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After weeks of uncertainty and negotiations, it appears the Republican-controlled legislature could have enough votes to get the state budget passed Thursday, after key conservative groups indicated they intend to vote in favor of the spending plan.

Both the House and Senate are voting on an $11.7 billion, two-year spending plan negotiated by a committee of conference earlier this month. The Senate is expected to approve the compromise, but its fate is less certain in the House.

Gov. Chris Sununu, NHGOP Chair Jeanie Forrester, and House Speaker Shawn Jasper have been quietly making the rounds to appeal to the conservative caucuses in the New Hampshire House. The House Republican Alliance and House Freedom Caucus had concerns about increasing spending over the previous biennium. GOP leadership appears to have quelled those worries after business tax cuts were approved in the final version of the state budget during the conference committee between the House and the Senate.

No members from the two conservative blocs sat on the budget conference committee, which also harbored some bitter sentiments from representatives.

“While the caucus as a whole, finds the level of spending objectionable, we were able, with the cooperation of the Senate, to craft a bill that will have some positive outcomes for New Hampshire taxpayers, and businesses,” said Rep. Anne Copp, R-Danbury. “Many of these points were clear objectives for the [Freedom Caucus] when we went to House leadership in the early stages of the budget process. It is unfortunate that some of House leadership chose to exclude us from the process.”

At first, it was unclear if House GOP leadership would choose to work with the Democrats or conservatives to get a budget passed in the chamber. After anti-abortion language was added to the bill in the conference committee, Democrats said they would oppose the budget.

“What businesses need, with one of the lowest unemployment rates in the country, is a well-qualified workforce, to maintain our quality of life in the Granite State and a sound infrastructure. It isn’t a tax cut,” said House Minority Leader Steve Shurtleff at a Wednesday press conference with more than 30 other Democratic lawmakers.

With their entire caucus planning to vote against the budget, House Republicans cannot afford to lose more than 25 to 30 votes within their own party, depending on how many of the 400 representatives show up to vote.

The conservatives led the defeat of the House’s original budget proposal in April, after 32 Republicans joined Democrats to vote against the plan. It was the first time since at least 1969, when records were first kept, that the House failed to produce a budget to pass on to the Senate.

Despite several conservative endorsements on the final version of the budget, they are not giving the credit to Jasper. The speaker and conservatives have not exactly seen eye-to-eye on many issues this legislative session. Some even blamed him for not getting a budget passed in April because Jasper didn’t give in to their demands. For the budget that came out of the conference committee, some conservatives attributed their change in position due to the governor and Senate leadership.

“The Freedom Caucus cannot thank the Governor and Senate Leadership enough for the work they have done to deliver a budget that is more fiscally responsible, often having to fight House leadership to lower spending and reduce taxes,” said Rep. John Burt, R-Goffstown. “There can be no doubt that it is a bizarre situation when the Senate President and Senate Finance Chair have to work to bring the House Republican caucus together, but that is precisely what happened, and this budget undoubtedly would have collapsed without their efforts.”

Senate Finance Chair Gary Daniels, R-Milford, said he was pleased to hear that members of the House Republican Alliance and House Freedom Caucus would vote for the budget.

“It was important to the process to have input from these legislators regarding elements they felt needed to be included in the proposed budget, and their interaction helped shape the final product,” he said. “What we achieved is a budget that is good for New Hampshire and provides resources for a strong economic future by balancing key priorities, providing personal and business tax relief and growing the state’s rainy day fund, while keeping overall state spending within responsible levels.”

There are still some conservatives that plan to vote against the budget, but whip counts total defections at no more than 25 members. Still, it’s expected to be a close vote and Sununu was optimistic, yet cautious.

“You never get anything by raising your voice and threatening,” he told New Hampshire Public Radio. “No, open positive listening. And when you bringing people in and talking to them and you are opening, and listening, it’s amazing what you can get done.”

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In a 10-hour marathon session, the Republican-led Senate approved an $11.8 billion state budget, defeating all Democratic attempts to increase spending in mental health, social services, and education. The budget ultimately passed on a 14-9 party line vote.

