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Are State House Dems Plotting to Blow Up the Budget?

Guy Fawkes Day could be coming early to Concord as a contingent of House Democrats is reportedly scheming to blow up the proposed budget in a fight over Medicaid expansion.

Multiple sources tell NHJournal Democrats are toying with some radical plans, including the possibility of using a potential future majority in the evenly-split House to “vacate the speaker’s chair,” giving Speaker Sherman Packard (R-Londonderry) the boot.

Another idea: Strip Medicaid expansion from the House budget by voting on it as a standalone bill, then leave the House GOP to attempt to pass a budget — and fail — without Democratic votes. But since the Medicaid expansion bill has already been retained in committee, the Democrats would have to override the committee process and vote to bring it to the House floor.

The conspiracy talk comes at a time of heightened tension in the budget negotiations between legislators and Gov. Chris Sununu, with one source saying no one knows what is going to happen next.

“If they do any of this, it is total Armageddon,” one GOP House member told NHJournal.

Senate President Jeb Bradley (R-Wolfeboro) shares a similar view, calling the talk he has heard from the Democratic side of the aisle “Washington-style politics at its worst.”

As for a possible Democratic attempt to pull Medicaid expansion out of budget for its own vote, “I think it’s a very dangerous game,” Bradley said during a podcast interview with NHJournal. “It puts at risk the budget and Medicaid expansion at risk.”

Bradley took the lead in the Senate, spearheading SB 263, the Medicaid expansion bill, which extends the state’s Granite Advantage health insurance program. While low-income families qualify for traditional Medicaid, the Granite Advantage program makes Medicaid available to working families who earn too much for Medicaid but don’t have access to affordable health insurance through their employers. And 90 percent of the funding comes from federal dollars.

“My responsibility as I see it is to get the job done for the 50,000 to 60,000 people now depending on Medicaid expansion,” Bradley said. “To say nothing of the providers, the hospitals, the business community, all of the people that have gotten behind this coalition effort for the last nine years.

“Our responsibility, as adults, is to get the job done.”

The original proposal would have permanently expanded health coverage, while some House GOP members wanted to see just a two-year expansion. Bradley has agreed to a compromise plan that extends the benefit for seven years. That is complicated by the fact the budget, HB2, includes a two-year extension to Medicaid.

Packard is seen as a key opponent to the permanent expansion. Now, sources tell NHJournal some Democrats plan to yank Medicaid expansion away from the House Finance Committee and hold a floor vote on a permanent expansion. At the same time, those Democrats are also gearing up to push Packard out of the speaker’s chair.

House Clerk Paul Smith said motions to vacate the speaker’s chair are rare and typically unsuccessful. Any vote to remove Packard would require “50 percent plus one” of the entire body — not just those present. There are 196 Democrats in the House. With several vacancies, the current House membership is 396, meaning Democrats need 199 votes.

House Finance Committee member Rep. Peter Leishman (D-Peterborough) has heard the rumblings about Medicaid expansion, but he said the House conspirators are all talk. He noted that the Finance Committee voted Thursday to retain the bill, locking it into the committee.

“If the bill’s not reported out, they can’t take it away from the Finance Committee,” Leishman added.

But other House sources said an obscure and rarely-used move could allow Democrats to override the committee’s vote to retain. Smith said it would be a highly unusual move.

“Does it usually happen that the House withdraws a bill from committee? No, not usually,” Smith said.

House Majority Leader Jason Osborne (R-Auburn) conceded that, given the tight margins in the House and attendance issues, it’s very possible Democrats could again find themselves with a majority on the floor. If they do and choose to abandon the norms and traditions of the House, they could wreak havoc.

“But the real result would be total Republican unity,” Osborne added. “These things Democrats are talking about would completely unify my caucus.”

In fact, Deputy Speaker Steve Smith now says House leadership is on board with Bradley’s proposed Medicaid expansion deal.

“We’ve heard from the business community, the health care community, and people across New Hampshire about the importance of reauthorizing Medicaid expansion,” Smith said in a statement. “We all agree that the program needs to be reauthorized, and we’ve had a productive conversation about the appropriate length of time for a sunset provision.

“A seven-year extension of the Granite Advantage Healthcare Program makes logical and fiscal sense. New Hampshire gets the financial benefit of a full contract period, a continued drop in uncompensated care costs – which is a hidden tax, and it stabilizes the market allowing for more competition to help further drive down health care costs in our state. House Republican leadership fully supports the budget compromise of seven years. Let’s get it done,” Smith said.

Regardless of how the Medicaid vote goes, former House Speaker Rep. Steve Shurtleff (D-Penacook) said an attempt to force a vote, or worse, depose Packard, is a mistake.

“What we don’t need right now is this kind of gamesmanship,” Shurtleff said. “There’s no need for these kinds of fights.”

Too many people in the state rely on the budget passing, Shurtleff added, and delaying that makes those people the victims in an unnecessary political fight. “The budget is too important to too many people,” he said.

Then there is the question of motive. Given how relatively apolitical the current budget is — no anti-CRT legislation or late-term abortion bans — why would Democrats contemplate such high-risk actions against it? Particular a budget with hefty pay raises for state workers, who tend to be political allies of the Democratic Party?

Several House Republicans told NHJournal they believe the real target is Sununu. If the governor is tied in an ugly budget battle or trying to corral House chaos, it might stop — or at least slow — his presidential plans.

“Or maybe the Democrats are just [expletives],” one GOP House member said.

Blowing up the budget would hurt state employees, people who need affordable housing, families who need childcare, Granite State communities that need water infrastructure repairs, and every homeowner who needs property tax relief, Bradley said.

