NH GOP - DEMOCRAT OPPOSITION MOUNTS AGAINST HASSAN’S IRRESPONSIBLE BUDGET

Governor’s Casino Revenue Gamble Faces Skepticism From Her Own Party

Concord, NH – As Governor Hassan prepares to testify today on gambling legislation, her irresponsible casino licensing revenue scheme is facing increasing criticism from members of her own party.

“Governor Hassan is constructing a fiscally irresponsible house of cards that could collapse at any moment. She is basing New Hampshire’s financial integrity on a non-existent source of revenue that is even facing opposition from members of her own party,” said NHGOP Chairman Jennifer Horn. “If Governor Hassan is having difficulty convincing Democrats to support her disastrous budget, then its time for her to come up with a ‘Plan B.’” Granite Staters deserved to know how their governor will address the $80 million deficit that could result from her failed leadership and fiscal irresponsibility.”

Since Governor Hassan delivered her budget address last week, Democrats have voiced skepticism on the prospects of her proposal.

“I continue to have grave reservations with using gambling,” liberal Senator Martha Fuller Clark (D-Portsmouth) told the Portsmouth Herald following Governor Hassan’s budget address (2/14/2013.) “That's the conflict for me. I worry that we're allowing gambling to come to the state, (and it) will divert a huge amount of money earned in the state (to) a problematic industry,”

In a series of tweets aimed at Democrat Party leaders, State Representative Peter Sullivan (D-Manchester) sharply criticized Governor Hassan and her casino revenue scheme.

“Dem party leaders pressuring legislators to back casino solely to protect Hassan's hide,”tweeted Representative Sullivan. “Casino gambling is NOT a Democratic issue. Hope@ChairmanBuckley and @nhkathysullivan remember that...I just don't want to see any thumbs on the scale from party officers. Gov. Hassan isn't NH’s only Dem.”

Representative Sullivan also indicated that Governor Hassan’s budget gambit is already facing widespread opposition among House Democrats.

“House response to Governor's casino proposal can charitably be called underwhelming, he tweeted. “ Governor is badly overestimating House Dem support. Outside Manch/Nashua, very thin.”

Democrat Party activists have also criticized the tactics that Governor Hassan is using to promote her budget.

“I find disingenuous the implication…that we can’t fund needed services without gambling. That kind of blackmail rhetoric will turn off lawmakers rather than get them on board,” said liberal BlueHampshire (3/18/10) blogger Dean Barker. “NH should not be in the business of holding children’s welfare hostage to whether the slot machine industry gets their way.”

In addition to criticism from Democrats, Governor Hassan’s budget proposal has also faced widespread skepticism and scorn from editorial pages across New Hampshire including The Union Leader, Concord Monitor, Keene Sentinel, Nashua Telegraph, Portsmouth Herald and Foster’s Daily Democrat.

NEW HAMPSHIRE EDITORIAL PAGES PAN HASSAN’S IRRESPONSIBLE BUDGET

Concord Monitor: “Let’s hope that there’s a Plan B.” (2/15/13)

•         Monitor: “[E]xpanded gambling is not the answer to the state’s structural deficit and revenue problems. We urge the New Hampshire House, which has rejected casino gambling on a host of occasions, to do so again.” (2/15/13)

•         Monitor: [I]t’s hard to cheer a budget that’s based in good measure on something that shouldn’t happen.” (2/15/13)

•         Monitor: “[G]overnor now wants to meet the state’s needs in a way that guarantees more problem gamblers and gambling addicts and less revenue for the state’s existing restaurants and other businesses. That makes Hassan’s offering yet another disappointing budget.” (2/15/13)

Union Leader: “It is inadvisable to base a budget, whether a household's or a state's, on income that is unlikely to materialize. Alas, Gov. Maggie Hassan has done that. Again.” (2/14/13)

•         Union Leader: “She would rather spend money we don't have by inventing new ways of gathering it than do the truly fiscally responsible thing and make state government live within its means.” (2/15/13)

Portsmouth Herald: “Casino will not work in the long run.” (2/18/13) 

•         Herald: “All around the nation we find examples of casino operators over-promising and under-delivering on tax revenues. And we see states, addicted to gambling money, unable to resist operators' demands for expansion when they say they need it to keep the money flowing.” (2/18/13)

•         Herald: “We urge the legislature to build a budget that does not rely on gambling money and instead judge expanded gaming on its own merits and not as a quick fix to the state's short-term fiscal challenges.” (2/18/13)

Keene Sentinel: “It concerns us that Hassan is placing so much weight on a projected revenue source that may not exist anytime soon, if at all.” (2/15/13)

•         Sentinel: “It’s also troublesome that Hassan’s proposal hinges on an $80 million revenue projection for a casino license — far higher than what at least one Granite State research group has said is realistic.” (2/15/13)

•         Sentinel: “[W]e fear that Hassan’s reliance on a new casino serving as a hefty portion of the state’s revenue picture in the coming biennium may be a poor wager.” (2/15/13)

