As we near Election Day, there is an increasing amount of rhetoric thrown at you from both parties. But before heading to the polls, I want you to keep this in mind: the party elected to the majority will oversee crafting the state’s budget for the next two years, a time when economists believe the headwinds of inflation and energy prices (results of Democrat mismanagement) will sink us into recession.
In 2009, New Hampshire was in a recession and the Democrats had control of state government. The Democratic-controlled legislature passed a budget that later required draining the state’s Rainy Day Fund of $80 million because they increased spending levels, rather than make cuts and spend within our means.
That turned out to be a catastrophic decision resulting in rating agencies like Standards & Poor’s and Moody’s downgrading our state’s credit and labeling us as “credit negative,” affecting our ability to issue bonds. To boot, it left the state with barely enough money to run the government for just two days.
That $80 million transfer was 90 percent of our state’s reserve funds at the time. Can you imagine blowing through 90 percent of your family’s savings to keep your spending levels high, rather than tightening your belt to get back on track? I certainly cannot. Terrible decision making at a critical time.
Democrats have proven time and time again that they balance budgets on revenue that either does not exist, or are required to raise taxes and fees to cover their overspending.
In 2013, then-Gov. Hassan submitted a budget to the legislature that was balanced on revenue the state would expect from a casino. There was one problem – casinos were not legal. In 2019, Gov. Sununu proposed a budget to the legislature that smartly spent one-time revenue on one-time projects. Rather than fund those one-time revitalization projects, House Democrats decided to use that one-time revenue to the operating budget to cover ongoing expenses. That is like getting a one-time bonus from work and taking out a larger mortgage while your income does not change. But, the gimmicks don’t stop there.
When they can’t get their hands on one-time money, they must make it up elsewhere, digging deeper into your pocketbook. Back in 2009, although the Democrats’ budget included outrageous tax hikes, they still left the state with an $800 million structural deficit by 2011. They instituted a 10 percent tax on lottery winnings, increased driving records fees, increased boat registration and license fees, increased inspection sticker fees, increased the non-resident firearm permit fee by 500 percent, and instituted the small-business-crushing LLC tax, among many others. That was over $300 million in increased taxes and fees.
I am proud to say that come Jan. 1, thanks to Republicans, New Hampshire will finally be income tax free. We have an interest and dividends tax that is applied to mostly our retirees and penalizes saving. House Democrats voted against that, and continuously sponsor legislation to bring it back. You can guarantee, under Democrats, that tax will return. Moreover, back in 2019, they passed a $150 million per year capital gains tax and used that money to balance their budget. It totaled $400 million in new taxes and fees. Their policies are something taxpayers, small businesses, and our state economy cannot afford.
Over the years they have downshifted millions to county governments. They repealed business tax cuts that have proven to boost our economy. They allowed the governor to raid 300 dedicated funds to cover budget mismanagement of state agencies, and they diverted $27 million out of our already struggling highway funds to cover overspending by other agencies.
I could go on, but I am sure you get my point: Democrat policies are not in line with Granite Staters’ views, and they are certainly not the party you want in charge during challenging economic times.
In 2019, when Gov. Sununu vetoed the Democrats’ budget, he said, “New Hampshire families know they have to live within their means, and they have every right to expect their government to do the same.” I completely agree, and we need Republicans at the table who have a track record of doing just that.
On Election Day, join me in sending a message that we just cannot trust Democrats to manage our state’s finances. Join me in voting for responsible budgeting, no new taxes or fees, and living within our means. Let us keep failed Democratic budget mismanagement a thing of the past and vote for Republican candidates for the state legislature on Tuesday, Nov. 5.