The spending plan changed very little from what the Senate Finance Committee put forward, but concerns and praise for the budget fell on party lines. Republicans applauded the money going to help the mental health crisis in the state, but Democrats disagree, saying the budget doesn’t fund critical social services.

Some of the budget’s highlights include expanding mental health treatment beds, creating a new student scholarship program, and cutting the state’s business taxes.

“What we’ve developed is a budget that serves the citizens of New Hampshire, but lives within our means,” said Senate Finance Committee Chairman Gary Daniels. “I believe we have achieved an appropriate balance between the two and we’ve done a lot to get us to this point.”

Democrats put forward more than two dozen amendments to increase funding for child protective services, adding nurses to New Hampshire Hospital, making Medicaid expansion permanent, funding full-day kindergarten, and increasing the budget for the state university system. They argue that the state can spend an additional $45 million since the budget’s revenue estimates are too low.

“It creates an artificial, trumped-up surplus to sell the biggest Republican ruse of all, that slashing taxes for the rich will grow revenues and improve lives for poor, middle-class people,” said Senate Minority Leader Jeff Woodburn.

“I recognize and respect my colleagues who think it’s not enough or some would suggest even never enough, but on the other hand, Mr. President, you know there are people like me who are always very concerned that maybe it’s always too much,” responded Sen. Andy Sanborn, R-Bedford.

On a few amendments, a couple of GOP senators sided with Democrats, but it was not enough for the measure to be adopted. For example, Republican Sens. Sanborn and Ruth Ward of Stoddard voted with Democrats to roll back proposed health care premium increases for state retirees, but it failed on a 12-11 vote. In another 12-11 vote, GOP Sens. Regina Birdsell of Hampstead and Harold French of Franklin voted with Democrats to add $6 million in additional education aid grants to public schools, but that measure also failed.

Heated debate between the two parties occurred, as expected, on the business tax cuts in the budget blueprint. An old debate flared up over abortion policy, though, when an eleventh-hour Republican amendment was introduced to block state and federal funds from going to centers that offer abortion services.

“This is about controlling women’s health choices, plain and simple, and this is about merging church and state,” said Sen. Martha Hennessy, D-Hanover.

Tensions remained high as Sen. Kevin Avard, R-Nashua, raised his voice in response to Hennessy.

“Forcing people to violate their conscience with their tax dollars, that is hateful,” he said. “I challenge anyone in here to tell me in any constitution where I am forced to pay for somebody’s abortion, show it to me.”

Hennessy said the amendment was an attack on her rights, while Republicans argue it’s just codifying what’s already happening.

“Could you imagine the men in this room if we snuck in some amendment about how the government shouldn’t pay for Viagra?” Hennessey said.

The amendment ultimately failed, 17-6. Democrats also tried unsuccessfully to eliminate a reference to the so-called Hyde Amendment that outlaws spending public dollars on abortions, in order to prevent any future cuts to Planned Parenthood.

With the Senate’s approval, the biennium budget is sent to the GOP-led House. Yet, there are some concerns from conservatives who are threatening to oppose the plan because it spends too much. The chamber is likely to call for a conference committee of senators and representatives to compromise on various issues within the budget, despite the House failing to pass their own plan earlier this year.

Red flags that House conservatives were not entirely pleased with the budget were first raised during a Tuesday budget information session.

“I’m opposed to this budget as it currently stands, and I am going to work to defeat it,” said Rep. James McConnell, R-North Swanzey, who is also a member of the House Freedom Caucus.

The House Freedom Caucus helped sink the chamber’s budget this year, making it the first time since at least 1969 that the House failed to produce a spending plan.

Yet, it’s still too early to tell if the caucus will try to defeat the Senate budget. In an interview with New Hampshire Public Radio, Rep. J.R. Hoell, R-Dunbarton, and co-chair of the House Freedom Caucus, said the Senate proposal is an improvement.

“They’ve made some great changes in terms of improvements — cutting the business taxes is a good example, funding the charter schools is another good example, so there are positive steps forward,” he said. “Some of us are still concerned that it spends more than we’re comfortable with and that’s…put us in a stalemate almost. The overall increase in government size is bigger than a number of us are conformable with.”