Nashua Telegraph: “Gov. Maggie Hassan presented her much-anticipated, two-year budget to state lawmakers Thursday morning and, as expected, there is certainly no shortage of items to get some people riled up about.” (2/15/13)

•         Telegraph: “[F]raught with danger – most notably, how to plug an $80 million hole in her two-year budget should the Legislature refuse to play along.” (2/15/13)

•         Telegraph: “While we are on record in support of gambling for economic and other reasons, even we have to admit that Hassan’s decision to count on casino money is quite the gamble – not just for next year’s budget, but for her political career as well.” (2/15/13)

Responses to Governor Hassan's balanced budget proposal

Conservative baseline revenue projections:

“Republicans aired few complaints yesterday about Hassan’s baseline estimates for revenue from traditional state levies like the business profits tax, the business enterprise tax, the meals-and-rooms tax and the interest-and-dividends tax.

“Senate Majority Leader Jeb Bradley, a Wolfeboro Republican, said Hassan should be praised for ‘very conservative revenue estimates. That’s very good.’”

“In all, her budget estimates revenue from those taxes will increase 2 percent in 2014 from the current year, and rise 1.9 percent in 2015 from 2014.”

http://www.concordmonitor.com/home/4411946-95/tax-revenue-state-hassan

Pragmatic Investments in Priorities to Build Innovation Economy

James Pindell, WMUR Political Scoop:

“[T]he spending side is pragmatic.”

“At the same time, Hassan didn’t propose spending increases that were out of the ordinary.”

“The $2.7 billion budget is only a 7 percent increase on the austere Republican budget passed two years ago that Hassan heavily criticized on the campaign trail as being too austere.”

“She only restored funding to a few programs, partially restored funding for others and continued not to fund a number of programs.”

http://www.wmur.com/political-scoop/Hassan-budget-analysis-No-money-no-mandate/-/16254890/18553102/-/bbqtdcz/-/index.html#ixzz2KyeqcRY6

“‘I thought her suggestions were very innovative, and I’m looking forward to working with her,’ said Sen. Nancy Stiles, a Hampton Republican and chairwoman of the Senate Health, Education and Human Services Committee.”

“‘There’s some things that I think all of us can support: more funding for the (developmental disabilities) wait list, mental health programs, CHINS, the community health center. These are some priorities that Republicans have had for a long time,’ said Sen. Jeb Bradley, a Wolfeboro Republican.”

http://www.concordmonitor.com/home/4463913-95/health-mental-community-funding

“Rep. David Kidder, a New London Republican, was pleased with the boost for community colleges.

“‘From my perspective, as a state, we get a huge bang for the buck from community colleges,’ he said. ‘That is where we need to be spending the money. Those kids who come out of there get jobs and stay in New Hampshire.’”

http://www.concordmonitor.com/news/4405740-95/hassan-state-budget-tax

“[Republican Senator Rausch] said he is pleased the governor has money in her capital budget for career and technical training centers to help educate people for the workforce.

“‘That is a great vehicle,’” Rausch said. Hassan also promised to modernize state government, streamlining agencies and cutting red tape. An advisory commission would help guide those efforts.”

http://www.eagletribune.com/latestnews/x1525014367/Governor-wants-30-cent-tobacco-hike-tuition-freeze

One high-end, highly regulated casino:

“State Sen. Nancy Stiles, R-Hampton, said that remains to be seen, but she favors gambling over taxation as a revenue source because it is a voluntary activity and could help fill the gaps when it comes to funding needed programming in the state. She noted that her constituents in Seabrook, where there is already a greyhound park and poker room, are eager to expand their gaming offerings.

"‘I thought she gave a very nice presentation today. I was very pleased to see (Hassan) putting some thought and energy behind a number of different issues,’ she said.”

http://www.seacoastonline.com/articles/20130215-NEWS-302150414?cid=sitesearch

“‘There are so many important things in the budget that we want to see,’ said House Majority Leader Steve Shurtleff, a Penacook Democrat. He cited money for education, the disabled, a women’s prison, the elderly and the less fortunate, all of which are included in Hassan’s budget.

“Shurtleff said he continues to share law enforcement’s concerns about crime associated with a casino but hopes those misgivings can be addressed with legislation. ‘I think at the end of the day, Democrats will get behind the governor and support her,’ Shurtleff said.”

http://www.concordmonitor.com/home/4466307-95/casino-hassan-budget-revenue

“She called Senate Bill 152, the bipartisan Senate gaming bill from Sens. Chuck Morse, R-Salem, and Lou D’Allesandro, D-Manchester, ‘a good starting point.’

“The bill meets several of Hassan’s conditions, aired on the campaign trail, for a casino: a bid process, local approval through a binding referendum, oversight through state agencies. The proposal calls for the Lottery Commission and state police to regulate a casino.

