House and Senate Democratic leaders held a press conference Tuesday accusing Republicans of “botched leadership” that has led the state into severe budget trouble. In particular, they attacked the GOP’s repeal of the income tax on interest and dividends, which they said cut revenues and “downshifted” costs onto property taxpayers.
“Get ready for Republican distraction from a Republican failure; that’s what we have seen time and again from the last few sessions. They recklessly cut sources of revenue when we knew we could not make it up,” said Sen. Cindy Rosenwald (D-Nashua). She was joined by House Minority Leader Alexis Simpson (D-Exeter) and Senate Minority Leader Rebecca Perkins Kwoka (D-Portsmouth) and other Democrats.
“It’s a shame that the Republicans never were forthright with the public about what the end of the interest and dividend tax… means in terms of program cuts,” Rosenwald added.
But when NHJournal asked if any Democrat had filed legislation to bring back the I&D income tax, they said no. According to Greg Moore of Americans For Prosperity, who has reviewed more than 1,000 filed LSRs (pre-filed legislation records), no bill to restore that tax and its income has been filed.
The consensus in Concord is that next year’s budget is going to involve tough fights over spending cuts. Democrats blame GOP “mismanagement.”
“With their trifecta in Concord and even larger majorities (this session), Gov. Ayotte and Republicans will own this year’s budget and the agency cuts that will hurt the services all Granite Staters rely on,” said Simpson. “And we will spend every day over the next two years holding Republicans accountable for their irresponsible economic policies that have led us to this challenging moment.”
However, state revenue for fiscal year 2024 is more than $1 billion higher than in 2014, according to the Josiah Bartlett Center for Public Policy, and rose steadily even as the I&D income tax was being phased out.
And while Simpson said towns were being forced to raise property taxes to make up for lost state revenue, the Bartlett Center notes data from the Office of Legislative Budget Assistant showing state aid to local governments and local school districts rose by $214 million (19 percent) from Fiscal Year 2015 to Fiscal Year 2025.
“State adequate education aid rose by $139 million (15 percent). Total state aid to public school districts rose by $148 million (15 percent),” the Bartlett Center reports.
Democrats also targeted the GOP’s support for Education Freedom Accounts that allow parents to use the state portion of their children’s school funding for alternatives like private school and home schooling.
“We need to rein in the irresponsible voucher program. That’s something we will do as we work on the budget,” Perkins Kwoka told reporters. She also laid out Democratic priorities, starting with “making sure every Granite Stater can afford to live here by expanding housing options that folks can afford and providing property tax relief.”
Perkins Kwoka also listed expanding net metering, providing access to child care, and “supporting legislation to enshrine reproductive freedom” as top Democratic issues.
Simpson also warned voters not to be distracted by Republicans’ focus on what she called “culture war issues to distract from the real issues facing Granite Staters, like the GOP’s continuous downshifting of costs onto property taxpayers.
“If you’re not careful, and you’re not looking out for it, they will try to distract you again,” Simpson said.
Asked by NHJournal to name what she considers “culture war” issues, Simpson declined to respond.