Hoell sent an email to caucus members after a meeting this week, saying the group is hopeful that their needs will be met in the conference committee.

Republicans only hold a slim majority in the House and a handful of defections could defeat the budget if Democrats also oppose it. They have largely criticized the GOP-budget, but some could side with Republicans out of fear of not getting anything passed.

The budget process needs to be over by June 30 before the start of the next fiscal year. If a budget is not passed by then, lawmakers would need to pass a continuing resolution, which would fund the government at its current levels until a full budget is passed.

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With about $59 million less to spend than expected, it’s natural that the House Finance Committee would trim a few items from Gov. Chris Sununu’s budget proposal. Yet, the cuts they’re making are concerning advocates who championed Sununu for including them in the first place.

On Wednesday, Republican budget writers in the House killed Sununu’s plan to spend $18 million over the biennium to expand full-day kindergarten programs. They also cut a $5 million college scholarship program.

“This is a short-sighted decision by a subcommittee of the Finance Committee,” said Mark Shriver, president of Save the Children Action Network, in a statement. “When he proposed his budget last month, Governor Sununu showed that he recognizes the importance of a full-day of kindergarten and understands the long-term economic benefits quality early learning programs can have for New Hampshire. The Republican majority in the House should stand with Governor Sununu and vote to put the full-day kindergarten funding request back into the budget.”

Full-day kindergarten isn’t the only proposal on the chopping block. The Alcohol Abuse Prevention and Treatment Fund was also cut this week.

The Alcohol Fund was created in 2000 by a bipartisan majority in the Legislature to be a funding mechanism that takes 5 percent of the gross profits from the sale of alcohol to support education, prevention, treatment, and recovery programs for alcohol and drugs. The funds would be allocated to the Governor’s Commission on Alcohol and Drug Abuse Prevention, Intervention, and Treatment to pay contracts for service providers in communities.

The fund has only been fully financed one time since its inception, which was in the 2003-2004 biennium. In his budget speech, Sununu proposed increasing the funds to 3.4 percent, double the 1.7 percent rate the previous budget had set.

“First, I propose we double the Alcohol Fund, increasing these important resources by more than $3 million and creating incentives to ensure that those funds are truly spent,” he said in his Thursday speech.

In several biennium budgets, the governor or Legislature would usually suspend the formula and allocate monies from the general fund to go to substance abuse prevention, treatment, and recovery.

Since there’s $59 million less in tax revenue coming in than expected when Sununu wrote his budget, Alcohol Fund advocates suspected that lawmakers would suspend the formula again. However, a more dramatic approach was taken by the House Finance Committee on Tuesday.

An amendment introduced by Rep. Neal Kurk, R-Weare, was added to the budget in House Bill 2 that would repeal the Alcohol Fund for good and it passed in a 6-4 vote on party lines.

“They’re trying to get to a number and they’re trying to come up with different avenues to do that, and some are very creative,” said Kate Frey, vice president of advocacy for New Futures, a nonprofit advocacy group that’s been one of the biggest proponents of the Alcohol Fund.

“New Futures has always been in favor of restoring the Alcohol Fund and using it as intended by the original statute to address problems for the substance abuse crisis,” she told NH Journal. “The fact that they are repealing the Alcohol Fund in its entirety is very unsettling.”

Advocates and some lawmakers like the fund because it’s non-lapsing and flexible, which is a creative and innovative solution to curb the opioid epidemic. The funds are non-restrictive, unlike some federal funds from grants that can’t be used to build brick-and-mortar recovery centers, for example.

New Hampshire is expected to receive $6 million, less than the $10 million previously anticipated by state officials, from the 21st Century Cures Act, bipartisan legislation approved by Congress and signed into law by former President Barack Obama in December, which gave $6.3 billion in funding to states hit hardest by the opioid crisis.

When Kurk introduced the amendment, advocates were also concerned because the language in the amendment appeared that he also repealed the authority of the Governor’s Commission to disperse the funds. The issue was cleared up on Wednesday, when that language was changed, giving the authority back to the Governor’s Commission to allocate funds, but still repealing the Alcohol Fund. The measure passed on a 5-4 vote on party lines, with Kurk absent.