“I would just say that is the worst possible case scenario because everything could wind up in the tank,” Bradley said.

Even Democratic stalwart Sen. Lou D’Allesandro (D-Manchester), who voted against the budget last week, wants the spending plan to pass. D’Allesandro and Sen. Cindy Rosenwald (D-Nashua) voted against HB2 in the Senate Finance Committee, saying they want improvements to the final bill before they support it.

“There’s an opportunity to add a couple of things to the budget,” D’Allesandro said.

D’Allesandro wants to see more money for state employee pensions, more money for affordable housing, and no money for northern border security. He said that as long as the bill remains intact and the House remains sane, there will be another opportunity to vote on the budget after more negotiations. That includes negotiating more time for Medicaid expansion.

The specter of a messy fight over Packard’s speakership is a non-starter for D’Allesandro. Packard is doing a solid job leading a closely divided House, he said.

“Sherman Packard was my student when he was in high school. I think the world of Sherman; he’s a fine man.”

Likewise, Leishman does not think Packard should be pushed out.

“I think Sherm’s done a good job trying to hold things together,” Leishman said.

The Winners and Losers of the New Hampshire Legislative Session

It felt like the last day of school at the New Hampshire State House on June 22. Lawmakers were signing each other’s session books (the political version of yearbooks), shaking hands, and taking pictures together. It had been another eventful legislative session that saw many highs and lows for Gov. Chris Sununu, the first Republican in the corner office in 12 years.

The Republicans didn’t always get along during this legislative session. Remember the defeat of right-to-work legislation and the House failing to pass their own version of a budget earlier this year? Despite the varied ideological depth of the New Hampshire Republican Party, they were able to show they can work together and give Sununu some final wins at the end of the first year of the 165th General Court, including full-day kindergarten and a budget getting passed.

Now, the lawmakers head home for the summer months and it’s time to decide the winners and losers of the session:

 

WINNERS:

With his wife Valerie at his side Republican candidate for governor Chris Sununu speaks to supporters early in the morning Wednesday, Nov. 9, 2016, in Concord, N.H. Sununu said his race with Democratic challenger Colin VanOstern was too close to call. (AP Photo/Jim Cole)

Gov. Chris Sununu: As much as Democrats wanted Sununu to not do well his first term in office, several of his campaign promises and policy priorities made their way through the legislature and became law. One of his first wins in office came from the repeal of a license requirement for concealed carry firearms. It was something he said he would do on the campaign trail, and it got done within the first two months of his term.

That’s not to say that Sununu didn’t have some setbacks during the legislative session. The governor, who didn’t have prior legislative experience before taking office, saw the defeat of right-to-work under his watch and the House failed to pass a budget for the first time in recent memory. Some critics claim Sununu could have done more to get right-to-work passed, but the Republican infighting revealed a divided party that would prove difficult for GOP leadership to navigate.

With the budget, Democrats attempted to paint Sununu as not in control of his own party, but Sununu actually stood as the most to gain from the House’s failure. The House cut several of Sununu’s budget priorities in its version, but when the Senate drafted its own budget, it used Sununu’s proposal as a guide. What was ultimately passed at the end of June was a compromise of House, Senate, and Sununu’s priorities.

On the final day of the session, Sununu also saw the passage of full-day kindergarten and a key school choice bill. It might not have been a perfect process, but the governor saw several items from his policy wish-list reach his desk.

 

Marijuana: For several years, New Hampshire has been the only state in New England that still criminalized possession of small amounts of marijuana. For many lawmakers, they saw a connection between the rampant opioid crisis and marijuana being used as a potential gateway drug. Historically, the Senate has voted down various bills relating to looser pot laws, but advocates fought long and hard to see marijuana decriminalization passed. After compromising with the House on an amount, the Senate finally found a bill that it could handle.

In June, the legislature decriminalized three-quarters of an ounce of pot and Sununu signed it into law. Marijuana advocates applauded lawmakers for taking the first step, although they are continuing to work toward full legalization.

 

Libertarians: The Libertarian Party of New Hampshire had a banner election year in 2016. It obtained 4 percent of the vote in the gubernatorial election to qualify for the ballot in 2018. It also had three sitting lawmakers switch their party affiliations from Democrat or Republican to Libertarian. The last time the Libertarian Party had an official caucus in the State House was in the 1990s when it had four members.

While Libertarians haven’t been the deciding votes on any controversial bills during the session, it is clear that some members of the major parties are unhappy within their own caucuses. The Libertarian Party needs to garner 4 percent of the vote again in 2018 to remain on the ballot, but with political partisanship at an all time high, voters could see Libertarians as a more moderate choice. That’s how many Granite Staters felt when they voted for Libertarian presidential candidate Gary Johnson over Republican Donald Trump and Democrat Hillary Clinton.

 

 

Gov. Chris Sununu signs HB 262, declaring the common blackberry to be the berry of the biennium. (Image Credit: Gov. Chris Sununu’s office)

Blackberry and painted turtle: Every year, the state’s fourth graders learn how the state government works, and every year, legislation gets filed on their behalf. This year, lawmakers saw a bill from students at Simonds School in Warner naming the blackberry the official state berry of the biennium. It made its way through the House and Senate, and Sununu signed the bill in June.

Another group of students from Main Dunstable School in Nashua wanted the painted turtle to be the official state reptile for the biennium. That bill was also signed by Sununu.

It’s an annual tradition at the State House and while some lawmakers believe it’s a waste of time, some say it’s a good opportunity to get students involved and interested in the political process.

