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Disbarred Dem Lawyer Arrested on Fraud Charges

A Democratic lawyer who once had dreams of elected office is facing prison time for allegedly stealing money from a disabled client and then doctoring evidence.

He’s the second New Hampshire Democrat to be hit with news of potential jail time in the past 24 hours.

Police arrested Justin P. Nadeau Wednesday on charges of theft by deception, forgery, multiple counts of falsifying physical evidence, and financial exploitation of an elderly, disabled, or impaired adult.

The charges stem from information that came out during Nadeau’s ethics case before the state Professional Conduct Committee. Nadeau was ultimately disbarred after he was allegedly caught falsifying evidence during the PCC investigation.

“It’s difficult for me to imagine something worse for a lawyer to do,” one PCC member said, according to the court records.

Nadeau went before the PCC after he allegedly got a client who was impaired by a traumatic brain injury, Exeter woman Shawn Fahey, to give him close to $300,000 in loans in 2018. Nadeau allegedly secured the loans with a condo he did not own, and the anticipated proceeds from a pending defamation lawsuit he had against the Portsmouth Police Department.

Nadeau allegedly told Fahey that until the defamation lawsuit was resolved he was “strapped for cash.”

It was a tough 24 hours for New Hampshire Democrats.

Portsmouth’s Nadeau was the Democratic nominee in New Hampshire’s First Congressional District in 2004, losing to incumbent Republican Jeb Bradley by nearly 30 points. 

Nadeau’s defamation lawsuit against the Portsmouth police arose from an arrest of Portsmouth man Christian Jennings. Jennings was allegedly found with quantities of marijuana, Ecstasy, amphetamines, a loaded gun, and $42,000 in cash. According to police, Nadeau was handling an $85,000 marina investment for Jennings before the arrest, though the marina deal never closed. Nadeau brought the lawsuit when police opened an investigation into whether or not he was laundering drug money. The defamation case was settled in 2019.

Nadeau also allegedly hid the $165,000 he collected after he sent Fahey to a Massachusetts attorney to handle her injury case, according to the PCC investigation. Nadeau reportedly collected referral fees from the Massachusetts attorney as well as other money related to Fahey’s case.

Nadeau slow-walked producing documents related to the case for the PCC. The Democrat even destroyed his computer before the hearing, according to court records. Nadeau claims he made all the appropriate conflict of interest disclosures and eventually produced printed copies of the letter he claimed he sent her.

However, James Berriman, the computer expert hired by the PCC, looked through Nadeau’s office server and found the dates on the documents Nadeau gave to the committee were fake, and the documents were created well after he took the money from Fahey.

“As a member of the PCC observed at oral argument before the PCC, ‘the Berriman Report and the spoliation of evidence, in my mind . . . is one of the most significant violations I have seen in decades of practice before the ADO before joining this committee,’” a New Hampshire Supreme Court ruling states.

Nadeau appealed his disbarment, but the Supreme Court ruled in April that he crossed too many lines to be let back into court, at least not as an attorney.

Nadeau is due in Rockingham County Circuit Court in Portsmouth for an arraignment on Sept. 9.

Portsmouth Lawyer and Former Dem NH-01 Hopeful Disbarred

New Hampshire’s Supreme Court ruled this week that Granite State courts have seen enough of Portsmouth attorney Justin Nadeau, disbarring him after he was caught doctoring evidence in his ethics case before the Professional Conduct Committee.

“It’s difficult for me to imagine something worse for a lawyer to do,” one PCC member said, according to the court records.

Nadeau, once a Democratic candidate in the First Congressional District, was brought before the PCC after he allegedly got a client who was impaired by a traumatic brain injury, Exeter woman Shawn Fahey, to give him $300,000 in loans in 2018. Nadeau allegedly secured the loans with a condo he did not own, tax liens, and the anticipated proceeds from a pending defamation lawsuit he had against the Portsmouth Police Department.

Nadeau allegedly told Fahey until the defamation lawsuit was resolved he was “strapped for cash.”

The lawsuit against Portsmouth’s police stems from an arrest of Portsmouth man Christian Jennings. Jennings was allegedly found with quantities of marijuana, Ecstasy, amphetamines, a loaded gun, and $42,000 in cash. According to police, Nadeau was handling an $85,000 marina investment for Jennings before the arrest, though the marina deal never closed. Nadeau brought the lawsuit when police opened an investigation into whether or not he was laundering drug money. The defamation case was settled in 2019.

Nadeau also allegedly hid the $165,000 he collected after he sent Fahey to a Massachusetts attorney to handle her injury case. Nadeau reportedly collected referral fees from the Massachusetts attorney as well as other money related to Fahey’s case.