Rep. Cindy Rosenwald, D-Nashua, who sits on the House Finance Committee, said the Governor’s Commission would receive $5.9 million in 2018 and $6.2 million in 2019 for alcohol and drug abuse education, prevention, treatment, and recovery, slightly less than what was allocated in the current biennium. If the elimination of the Alcohol Fund is passed, it would be up to the Legislature in each budget to allocate whatever they thought was an appropriate amount.

“Without the stability of that fund, it’s concerning to providers that are thinking about expanding their services here,” Rosenwald told NH Journal. “The flat funding for the next two years doesn’t expand access to treatment or recovery very much.”

When introducing the amendment in New Hampshire, Kurk said it was inappropriate for alcohol funds to go to the opioid crisis and that the issue the fund was originally created to solve, alcohol abuse, isn’t the main issue anymore — it’s opioids.

Advocates were quick to point out that the statute language when it was first written allowed funds to be used for alcohol and drug abuse programs. They also dismissed the idea that New Hampshire doesn’t have an alcohol problem anymore. According to a 2014 report, the Granite State’s per capita alcohol consumption is nearly twice the national average.

“I was very surprised at the elimination of the [Alcohol] Fund and I was surprised that they would suggest that somehow there is a disconnect between alcohol and our current opioid epidemic,” said Tym Rourke, chair of the Governor’s Commission, in an interview with NH Journal.

“The suggestion that New Hampshire only has an opioid problem is just false and somewhat disappointing that the Legislature would be picking one group of individuals who are suffering over another,” he added.

Previously, the Senate Finance Committee recommended passage of Senate Bill 196, which would put the Alcohol Fund at the 3.4 percent rate originally proposed by Sununu. The bill was laid on the table so lawmakers could go through the budget process before deciding on the fate of that bill.

Once the House Finance Committee signs off on the budget, it goes to the full House for a vote. The Senate will then get their turn to go line-by-line in the budget. At this point, Senate budget writers could have more money to play with since revenue estimates change throughout the year, so in theory, reinstating the Alcohol Fund and funding full-day kindergarten could see a new life. Advocates for those issues are hopeful the Senate would return them to the budget for Sununu to sign.

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As expected, it didn’t take long for Democrats in New Hampshire to point out what proposals they didn’t like in Gov. Chris Sununu’s budget speech last week.

“I am encouraged by statements of Governor Sununu in support of full-day kindergarten and funding for the developmentally disabled, but as we all know, the devil is in the details,” said House Democratic Leader Steve Shurtleff in a statement. “The Governor’s budget address made no mention of the successful NH Health Protection Program, leaving serious unanswered questions for the 50,000 Granite Staters who rely on the program for their health care coverage.”

But the more divisive statements came from the Senate Democratic Caucus and New Hampshire Democratic Party (NHDP). While they applauded Sununu for keeping several initiatives put in place by former Gov. Maggie Hassan, they criticized him for not fully funding the Alcohol Fund to combat the opioid crisis.

“And in the midst of a substance abuse crisis, we need to find out why Governor Sununu chose not to fully fund the Alcohol Fund, which supports our effort to combat this crisis,” said Senate Minority Leader Jeff Woodburn in a statement.

NHDP Chairman Ray Buckley echoed Woodburn’s sentiments saying he was “disheartened to see that the governor did not fully fund the state’s alcohol fund, which would provide key resources to combat this epidemic.”

The Alcohol Abuse Prevention and Treatment Fund was created in 2000 by the Legislature, and it’s a mechanism that takes 5 percent of the gross profits from the sale of alcohol to support education, prevention, treatment, and recovery programs for alcohol and drugs. The fund has only been fully financed one time since its inception, which was in the 2003-2004 biennium — the first year it began. In his budget speech, Sununu proposed increasing the funds to 3.4 percent, double the 1.7 percent rate the previous budget had set.

