October 10, 2008
Seacoast Online

Talking to the former House Ways and Means Committee chairman, state Rep. Norman Major, R-Plaistow, since the beginning of the state’s two-year budget cycle in 2007, I found the committee was not allowed to look at revenue numbers until after the governor’s budget presentation. Then work on revenue projections began and were discussed frankly until Finance Committee Chairwoman Marge Smith, D-Durham, told the Ways and Means Committee that tens of millions of additional revenues were needed to fund the budget requests and that the committee should look to the sky for those revenues. The estimates were then inflated and passed by the committee on a partisan basis. Additionally, at one point during this last session, Rep. Smith said on the House floor, just pass this bill and we will worry about funding it next year. Is this responsible legislation? I say no, and it must stop!

The state does not have a revenue problem, it simply has a spending problem, which also must stop. “Growth in revenues is in the 3 to 4 percent range, but since the Democrats passed a budget with a 17.5 percent increase, the revenue numbers were inflated to match the expenditures,” stated Major. The enacted budget is within just a few million of the governor’s proposed budget, but here again, this is pure politics, plain and simple, and we can not just raise the estimates to match the spending “on paper.”

As I have been saying for over a year, the New Hampshire Legislature’s policy of following the country’s borrow, spend and credit-abuse mentality by overestimating revenues, bonding operating costs, and spending beyond our means this biennium is totally irresponsible.

“Dealing with the revenue issues of FY 2008 (the raiding of the $61 million 2007 surplus, $10 million in bonding and FY 08 shortfall), coupled with the FY 2009 revenue shortfall of approximately $200 million and bonding payments for current expenses in the amount of $40 million, we are looking at over $360 million in revenue shortfall this budget cycle. If the economy stalls, then the next budget cycle could be faced with an approximate $580 million revenue shortfall,” added Major. As you think about this, please keep in mind the current situation in Washington. Is this overspending mess what we want for New Hampshire? No!

“Rep Major has always been right on the button when it comes to revenue estimates,” added Deputy Republican Leader, state Rep David Hess, R-Hooksett. “His projections through the end of this fiscal year are frightening. When the additional $100 million needed to pay for the current education funding plan is added to this conservative revenue shortfall projection, we are facing a staggering shortfall of close to half a billion dollars. That tells me one thing, that the Democrats in Concord are digging a hole that we can get out of only by passing a broad-based sales or income tax. That has always been part of their agenda.

These numbers confirm it. The citizens of New Hampshire need to know that the Democrats are leading us down this one-way path,” concluded Hess.

I must ask, do you really want a broad-base sales or income tax? I say NO! What we need is Republican-led conservative, responsibly-balanced budget legislation, not exceeding the cost of living index. Remember, with all this debt, the school-funding bills, Senate Bill 530 kindergarten aid bill that passed on a roll call party-line vote 200-137, and SB 539, the cost of an adequate education bill which passed also on a roll call party-line vote 184-141, but has not yet been funded, is NOT even included here.

Thank you to Rep. Norman Major and Rep. David Hess for their input into this article.
###

Lawrence “Mike” Kappler is a resident of Raymond and current Republican state representative for District 2. He is seeking re-election on Nov. 4 and can be reached at l.mikekappler@comcast.net.