According to the Supreme Court’s disbarment order released Tuesday, Nadeau slow-walked producing documents related to the case to the PCC. The Democrat even destroyed his computer before the hearing. Nadeau claims he made all the appropriate conflict of interest disclosures and eventually produced printed copies of the letter he claimed he sent her.

However, James Berriman, the computer expert hired by the PCC, looked through Nadeau’s office server and found the dates on the documents Nadeau gave to the committee were fake, and the documents were created well after he took the money from Fahey.

“As a member of the PCC observed at oral argument before the PCC, ‘the Berriman Report and the spoliation of evidence, in my mind . . . is one of the most significant violations I have seen in decades of practice before the ADO before joining this committee,’” the court ruling states.

Nadeau argued that disbarment is too harsh a penalty, but the Court found that his “deliberate, multi-year effort to deceive the disciplinary authority” and the ethics complaints involved in Fahey’s case make un-lawyering him appropriate.

Nadeau’s father, J.P. Nadeau, agreed to resign from the New Hampshire Bar Association in 2009 after he was investigated for a conflict of interest for representing a construction company involved in a dispute with Justin Nadeau.

Nadeau once had hopes of higher office, running an ultimately unsuccessful campaign against then-Congressman Jeb Bradley (R). Nadeau’s campaign was spearheaded by Steve Marchand, Portsmouth’s former mayor who ,himself went on to unsuccessful runs for higher office. In recent years, Marchand has been warned by the New Hampshire Attorney General’s Office for skirting campaign laws.

AG Hits Marchand With Warning Over Deceptive Election Materials

Call him Steve Two Times.

Steve Marchand, the twice-failed progressive candidate for governor, was issued the second warning of his political career by the New Hampshire Attorney General’s Office, this one for deceptive campaign materials.

Assistant Attorney General Brendan O’Donnell sent Marchand a letter Wednesday stating that he is responsible for double-sided handbills targeting former Portsmouth Mayor Rick Becksted and former City Councilors Paige Trace, Petra Huda, Peter Whelan and Esther Kennedy in the 2021 election. However, that investigation is being closed without further action.

Marchand violated state campaign law with the handbills that he admits he paid for by failing to disclose his name on the materials. But he won’t be charged since he claimed to have acted alone, according to O’Donnell’s letter.

Under the United States Supreme Court ruling in McIntyre v. Ohio, individuals are exempted from disclosure laws as long as they are acting alone and not part of an organized campaign. Marchand earns his living as a political consultant.

Marchand did not respond to a request for comment.

Last year, Assistant Attorney General Myles Matteson concluded Marchand was responsible for the anonymous Preserve-Portsmouth.com and other websites targeting Becksted, Trace, Huda, Whelan, and Kennedy. Again, Marchand was let off with a warning based on the McIntyre ruling.

Marchand targeted the five public officials with anonymous websites, fliers, and robo texts, painting them as too conservative for the city and linking them to former President Donald Trump. According to documents obtained by the Attorney General’s Office, Marchand planned to depress voter turnout among Republicans in order to benefit Democrats on the ballot. 

According to Matteson’s letter, Marchand initially lied to investigator Anna Croteau when she questioned him about his part in the campaign.

“When she first asked about Preserve-Portsmouth.com, you stated that you had heard of the website. You denied you had ever claimed responsibility for the website but noted that other people had been saying you were responsible for it,” Mattson wrote. 

However, Croteau already had screenshots of a text conversation in which Marchand took credit for the content of the websites. 

“To be very clear, I am the one to create the content,” Marchand wrote in the text.

The legal opinion that Marchand acted alone based on his own statements to investigators seems to fly in the face of the evidence of collaboration uncovered in the investigation. 

The Attorney General’s Office has records of Marchand’s communications with at least four other people about the campaign, in which he stated the goal was to create guilt by association aimed at the targeted candidates, linking them to Trump in the mind of Portsmouth voters.

“(i)s really meant to help get Democrats who gave Becksted and others a vote in 2019 to really think about what they were doing in 2021,” Marchand wrote. 

Matteson wrote the purpose of the anonymous campaigns clear from Marchand’s statements to the others involved.

“It is clear from your own correspondence and admissions that your intended purpose of the site was to influence the Portsmouth City Council election,” Matteson wrote.

Marchand’s campaign seemed to work, as none of the candidates targeted by Marchand won their races.

Marchand lost Democratic gubernatorial primaries to Colin Van Ostern in 2016 and Molly Kelley in 2018. In both campaigns,  Marchand painted himself as a progressive champion when he ran, calling for tighter gun control, universal healthcare, and opposition to the Northern Pass electric transmission line project.