In each budget after that, the governor or Legislature transferred the revenue to the general fund and only appropriated a small amount to the Alcohol Fund, which means Republican Gov. Craig Benson and Democratic Govs. John Lynch and Maggie Hassan suspended funding during their terms.

In the most recent budget, for the 2016-2017 budget biennium, Hassan and the House proposed suspending the funding formula. Hassan proposed giving the fund $9.6 million over the two-year period, but the Republican-controlled House dropped that figure to $3.6 million. Senators proposed bringing the formula back and lowering the cap to 1.7 percent, which would give the fund $6.7 million.

If the fund was fully financed for the whole biennium, it would have received approximately $19 million, still nearly $10 million less than what Hassan suggested. After the Senate put forward its recommendation for the budget, the NHDP called their budget “unbalanced and partisan” with “irresponsible gimmicks.”

It’s interesting that the NHDP would criticize Sununu for not fully funding the Alcohol Fund, when previous Democratic governors did not fully fund it either.

“We haven’t had a Democratic governor who has fought as hard as Sununu is fighting for it [the Alcohol Fund] right now,” said former state Rep. Joe Hannon, R-Lee, who made his mark in the Legislature by focusing on the opioid crisis.

“No one has taken the leadership on this, and the battle will be in the House and Senate Finance Committees,” he told NH Journal. “I’m always happy when the governor speaks about how he is addressing substance abuse treatment. He gets it, and that’s something I haven’t seen in awhile from leadership in the state.”

New Futures, a nonprofit group looking to curb substance abuse in the state, is a fervent supporter of fully funding the Alcohol Fund at 5 percent. They believe the money from the non-lapsing, flexible fund could be used for creative and innovative solutions to stop the opioid epidemic.

“We are encouraged by the fact that Gov. Sununu has increased the funding for the Alcohol Fund by doubling the current amount,” said Linda Paquette, president and CEO of New Futures. “However, we anxiously await the release of House Bill 2 in order to clarify the support in the budget for addressing New Hampshire’s substance abuse epidemic.”

Paquette said she was “very curious” what Sununu meant when he talked about “incentives” with the Alcohol Fund.

“First, I propose we double the Alcohol Fund, increasing these important resources by more than $3 million and creating incentives to ensure that those funds are truly spent,” he said in his Thursday speech.

Pacquette said she is hopeful that the Alcohol Fund will be a priority for the Republican-controlled State House because the funds are “not restricted.” New Hampshire is expected to receive federal money from grants and the 21st Century Cures Act, legislation approved by Congress and former President Barack Obama in December 2016, which gives $6.3 billion in funding to circumvent the opioid crisis and enhance medical research and development.

“The Alcohol Fund can be used to fill gaps where grant money and federal funds are restricted for certain uses,” Paquette told NH Journal. “It can be used for supporting recovery housing and investing in early childcare as a substance abuse prevention strategy. He [Sununu] clearly has made the opioid crisis a priority of his administration.”

Sununu presented his budget to the House and Senate Finance Committee in a Tuesday joint committee meeting. The House Finance Committee will take a look at his budget first and put forward recommendations to the full House later in the spring. After passage in the House, the Senate Finance Committee will review that budget and put it up for a vote to the full Senate, before returning to the governor’s desk for his signature or veto.

“We’re going to double that fund and get the money where we can have a lot of impact,” he said in the meeting. “Not just in the high-density areas, but really all across the state. None of our communities have been immune to that.”

The Senate Finance Committee recommended passage of Senate Bill 196 on Tuesday, which was amended to increase the Alcohol Fund to the 3.4 percent rate proposed by Sununu. If the House changes the formula or suspends it in its budget recommendations, this bill could override it and fund it at the rate Sununu proposed.

“This is a sound proposal that I and a majority of the Senate Finance Committee supported today by recommending a bill to do just that,” said Senate Finance Chair Gary Daniels, R-Milford, in a statement. “We have established a number of initiatives that serve to stem substance abuse, including the heroin crisis, and I know we can do more with the funding Governor Sununu has proposed as part of his budget.”

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Gov. Chris Sununu is quickly making education reform a priority during his two-year term. Just take a look at his Thursday budget speech.