Of course, no one will forget the time in 2015 when students in Hampton Falls proposed making the red-tailed hawk the state raptor and a lawmaker suggested the creature would be a better mascot for Planned Parenthood. That became a national news story.

Luckily, no incidents like that happened this year. And Sununu enjoyed snacking on some blackberries with the fourth-grade students when he signed the bill into law.

 

LOSERS:

Democrats: The New Hampshire Democratic Party struggled to find its footing this year. For the first time since 2010, Democrats were fully the minority party in the State House — Republicans had majorities in the House, Senate, Executive Council, and the corner office. The party couldn’t decide if it wanted to work with Republicans or be the party of resistance to their agenda.

Their lack of a mission or agenda was evident in the legislature. While Democrats banded together to help defeat right-to-work and the House’s budget, there were times when some members disagreed with party leadership and voted their conscience. When it became clear that it was very likely that a budget wouldn’t be passed in the House, some Democrats advocated for at least passing something on to the Senate.

While Democrats have long pushed full-day kindergarten, they didn’t like that the final bill tied its funding to the lottery game Keno. Most Democrats voted against it, and that could be a major policy issue when they face reelection next year.

But the question still remains: will Democrats work with Republicans in the next legislative session in January or will they resist? National politics will definitely influence their decisions, and it will also be an election year. More partisanship is likely.

 

Right-to-work: The bill called for prohibiting unions from charging fees to nonmembers for the costs of representation, but even in a GOP-controlled legislature, Republicans couldn’t get the votes. A lot of different factors went into its defeat in the House, including disagreements between Sununu and House Speaker Shawn Jasper, as well as some Republicans who are part of unions or know people in unions. This was a major bill that some lobbyists and advocacy groups pushed for, including the Koch-funded Americans for Prosperity-New Hampshire. Simply, the votes were not there and lawmakers voted to not bring up the issue again until at least 2019, but expect to see another bill if the GOP retains its majority in the legislature.

 

Transgender advocates: A controversial gender identity nondiscrimination bill was tabled in the House, much to the dismay of transgender advocates. The bill would have prohibited discrimination based on gender identity, extending gender identity the same protections under state law that exist for age, sex, sexual orientation, race, or creed. The protections would have applied to discrimination in housing, employment practices, and public accommodations.

House Speaker Shawn Jasper and other members of the GOP leadership sought to kill the bill, or at least get it off the agenda for the session. Their issue with the legislation mirrors the Republican opinion at a national level — the bill would have allowed transgender people to use the restrooms of their choice.

Advocates are hoping the bill could be resurrected next year.

 

Opioid crisis: The drug epidemic still has its grips on the Granite State, which is ranked as the second hardest hit state by per capita overdose deaths in the nation. Lawmakers passed some bills to help curb the crisis, but as with any legislative process, it can take a while for treatment and recovery centers to receive the necessary funds to make a difference.

The state is also now dealing with the rise of carfentanil, a synthetic opioid that is is so potent that it’s not intended for human consumption. It’s 100 times more potent than fentanyl and is commonly used to tranquilize elephants. There’s still a backlog at the state’s crime lab to investigate due to the increase in the number of drug overdose deaths.

While lawmakers seek political solutions for ending the crisis, advocacy groups say more creative solutions are needed, but it appears that the end of the epidemic is still not in sight.

 

UNDECIDED:

House Speaker Shawn Jasper (Photo Credit: Speaker Shawn Jasper Facebook page)

House Speaker Shawn Jasper and House Freedom Caucus: The conservative caucus threatened to kill the state budget unless their priorities were included. None of its members were on the conference committee to have a say in final negotiations, but House Speaker Shawn Jasper reached out to members to market the budget as a conservative one. Ultimately, some House Freedom Caucus representatives voted for the budget due to its inclusion of anti-abortion language and business tax cuts. But, Jasper’s control over the speakership is still in question. With defeats of right-to-work and a House budget, some representatives are questioning his ability to lead. If the GOP retains control in the House, expect several people to challenge him in 2018 to be speaker.

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NH Republicans Work Together to Pass State Budget, Full-Day Kindergarten

In two legislative victories for Gov. Chris Sununu, he saw Republicans unite to pass a state budget and full-day kindergarten. The New Hampshire House and Senate met Thursday for the final session of the legislative year in their respective chambers, and behind-the-scenes negotiations on the budget led to a win for the NH GOP platform. An $11.7 billion biennium budget is on its way to Sununu’s desk for his signature.

The scene was a joyous one for Sununu and Republican lawmakers in the Executive Council chambers at the State House after the budget vote. As Sununu walked into the room, cheering and applause broke out to celebrate their victory.

“Absolutely a big win, a big win for New Hampshire,” Sununu said after the vote. “People sent us to Concord to get a job done and we did it. And we did it the right way, we brought folks in and we listened and we talked, we kept working it the best we could and we came out with what I think is incredible progress for the state of New Hampshire.”

The Senate passed a committee of conference spending plan on a party-line vote of 14-9 in its Thursday morning session. About an hour later, the House passed the same budget on a roll call vote of 198-169. Only 14 Republicans voted in opposition and five Democrats supported the budget.

The margin of passage was wider than many people expected. Just a week ago, the fate of the budget in the House was uncertain, after conservatives tanked an earlier version of the budget in April. After some wheeling and dealing with Sununu and GOP Senate leadership, members of the conservative House Republican Alliance and House Freedom Caucus said while it was an imperfect budget, it was something that had some benefits for Granite Staters.

