Concord – When Republican super majorities took over the State House and Senate New Hampshire’s economy was one of the fastest growing in the nation. But a new report shows that soon after the reckless job killing O’Brien-Bradley budget went into effect, New Hampshire’s economy was hurt and job growth slowed.
In November of 2010, New Hampshire had “recovered more than half the jobs lost at the lowest point of the recession, and the job market is on track to make a full recovery by early 2012.” The Telegraph also reported that New Hampshire “regained faster than New England in terms of job growth” and “should return to a pattern of long-term job growth by early 2013.” [Nashua Telegraph, 11/17/2010]
But a report yesterday, noted that New Hampshire’s “GDP grew only .5 percent in 2012 – that’s down from 2.2 percent growth the year before.”
The reckless and irresponsible O’Brien-Bradley budget went into effect in July of 2011, and in just months slowed New Hampshire’s job growth, hurting the economy. An article in the Portsmouth Herald, directly linked more than 1,300 New Hampshire workers losing their jobs with cuts in the O’Brien-Bradley budget. [Portsmouth Herald, 8/31/2011]
“Two years ago, with New Hampshire on the verge of economic recovery Jeb Bradley, Bill O’Brien and New Hampshire Republicans passed a reckless and irresponsible budget that killed hundreds of New Hampshire jobs and as a result, New Hampshire families and small businesses felt the pain,” said New Hampshire Democratic Party Communications Director. “Now the Republicans in the Senate want to double down on their reckless decisions with a state budget that threatens 700 New Hampshire workers’ jobs, cuts economic development investments, and refuses federal resources to improve the economic and health security of New Hampshire families.”
The Senate Republican budget passed yesterday could force the elimination of 700 New Hampshire jobs with sweeping across the board back of the budget cuts. They also eliminated funding for economic development investments in new small businesses through the successful Green Launching Pad. And Republicans refused to accept 2.5 Billion dollars in Expanded Medicaid funding from the federal government. Economists and health experts estimate that expansion could create 700 jobs, cut bad hospital debt and charity care costs in half, and virtually wipe our crippling medical expenses among the working poor.
“Once again Jeb Bradley, Peter Bragdon and the Senate Republicans are putting ideology ahead of the people of New Hampshire,” continued Kirstein. “Their last budget killed hundreds of New Hampshire jobs and hurt the Granite State economy, and now they want to take us back down that same Tea Party rabbit hole all over again.”
The Reckless and Irresponsible O’Brien-Bradley Budget Slowed New Hampshire’s Economy and Killed Over 1,300 Jobs.
· Portsmouth Herald: “N.H. Dems blame 1,376 lost jobs on GOP's budget”. [Portsmouth Herald, 8/31/2011]
o GOP Rep: “Expected That Budget Cuts Would Cost Jobs.” Republican State Representative Will Smith said “it is to be expected that budget cuts would cost jobs, but he added not all employment is of economic value to the state and that cuts would eventually allow for growth in the private sector.” and “I'm not trying to be callous to it. It's an unfortunate consequence of having to bring the budget under control.” [Portsmouth Herald, 8/31/2011]
o 1,376 jobs have been lost due to the impact of the state biennial budget that went into effect July 1. The Portsmouth Herald reported, “The N.H. Democratic Party released figures Tuesday suggesting 1,376 jobs have been lost due to the impact of the state biennial budget that went into effect July 1….Democratic Party figures show the state budget has cost jobs primarily for hospital workers and state employees. Hospitals around the state have been addressing budget cuts by offering early retirement, reducing services to the community and laying off staff.” [Portsmouth Herald, 8/31/2011]
· Nov. 2010: “NH recovered more than half the jobs lost at the lowest point of the recession.” Just prior to Republican supermajorities taking over the State House and Senate the Nashua Telegraph reported that, “New Hampshire has recovered more than half the jobs lost at the lowest point of the recession, and the job market is on track to make a full recovery by early 2012, according to a well-known state economist.” [Nashua Telegraph, 11/17/2010]
· Economist: NH regained jobs “faster than New England.” “Dennis Delay of the New Hampshire Center for Public Policy Studies said the state should return to a pattern of long-term job growth by early 2013. “We’ve regained faster than New England in terms of job growth,” Delay said. “The economic recovery is surprisingly broad-based. We’ve gained jobs in manufacturing, construction, retail trade, government and professional services.
FACT: Republican Budget Would Force 700 New Hampshire Workers to be Laid-off.