“This budget and this administration recognizes local control in public education as the touchstone of policymaking, and that state government’s role in shaping education policy should be focused strictly on benefitting students and their families,” he said. “A major goal of this budget is to expand educational opportunity and choice for kids and their families.”

In his 2018-2019 biennium budget, Sununu focused on four areas of education reform that he wants to accomplish: full-day kindergarten, charter schools, higher education, and school building aid.

FULL-DAY KINDERGARTEN

Sununu’s proposal includes $9 million a year for full-day kindergarten. He said the funds, which would be awarded in addition to education adequacy grants, would target communities that need it most.

After his speech, Democrats sought clarity on how it would be determined which communities received funding.

“We also do not know from his presentation which communities will get full-day kindergarten and which ones won’t…” said New Hampshire Democratic Party Chairman Ray Buckley in a statement.

Sununu said the formula would be based on a community’s property wealth, the number of students on subsidized lunch programs, and the number of English as a second language students.

“So I am proud today to be the first governor to deliver a real full-day kindergarten program for communities across the state,” he said.

Some Democrats, including gubernatorial nominee Colin van Ostern, were in favor of requiring all school districts to offer full-day kindergarten. Sununu’s budget leaves the decision up to individual cities and towns, but if they opt for full-day kindergarten, they’ll receive more funds.

Regardless if a school district offers half-day or full-day kindergarten, they only receive 50 percent of the state’s per-pupil grant compared to students in other grades. Sununu’s proposal would give the neediest communities an opportunity for additional funds to make full-day kindergarten a possibility.

CHARTER SCHOOLS

In his speech, Sununu called for increasing charter school funding by $15 million.

“And in addition to fully funding the adequacy formula, funding for charter school is stabilized and enhanced in this budget by linking funding to the state’s average per-pupil expenditure,” he said. “This will increase funding for our charter schools by $15 million, helping eliminate uncertainty and volatility for administrators, teachers and parents.”

This is probably one of the more contentious proposals in his budget, and it will be interesting to see if that amount changes as it moves through the budget process in the Legislature.

All of New Hampshire’s 25 charter schools, except for one, rely mostly on state and federal funding, and all but one are not supported by local property taxes. In the Granite State, per-pupil expenditures for charter schools are about $6,500, which is lower than traditional public schools, which averages about $14,900 for the 2015-2016 academic year.

Sununu is a fervent school choice advocate and he’s hoping the Legislature passes charter school-friendly bills during the legislative session. Democrats claim charter schools take away state money that could go to improve traditional public schools, and they lack equal proportions of disabled or special needs students, who are then forced into the traditional public school system.

Senate Majority Leader Jeff Woodburn told NH1 News that diverting public school funding to charter schools “is the wrong direction. It doesn’t make our state stronger or our kids better.”

HIGHER EDUCATION

It’s often a criticism of the Granite State that the population is aging and young people are leaving . The million dollar question is how does the state plan on encouraging them to stay?

Higher education advocates see increased funding to the state’s community college and university system as a key investment into the future workforce of New Hampshire.

Sununu said he agrees, but university officials and higher education activists remain skeptical.

“Our higher ed system is a critical part of ensuring New Hampshire students have an opportunity to learn beyond their high school years and enter the New Hampshire workforce with real-world skills,” Sununu said in his speech. “My budget approaches post-secondary education strictly in terms of students and outcomes. The university and community college system of New Hampshire are key to these efforts, and we’ll continue to make investments in our partnership.”

He proposes a “significant increase” to the operating budget of the community college system, to the tune of $10 million for capital infrastructure investments.

However, it’s not immediately clear where those funds are coming from. A few months ago, New Hampshire’s Community College system asked lawmakers for about $49 million for 2018 and $52.5 million for 2019, an increase from about $44 million in the current budget.

In Sununu’s budget, it appears that the community college system’s proposed budget is the same amount of funding as in the current budget. He could pull the funds from infrastructure funds, but it wasn’t exactly clear where he would do that.