Marchand also ran a failed primary campaign from the left against Democratic U.S. Sen. Jeanne Shaheen in 2008. He hasn’t yet declared any plans for a second race for Senate.

Longtime Dem Marchand Busted by AG for Bogus Campaign Website

The New Hampshire Attorney General’s Office said Democrat Steve Marchand lied about his role in a political scheme targeting his opponents in Portsmouth.

Marchand, a progressive Democrat who once served as Portsmouth mayor and sought his party’s nomination for governor, will not face criminal charges, the office said in a letter. Instead, it issued a letter of warning to Marchand for his involvement in Preserve-Portsmouth.com and other websites that targeted sitting city council members in the last municipal election.

“It’s pretty bad,” said Peter Whelan, one of the Portsmouth councilors targeted.

Whelan, Councilors Susan Paige Trace, Ester Kennedy, Greg Mahanna, Petra Huda, and Mayor Rick Becksted were all targeted by anonymous websites, fliers, and robotexts operated by Marchand, according to Myles Matteson with the New Hampshire Attorney General’s Office.

“It was shameful. There were robotexts sent by the thousands,” Whelan said.

Trace said the attorney general’s investigation revealed there was an effort to mislead the voters of Portsmouth.

“It’s about being transparent and behaving in an honorable manner,” Trace said.

All of the candidates targeted by Marchand were defeated. Current Portsmouth Mayor Deaglan McEachern declined to comment, as he had not seen Matteson’s letter.

“I didn’t have any interaction with the (Marchand) in my campaign,” McEachern said. “I have no idea what the former mayor was doing or not doing.”

Marchand did not respond to a request for comment. His attorney, Joseph Foster, is currently out of the country and unable to be reached.

Marchand’s bogus website was built to mirror a legitimate site with a similar name, Preserve Portsmouth, and purported to support the same city council candidates the original site endorsed. But it falsely described them as far-right Trump supporters. According to documents obtained by the Attorney General’s Office, Marchand wanted to depress voter turnout among Republicans in order to benefit Democrats on the ballot.

Marchand initially lied to investigator Anna Croteau when she questioned him about his part in the campaign, according to Mattson’s letter.

“When she first asked about Preserve-Portsmouth.com, you stated that you had heard of the website. You denied you had ever claimed responsibility for the website but noted that other people had been saying you were responsible for it,” Matteson wrote.

However, Croteau already had screenshots of a text conversation in which Marchand took credit for the content of the websites.

“To be very clear, I am the one to create the content,” Marchand wrote.

Matteson’s letter states the Attorney General’s Office has records of Marchand’s communications with at least four other people about the campaign, in which he stated the goal was to create guilt by association aimed at the targeted candidates, linking them to Trump in the mind of Portsmouth voters.

“(i)s really meant to help get Democrats who gave Becksted and others a vote in 2019 to really think about what they are doing in 2021,” Marchand wrote.

Whelan suspects the true purpose of the campaign was to get rid of council members who oppose development in the historic sections of the city. Marchand’s record as mayor includes changing zoning ordinances to make development easier, Whelan said. Whelan wants to know who Marchand was working with and for, and who funded the operation.

“Somebody spent a lot of money to do this,” Whelan said.

The attorney general’s report found that while Marchand would have violated campaign finance law by not disclosing who was behind the websites, fliers, and robotexts if it could be proved that he acted in concert with others. However, Marchand claimed, eventually, that while he acted alone in creating the content he did not set up the websites. Matteson noted the claim he acted alone was the last of many explanations Marchand offered to investigators.

New Hampshire law on campaign finance transparency allows a narrow exemption for individuals engaged in advocacy. Marchand was cautioned, however, that if he continues to engage in similar campaigns he could lose the exemption and face possible prosecution.

Last year, Portsmouth Democrat Committee Chair Shanika Amarakoon and New Hampshire Democratic Party Chair Ray Buckley issued a statement condemning Marchand’s campaign.

“We cannot let our local elections be undermined by national-style political tactics. The city councilors who were attacked, after all, are our neighbors. While we may not agree with all of their decisions, they did not deserve this attack, and we do not stand for it,” Amarakoon and Buckley wrote.

Full-Day Kindergarten Makes It Out of Conference Committee. Drinking Water Bill Dies.

On the last day of conference committee work in the New Hampshire State House, a deal was reached to fund full-day kindergarten, but a bill aimed to improve water quality standards stalled in committee.

A last-minute deal was reached Thursday between GOP members of the House and Senate on using revenue from the lottery game Keno to fund the legislature’s plan for full-day kindergarten, but Democrats no longer support the bill. They say it doesn’t fully fund the program for all cities and towns and local communities are going to be left to pick up the bill. Exactly how much the state would spend per-pupil will depend on how much revenue is raised from taxing Keno.