“Although the caucus as a whole is still concerned about the level of spending, there are definite benefits for the NH taxpayers,” the Freedom Caucus said in a statement. “The majority of our caucus members were able to support the budget in order to bring these benefits to our constituents.”

The business tax cuts added by the Senate were a significant factor in motivating the conservatives to vote in favor of the budget.

“There are many Republican leaders to thank for the passage of this bill — [House] Speaker [Shawn] Jasper, Senate President [Chuck] Morse, and Governor Sununu united the party in Concord and ensured passage of this Republican budget,” said NHGOP Chair Jeanie Forrester. “Republicans of all backgrounds and stripes united to pass this budget and ensure a stable and bright future for the State of New Hampshire. This shows that when Republicans are united, Republicans win and New Hampshire is better off for it.”

A companion bill that made the policy changes reflected in the budget also passed the Senate by a 14-9 margin and in the House by a vote of 212-161.

The companion bill included a phase-in of business tax cuts, elimination of the electricity consumption tax, and authorization of online lottery games. The budget will take effect on July 1, the first day of the new state fiscal year.

While Republicans claimed a win for their legislative agenda, New Hampshire Democratic Party Chairman Ray Buckley sent a fundraising email to supporters, blasting the GOP-backed spending plan.

“Gov. Sununu’s reckless and dangerous budget will take New Hampshire’s progress and turn it into disrepair,” Buckley said. “Republicans assume New Hampshire’s problems will just fix themselves. That’s not leadership, that’s ignorance. Let’s work together to make sure we have the state government we deserve in Concord.”

Later in the day, the House and Senate also passed another of Sununu’s policy priorities: funding for full-day kindergarten. The funding starts with state dollars, but after two years, it would be funded from revenue generated by newly authorized Keno.

Over the legislative session, Sununu stuck by his campaign promise to see full-day kindergarten come to fruition. He called for it in his budget, stood by his pledge after House Republicans stripped its funding from their budget, and then applauded once the Senate revitalized it as a standalone bill. He showed his flexibility when the policy and funding levels changed each time and while the final bill was not what he originally intended, he called it a “first-step.”

The House overwhelmingly passed Senate Bill 191 on a roll call of 251-111. The Senate vote was 15-8, with 12 Republicans and three Democrats in favor, and two Republicans and six Democrats opposed.

It was a difficult bill for some lawmakers to stomach tying online gambling revenue to education. For Sen. Lou D’Allesandro, D-Concord, he’s been a longtime advocate of casino-style gambling in the state, but he voted against the bill since he didn’t believe the two issues should be linked.

On the opposite end, Senate Majority Leader Jeb Bradley is not a big supporter of Keno, but he voted in favor of the bill to invest more in early education.

Still, the bill made it through the legislature and is headed to Sununu’s desk, who applauded its passage and declared that he is “the first governor” to deliver a full-day kindergarten.

“The investments made today will give New Hampshire’s children a strong foundation for tomorrow’s future,” he said. “I am proud to be the first governor to deliver a real full-day kindergarten program for communities across our state, which will close the opportunity gap and provide students, regardless of their economic status, an extra step up as they enter the first grade. Full-day kindergarten is good for children and families, and a critical tool in retaining our future workforce.”

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NH House Republicans May Have Enough Votes to Pass State Budget With Conservative Approval

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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How Abortion, Taxes Could Determine the Fate of the N.H. State Budget

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.

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.

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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GOP Budget is Good for New Hampshire

If you like laws and sausages, you should never watch either being made. That old adage could be applied to the current session of the New Hampshire General Court.

Drafting and adopting the state budget has been messy as different Republicans have argued passionately for what they believe is in the best interest of the Granite State. But while the process may sometimes be unpleasant to watch, the outcome is generally good and beneficial.

So it is with the Republican compromise budget, which the House of Representatives takes up this week. The budget respects taxpayers while still providing for needed services for New Hampshire’s most vulnerable, such as the mentally ill and those struggling with addiction. Here are four features that you may not have heard about the legislation:

  1. Drugs and Alcohol: The budget doubles funding to the Governor’s Commission on Alcohol and Substance Abuse Prevention, Treatment and Recovery. It establishes a youth inpatient and outpatient treatment center in Manchester. And it more than doubles the budget of the Bureau of Drug and Alcohol to help address the state’s opioid crisis.
  2. Mental Health: The budget establishes 60 new beds for community treatment options and it creates a fourth rapid response mobile crisis unit to keep hospitals from having to shoulder all the burden for mental health issues.
  3. DCYF: The Division of Children, Youth and Families is a system that has failed to do an adequate job of protecting New Hampshire kids and this budget begins to address that problem. It adds new case workers to deal with huge caseloads. It creates an Office of the Child Advocate to provide oversight from outside of the department. And it requires the lead attorney of DCYF to be supervised by our state’s attorney general, which will help when prosecutions are necessary.
  4. Rainy Day Fund: The budget would grow our state’s rainy day fund from an anemic $9 million to $100 million, which would be useful in a pinch but would also help shore up New Hampshire’s top rate bond rating, so we can finance debt with very low interest.

Of course, this budget also sets the stage for a small business-friendly economic environment, which will spur better jobs and higher wages. And it invests in our shared future by making major priorities of education and public safety.

This roadmap for the 2018-2019 biennium contains no new taxes of fees. None. In fact, the budget focuses on economic growth by lowering both the business profits tax (BPT) and the business enterprise tax (BET) to allow for a friendlier business environment. Over the next few years, business will be able to grow and reinvest in the economy. The New Hampshire tax code will also be aligned with the federal tax code and allow for 179 more deductions, greatly helping small businesses.

