#

In a victory for New Hampshire Gov. Chris Sununu, the House Education Committee voted favorably for a bill that would increase state funding for full-day kindergarten. However, a school choice bill was killed for the rest of year.

Sununu has called himself a “believer in school choice,” but had some reservations about Senate Bill 193, which would establish education freedom savings accounts for parents to use taxpayer funds and turn them into personal “scholarships” for students.

The measure would have allowed parents to use the approximately $3,500 that schools receive per student and put the money for tuition in private or religious schools, pay for the costs of homeschooling, or even for supplies to tutor their children. It’s similar to the typical voucher program in other states, but the New Hampshire bill allows parents to use the funds for multiple educational opportunities that they want for their child.

Opponents don’t want taxpayer funds to be diverted from public schools. They also say the program would unconstitutionally provide taxpayer dollars to religious schools. Supporters argue the bill gives parents more options for their students.

The House Education Committee sidetracked the bill Tuesday and voted 15-4 to retain it in committee to study further, essentially killing the bill until 2018.

“There are a lot of aspects to this bill which I think we really need to drill down,” said Rep. Rick Ladd, R-Haverhill, chairman of the committee.

The bill previously passed the Senate on a 14-9 vote in March.

Rep. Mary Heath, D-Manchester, said “this bill undermines public education.”

“Our New Hampshire Constitution is clear that public funds cannot be used for sectarian purposes,” she added. “We have failed to fund our public schools in the manner in which we should fund them. To move to this process would undermine what we have stood for.”

Sen. John Reagan, R-Deerfield, was the author of the bill, and he told reporters after the vote that retaining the bill was due to the result of special interest groups, specifically the unions, who blocked his legislation. He said it was a loss for the students of New Hampshire.

Yet, the bill had bipartisan support in its defeat with several Republican lawmakers saying they wanted to draft a better version of the bill that has a chance of passing in the Legislature.

Rep. Dan Wolf, R-Newbury, said retaining a bill in committee is equivalent to “death with dignity. So let’s hope that this is death with dignity.”

Despite supporting school choice, Sununu raised questions last week about how the legislation could impact public schools.

“I think when it comes to using state money for schools, and I think a lot of people know I’m a big believer in school choice, that whatever we do, we have to make sure we’re not harming public schools,” he told New Hampshire Public Radio. “We’re not just removing funds out of those schools and we understand that as we move money around, what those pros and cons might be. I do have concerns when you start using state funds, whether it be a voucher program, or all the different terms that you want to put for it, to schools of a non-public nature.”

FULL-DAY KINDERGARTEN PASSES

At the same committee hearing, on a 15-4 vote, representatives passed Senate Bill 191, which would increase funding for full-day kindergarten, a priority Sununu has pushed this legislative session.

Sununu made a rare appearance before the committee last week, urging the House committee to approve the Senate bill, which was modeled after his original proposal.

In his budget proposal, Sununu called for $9 million-a-year to be given out in grants to the communities with high levels of low-income students and English language learners that wanted to opt for full-day kindergarten programs instead of half-day. The Senate approved of that plan in March on a 21-2 vote.

The House Education Committee voted to amend the bill, recommending that the House fund full-day kindergarten for all communities, regardless of need, that wanted to expand their kindergarten programs. They also voted to increase the cost to approximately $14.5 million per year, which was the same amount that Sen. David Watters, D-Dover, proposed in the first draft of the bill in the Senate.

“Today’s actions are a significant step forward for New Hampshire,” Sununu said in a statement. “Full-day kindergarten is good for children, families, and a critical tool in retaining our workforce.”

The bill will be taken up by the full House next week. If passed, it would be sent to the House Finance Committee for review, before returning to the House for a final vote.

Follow Kyle on Twitter.

Sign up for NH Journal’s must-read morning political newsletter.

It’s official. New Hampshire is ranked the 2nd best state in the country. Well, according to U.S. News & World Report, which released Tuesday the findings of its “Best State” rankings.

To some, the rankings are looked at as a symbol of the progress the Granite State has made. For others, it’s seen as a waste of time and not reflective of what’s actually going on in the state.

That’s true, at least, for Louisiana, which came in last place, and whose governor told The Boston Globe that the list used statistics and indicators from before his term. A spokesman for Gov. John Bel Edwards, a Democrat who took office in 2016 after years with Republicans in charge, said the ranking system could be helpful in guiding public policy, but it “lacks critical information.”

New Hampshire’s southern neighbor, Massachusetts, took the title as “best state” and state officials, on both sides of the aisle applauded the news.

Regardless if states agree with the rankings or not, it’s true that they do shape the public policy discussion and highlight issue areas where the state could improve.

Even Gov. Chris Sununu told reporters that the number 2 ranking “helps immensely” as he works to court new businesses from out-of-state.

“Though we have much work to do to ensure that our state continues to grow and thrive, this announcement is something that Granite Staters can be particularly proud of today,” he said in a press release. “It will also serve as useful information to those considering moving their home or business to New Hampshire.”