The amendment presented by Sen. Jeb Bradley, R-Wolfeboro, guarantees school districts that want full-day kindergarten an extra $1,100 per kindergarten pupil. The state currently offers school districts an “adequacy grant” for half-day kindergarten of $1,800 per student, which is half of the $3,600 for students in grades 1-12. About 75 percent of the school districts in the state have already adopted full-day kindergarten using local property taxes to pay for it.

Democrats wanted the second half day of kindergarten to be fully funded at $1,800 per student in exchange for support on legalizing and regulating Keno. However, Republicans were cautious to do that out of concern that Keno would not generate enough revenue to support the full amount.

The amendment guarantees that at least $1,100 will go to funding full-day kindergarten since they are confident enough Keno revenue will be raised to do that. The state will fully fund the program at $1,800 if Keno revenues are enough. If not, the grants will be pro-rated per community at an amount between $1,100 and $1,800 depending on the exact amount that is raised from Keno.

Gov. Chris Sununu has made full-day kindergarten a priority for his first term in the Corner Office. While funding negotiations have constantly changed over the past few months in the State House, he applauded the deal lawmakers made and said it was a “first step” in getting the program fully funded.

“This is not a time for partisan politics, we need to get this done,” he said in a statement. “This is one of the most transformative pieces of legislation, and more progress for kindergarten than this state has ever seen.  As revenues increase, the amount of funding can increase for kids. It is not only a first step, it is a real plan that funds full-day kindergarten across every community in this state.”

But Democrats say this isn’t the deal they agreed on. Senate Democrats called it a “shell game.”

“Senate Democrats have been leading on Kindergarten for years, and we are glad Governor Sununu has at least attempted to follow our example. But, today’s failure to support full-day kindergarten like any other grade while giving even more tax cuts for the wealthy elite is a major disappointment and once again demonstrates Governor Sununu’s failure to lead,” said Senate Minority Leader Jeff Woodburn.

Democratic gubernatorial candidate Steve Marchand called the “kenogarten” policy “disingenuous.”

Former 2016 Democratic gubernatorial nominee Colin Van Ostern was active on Twitter to express his disappointment that the deal reached in the conference committee didn’t guarantee full funding of kindergarten at the $1,800 level.

The full-day kindergarten bill is expected to pass in the House and Senate next week.

A separate bill that would lead to stronger standards for a toxic chemical in more than 200 communities’ drinking water ultimately died in committee.

The bill would have required the Department of Environmental Services to set a standard for a group of chemicals known as perfluorochemicals or PFCs. The state currently uses the federal government recommendation of 70 parts per trillion, but other states have set tougher standards.

The conference committee couldn’t agree on the bill due to concerns that it could require towns to make expensive upgrades to their water systems. The defeat of the bill in the legislative session saw both Republicans and Democrats disappointed that it failed.

“I am very disappointed House Republicans rejected drinking water standards that protect the public health, particularly prenatal and early childhood health,” said Sen. Dan Feltes, D-Concord. “Just like on the budget, Republicans have caved to the know-it-all wealthy elite and big corporations at the expense of everyday Granite Staters – folks who just want clean drinking water for them and their children.”

According to recent research from the Environmental Working Group and Northeastern University, New Hampshire is tied with Alabama as having the second worst PFC contamination of drinking water in the country.

Sen. Dan Innis, R-New Castle — a sponsor of the bill — said it was a “common sense piece of legislation.”

“I am deeply disappointed that the House was unwilling to come to an agreement to better protect the citizens of my district and around the state from the growing concern about the quality of our drinking water,” he said. “This critical legislation will be the first bill that I file in the fall. It is imperative that we quickly come to an agreement to address this pressing issue for the Granite State.”

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Gov. Sununu’s Stance on Paris Climate Deal Draws Ire of Democrats

Republican Gov. Chris Sununu made waves in New Hampshire politics over the weekend as he became the first governor in the New England region to say that he “stands by” President Donald Trump’s decision to withdraw from the Paris Climate Agreement. As expected, Democrats are using his words as political ammo to attack his position on environmental issues, but none more so than a gubernatorial candidate challenging Sununu for the Corner Office in 2018.

“I don’t have a real reaction right now to be honest,” Sununu told New Hampshire Public Radio on Friday. “It’s nothing I’ve really thought about. It’s a federal issue at this point. It’s nothing. I’m focused on the 603 and what we do here.”

He continued to say that withdrawing from the global climate agreement, which involves nearly 200 nations aiming to slow the effects of climate change, could be significant, but he hasn’t spent a lot of time looking at the issue

“You know it’s not my job to go through the whole accord and look at the in-depth impacts across the country, economically,” he said. “The president has done that, his team has done that, and they’ve made the decision they feel is in the best interest of the United States and I stand by that.”