This is all based on realistic revenue projections to create a finically responsible budget with modest increases of 1.8 percent and 2.0 percent over the next two years. This is the kind of sound fiscal management taxpayers have come to expect from Republican leadership in Concord.

As a former chair of the Senate Finance Committee, I know as well as anyone that putting together a budget is challenging work. Recall also that former Gov. Maggie Hassan, now U.S. senator, shamefully vetoed the Republican budget last summer in a harebrained political stunt that blew up in her face. In the end, she was forced to back down and sign the GOP budget.

And as a result New Hampshire presently has the third fastest growing economy in the nation. That’s real leadership and sound fiscal management. The Republican budget is good for the economy, good for working families and great for New Hampshire.

N.H. House Freedom Caucus Left Out of Conference Committee for State Budget

After the New Hampshire Senate passed its version of a state budget last week, it was expected the House would request a Committee of Conference, so it could ultimately have a say in the final budget negotiations. House conservatives, who led the charge to defeat the budget in April, were hopeful that Republican leadership would finally cooperate with their list of demands. Yet, representatives of a conservative caucus were disappointed Tuesday after House Speaker Shawn Jasper appointed none of its members to the conference committee, putting the fate of the state budget in jeopardy.

Acting under a recess rule, the House non-concurred Tuesday with the Senate version of the biennium budget and Jasper, R-Hudson, appointed members to a conference committee.

He named to the committee himself, House Majority Leader Richard Hinch, House Finance Committee Chairman Neal Kurk, Rep. Lynne Ober (R-Hudson), Rep. Karen Umberger (R-Kearsarge), and Rep. Mary Jane Wallner (D-Concord).

The conservative House Freedom Caucus criticized the conference committee because its members are “the same House leadership that led the House budget to fail in April.”

“With less than two weeks to go to the final House session, it is critical that the House leadership find a way to work with all of their members. However, the message that the House is sending in these negotiations when they put forth leaders who were so utterly clueless about the budget in April is they are only interested in more of the same. This is short sighted at best,” said Rep. JR Hoell, R-Dunbarton.

For the first time since at least 1969, the House failed to pass a budget on to the Senate. The Senate Finance Committee used Gov. Chris Sununu’s budget proposal as a starting point, but it also took into consideration some of the House Finance Committee’s spending plan. In last week’s Senate marathon budget debate, a trailer bill accompanied the budget to specifically incorporate the failed House budget “for purposes of committees of conference.”

During a conference committee, a selection of House and Senate members work to compromise on the specifics of a bill. A conference committee report would be sent to the House and Senate for final approvals. That’s where it can get dicey, especially in the House.

The House Freedom Caucus was instrumental in the demise of the budget in April. The group didn’t like that spending increased over former Democratic Gov. Maggie Hassan’s budget and that the House GOP leadership’s budget lacked tax cuts. If the Freedom Caucus can convince other conservatives or on-the-fence Republicans to jump ship, the budget could die in the House.

“The definition of insanity is doing the same thing over and over again and expecting different results,” said Rep. Anne Copp, R-Danbury, and a member of the House Freedom Caucus.

“By putting the same leadership on the committee of conference that led to a budget that failed by over 85 votes, the state is being set up for having no budget that can pass the House later this month,” she added. “We need a fresh start to begin the processing of a truly fiscally responsible budget, not the same group that offered a reckless spending increase.”

Jasper has not publicly responded yet to the criticisms from the House Freedom Caucus. Last week, Jasper sent an email to caucus members asking to sit down and discuss the budget with them on Tuesday and Wednesday this week.

“It is important at this point in the process that we hear your concerns and find areas where we share common ground,” he wrote. “Ultimately, we hope to be able to reach agreement on the major issues, which would be extremely helpful prior to the state of the budget committee of conference.”

Jasper told WMUR in an earlier story that a conference committee was needed to make passing a budget easier.

“The reason was simply that if the Senate hadn’t agreed to do that [a conference committee], we would have been amending our positions on the budget and…onto Senate bills everywhere possible in order to be able to preserve those positions,” he said. “The Senate realized that to have done it in that way would have made the committee of conference process very, very difficult.”

Yet, conservatives say its unfair to have the failed House budget included in conference committee discussions.

“How can the Senate or Governor even begin to approach a committee of conference knowing that there isn’t much chance that the House conferees can pull together a majority of the body?,” said Rep. James McConnell, R-North Swanzey. “This is a recipe for disaster and is something that we can all see coming.”

If either chamber fails to approve the budget, a continuing resolution to maintain spending at its current levels would likely occur, at least until a full budget is passed. Republicans only hold a slim majority in the House and even a small number of “nay” votes could spell doom for the budget if Democrats also oppose it.

Only one Democrat has been appointed by the House to sit on the conference committee. Democrats in the House and Senate have been critical of the GOP budget, but when it comes time to vote, some could change positions and vote in favor of a budget out of fear that the chamber would come up short again. They could also band together against the budget and watch the Republicans’ infighting, hoping that helps them in next year’s elections.

Senate President Chuck Morse is expected to announce his budget conference committee members on Wednesday.

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Alcohol Fund Becomes Latest Political Battle for N.H. Lawmakers During Budget Process

When it comes to the opioid crisis, one would expect every state dollar allocated to the epidemic would be spent. That’s apparently not exactly what happened this fiscal year. A substantial surplus remains in the Alcohol Abuse Prevention and Treatment Fund, also known as the Alcohol Fund, and lawmakers are trying to pin the blame on almost everyone.

