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The Executive Council approved the first $50 million in funding for Gov. Chris Sununu’s InvestNH Housing Fund, an ambitious plan to deal with the Granite State’s housing crisis. 

“This initial $50 million investment will create 1,500 new rental units across the state, helping increase supply, drive down costs, and ensure New Hampshire is the best state to live, work, and raise a family,” Sununu said.

InvestNH is a $100 million investment plan to boost housing construction by covering the gaps in hard construction costs on affordable multi-family developments.

The plan uses money from the state’s portion of the $1.9 trillion American Rescue Plan Act. The fund will eventually direct $60 million toward developers, with $10 million going to the New Hampshire Housing Authority, and another $10 million earmarked for non-profit and small-scale for-profit developers. The remaining $40 million is going to municipalities to help streamline the zoning and planning process to get the projects built. There is also money that municipalities can use to demolish old structures and update zoning ordinances to meet current needs.

This first $50 million will be used for housing projects which will be held to affordability restrictions and construction completion deadlines within 18 months.

Both Sununu and his Democratic opponent, state Sen. Tom Sherman agree the current crisis in affordable housing availability is putting the state’s economic growth in danger. There are tens of thousands of high-paying jobs available in New Hampshire, but not enough potential workers can find places to live.

Sherman has released his own housing plan, which he said builds on Sununu’s $100 million investment.

While the council approved the housing funds, it stalled funding for a decade-old sex education plan a fourth time. No member of the council moved to vote on the $682,000 contract, leaving it in limbo.

The program is aimed at reducing teen pregnancy in Sullivan County and the city of Manchester, pockets of the state with the highest rates.

Republican councilors Joe Kenney, David Wheeler, and Ted Gatsas all previously supported the same program, but now cite concerns about parental rights when arguing against the contract. While parents must give permission for their children to participate in the program, details about what the curriculum exactly teaches are not available to the public.

Liz Canada, Advocacy Manager for PPNNE/Planned Parenthood New Hampshire Action Fund, blasted the move, saying it puts women and children in harm’s way. The council has previously voted to defund family planning contracts with clinics that also perform abortions.

“By gutting the family planning program and rejecting routine funding for after-school sex education, the Executive Council has jeopardized New Hampshire’s capacity to reduce rates of unintended pregnancy and sexually transmitted diseases in our state at a time when the landscape of reproductive health care nationwide is in chaos because of the U.S. Supreme Court’s decision to overturn Roe v. Wade,” Canada said. “Now is not the time to risk the ability of trusted community organizations to deliver what could be life-saving information and support.”

New Hampshire lawmakers only have until Thursday to finalize what the final state budget will look like for the next biennium, but there are two issues that could hurt its chances of getting passed in the full House.

One of the policies is not even related to monetary funds, it’s about a family planning contracts provision that was hotly contested in the Senate version of the state budget last month.

The Senate added language to its budget prohibiting the state from giving money to health care facilities to provide abortions. Republicans argued the language simply codifies current practice under the federal Hyde Amendment, but Democrats called it an attack on women’s health.

“The decision by House conferees to accept the Hyde amendment as part of the state budget proposal is a completely unnecessary attack on women’s health,” said Rep. Mary Jane Wallner, D-Concord, ranking Democrat on the House Finance Committee and a budget conferee.

“Because federal law already prohibits the use of tax dollars on abortion services, this amendment is a political statement, not a budget statement,” she added.

A conference committee is working to compromise on differences between the $11.8 billion budget passed in the Senate and an $11.9 billion spending plan proposed by the House Finance Committee that was eventually rejected by the full House after conservatives voted against the budget with Democrats.

Wallner blasted Republicans for sneaking the provision into the budget without public input.

“These provisions never received a public hearing in either the House or Senate, in direct violation of the legislative process,” she said. “If Republican lawmakers are going to turn the budget process into a partisan debate over social issues, the least they can do is follow their own rules and be transparent about it.”

Budget writers began hammering out the details in the conference committee on Friday, with less than a week to submit a budget report by Thursday, so both legislative chambers can vote on the final version of the state budget by June 22. The current fiscal year will end on June 30.

The move to include the abortion provision signals that House GOP leadership is looking to work with conservative members, instead of Democrats, to get a budget passed. Several Democrats in the House have reportedly called the provision a “deal breaker” and if it’s included in the final version, they will vote against it.

The Senate, since it’s a smaller body of 24 members, is not as politically divided as the 400 legislators in the House. The House has several different caucuses, all wanting something different out of the state budget.

In April, the House failed to pass its version of a budget for the first time since records were kept in 1969. Members of the conservative House Freedom Caucus sided with Democrats to defeat the plan crafted by House GOP leadership citing that spending was too high and there weren’t enough tax cuts.

The Senate version included cuts to the state’s business profits tax and business enterprise tax. House Speaker Shawn Jasper took to Twitter to indicate his support for these cuts.

I support biz tax relief for NH job creators. I urge House colleagues to support our budget that will contain responsible cuts. #NHPolitics

— Speaker Shawn Jasper (@NHSpeaker) June 12, 2017

But the House Freedom Caucus and one of its members, Rep. Victoria Sullivan, R-Manchester, asked if those were the only tax cuts planning to be included in the final version.

Looking forward to more information. Are biz tax cuts the only cuts?

— Victoria Sullivan (@VSullivan4NH) June 12, 2017

With more, or other, tax cuts in the state budget, conservatives could be more inclined to support the GOP-led spending plan. Yet, if the abortion provision and no tax cuts are included in the final version before the House next week, there might not be a budget passed before the end of the fiscal year, which means lawmakers would need to pass a continuing resolution to fund the state government at its current levels and then come back to negotiate a budget again in the fall.

A lot could still happen in the final negotiation days.

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