Gov. Kelly Ayotte made an unscheduled call into the Jack Heath radio show Friday to blast House and Senate legislators for their “backroom deal” on the budget, a sign of her frustration with the legislation and determination to fight it.
Ayotte called into the show after an appearance by former state Senate President Jeb Bradley (R-Wolfeboro), who crafted the 2011 retirement reforms Ayotte wants to undo on behalf of police, firefighters, and other first responders.
Bradley called the budget deal reached by House and Senate conferees “a darn good job” that balances the needs of the state government with the reduced revenues the state is facing. And Bradley complained that the Group II spending Ayotte wants “is not fair to taxpayers.”
Ayotte was having none of it.
“Let’s just be upfront about this issue: We’re the safest state in the nation, and our police and our fire, they deserve our support,” Ayotte told Heath. “And we broke our promise to them when they changed the system (in 2011.) They broke the promise to people who were already in the system.
“We’ve had a recruitment and retention issue, and I ran on this, Jack. I spoke about this issue at every meeting, because I’m concerned about our first responders.
Ayotte accused the Committee of Conference of backing out of a budget deal that had already been reached with the rank-and-file members.
“We put the funding in the budget. It was there. It passed the House, and it passed the Senate. And then they made a backroom deal that is actually so much worse for our first responders. So yes, I’m fighting for them.”
House and Senate negotiators passed a budget deal that spends $120 million on Group II pension benefits, not the $340 million Ayotte requested. It also imposes a pension cap to prevent “pension spiking,” something the Ayotte-backed plan does not do.
Ayotte also denounced the “backroom deal” for reducing spending that would go to the Manchester public school system, a reduction also opposed by the city’s Republican governor, Jay Ruais.
The reason for the approximately $12 million reduction in state aid is the end of “hold harmless” monies — payments the state makes even when school district enrollment drops. The idea was to give public schools a revenue cushion as more parents chose other options.
But Ruais says that in the case of Manchester schools, the state needs to recalculate.
“Our enrollment is no longer in decline. This year, in fact, we leveled off. As you know, like most entities, the majority of our dollars are spent on salaries and benefits. This year, we reduced the Manchester School District’s budget request by $8 million, while still allocating an additional $3.5 million,” Ruais said in a statement.
Legislators point out that while enrollment may be flat now, it’s fallen since the “hold harmless” policy was put in place. And they point out that total state aid to the district over the biennium ($243 million) is still higher than the previous budget ($233 million).
Ayotte says it’s another reason she’s rejecting the budget.
“In the second year of the budget, (Manchester schools) take a very significant hit, and basically, where you might have to lay off teachers,” she told Heath. “It’s outrageous.”
Heath asked about Senate President Sharon Carson (R-Londonderry), one of the key people behind the budget deal, and what Ayotte would like to say to her about what the committee passed.
“My door has been open, but they never reached out to me on all this,” Ayotte said, adding, “I was clear on this from day one.”
Senate Majority Leader Regina Birdsell (R-Hampstead) told NHJournal she heard Ayotte’s comments on Heath’s show and it was “disappointing.”
“The Committee of Conference was truly a negotiation between the House and Senate members on each of the chambers’ versions, and our doors have always been open for her input.
“Relative to Group II, this Committee of Conference had to make very difficult decisions. We all felt providing $120 million over the next four bienniums to 1,550 first responders, rather than the more than $300 million in the governor’s plan, would allow us to fund important programs such as Medicaid providers, mental health centers, our developmental disability waitlist, and maternal health care.”
She also reiterated that the budget sends more money, not less, to Manchester schools.
Ayotte told Heath that from her perspective, the “backroom deal” is baked in, and it will either be voted up or down by the House and Senate. If they pass it — which is an open question — she will veto. Period.
After that?
“A continuing resolution. Then let’s go back to the table and do this right.”