The survey was conducted by evaluating states across 68 metrics and tens of thousands of data points provided by McKinsey & Company’s Leading States Index. The seven different categories — healthcare, education, infrastructure, crime and corrections, opportunity, economy, and government — were weighted based on a national “citizen experience” survey asking people to prioritize each area in their state and their levels of satisfaction with government services. The combined ranking in each category determined a state’s order.

For New Hampshire, the state ranked 4th in healthcare, 3rd in education, 12th in infrastructure, 13th in crime and corrections, 1st in opportunity, 13th in economy, and 30th in government.

Photo Credit: U.S. News & World Report

As with any good news in the state, the second place ranking quickly became a battle over who should get credit for it. Can Sununu, who has been in office for only two months, tout it on his resume? Should former Democratic Gov. Maggie Hassan receive the praise? Or how about the Republican-controlled Legislature which passes the bills and laws impacting these rankings?

New Hampshire Democratic Party Chairman Ray Buckley said the state’s high ranking reflects the accomplishments of Hassan, who is now the freshman senator from the Granite State.

“Thanks to Senator Maggie Hassan’s steady leadership in the Governor’s office over the last four years, New Hampshire has been recognized as the number one state in the nation for economic opportunity and the number two-ranked state overall,” Buckley said in a statement.

“As Governor, Senator Hassan worked across party lines to balance two fiscally responsible budgets that protected critical economic priorities for our people and to pass and reauthorize our Medicaid expansion program that has strengthened the health and financial security of more than 50,000 hard-working Granite Staters,” he added. “She also froze in-state tuition at our universities and reduced tuition at community colleges, and cut taxes for our small businesses that are the backbone of our economy.”

Democratic politicians also said Hassan’s leadership deserves the credit for the high ranking. Sen. David Watters, D-Dover, said “Maggie Hassan made this happen.”

@Maggie_Hassan made this happen. In Concord, we must first do no harm to a thriving NH economy. @NHDems #nhpolitics https://t.co/IUtDmI2qYn

— David Watters (@SenDavidWatters) February 28, 2017

However, others said it doesn’t matter who is responsible for the high ranking. It should be on what the state needs to do in order to improve, said Greg Moore, state director for the New Hampshire chapter of the Americans for Prosperity.

Overrated: worrying about who's responsible for NH being #2 in state rankings. Underrated: worrying about why NH isn't #1. #nhpolitics

— Greg Moore (@GregMooreNH) March 1, 2017

For example, even where the state received high rankings, there are still some troubling statistics within those numbers. New Hampshire ranked 3rd for education. It came in first place for “Pre-K to 12” education, for its strong test scores and college readiness. Yet, it came in 39th for higher education due to high college costs and amount of student debt at graduation.

Sununu admitted to the high cost of tuition for the public university system. In his budget that he revealed in February, he didn’t increase funding for it either, but he revealed a plan that he believes will help solve the problem.

“I’ve put forth a plan for a $5 million scholarship program in the state, not to help 10 or 20 or 100 students, but over 8,000 students, [who] can really grab on to these funds and not just use them for our university system, but they can use it for community colleges, career schools, private schools,” he told NH1 News. “Whatever pathway they think will best provide them the tools to enter the workforce. We’re making those changes today and again I think we’ll see a lot of growth in those rankings as we move forward.”

Moore also said the state should focus on the business tax rate as a way to stimulate economic growth and encourage businesses to expand to New Hampshire. In the rankings, New Hampshire ranked near the bottom for GDP growth (32nd place). He pointed to the fact that the Granite State has a higher business profits tax rate (8.2 percent) than Massachusetts (8 percent). He is supportive of further reducing that rate.

“It certainly is fair to point out that that legislative leaders pushed for the tax cuts strongly, and that then-Gov. Hassan vetoed the budget over them, but thankfully we were able to make them a reality,” he told NH Journal. “If we want to be more competitive than Massachusetts, we need to continue to expand on the successful business tax relief efforts we’ve had to this point.”

By looking at the low rankings in the different categories for New Hampshire, lawmakers can figure out what they need to discuss to take the title of “Best State” away from the Bay State.

Although, New Hampshire is already technically the “Best State” since Massachusetts is a Commonwealth…if you want to be technical.

As a Mass ex-pat, I would point out that MA is not a state, it is a commonwealth, for what it's worth. Thus, NH best state. #nhpolitics https://t.co/uBKICQ4xVW

— Greg Moore (@GregMooreNH) February 28, 2017

Follow Kyle on Twitter.

When Sen. Dan Feltes, D-Concord, introduced a bill Wednesday, he sought a $25 million appropriation to the state’s affordable housing fund. Instead, he’s walking away with $5 million at best.

Senate Bill 94 would have put $25 million in the NH Housing Finance Authority’s Affordable Housing Fund to do what its name suggests — create more affordable housing for Granite Staters.

“This is a competitiveness issue,” Feltes testified before the Senate Capital Budget Committee. “We have to think about housing. I think, quite frankly, if there is one bill that’s a top priority, this is it. We have to do something right now and something significant.”