· Headline: Seeking savings, N.H. Senate budget writers look to cut state personnel costs – again. [Concord Monitor, 6/4/2013]
· Republicans: Personnel Cut “necessary to balance the budget.” The Concord Monitor reported, “The Senate’s budget writers also added a clause requiring Hassan, a Democrat, to reduce spending on benefits and compensation for classified state employees by at least $50 million over the next biennium, including at least $20 million in savings to the state’s general fund. Morse said the Senate’s proposed budget spends more than the current budget does without increasing taxes or fees. The personnel cut, he said, was necessary to balance the books. The SEA warned last week that the $50 million cut could mean 700 jobs eliminated, or a $5,000-per-employee reduction in total compensation.” [Concord Monitor, 6/4/2013]
· Republicans will use $20 Million in General Funds and $50 Million Total in State Layoffs to Fund Uncompensated Care Payments. From the Union Leader, "The committee has worked to find ways to increase uncompensated care payments to hospitals to entice them to join the managed care networks so the program can begin, including using a $20 million reduction in personnel compensation and benefits costs as well as other reductions in the Health and Human Services Department." [Union Leader, 5/24/2013]
Fact: Senate Republicans Cuts Funds For Economic Development And STEM Education.
· The Senate Republican budget cut $500,000 from the Green Launching Pad. Senate Republicans cut $500,000 from the Green Launching Pad in HB1. The Green Launching Pad is a public private partnership that enables local start-ups to bring green solutions to market strengthening the economy and boosting job creation. [Senate Finance HB1]
· The Senate Republican Budget Cut $200,000 From FIRST. Senate Republicans cut $200,000 from grant to local schools to start FIRST programs in HB1. FIRST inspires young people's interest and participation in science and technology and motivates them to pursue education and career opportunities in science, technology, engineering, and math. [Senate Finance HB1]
Fact: Senate Republicans Ignored Evidence Medicaid Expansion Would Strengthen The Economic Security And Health Of Countless New Hampshire Families.
· Bragdon Admitted “he didn’t understand much about Medicaid.” At a forum in Milford the Telegraph wrote, “[Bragdon] also admitted he didn’t understand much about Medicaid until this budget session. Medicaid expansion is considered the most contentious part of negotiations now underway over the proposed budget plan for Fiscal Years 2014 and ’15. [Nashua Telegraph, 6/4/2013]
· Lewin Group: Moving forward with Medicaid Expansion would bring $2.5 billion into the economy, create 700 jobs, and save the state $92 million. [Lewin Group, Jan 2013]
· Think Tank: Postponing Medicaid Expansion Even By One Year Would Cost An NH Irreplaceable $340 Billion. Economic and heath care policy experts at the NHFPI predict that "If New Hampshire delays, it would lose out for a year - maybe more - on the 100 percent federal match. In detailed reports assessing the impact of the Medicaid expansion on New Hampshire, the Lewin Group estimated that a one-year delay would reduce the federal funds coming into New Hampshire by $340 million." [NHFPI, 5/28/2013]
· STUDY: "Medicaid Virtually Wiped Out Crippling Medical Expenses Among The Poor." "The big news is that Medicaid virtually wiped out crippling medical expenses among the poor: The percentage of people who faced catastrophic out-of-pocket medical expenditures (that is, greater than 30 percent of annual income) declined from 5.5 percent to about 1 percent. In addition, the people on Medicaid were about half as likely to experience other forms of financial strain-like borrowing money or delaying payments on other bills because of medical expenses." [The New Republic, 5/1/2013]
· STUDY: "People On Medicaid Ended Up With Significantly Better Mental Health." "The other big finding was that people on Medicaid ended up with significantly better mental health: The rate of depression among Medicaid beneficiaries was 30 percent lower than the rate of depression among people who remained uninsured. That's not just good health policy. That's good fiscal policy, given the enormous costs that mental health problems impose on society-by reducing productivity, increasing the incidence of violence and self-destructive behavior, and so on." [The New Republic,5/1/2013]
· Accepting Federal Funding for Expanded Medicaid Would Bring NH A "Number of Economic Benefits." The non-partisan New Hampshire fiscal policy institute found, "if New Hampshire takes the federal money, it will enjoy a number of economic benefits as well. It will gain an average of 5,100 new jobs; the state will enjoy a $2.8 billion increase in gross state product; personal income will increase by more than $2 billion, and; household spending on health care will drop by almost $100 million statewide." [NHFPI Testimony, 5/9/2013]
· STUDY: Refusing to Expand Medicaid Will Be “More-Costly,” Require States Higher Spending on Uncompensated Care. A non-partisan study revealed, “State policymakers should be aware that if they do not expand Medicaid, fewer people will have health insurance, and that will trigger higher state and local spending for uncompensated medical care,” Price said. “Choosing to not expand Medicaid may turn out to be the more-costly path for state and local governments.” [The Hill, 6/3/2013]