The Alcohol Fund was created in 2000 by the Legislature as a mechanism that takes 5 percent of the gross profits from the sale of alcohol to support education, prevention, treatment, and recovery programs for substance abuse, which encompasses alcohol and drug abuse.

The focus right now for the Governor’s Commission on Alcohol Drug Abuse Prevention, Treatment, and Recovery, which gives out the funds, is the opioid crisis, but alcohol abuse is also part of its mission. The commission was allocated approximately $9 million in the 2017 fiscal year and will reportedly end the year on June 30 $2 million to $4 million in the black.

Tym Rourke, chair of the governor’s commission, said he is working with the Department of Health and Human Services to determine the exact amount and will release those figures this week.

That’s where the confusion lies for legislators as they finalize the state’s biennium budget this month. DHHS Commissioner Jeffrey Meyers has said he anticipates a $2 million surplus from contracts that didn’t use their full funds. The nonpartisan Legislative Budget Assistant is putting the number at $4.3 million. The discrepancy and uncertainty as to why the funds weren’t all used during the year was on full display during the Senate marathon budget session on Wednesday.

Sen. Martha Hennessey, D-Hanover, who also sits on the governor’s commission, questioned why there was an amendment introduced that would allocate $2 million from the Alcohol Fund for the construction of a juvenile substance abuse wing at the Sununu Youth Services Center in Manchester without the commission’s approval.

Senate Majority Leader Jeb Bradley, R-Wolfeboro, said they had to have “some frank talk” about the Alcohol Fund.

“It is pathetic that there is $4.3 million sitting in an account unexpended in the middle of a heroin crisis. That’s what we should be focused on. That’s outrageous,” he said. “So let’s look at the reforms this amendment tries to put in place … that’s called taking action, not sitting on $4.3 million.”

Hennessey countered to say that the fund would only have a $2 million surplus, but said Gov. Chris Sununu and Meyers should also be to blame.

“The governor and commissioner at HHS have not helped to facilitate the spending of this,” she said. “They are waiting to find out what kind of health care we’re going to have, what’s going on with Medicaid, all of which is up in the air. So if our governor and HHS aren’t helping to make this possible, that money can’t be spent.”

The Alcohol Fund fund has only been fully financed one time since its inception, which was in the 2003-2004 biennium — the first year it began. Since then, governors or the Legislature transferred the revenue to the general fund and would only appropriate a small amount to the Alcohol Fund. In the current biennium passed under former Democratic Gov. Maggie Hassan, the fund was financed at 1.7 percent. In Sununu’s budget proposal and in the Senate’s budget, the fund was doubled to 3.4 percent.

Rourke applauded the Senate for increased monies to the fund, but reminded lawmakers that the Alcohol Fund is non-lapsing and any money left over is rolled over to the next fiscal year, so the commission could “repurpose and redeploy those dollars.”

Rourke said he had concerns about another amendment introduced in the Senate budget that would give the DHHS commissioner the ability to take money out of the Alcohol Fund itself and not from the potential surplus.

“The [governor’s] commission has a statutory authority over the fund and DHHS administers it, based on priorities set by the Commission” he told NH Journal. “The main concern is the precedent it would give for a commissioner to take money from the Alcohol Fund, without approval of the spending plan by the Commission.”

He said the 3.4 percent funding for the next biennium is mostly going to be used to sustain ongoing investments and state contracts to combat the opioid crisis. If the commissioner can take funds at anytime, Rourke is concerned that they would have to cancel contracts and put funding for other programs at risk.

So why is there a surplus in the first place? Rourke attributes it to two factors: Medicaid and workforce issues.

When the Legislature voted to renew Medicaid expansion in 2016, treatment and recovery centers were not clear if people who showed up would be covered by private or public insurance. The commission wanted to keep the funds available to those centers in case they needed to cover their insurance costs. Rourke said contractors ultimately didn’t need to draw on those funds.

He also said the workforce crisis in the mental health system resulted in funds not being used by contractors.

“We have treatment contractors who may have been given funding and have had a difficult time hiring appropriate staff,” he said. “Obviously, you’re not drawing on that salary while you’re waiting for that hire. If you talk to providers, there is that pressure on them on hiring and maintaining staff.”

The Senate budget is likely to go to a conference committee with the House, where lawmakers from both chambers will go over the details before voting on the final spending plan. The House previously stripped money for the Alcohol Fund in its version of the budget, so Rourke said he will continue to work with lawmakers on ensuring the funds are kept in place.

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What’s Funded in the Senate Finance Committee’s Budget?

The Senate Finance Committee finished crafting its version of the state budget on Wednesday. It largely resembles what Gov. Chris Sununu proposed in February, except for new business tax cuts and a multimillion dollar investment in mental health services.

The committee voted 4-2 along party lines to approve a two-year, $11.8 billion state budget. Republicans believe the spending is conservative enough and tackles important issues facing the state, such as the mental health crisis. Democrats argue the budget doesn’t focus enough on higher education, public health, and workforce training initiatives.

“It’s a solid budget that provides what New Hampshire needs,” said Senate President Chuck Morse. “We certainly have had lists of things that we couldn’t fund, like increased funding for the university system, that we just can’t get to in this budget if we’re going to live within our means.”

One of the biggest differences between Sununu’s proposal and the Senate Finance Committee’s spending plan is the cut in the state’s business profits tax (BPT) and business enterprise tax (BET). Sununu’s budget didn’t include them.