University System of New Hampshire (USNH) officials were not thrilled that they didn’t see an increase in their budget either. Sununu’s proposal would provide $81 million a year to the university system — the same level as the current budget. USNH asked for $88.5 million in 2018 and $93.5 million in 2019.

Without an increase in funding, it’s likely tuition will once again increase for the next academic school year at USNH colleges by no more than 2.5 percent for in-state students. The actual figure will be known later this spring after trustees set the rate.

In a statement, USNH “expressed deep disappointment” that the governor’s budget did not provide additional funding, which would have allowed the system to freeze or lower tuition for in-state students.

“Keeping our public, four-year colleges and universities affordable is not only critical for hard-working New Hampshire families, but also for the many businesses that depend on highly skilled talent to grow, thrive and succeed,” USNH Chancellor Todd Leach said in a statement.

Full time in-state tuition at UNH is $14,410 for the 2016-17 academic year. Room and board varies depending on the type of housing and meal plan, but costs range between $10,000 to $14,000 a year.

USNH receives the lowest state funding per capita of any university system in the county and tuition costs for New Hampshire students are some of the highest in the nation, which leads to students also having some of the highest student loan debt in the country after graduation.

Rep. Wayne Burton, D-Durham, and a former college administrator, criticized Sununu’s “cold shouldering of USNH.

“I’m deeply disappointed that Gov. Sununu, though professing the need for an educated workforce, shortchanged the principle player in that effort, our state university system,” Burton told the Fosters Daily Democrat.

Instead of increasing funds to the university system, Sununu proposed a new $5 million-a-year scholarship fund to assist high school students to attend colleges, universities or workforce training programs in the Granite State.

“We have to understand that not every student travels the same workforce path, and we need to build a system that provides flexibility to work within their lifestyle,” he said. “This scholarship program is designed, not to help 10, or 20, or even a 100 students, but at least 1,000 students each year, and we’ll open workforce gateways like never before.”

He said the Governor’s Scholarship Fund would be administered by a proposed commission and would be based, partially, on need.

SCHOOL BUILDING AID

The state is expected to end the current two-year budget with an $80 million surplus, and most of that money will be going to one-time expenses to fix roads and bridges, and provide school building aid through the “Infrastructure Revitalization Fund.”

“For the first time in a long time we’re going to give a boost to school building aid by granting dollars directly to communities to rebuild our classroom infrastructure,” Sununu said. “Specifically, schools with health and safety issues in towns that might not be able to otherwise address things like asbestos, lead paint, or other critical safety issues and these are where our school building aid will be targeted and funded.”

It’s unclear exactly how much of the $80 million surplus would be available at the end of the current fiscal year, and how it would it be allocated to cities and towns, but Republicans applauded the proposal during the governor’s speech.

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After Gov. Chris Sununu released his $12.1 billion biennium budget on Thursday, the overall sentiment among Democrats and Republicans was “the devil is in the details.”

Those details will be hammered out in the next few months as the House and Senate make their recommendations to Sununu’s 2018-2019 budget. Overall it appears both parties believe it’s a solid budget with room for improvement. Republicans praised it for being “a realistic, conservative budget which is transparent, forward thinking and strengthens education, supports our cities and towns and focuses on solving real problems that have plagued taxpayers for years,” according to Senate leadership.

Democrats were glad that Sununu kept some of his campaign promises, but were also critical that he didn’t provide too many details on proposals they deemed important, including Medicaid expansion and full-day kindergarten.

“I am very concerned about the $500 million cut from state agency budget requests and what that could mean to the citizens of New Hampshire,” House Minority Leader Steve Shurtleff said in a statement. “The governor’s budget address made no mention of the successful NH Health Protection Program, leaving serious unanswered questions for the 50,000 Granite Staters who rely on the program for their health care coverage.”

In his budget proposal, Sununu includes more than $50 million in spending to address an existing shortfall in the Department of Health and Human Services’ (DHHS) fiscal 2017 budget.

In January, DHHS projected a $65.9 million dollar budget shortfall. Commissioner Jeffrey Meyers pushed back against the accusation his department overspent, claiming instead Medicaid costs did not decline as the legislature expected during the last budget debate. That put Sununu in the awkward position of writing a budget with an unexpected hole in it, while also figuring out how to handle Medicaid for the state.