This funding mechanism isn’t anything new. It’s been around since its creation in 1988, under former Republican Gov. John H. Sununu, to be a revolving loan fund that provides low-interest loans and grants to build, rehabilitate, or acquire affordable housing. It’s first appropriation was $4.5 million. Since then, there have only been a few times when the Legislature has added cash to the fund. The fund didn’t see another dime until 2002, when $5 million was added to it.

In 2007, during Democratic Gov. John Lynch’s administration, approximately $750,000 was given to the fund. In 2015, $800,000 was added, and in 2016 $2 million was appropriated, but that money was earmarked for housing for people with substance use disorders.

The appropriation last year came to fruition on Tuesday where city and state officials broke ground for the Families in Transition’s Family Willows Substance Use Treatment Center and Recovery Housing in Manchester. The expanded treatment center and recovery housing focuses on women, and mothers with children dealing with the opioid crisis. It’s expected to provide treatment for about 400 women. Gov. Chris Sununu and U.S. Sen. Maggie Hassan attended the groundbreaking ceremony.

Feltes said the lack of funding for affordable housing is a “workforce, jobs, and competitiveness issue.” Testimony from leading experts on affordable housing in the state said all three areas are connected and important for New Hampshire’s future.

Without affordable housing in the state, people have trouble finding a place to live and workers end up living farther away from their jobs. Sometimes that’s too much for employees, so companies are left with an inadequate workforce, and without a strong workforce, or affordable housing, the state won’t be able to convince businesses to come and set up shop.

“You’ll hear about how we need a stronger workforce and affordable housing to keep the young working families that are demographically and economically needed as we move forward,” Feltes said.

Feltes is right. Lawmakers have heard testimony and had meetings from advocacy groups, government agencies, and political experts on how New Hampshire’s aging population will impact housing, transportation, and health care costs.

Already, workers are feeling the crunch of high housing costs, spending approximately 60 to 75 percent of their income on housing each month, according to Elissa Margolin, director of Housing Action NH, a coalition of organizations and businesses advocating for expanded workforce and affordable housing options.

Currently, the statewide median rent in New Hampshire is approximately $1,206 a month, she said, which is a 15 percent increase from five years ago. The vacancy rate, a factor in what’s driving the rising rents, is at 2 percent statewide and about 1 percent near the larger job centers.

The Granite State has already fallen behind the rest of New England and most of the country in terms of providing funding for affordable housing.

Rhode Island voters recently approved a $50 million bond for their state’s housing trust fund. They previously issued a $25 million bond in 2012 and a $50 million bond in 2006. Vermont uses a percentage of their real estate transfer tax for its housing trust fund, which is about $9 million a year.

In Maine, which has a similar population size to New Hampshire and similar workforce challenges, regularly funds its trust fund through their real estate transfer tax, with about $6 million invested annually. In 2009, a $50 million bond was approved, followed by another $15 million bond in 2015.

Connecticut and Massachusetts have also recently appropriated hundreds of millions of dollars a year to affordable housing.

Dean Christon, executive director of NH Housing Finance Authority, said the fund gives them “a lot of flexibility into how these dollars are being used.” They can be spent on housing from homeless shelters to senior housing to workforce rental housing.

David Juvet, senior vice president of public policy for the NH Business and Industry Association, said for the businesses he talks to, workforce and housing are the top issue for them.

When asked by Sen. David Watters, D-Dover, if the state should have “some skin in the game,” he responded that “there is some legitimate policy reason why the state should be involved with helping to assist economic development.”

The issue of affordable housing, workforce development, and business competitiveness of the state is usually a bipartisan issue. Everyone wants to see New Hampshire succeed. Affordable housing, especially when it comes to providing relief for the substance abuse crisis, also receives bipartisan support.

The bill only had Democratic support though, including Senate Democratic Leader Jeff Woodburn and House Democratic Leader Steve Shurtleff.

So why aren’t Republicans jumping on board? Well, it’s most likely the price tag of the legislation — $25 million can be a hard sell. During the hearing, Senate Majority Leader Jeb Bradley asked a witness if they would the measure if it were a different amount.

The committee also has to tackle a more pressing issue with the unanticipated charge costing the state millions of dollars to convert several state-owned buildings to natural gas after Concord Steam Corp. announced plans to close this year. The Senate Capital Budget Committee will her testimony on that bill in the coming weeks.

Ultimately, the committee unanimously voted on an amendment to changed the $25 million appropriation to the Affordable Housing Fund to only $5 million, and then they recommended that the bill “ought to pass” when it goes to the Senate soon.

Some activists say any little bit can help “move the needle” some more.

“We need the state’s oar int he water to help steer the ship,” said Evelyn Whelton of the Mount Washington Valley Housing Coalition. “A small push at the state level would influence housing growth and send a signal to businesses and those who want to move here, that we are engaged in economic development and are serious about it.”

Follow Kyle on Twitter.