as its benchmark. House Majority Leader Rep. D. J. Bettencourt (R-Salem) said the budget proposal was “an important first step” but criticized Lynch for missing “a tremendous opportunity to bring transformative change” to state government.

“Instead, he took a step back by over-inflating revenue figures by nearly $300 million, which would set us up for budget deficits for the next two years,” Bettencourt said.

While Lynch and House Republicans agreed on a proposal to repeal the 10 percent gambling winnings tax, Lynch parted ways with other House proposals to reduce the rooms and meals tax and tobacco taxes—which could account potentially for as much as one quarter of the $300 million difference in the biennium revenue estimates. In particular, Bettencourt said the budget keeps in place a $30 car registration fee surcharge, “which is a huge burden to working families of New Hampshire.”

You can see the complete budget proposal or a 39-page budget summary by visiting www.admin.state.nh.us and clicking on “Budget Office.” —Michael McCord