As for the deficit, Sununu is requiring the commissioner to make quarterly reports to him and members of the legislature leadership “about where we actually stand on our true costs, so we can become a more nimble government that’s responsive, not just reactive.”

“As governor, I won’t make people wait until after an election to discover we may have a shortfall,” he said in remarks during a Thursday joint legislative session. “We have to be transparent. We have to be honest with the people and honest with ourselves.”

Democrats’ claim he didn’t mention Medicaid expansion is true. He only mentioned the program when talking about the DHHS deficit, since that’s where the department says its money went.

“And where we have failed in the past, I am pushing for true accounting of our Medicaid program so we can reconcile estimated Medicaid payments to actual costs,” Sununu said. “And as we go forward, be sure that we won’t wait two years to check in on them again.”

He doesn’t say if he plans to expand, repeal, or replace NH Health Protection Program. The Medicaid program in New Hampshire received bipartisan support in the legislature last year when lawmakers extended the program until Dec. 31, 2018.

That legislation gives Sununu wiggle room as he attempts to balance politics and health coverage for the state. As Washington debates repealing the Affordable Care Act, several states including New Hampshire are waiting to see how Congress and President Donald Trump’s administration handles the issue.

Sununu was reluctant to say anything about Medicaid on the campaign trail, commenting he was worried about financing the program in the long-term, but didn’t mention repeal. Not wanting to permanently fund the program, he told voters it was better to let the federal government make the first move.

Before the budget speech, Democrats waited to see if Sununu would fulfill his campaign promise of funding full-day kindergarten. His proposal includes $9 million a year for full-day kindergarten, but after the speech Democrats sought clarity on determining which communities get funding.

.@ChrisSununu needs to explain targeted full day k. $9 million a year while giving $15 million to charter schools? #nhpolitics

— NH Young Democrats (@NHYoungDems) February 9, 2017

Sununu said funds, which will be awarded in addition to education adequacy grants, would target the communities that need it most based on a community’s property wealth, the number of students on subsidized lunch programs, and communities with a high number of English as a second language students.

“So I am proud today to be the first governor to deliver a real full-day kindergarten program for communities across the state,” he added.

There’s a big distinction to be made with the state “mandating” full-day kindergarten and simply funding full-day kindergarten. Several Democrats sought to require school districts to offer full-day kindergarten, but Sununu’s budget doesn’t make that a requirement. He’s leaving it up to the individual cities and towns, but they’ll receive more funds if they opt-in.

In towns that vote to implement full-day kindergarten, school districts presently only receive 50 percent of the state’s per-pupil grant for kindergarten students. Under Sununu’s plan, the neediest communities can apply for additional grants to make the program possible.

Rep. Victoria Sullivan, R-Manchester, who sits on the House Education Committee, said she wasn’t thrilled about Sununu’s full-day kindergarten funding proposal. Sullivan said it should be a local community’s decision, and could eventually lead to mandated full-day kindergarten.

I agree with @NHSpeaker. This is a huge issue 4 me. Parental & local control in jeopardy. Next step=Mandated K. #NHPolitics https://t.co/HuCwQVuCv9

— Victoria Sullivan (@VSullivan4NH) February 9, 2017

House Speaker Shawn Jasper told reporters Sununu’s full-day kindergarten proposal probably won’t be included in the House version of the budget.

“I think that is going to be a stretch,” he said. “I think if you looked around the hall, you probably didn’t see a lot of enthusiasm on the part of Republicans on that issue. We’ll have different priorities in some areas than the governor has, certainly. I don’t think there’s ever been a budget that’s gone into the House and come out looking the same way, but he’s given us a great starting point.”

The two-year budget must be passed by June 30 to go into effect on July 1 of the next fiscal year. The House Finance Committee will look at Sununu’s budget before making a recommendation to the full House. After the House passes its version of a budget, it goes to the Senate Finance Committee, which will recommend its own proposals to the full Senate, before going to the governor’s desk for his signature or veto in spring.

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