Front Door Politics: Budget negotiations and
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It’s down to the wire as New Hampshire legislators to wrap up their 2011 session. At this point, the only thing left is for conference committees to hammer out any differences between the House and Senate on bills that have not yet passed or been killed. Unless a special session is called to keep them at the State House longer, their last day of voting will be Thursday, June 23.
State budget negotiations: The highest profile conference committee will aim to settle the state’s two-year budget—very different versions of which have been proposed by Gov. John Lynch this winter, crafted by the House this spring, and amended by the Senate last week. At about $10.3 billion, the Senate’s version falls $244 million short of the governor’s hopes, but restores $75 million the House had cut.
Republicans in control of both the House and Senate campaigned last fall, in large part, on a promise not to increase any state taxes or fees. And they’ve kept their word—but that doesn’t necessarily mean Granite Staters won’t end up paying more this year.
Much of what the state has cut from its budget—in particular, through lower pension contributions for public employees—will be picked up by cities and towns if separate legislation to reform the pension system doesn’t pass. Local officials are already bracing for higher costs, as well as potentially higher property taxes and reductions in services in order to keep their own budgets balanced. And, if that reform does pass, public employees can expect to contribute a much higher portion of their own pension funds.
Another big hit is to hospitals, whose reimbursements for care given to the poor has been drastically reduced. Speculation on the source of recouping those losses ranges from private insurance premiums to reduced hospital services and health care layoffs.
One group of health care interests is breathing a tentative sigh of relief, however. The Bureau of Developmental Services, which provides community support for people with developmental disabilities and acquired brain disorders, saw the Senate reverse a proposed $10 million per year funding cut. Additionally, $6 million would be allocated over the next two years for the nearly 500 people on a wait list for services.
Also, the Department of Cultural Resources would be saved under the Senate’s budget amendments. Although it retained the House’s 17 percent budget reduction from the governor’s proposal, the Senate removed a clause that would have abolished the department altogether. The Department of Cultural Resources consists of the State Library, the State Council on the Arts, the Film and Television Office, the Division of Historical Resources, and the Commission on Native American Affairs.
Remembering former New Hampshire Governor Walter Peterson: Former governor Walter Peterson died last week at age 88. After serving four terms in the House, including one as majority leader and two as House Speaker, the Republican legislator moved to the executive branch. He served two terms as governor, from 1969 to 1973.
During Peterson’s tenure as governor, New Hampshire restructured its business taxes and increased liquor sales, both moves bringing more money into state coffers and contributing to a budget surplus. Many say he lost his 1972 gubernatorial primary bid after he refused to take a pledge to veto any broad-based sales or income tax.
The Orford publisher Meldrim Thompson instead won the Republican primary that year, and went on to serve three consecutive terms as governor. It was under Thompson’s tenure that “Live Free or Die” replaced the word “Scenic” on New Hampshire license plates.
Peterson is widely remembered as a gentleman and a moderate Republican, praised by former colleagues on both sides of the aisle. He was honorary chairman of John McCain’s presidential campaign in the New Hampshire primary in 2008, but has also chaired Republicans for Lynch to support Gov. John Lynch, a Democrat.
“Governor Walter Peterson represented all that is great and wonderful about our state,” said Gov. John Lynch in a press release. “With a strength of character as tough as New Hampshire granite—Governor Peterson was a true New Hampshire icon, a gentleman and a strong example of courage and honesty in politics. He never wavered from his principles and always put the needs of people first, which is the mark of a great man and an extraordinary public servant.”
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