The State Senate has passed a tax plan designed to plug a 230-million dollar budget gap. The plan relies on a statewide property tax and increases in business taxes. It passed on a party line vote with no support from senate democrats. Its future in the house appears uncertain at best.
The final vote occurred at 12:15, after house of debate failed to establish anything resembling middle ground. The plan follows what appears to be state GOP lawmakers current philosophy regarding generating state revenue and filling the budget hole: avoid income or sales taxes by upping the burden on state businesses?..Democrats again and again questioned the wisdom of such a strategy. Senator Mark Fernald tried to shame republicans into abandoning what he believes is a ruinous course..
The leadership in neither house has had the guts to increased the tax that they favor?the property tax?and they?ve made efforts now to increase business taxes instead?and that?s not going to work either?.So it?s time for someone to put on the brakes, because we?re going over the cliff.
But Fernald crash and burn scenario clearly isn?t scaring off republican leaders. Senate President Arthur Klemm says the senate plan meets the needs of the state, and expressed confidence that the differences between what the senate , house and governor would be willing to support will be worked out buy month?s end.
It is my intention as well as I belive the speaker?s intention as well as the governor?s that we want to come to a solution. It?s important that we come to a solution and I believe we?ll get there.
How that will happen, however, is far from clear. The house rejected yesterday?s first senate plan because it doubled the business enterprise tax. And new plan does the same?.while also doubling fees for securities, insurance, and investment brokers. Those provisions won?t likely win much support from the house?s many moderate pro-business republicans, who have shown a session-long willingness to buck the dictates of the more conservative GOP leadership. But House speaker Gene Chandler says he?s not worried about intra-party dissention. Nor is he angered by the seeming inability of the house and senate to see eye to eye.
Zero. I?m not frustrated about anything. It?s no different than any other time. I think we?re doing what?s in the best interests of the state. We?ve got committees of conferenc working on a budget, working on a funding package, and possible revision of the education system?a little bit.
But even of all goes well with the house and senate, and proposal still has to win the approval of Governor Jeanne Shaheen. And though nobody is talking veto, Shaheen counsel Judy Reardon isn?t shy about suggesting that republican lawmakers will need to do better in addressing the concerns of state democrats.
In order to solve a problem like school funding there has to be bipartisan consensus. You cannot do this by one party cranking things out in the middle of the night just to get some thing through without stopping to think for one second whether it has any chance of surviving in the other biody of meeting the governor?s apoproval?
Reardon says the governor will do her part to avoid a shutting down the government if a solution can?t be found before July, but says the governor?s office is looking at plans to guarantee the maintence of essential services should a shutdown be required. House and senate committees of conference will begin taking up the budget questions on Monday.
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