Under the measure, the BPT would drop to 7.7 percent in 2019 and 7.5 in 2021. Meanwhile, the state’s BET would fall to 0.6 percent in 2019 and 0.5 percent in 2021.

“The budget passed by the Senate Finance Committee does not increase or create any new taxes or fees and relies on realistic revenue projections,” said Senate Finance Chair Gary Daniels. “The budget also addresses our state’s top priorities including providing resources for those most in need. This budget also includes additional business tax cuts and increases small businesses’ ability to make capital investments. This allows businesses in New Hampshire to create good paying jobs and grow their business, keeping our state competitive with other states in New England and nationally.”

The two Democrats on the committee, Dan Feltes of Concord and Lou D’Allesandro of Manchester, voted against the budget, saying several necessary programs are underfunded.

“This budget fails to fully fund full-day kindergarten, fails to fully fund our efforts to combat the opioid epidemic, and fails to adequately meet the needs of those suffering from mental illness,” D’Allesandro said. “Make no mistake, this is not the budget I wanted and I will continue to work to ensure that the critical needs of the people of New Hampshire are met.”

The Senate Finance Committee’s budget leaves out money for full-day kindergarten, which Sununu included in his proposal. Those funds, though, are part of a separate bill making its way through the Legislature.

The budget also calls for more than $17 million in spending to increase the number of mental health beds and expand mental health services. That measure was not in Sununu’s budget, but he supports it. It also increases funding for additional social workers and supervisors in the Division for Children, Youth and Families (DCYF). The Alcohol Fund is seeing an allocation of 3.4 percent of revenues, which is up from 1.7 percent in the current budget.

“We addressed our state’s most critical needs, including programs to benefit families with a disabled child and adding 60 new beds and community treatment options to relieve the growing mental health problem,” Daniels said. “We also doubled the Governor’s Commission on Alcohol and Substance Abuse Prevention, Treatment and Recovery to bring new resources into our communities combating the heroin crisis. We also made sweeping changes to the leadership at the Division of Children, Youth and Families and added more caseworkers to ensure our kids’ best interests are being taken care of and they are protected abuse and neglect harm.”

The Senate Finance Committee budget also approves the use of $2 million in unspent money from the 2017 Alcohol Fund for renovations and construction of a youth substance abuse treatment wing at the Sununu Youth Services Center in Manchester. An allocation of $250,000 per year for sexual and domestic violence prevention programs was also approved, along with $1 million in funding for 13 rape and domestic violence crisis centers operated by the N.H. Coalition Against Domestic and Sexual Violence.

Despite these additions, Feltes said the Senate GOP budget doesn’t reflect the needs of Granite Staters.

“This budget fails to include job training programs that would boost our workforce and close our skills gap, breaks promises made to our retirees and increases health care costs for our seniors,” he said. “It fails to live up to our obligations to Granite Staters living with disabilities by failing to fund our developmental disability waitlist and does not adequately deal with childhood mental health. And it fails to provide resources to reform DCYF and protect our most vulnerable children. Quite simply, this budget fails to adequately address the critical and time-sensitive challenges facing our state.”

The budget go the Senate floor for a vote. Usually, after the full Senate approves of its budget, the Senate and House confer to iron out differences between the two budgets. However, the House was unable to pass a budget this year. After the Senate approves of the budget, it will ultimately need to be approved by the full House.

The real test of the budget will be in the lower chamber, after conservative members sided with Democrats to sink the House GOP leadership’s plan last month. They cited an increase in spending and lack of tax cuts as reasons for opposing the budget. With BPT and BET tax cuts, it’s possible they might support the Senate’s plan, which included several provisions from the House budget.

If the state budget makes it through the House, it will head to the governor’s desk for his signature. The whole process needs to be done by the end of the fiscal year on June 30.

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Chaos in the NH House: What Happened to the GOP State Budget?

For the first time since at least 1969, the New Hampshire House did not pass its version of a state budget. The budget is the second major issue that House Republicans had split factions on, highlighting deep and unhealed wounds within the Republican Party. While many people are putting the blame on Gov. Chris Sununu for not leading the party, he stands to gain the most from it.

House Speaker Shawn Jasper, R-Hudson, did not mince words after the House voted to adjourn and recess before a budget could be passed by the Thursday deadline. He blasted those who opposed the budget.

“They were bankrupt in terms of ideas,” said Jasper. “There were really no ideas that they had other than to say ‘somebody else needs to figure this out.’”

Thirty-two Republicans did not support Republican’s leadership trailer bill, which failed by a 177-169 vote. That came the same day that 66 Republicans rejected the leadership’s $11.9 billion budget bill, which failed by a 220-134 vote. One of the key components of the leadership budget was $50 million in property tax relief for cities and towns.

Yet, for keen political observers the ultimate failure of the state budget was predicated weeks ago, as conservative House members did not like that spending increased over former Democratic Gov. Maggie Hassan’s budget and that the budget created by the House Finance Committee lacked tax cuts.

Rep. J.R. Hoell, R-Dunbarton, is the leader of the House Freedom Caucus. He led the charge against the House Republican’s leadership budget. He tweeted about how he could “see trouble” getting the budget passed two weeks before the vote.

“The Speaker pulled me out of the budget hearing,” Hoell told New Hampshire Public Radio before the vote. “We sat in the back of the room and talked and I explained that some of us wanted to see tax cuts. There are no tax cuts in this budget. I’ve left it up to the Speaker whether he wants to play ball and make these changes or not. That’s entirely up to him.”

The comparisons between the conservatives in the New Hampshire House derailing the budget and conservatives in the U.S. House of Representatives blocking the Obamacare repeal because it didn’t go far enough are justified.

