Top Democrats Push Budget

Around 3 o’clock Tuesday afternoon Democratic leaders were doing their best sales job.

Both House and Senate members were in caucuses discussing the budget....while the governor met with reporters.

TAPE: this is a budget that closes a huge revenue gap we were facing. It meets the needs of the people of New Hampshire without significant revenue enhancements or taxes.

The $11.6 billion dollar proposal has few friends.

It includes a very unpopular provision to add campgrounds to the rooms and meals tax.

It would tax the dividends of limited liability companies, potentially hurting small business.

It would make significant cuts to state employee payroll, through furloughs or cuts.

It would shift an estimated $90 million dollars to cities and towns.

It even adds a $30 dollar increase to register a car.

But Representative Marjorie Smith, who chaired the committee that crafted the budget plan, says lawmakers can’t afford the consequences of blocking the plan.

TAPE: it is critical if you care about the state government functioning without interruption. It is critical if you think about the people whose very survival depends on services they can get from nowhere else. It is critical if you want to make sure the vast amounts of federal dollars that could come to the state...do come to the state...if you don’t care about any of that then it’s not critical.

On paper, Democrats have the votes to pass this budget.

They control both chambers, and Governor Lynch has made it abundantly clear he supports the measure.

But a faction of the party has voiced deep reservations.

Lawmakers have said the proposal relies on fees and taxes at a time when people are being laid off or struggling to pay their mortgages.

TAPE: SEND IT BACK....SEND IT BACK...SEND IT BACK

At a rally in Concord Tuesday afternoon, union members like SEA President Gary Smith came out to express their frustration with the budget.

TAPE: we are gathered here today to ask our state legislators to reconsider this proposed budget...it’s irresponsible and its harmful. It doesn’t solve the real problem of providing adequate funding for public services...and it fails because it hurts people who need help most during this tough economic time.

Smith, along with sympathetic lawmakers, believes expanded gambling is the way to both raise state revenues and provide jobs.

But in the last several days, Governor Lynch has made it clear, first in private meetings with lawmakers, and then publicly that gambling is dead.

TAPE: it’s off the table for this session.

The question heading into the vote is whether sufficient numbers of Democrats side will side with concerns expressed by labor or the governor.

At the same time, the governor is warning lawmakers that killing the budget would cost the state $11 million dollars a month until a new budget could be installed.

Republican Senator Bob Odell has a real problem with some of the budget’s provisions.

But, ultimately, he agrees with Lynch, the alternative would be worse.

TAPE: I’m looking optimistically at getting a budget out of here and going on from there...does that mean you will support the compromise...I am still listening to people, but I still think not having a budget could be very disruptive to the economy and starting over with the budget in very uncertain economic times. I don’t think that’s a good thing for the state of New Hampshire.

Odell’s stand significantly improves Democrats chances of shouldering the plan through the Senate.

It would then travel to the harder to predict House, where it is safe to say, Democratic leaders will continue to sell members on the plan right up until the vote.

For NHPR News, I’m DG.