The New Hampshire House clearly stated yesterday that it doesn't want Democratic Governor Jeanne Shaheen's sales tax or a Republican-backed car sales tax and business tax plan. What's not so clear is: what kind of funding plan will the house accept?
IT WAS A HIGH-PRESSURE DAY OF VOTING AT THE HOUSE. THROUGHOUT THE SESSION LAWMAKERS GATHERED IN KNOTS IN THE HALLWAY, COMPARING, DEBATING, NEGOTIATING. TOWARD THE END OF THE DAY REPUBLICAN ANTHONY DIFRUSCIA STOOD UP ON THE HOUSE FLOOR AND SEEMED TO MAKE A JOKE. DIFRUSCIA HAD VOTED WITH THE MAJORITY TO KILL THE REPUBLICAN SCHOOL FUNDING PLAN. NOW HE SAID HE?D RECONSIDERED.
Members of house I must share with you that having voted on prevailing side I was tortured ?..
(laughter and applause)
BUT IF DIFRUSCIA WAS TRYING TO BREAK THE TENSION AND RALLY HIS COLLEAGUES, IT DIDN?T WORK ANY MORE THAN OTHER REPUBLICAN STRATEGIES HAD. THE PLAN WENT DOWN TO DEFEAT AGAIN, AND PARTY LEADERS BARELY MANAGED TO TABLE ANOTHER BILL SO THEY?D HAVE A SHOT AT PASSING SOMETHING TOMORROW. AT THE END OF A CONFUSING DAY, ONE THING WAS CLEAR: THE HOUSE WASN?T IN THE MOOD TO FOLLOW EITHER ITS REPUBLICAN LEADERS OR ITS DEMOCRATIC GOVERNOR.
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THE HOUSE BEGAN BY HANDING LEADERSHIP A VICTORY. IT ADOPTED A REPUBLICAN BACKED BUDGET, ALTHOUGH IT DID TACK ON 11-POINT-FIVE MILLION DOLLARS TO FUND THE POPULAR ?CHIP? CHILDREN?S HEALTH INSURANCE PROGRAM. THEN CAME THE FIRST EDUCATION FUNDING BILL ? THE GOVERNOR?S EXCEL PLAN. REPUBLICAN PETER LEISHMAN OF MILFORD TOLD THE HOUSE IT WAS A BILL EVERYONE COULD GET BEHIND.
40 52 LEISHMAN this is not entirely the governors bill. You?ll hear from not only myself but Two other republicans will speak in favor of this plan. This bill is a bipartisan effort to address longterm funding needs.
BUT OPPONENTS TORE INTO THE PROPOSED TWO AND A HALF PERCENT SALES TAX. REPUBLICAN MICHAEL WHALLEY OF BOW ARGUED NEW HAMPSHIRE?S RETAIL SALES ARE 25% ABOVE THE NATIONAL AVERAGE. A SALES TAX, HE SAID, WOULD DRIVE PEOPLE AWAY FROM NEW HAMPSHIRE STORES.
The retail sector of our econ will be destroyed and we?ll be just average. // If you wanna destroy the economy, if you wann reduce revenue for the state of nh for now and forever then pass this plan.
HOUSE MEMBERS SEEMED TO AGREE ? THEY DEFEATED THE BILL BY ALMOST NINETY VOTES. NEXT WAS THE REPUBLICAN SCHOOL FUNDING BILL. THAT CALLED FOR A 1 PERCENT TAX ON CAR SALES, A TAX ON THE SEABROOK NUCLEAR PLANT, AND A TAX HIKE FOR THE STATE?S LARGEST BUSINESSES. REPUBLICAN LEADERS SAID IT WAS A SENSIBLE PLAN THAT WOULD RAISE JUST ENOUGH MONEY TO PAY FOR SCHOOLS WITHOUT A NEW BROADBASED TAX. BUT AMHERST REPUBLICAN PAUL SPIESS ATTACKED THE PLAN AS BAD FOR THE CORPORATE COMMUNITY.
I thought our party spoke for business. Yet we?ve singled out biz to carry the whole burden. // here we are again, back, biting the hand that feeds us.
SPIESS AND OTHER MEMBERS OF A SELF-STYLED MODERATE GROUP CALLED MAIN STREET REPUBLICANS HAD VOWED TO KILL THE BILL. THEY DID - BY JUST FIVE VOTES. WITH NO SCHOOL FUNDING CONSENSUS IN SIGHT, THE HOUSE THEN MADE ITS JOB EVEN MORE DIFFICULT BY REPEALING THE HATED INHERITANCE TAX. THAT ADDED 40-MILLION DOLLARS TO THE ROUGHLY 100-MILLION DOLLAR BUDGET DEFICIT. THE HOUSE STILL HAS SOME FUNDING OPTIONS LEFT. ONE IS CONCORD REPUBLICAN LIZ HAGER?S PROPOSAL FOR A 3.3 PERCENT INCOME TAX. HAGER SAYS SHE?S OPTIMISTIC.
The car tax lost as big as I thought it was going to lose, // and the sales tax was a sales tax, theres not much more to say on that. So theres one standing and that?s the income tax, and I think it has a lot of support.
THE HOUSE DID VOTE TO PASS AN INCOME TAX TWO YEARS AGO. BUT IT WILL TAKE A ROCK-SOLID COALITION BETWEEN DEMOCRATS AND MODERATE REPUBLICANS TO DO IT AGAIN. BUT HAGER?S WRONG WHEN SHE SAYS THERE?S ONE PLAN STANDING. PETERBORO REPUBLICAN ANDY PETERSON?S 1-PERCENT GROSS RECEIPTS TAX HAS SHOWN BROAD APPEAL. PETERSON TOO SOUNDS UPBEAT.
I have a lot of support, I?m very pleased with that. It?s a good middle of the road measure that allows diff interests to come together and move forward.
BUT THE NUMBERS IN PETERSON?S PLAN HAVE COME INTO QUESTION, AND THE SOFT-SPOKEN REPUBLICAN ANGERED SOME DEMOCRATS BY VOTING AGAINST THEM ON THE SALES TAX. IT?S POSSIBLE THE HOUSE WILL GET TO THE END OF THE DAY WITHOUT ANY SCHOOL FUNDING PLAN. IN THAT CASE, HOUSE LEADERS SAY THEY?LL KEEP WORKING TO FIND A SOLUTION AS SOON AS POSSIBLE. REPUBLICAN LEADERS COULD ALSO TRY TO TAKE THEIR REMAINING PLAN OFF THE TABLE. ALL OF WHICH MEANS TODAY?S ACTIONS IN THE HOUSE COULD BE AS CLOSELY FOUGHT, UNPREDICTABLE, AND DOWNRIGHT ODD, AS TODAY?S. FOR NHPR NEWS, I?M