Although some people can interpret that statement as taking a non-position, many supporters and opponents are reading into it that he agrees with Trump’s decision to leave the climate deal.

Republicans took to Twitter to reiterate their support for Sununu and Trump, like Rep. Victoria Sullivan, R-Manchester.

Sununu’s statement is significant because it marks a drastic departure from other states in New England, including his fellow Republican governors.

Four states in the region announced they were joining a bipartisan coalition committed to meeting the goals of the Paris Climate Agreement. The U.S. Climate Alliance was started by the Democratic governors of California, New York, and Washington state.

Massachusetts Republican Gov. Charlie Baker said he decided to join the alliance, along with Vermont Republican Gov. Phil Scott. The Democratic governors of Connecticut and Rhode Island have also joined the coalition.

Maine Republican Gov. Paul LePage has not publicly made a statement about Trump’s decision to pull out of the climate pact, making Sununu the only GOP governor in the area, so far, to “stand by” Trump.

The New Hampshire Republican Party has also applauded Trump’s decision, saying the Paris climate deal did not put U.S. taxpayers first.

State Democrats are using Sununu’s words as political fodder to motivate their base and prepare for Democratic candidates to challenge him next year. As expected, all four Democratic members of New Hampshire’s congressional delegation disagree with Trump’s decision.

The New Hampshire Democratic Party is calling Sununu out for commenting on other federal issues, like the GOP-led repeal of the Affordable Care Act and the president’s travel ban to several Muslim-majority countries. They’re also blasting him for being an environmental engineer who “must not understand, the environment does not recognize borders.”

Steve Marchand, a Democratic candidate who announced that he would run for governor in 2018, has also taken issue with Sununu’s stance on the global climate pact.

In his first official statement since he announced his candidacy in April, Marchand said as governor, he would support the Paris Climate Agreement and advocate for New Hampshire’s involvement in the U.S. Climate Alliance.

“Unlike many of the nation’s governors, Governor Sununu has not pushed back on President Trump’s decision,” he said. “Both President Trump and Governor Sununu are wrong.”

Marchand, who ran for governor in 2016 but lost the Democratic nomination to eventual nominee Colin Van Ostern, is pushing his progressive message by meeting with various Democratic groups around the state. He is a former mayor of Portsmouth and said Portsmouth was the first community in New Hampshire to sign onto the Cities for Climate Protection Campaign and the U.S. Conference of Mayors Climate Protection Agreement.

“I’ve been a passionate progressive on environmental protection and energy policy throughout my public life, as a mayor, and as a candidate for statewide office,” said Marchand. “I strongly believe we can lower energy costs for consumers, reduce demand for energy, create New Energy jobs, and protect our natural beauty if we are willing to lead on energy and the environment. I’ve got a specific plan for New Hampshire that will do this, and being a part of the U.S. Climate Alliance would improve our ability to do the right thing — both economically and morally. President Trump will not lead, and neither will Governor Sununu. I have, and as Governor, I will.”

Over the entire weekend, Marchand and the NHDP have taken to Twitter to criticize Sununu for not being a supporter of the climate deal. It can be expected for the Democrats to raise this as a campaign issue in the 2018 governor’s race.

In several other states, various cities have said they would still adhere to the Paris Climate Agreement’s terms and reduce their carbon footprint. The only town in New Hampshire to take a similar environmental stance is Hanover, which voted in May to establish a goal of transitioning to 100 percent clean and renewable energy by 2050.

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Q&A with Democratic Gubernatorial Candidate Steve Marchand

Earlier this month, Democrat Steve Marchand announced he would run for governor in 2018. It’s only three months into Republican Gov. Chris Sununu’s term, which is why Marchand’s announcement was surprising.

Marchand is a Manchester-native and is a first generation Granite Stater. His parents immigrated from Quebec. He was a small business owner, the former mayor of Portsmouth, and director of corporate relations for the University of New Hampshire. He came in second in the Democratic gubernatorial primary in September 2016.

Marchand has been laying the ground work for his gubernatorial campaign for the past few months, meeting with various Democratic groups and committees. He’s already being attacked by the Republican Governors Association for his position on taxes and single-payer healthcare.

NH Journal spoke with Marchand shortly after his announcement to discuss his campaign, what he learned from his previous run, and what voters can expect to see in the coming months. Some responses were lightly edited for length.

 

NH Journal: Tell me again why you decided to run, and why did you announce so early?