“The bill, which provides for up to 5,000 slot machines and 150 table games, is headed to a Senate hearing Tuesday at the Statehouse.

“‘She’s done the right thing,’ Morse said.”

“Sen. Jim Rausch, R-Derry, a co-sponsor with Morse and D’Allesandro, thought Hassan’s backing would get expanded gaming through the Legislature.

“‘I’m very encouraged expanded gambling will pass this session,’ Rausch said.

“‘We have the votes to pass this in the Senate. I look forward to attending the ceremony where Gov. Hassan signs SB 152 into law.’

“Rausch, who last year successfully sponsored a financing mechanism to finish the I-93 widening, said gaming revenues would accomplish that goal and fund work on the highway in 2016 and beyond.

“‘The timing is perfect,’ he said.”

http://www.eagletribune.com/latestnews/x1525014371/Hassan-makes-support-for-casino-official

Cigarette tax:

“State Rep. Aboul Khan, R-Seabrook, the owner of Richdale Convenience Store, said he thinks increasing the cigarette tax is a good way to increase revenue in the state.

“‘It will not harm at all any sale of cigarettes in New Hampshire,’ Khan said, noting that the state already has ‘a lot lower prices’ compared to neighboring states.

“He noted that when a previous Legislature reduced the tax by $1 per carton, cigarette companies raised prices by the same amount the next day.

"‘So it didn't gain anything,’ he said. ‘This is a very small amount.’"

http://www.seacoastonline.com/articles/20130215-NEWS-302150414?cid=sitesearch

Medicaid expansion:

“Others praised Hassan for expanding the Medicaid program under the federal Affordable Care Act that is projected to bring the state's hospitals and health care providers more than $2.5 billion in federal money over the next seven years.

"‘Gov. Hassan recognizes that Medicaid expansion would be a great benefit to New Hampshire's economy as well as to working families, communities, health care providers, and businesses across our state,’ said Tom Bunnell, policy consultant for VOICES for Health.”

http://www.unionleader.com/article/20130215/NEWS06/130219411/1010/news06

Mental health funding:

“[F]unding for increased mental health care seemed to earn bipartisan support.”

“‘This is a big step forward,’ said Roland Lamy, executive director of the New Hampshire Community Behavioral Health Association. ‘The fact that the governor seems to support the priorities of the 10-year plan is critically important . . . (But) we’ve been very vocal over the fact that we’re in an immediate crisis. This is a great step, and a strong recognition that there is a problem for the people of New Hampshire.’”

http://www.concordmonitor.com/home/4463913-95/health-mental-community-funding

House Republican Leaders React to $17m in Business Taxes and $26m in Aggressive Auditing in Governor’s Budget

CONCORD – House Republican Leader Gene G. Chandler (R-Bartlett) and House Republican Policy Leader Laurie Sanborn (R-Bedford) today offered the following statements following review of the executive summary of Governor Hassan’s budget, which on page 7 adds auditor positions to aggressively target small businesses resulting in $26 million in tax revenue. The budget proposal also blocks tax relief to employers by repealing tax reductions passed by the previous legislature intended to promote job creation. The Governor’s revenue summary on page 8 estimates suspending those tax laws will result in $17 million in taxes on small businesses.

House Republican Leader Gene G. Chandler

“In order to improve the economy, it’s imperative that we continue to make New Hampshire more business friendly. Under the Governor’s plan, tax reforms passed by the previous legislature that would have resulted in savings to our small businesses will no longer take effect. The net result is $17m in taxes coming directly out of the pockets of our job creators over the next biennium. This is not the innovative approach we would have expected.”

House Republican Policy Leader Laurie Sanborn

“I am deeply concerned about the numerous tax increases in this budget, and it’s affect on the hard working families and employers of our state. The Governor talks about improving the economy but in her budget she proposes a number of anti-business tax increases and aggressive audits that she anticipates will bully an additional $26m out of our small businesses. We need to encourage responsible business success and job creation, not impose disincentives and barriers for economic growth as this budget does.”

NHGOP RESPONSE TO GOVERNOR'S BUDGET ADDRESS

Concord, NH- New Hampshire Republican State Committee Chairman Jennifer Horn released the following statement in response to Governor Hassan's budget address:

"Governor Hassan presented an unstable budget today that was supported on revenue that doesn't exist. She is building a fiscally irresponsible house of cards that could collapse at any minute and leave New Hampshire with a major deficit. 

"Governor Hassan needs to present a specific proposal for exactly what she plans to cut from her budget proposal if gambling fails to gain support in the legislature as it has every time it has been considered, or, what taxes will she try to increase. 

"Granite Staters deserve to know how she would make up for the up the $80 million in fabricated revenue that she is including in her budget in the event that it never materializes.

"Finally, Governor Hassan must explain why she would build a budget that relies on repealing an opportunity law such as the Education Tax Credit Scholarship Plan, a law that offers the opportunity to access the highest quality education to NH students, regardless of their household income or what zip code they live in."