House Committee Cuts and Alters L-CHIP Funding

By David Darman on Wednesday, March 14, 2001.

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A House committee significantly lowers funding for L CHIP, and moves to signifantly alter funding in future years.

In their bill, the House Resources, Recreation and Development Committee designated 4 million dollars for the L-CHIP program this year, well short of the 12 million dollars requested by Governor Jeanne Shaheen. Vice chairman David Lawton of Meredith, a Republican, says the committee has a plan to fully fund L-CHIP in future years, by spending 4 million dollars a year on tourism promotion. Lawton says such spending will have a mulitplier effect on tourist dollars, and excess money generated by the promotion will pay for the program.
the tourism dept people here in the state claim a one to four ratio is going to happen within the first 2 years. So, if that happens, we spend 4 million, we get back 16 million, .. if that happens. And then 4 million goes back to tourism and promotion and l chip is fully funded within two years. 7 121

Critics of this plan take exception to the Resource Committee?s math. Governor Jeanne Shaheen says the House committee?s plan for 4 million dollars this year doesn?t begin to meet the needs of the program, which already has received applications for land acquisition and historic renovations totaling 20 million dollars. Shaheen says rapid development in the state makes it imperative to adequately fund L-CHIP, now.
04 337 I think the recommendation of the commission for the 12 million in funding is a reasonable amount. I think its supportable if we address the other needs that the state has. And the first and foremost of those needs is to come up with a long term solution to fund education. 4 358

Shaheen accuses House Republicans holding L-CHIP funding hostage as part of their refusal to consider a workable education funding plan.
04 250 to put that at risk because ?because the house leadership is unwilling to recognize the responsibility we have to fund education and address that in a way that allows us to address the other needs of the state is just unconscionable. 04 314

Governor Shaheen and others criticize the committee?s plan to remove the real estate transfer tax from its role as a revenue source for L-CHIP. Charlie Niebling of the Society for Protection of New Hampshire Forests says supporters of the program view the real estate tax as the one, steady source of funding.
12 213 ultimately, we think if this program is to be sustained over the long term, it needs a specific, dedicated revenue source that we can count on from one cycle to the next.

Niebling says the real estate tax is a good match for L-CHIP, because its revenue pattern closely parallels periods of strain in land development. But House Resources, Recreation and Development vice chairman David Lawton says the real estate transfer tax is already pegged by the governor and House leaders to help pay for education.
6 244 I don?t believe it would be in the best interest of anybody for us to pull the carpet out from under the finance committee by saying that we?re going to take this amount of money away from the real estate transfer tax. 6 256 and potentially topple the whole education funding situation. 6 301

Despite the committee?s plan to fund L-CHIP with the excess revenue derived from additional tourism promotion, those skeptical of this approach say they will work to put the real estate transfer tax back in the program as a funding source. And they say they will lobby House members to fully fund L-CHIP at 12 million dollars. That lobbying has already started, because the full House is scheduled to take up the matter next week.