Steve Marchand: The reason I’m running really stems off of my experience last year. We live in a very challenging time in New Hampshire. I believe we need a mission statement that drives…our efforts and resources towards achieving a specific mission and that mission is to be the best state in America to start a family and to start a business. The reason I say that is because I think our two biggest challenges at stake if we are to thrive in the next [few] years is we need to get younger and we need to get more entrepreneurial and nimble as an economy. I don’t believe, with all due respect to our current governor, that there is a specific mission to what he’s trying to achieve, and I don’t believe the policies that he pursued up to this point would move us toward a more younger and entrepreneurial economy. I want to get us in the right direction. If you look at the lack of organization, the lack of focus, and the lack of success early on in 2017, it is a direct reflection of a lack of specific vision, purpose, and mission in Gov. Sununu.

 

NH Journal: But why did you announce so early? It’s only been three months into Gov. Sununu’s term.

Marchand: It is a little bit earlier than usual, but these are unusual times. A lot of that is driven at the national level with President [Donald] Trump who is already doing rallies for 2020. Gov. Sununu was doing fundraising in Washington for his 2018 campaign. Because we live in these unusual times…it means that if you want to move in the right direction, you don’t have the luxury of waiting while others move forward, no matter how early on the calendar it happens.

 

NH Journal: You came in second in the Democratic primary after jumping into the race late in the game. Besides announcing early, what is going to be different about this campaign?

Marchand: I got in awfully late last year. It was not a strategy. It was just the way life foregoes. A number of people approached me in March of last year suggesting I would make a very good candidate because they know my background. I had very little money, very little time. I spent about $100,000 total. I got outspent 18 to 1 by the person who beat me [former Democratic gubernatorial nominee Colin Van Ostern]. With very little time and no TV ads or direct mail, it really was the definition of a grassroots effort. So I believe that the message, which is a data-driven message, focused on the mission as I mentioned earlier, resonates not just with Democrats, but across the political spectrum. So starting early allows to me invest more time on the ground. It will make me a better governor. I will continue to learn from people as I campaign. It also means I start with a base of significant support and name identification that simply was not there a year ago when I started.

2018, Steve Marchand

Photo Credit: Steve Marchand for New Hampshire Facebook page

NH Journal: You ran as a progressive, but fiscally responsible candidate last time. Is that still you? Are there any changes in your platform from before?

Marchand: My value set and my view of the priorities will look very familiar to people who followed my candidacy in 2016. There are some places where there has been a refinement or continued development of knowledge. I am a proud progressive and I’ve got a proud record of fiscal responsibility, and I’m always looking for ways to move ideas and turn them into law.

 

NH Journal: Gov. Sununu has made encouraging new businesses to come and stay in the state a priority. How would you plan on doing that?

Marchand: I’ve known Gov. Sununu for a long time and he’s a good guy, so it’s obviously nothing personal. However,…the policies he has pursued to grow the economy, largely run 180 degrees from what the data tell us we should be doing if we actually want to create jobs and see economic growth. For example, Chris and the Republican legislature want to cut the Business Profits Tax. Anybody who has spent anytime with entrepreneurs or being an entrepreneur will tell you that most new businesses don’t make a profit in the first five years. They lose money at the beginning. It’s really hard to start a business and see it to the point where it becomes a profitable entity. When we cut the Business Profits Tax, we accelerate what has been going on in the state for 50 years under both Democratic and Republican administrations and that is the downshifting of responsibilities and cost from the state level to the town and local level. If you focus on local property taxes and cutting the Business Enterprise Tax, you will be directly and positively impacting the segment of economy where 80 percent of net new job growth comes to fruition. I think that Chris is focused on talking points when he focuses on the Business Profits Tax, but we need to focus on the data. And the data tells me that focusing on the Business Enterprise Tax and on reducing local property taxes is the winning formula for tax reform that will lead to job creation and economic growth.

 

NH Journal: You say that it’s crucial to have young people in New Hampshire to become the best state in America. How do you plan to encourage them to stay in the state?

Marchand: I think of dealing with the younger population as a two-part challenge. I don’t think the current governor thinks of it this way. I don’t think our legislature thinks of it this way. I call them [young people] the numerator and denominator problem. The denominator problem is how can we attract young people to come work and live in the state. The problem with that is when you have an ever shrinking number of young kids in the state, you can’t keep 100 percent of them, even if you made college free for everyone. We have to be the most inclusive state that we can be as it relates to immigration. The states that are getting the youngest are seeing the largest influx of immigrants. Some of the rhetoric that has come from President Trump, Gov. Sununu, and members from the Republican legislature make it more difficult for immigrants to see New Hampshire as a great place to come. That’s a shame. If we’re going to get younger and more entrepreneurial, aggressively pursuing pro-immigration policies is going to be an important part of solving our denominator problem because the numerator problem is how can we keep more kids that are already here in the state. The pilot program between higher education and New Hampshire businesses I would pursue that would cost approximately $5 million a year in three programs: computer science, nursing, and education because those are three places where we don’t have enough talent to match the demands. It would create a debt-free college experience for students that enter the program…to work with New Hampshire-based companies or entities. And if they did that, kept their nose clean, kept their grades up, and then worked for one of those New Hampshire-based employers for a period of years after graduation, they would have no debt. It would be half-paid by the private sector participants and half-paid by the targeted state grant for these programs.

