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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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After four days of back-to-back negotiations between the New Hampshire House and Senate, lawmakers on the state budget conference committee finally decided Wednesday on an $11.7 billion two-year spending plan. Although its widely expected to pass the Senate, there is still a chance that it could fail in the volatile House.

“This is a budget the legislature and the people of New Hampshire can be proud of,” said House Speaker Shawn Jasper after the committee approved the final version of the budget. “This budget provides resources to address the opioid crisis, mental illness, and domestic violence, includes several reforms to state government, and keeps spending in check. We’ve achieved a balance that ensures our citizens will have access to services they need while reducing the tax burden.”

Whether it will garner enough Democratic or conservative votes remains to be seen. Democrats claim Republicans are not spending all of the revenue available to the state and criticize that a workforce training proposal, known as Granite Workforce, was cut from the budget. It would have provided training and wage subsidies for certain types of workers since the state is dealing with a worker shortage.

“Democrats have made it very clear: we will not support a budget that asks working people to dig further into their wallets while the elite get more handouts,” said Senate Minority Leader Jeff Woodburn. “Unfortunately, our efforts to stand up for everyday people have been rejected at every turn. The reality is that this Trump-like, Republican budget agreement caves to the wealthy elite and ignores those who are most in need.”

Also, Democrats still don’t like that language was added to the budget that prohibits the state from giving money to health care facilities to provide abortions, which indicates that House Democrats are most likely not going to vote in favor of the budget in the full session next week.

State Reps. Al Baldasaro, R-Nashua, and Debra Altschiller, D-Stratham, brought up that issue on Twitter.

There, I fixed it:"Repubs would rather legislate NH women's reproductive systems than create a budget that serves the people" #nhpolitics

— Debra Altschiller (@DebrasATeam) June 14, 2017

Little has changed from the Senate version of the budget passed last month, with a few notable exceptions. The new budget includes an amendment mandating new work requirements for people enrolled in the state’s expanded Medicaid program. Low-income adults would have to work, attend job training, or go to school for at least 20 hours per week to qualify for the New Hampshire Health Protection Program. If the federal government rejects the work requirement, as it did last year, expanded Medicaid would end by 2018.

Some advocacy groups, like New Futures — which focuses on mental health, substance abuse, and children issues — were critical that an amendment in the budget would allow the governor to divert money away from the state’s Alcohol Fund, which is used for substance abuse treatment, prevention, and education programs. The governor would be allowed to reach into the fund to help pay for operations at the state’s juvenile detention center in case of emergencies after approval from the fiscal committee.

“Weakening the addiction treatment system in the midst of New Hampshire’s devastating opioid crisis will place the lives of people struggling with addiction at risk,” said Linda Saunders Paquette, CEO and president of New Futures. “This irresponsible decision by the committee cannot be overstated, and will be felt for years to come, as our public health crisis will only intensify without long-term sustainable investments.”

The budget includes cuts to the state’s businesses profits tax and business enterprise tax, but lawmakers also eliminated the electricity consumption tax, which generates about $5.5 million for the state each year.

“This budget also eliminates the Electric Consumption Tax, helping our state move in the right direction to reduce the burdensome electric rates paid for by homeowners and businesses,” said Senate Finance Chair Gary Daniels, R-Milford. “By making changes that will result in lower monthly bills, we put money back in our employer’s pockets and create an improved, lower cost state to run a business.”

With these tax cuts, House GOP leadership is hopeful that enough members of the conservative House Freedom Caucus join in supporting the budget. The caucus still has concerns that the state spending levels are too high, indicating that some of its members will probably vote against it.

@jdistaso @WMUR9 @DaveSolomon72 for those thinking $11.7B is a big budget number, try counting to 196 (votes) #nhpolitics https://t.co/mOycLchaiP

— NH Freedom Caucus (@NHFreedomCaucus) June 15, 2017

The House needs a majority to pass the budget and they need conservative support in order to do that. Jasper said he is optimistic the budget will get passed in the House next week. Behind the scenes, top GOP officials are starting to whip votes in order to make sure that it happens.

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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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