On Wednesday, the House failed to pass HB1 and HB2, which were created by the House Finance Committee and approved by the Republican leadership, by a 220-134 vote. After that budget was voted down, conservatives attempted to cobble together in an amendment their version of a budget, but that also failed on a 282-76 vote. House Democrats offered their own plan, but it lost by 34 votes, the closest any budget came to passing that day. The final vote was 196-162. The House then tabled the budget bill and recessed until Thursday morning.

A Wednesday deadline for new amendments to be brought forward to the state budget debate saw six amendments filed, yet none from House Republican leadership. They said it would be “disrespectful” to change the hard work and time the Finance Committee put in to create the budget.

When the House reconvened on Thursday, a trailer bill that accompanied the budget proposed by the finance committee failed, and the leadership saw no possible way they could get a budget passed, so they voted to recess, essentially not giving a budget to the Senate to work on.

Jasper condemned the 32-member conservative caucus who voted against the budget.

“This is just a movement of people who, I think, are totally disconnected from their constituents and totally disconnected from the facts,” he told reporters after the vote.

Yet, Jasper wanted to quell fears about the implication of the House not passing a budget.

“Don’t worry,” he said. “This is a step in the process, and while it is unusual, it really doesn’t affect anybody in the state because the Senate is going to move forward with their proposal.”

The Senate Finance Committee will begin drafting its version of a state budget on Monday, launching a weeks-long process of hearings and meetings before they present it to the full Senate for a vote. Senate GOP leaders said they will use Sununu’s budget proposal as a base and have also invited House Finance Committee members to present their plan, so they aren’t completely shut out of the process.

 

THE O’BRIEN FACTOR

There were outside groups influencing representatives before the state budget vote this week. It wasn’t the usual dark money organizations that try to sway elections. It was former House Speaker William O’Brien. Jasper defeated him in the 2014 speaker race with the help of the entire Democratic caucus. O’Brien was in contact with several conservative members ahead of the budget vote, encouraging them to vote their conscience.

“You have the critical mass to require a budget that fulfills the commitment that the NH Republican Party has made in its platform to: ‘[l]imit the growth of state spending to not more than the rate of inflation plus population growth.'” He wrote in an email to representatives. “If you ignore the threats, warnings, and ultimatums, and if you stand together and tough, you will prevail.”

After the budget failed, O’Brien sent a congratulatory email to members who voted against the budget and trailer bill.

“I don’t want to talk about individuals,” Jasper said when asked about whether O’Brien influenced the state budget vote. “But there were clearly outside influences who were ginning up members to vote no. There’s no question about that, and that’s unfortunate.”

 

JASPER SPEAKERSHIP IN JEOPARDY

With the recent budget failure, this marks the second important issue Jasper failed to get through the House. Right-to-work legislation, which Sununu called a top priority for the state, failed earlier this year in the House after moderate Republicans sided with Democrats to kill the bill.

With a 53-member majority, Jasper shouldn’t have that much of an issue getting bills passed, and if he can’t keep his party unified, there could be calls for him to resign as speaker in favor of someone else.

Rep. Laurie Sanborn, R-Bedford, challenged Jasper for the speakership in November, but lost. She’s a member of the conservative House Republican Alliance who voted against the leadership budget on Wednesday, but voted in favor of the trailer bill on Thursday.

“Unfortunately, we were shut down in many steps in the process,” she told WMUR. “I think we could have come up with a way to pass a Republican budget, and, unfortunately, that debate was shut down.”

She has no intention of challenging Jasper, but said she has heard from people who are not too happy with how Jasper is doing as speaker.

“Many folks are concerned about the leadership’s style because there’s a feeling that there hasn’t been a lot of give and take and listening, and they’d like to see more of that,” she said. “I’m hoping the speaker listens and learns from this experience so we can get together to get one Republican budget accomplished this year.”

 

DEMOCRATS BLAME SUNUNU

While fingers were pointed at Jasper for the budget failure, Democrats were quick to cast blame on Sununu for not effectively leading his party and getting a budget passed.

“[Sununu] has chosen to threaten rather than build coalitions, stay silent rather than making his opinions known, and stay distant rather making his presence felt,” said New Hampshire Democratic Party Chairman Ray Buckley in a statement. “His sense of entitlement has led him to expect support rather than work for it. Sununu was supposed to be the leader of the party; instead, the tail is wagging the dog.”

Even Jasper said he didn’t want to comment on Sununu’s involvement in getting the budget passed.

“With all due respect I’m just going to keep my thoughts on that to myself,” he said. “I have enjoyed my working relationship with the governor. He did come into our caucus twice and I’m going to leave it with that.”

Yet, in a statement from the governor’s office, it appears Sununu is putting the budget failure in the hands of House leadership.

“While I’m disappointed that House leadership couldn’t get a budget passed today, I am encouraged that the Senate has moved swiftly to take up my budget as a starting point for their deliberations,” he said.

Although Sununu is essentially the face and leader of the Republican Party, he might actually end up getting what he originally wanted.

The House version of the state budget cut his full-day kindergarten proposal, scholarship fund, and funding for the Alcohol Fund. Those were key priorities he made during his budget speech in February.

Now, the Senate said they will use his budget proposal as a starting point and they’ve already passed a number of bills on issues related to Sununu’s budget priorities, which indicates they’re more likely to include several of the governor’s wish list items.

While Democrats are trying to paint Sununu as the loser of this budget battle, he actually poises as a potential winner for not having his budget slashed…yet.

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