 

NH Journal: You have previously discussed legalizing and taxing marijuana, and increasing the gas tax as ways to increase revenue for the state. Are those positions you still support?

Marchand: Those are areas I continue to discuss. I do favor the legalization, regulation, and taxation of marijuana. I do feel it would have a net positive impact in terms of lowering costs for law enforcement and judicial [entities]. I also think that it will improve health outcomes and reduce addiction rates, and it will generate revenue. The gas tax is…not desirable. That’s definitely a flaw, but I believe when you can attach the revenue stream to the use of the revenue stream, that’s a more transparent system and because infrastructure is a priority. The business leaders I’ve talked to over the years also identified it as a priority. For now, the gas tax is one of the most direct tools in the toolbox. It is something I still have on the table because I think [infrastructure] is one of the biggest barriers we face to economic growth if we do not address and updated electric grid, ensured drinking water, improved Internet access particularly in rural areas, and improving our roads and bridges. Conservative business people tell me ‘why would I invest in New Hampshire, if New Hampshire doesn’t invest in New Hampshire,’ and they meant these infrastructure issues.

 

NH Journal: What about sales tax and income tax? You were against those previously. Are you still against them?

Marchand: That is correct.

Steve Marchand

Photo Credit: Steve Marchand For New Hampshire Facebook page

NH Journal: One of the most important issues still facing the state today is the opioid crisis. What do you think still needs to be done to tackle this problem?

Marchand: This is one area in New Hampshire where we have seen bipartisan efforts. I applaud people on both sides of the aisle. Over the last few years, I think they have taken this issue with the level of gravity that is required and I believe there are many more opportunities in the next several years to continue that bipartisan spirit. It doesn’t mean we’re anywhere near where we need to end up, but we have everyone rowing in the same direction about the situation. We need to continue to provide the resources that continue to give a suite of services to those in the midst of recovery, beyond simply detoxification of the addictive substance. Until recently, I think a lot of people in the world of politics saw recovery as largely detoxification. The reality is that if we simply just detoxify people and then we put folks back in a situation where addiction became the norm, the likelihood of relapsing is really high. We need to work together and it requires a level of collaboration that is not inexpensive. But it’s a hell of a lot less expensive than not doing it. That needs to be our attitude. I priced it out last year in that it would be an additional $8 to 10 million a year of resources that would provide a level of stability for local and regional recovery centers to focus less on having to worry about where the next grant will come from in order to stay open. It would allow these people who are doing amazing work in the field of recovery to be able to focus on their gifts and skills to help people. I think it’s a relatively low amount of money…that would improve lives, reduce costs, and directly address what New Hampshireites say is the most important issue facing us.

 

NH Journal: What do you think needs to happen next year in order for the Democratic Party to gain seats back in the Legislature?

Marchand: Once every four years, the country reorganizes what it means to be a Republican and Democrat. We are in the midst of the next resorting of how people look at what it means to be a Democrat and a Republican. We are not close to the end of that process. We are right in the middle of it. Donald Trump and Bernie Sanders understood better than most the level of economic anxiety that millions of Americans across party lines are feeling. There are a lot of people who are really angry and I get it. I believe that in 2018 and beyond, and it’s part of why I am passionate about this marathon that I’ve begun as a candidate, is to rebuild the future coalition that I believe can be a Democratic majority is one that is passionate about civil liberties, that is passionate about entrepreneurship as the centerpiece to economic growth, that understands that if you think about the economy right way, you can lower income inequality, which right now is splitting our country up in highly destructive ways. We need people that have spent time professionally, politically, and in their personal lives understanding these aspects of it and are unafraid and confident to use that data, experience, and information to lead that way forward. That’s part of what excites me about this marathon that I’ve begun is I feel I have a good idea about where we need to go as a state and want to help us get there.

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N.H. Gubernatorial Race is Starting to Take Shape…For 2018

Three months into Republican Gov. Chris Sununu’s term it already looks like he’s got a couple challengers in 2018. The first to announce in March was Jilletta Jarvis for the Libertarian ticket. Now, Steve Marchand, former Democratic mayor of Portsmouth is throwing his hat into the ring too.

Do these names sound familiar? Well, they both ran for governor in 2016. Jarvis was an Independent and Marchand came in second in the Democratic gubernatorial primary, finishing behind eventual nominee Colin Van Ostern.

“We can make New Hampshire the best place in America to start and raise a family, and the best place to start and grow a business,” Marchand wrote in a Monday email to supporters. “We will aspire to be the example of what America, at our best, can be. That’s why I’m running for governor.”

Last year, Marchand trailed behind his Democratic challengers in campaign fundraising and the polls, often coming in behind businessman Mark Connolly and Van Ostern, the former executive councilor. However, he managed a surprising second place finish, garnering 25 percent of the vote. Van Ostern received about 52 percent and Connolly took 20 percent.

On a Tuesday press call, Marchand chalked up his difficulty in fundraising to his timing and to entering the race late, but told reporters he enjoyed the experience.

“Keep in mind, last year, I got to second place in our primary despite very little time and consequently very little money,” he said.

Now, he’s not going to make the mistake of entering late again, and while it is definitely early to announce a run for the Corner Office in 2018 (more than a year-and-a-half out), Marchand said he couldn’t sit idly by under the leadership of President Donald Trump and Sununu.

“I realized there was an unprecedented passion unprecedented due to a lot of circumstances at the state and national level,” he said. “These are unusual times.”

Marchand has been quietly campaigning for the past few months, attending various Democratic meetings and doing meet-and-greets with his base. Already, he’s criticizing Trump’s and Sununu’s agendas. He pointed to Sununu’s first bill signing, which repealed required permits for concealed weapons.

“That’s not the direction we need to go in as a state,” he said. He also accused Sunnunu of wanting to weaken unions, suppress voter turnout, and privatize public education.

So what makes this campaign different than his last one?

He’s taking his job of fundraising more seriously, by hiring Nick Daggers of the CFO Consulting Group. Daggers specializes in fundraising for political campaigns.

Marchand only raised about $30,000 during his campaign last year, according to campaign filings with the secretary of state’s office. Van Ostern raised $1.1 million in just the primary election.

Daggers even wrote a blog post on his company’s website discussing the importance of early campaign fundraising.

“An early fundraising start will give the opportunity to build a solid infrastructure, allow the candidate more time to campaign, and most importantly give you the greatest chance at victory,” he wrote in 2013.

If Marchand can drum up a solid war chest before other candidates jump into the race, he could be a serious contender before he actually starts spending any of it.

Don’t expect too many changes in his platform, though. Marchand still supports legalizing and taxing marijuana and increasing the state’s business profits tax, which would supply millions of dollars to support state aid for full-day kindergarten and improve the state’s infrastructure, among other policies.

Yet, his record is already being criticized by the Republican Governors Association.

“From property taxes, to the gas tax, to the business profits tax cut, Marchand has consistently supported increasing the tax burden on New Hampshire families,” the group said in a statement. “While Steve Marchand may claim to be the most fiscally responsible candidate for governor, his campaign won’t be able to rewrite his record of supporting higher taxation on Granite State voters.”

Besides entering the race early, Marchand said he’s more committed to expanding his “knowledge base” and getting out to interact with voters on a grassroots level statewide.

“The more you go out and speak to groups and to people, the more you learn,” he said.

With this early momentum, Marchand also seeks to improve upon some mistakes his Democratic challenger made in the general election.

Van Ostern’s biggest struggle in his race was name recognition. A poll before the election found that only 10 percent of respondents did not recognize Sununu’s name, but about 28 percent never heard of Van Ostern. While Van Ostern benefited from a strong ground game from the New Hampshire Democratic Party and a bigger war chest than Sununu, the voters didn’t turn out for the Democratic nominee like they did at the top of the ticket.

By getting out of the gate early and meeting with voters now, Marchand is increasing his chances that come Election Day next year, the voters will remember who he is.

Yet, Democratic voters might also recognize Connolly’s name on the ballot. The former gubernatorial candidate is also mulling another run. He stirred some intrigue when he had a paid “sponsored post” on Facebook last week.

Connolly said Marchand’s announcement was too soon and that now is the “time to governor” and the “focus should be on the budget.”

“We should be working with our leadership in the Senate and House to get our best possible budget for the state,” he told NH1 News. “After the budget plays out… I’ll consider running again if the ideas I offered in 2016 aren’t being fully addressed. But certainly at this stage you don’t say if you’re in or you’re out.”

Marchand’s focus is on Trump and Sununu. He believes Sununu’s “full-throated” support for Trump during the campaign and still in his term, will ultimately be his downfall.

“It’s never too early to begin what’s going to be a long and difficult process,” he said. “It is difficult to defeat a first-term incumbent governor. I’m under no illusions. I will be a happy warrior. I will not be outworked. I know the magnitude it will take.”

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