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Editorial Board

 
Brad Cook
Sheehan Phinney
Bass + Green

Bruce Berke
Sheehan Phinney
Capitol Group   
Valerie Acres
Sheehan Phinney
Capitol Group 
Henry Veilleux
Sheehan Phinney
Capitol Group
Erle Pierce
Sheehan Phinney
Capitol Group
epierce@sheehan.com
 
Michael Skelton
Greater Manchester Chamber of Commerce
michaels@manchester-chamber.org
 
Welcome to Capitol Insight 
 
Sponsor Insight
 
The Senate passed expanded gambling a little over a week ago as its solution to closing a projected $140 million state budget deficit.  A vote in the House will likely occur later this month on April 21.  It appears the question of whether expanded gambling revenues will be the solution to the budget woes needs to be answered first before legislators can move on to further spending cuts/and or other revenue options.  The House tabled a bill last week that would have reduced state spending by $47 million after it appeared that there was not enough support to make these cuts.

Some critics at the hearing this past week said 6 sites is way too many for New Hampshire and urged the House Local & Regulated Committee to reduce the number.  Other critics faulted the bill for hand picking the licensees and for not putting the licenses out to bid.   The question of whether anyone could be licensed in time for the state to see any revenue before this budget closes in June of 2011 was also raised.  Proponents claim the bill could bring $150 million quickly in license fees and $200 million annually in gambling revenues for the state.
 
If the House kills the bill on April 21, it could still resurface again before the Session ends.  The Senate could place it on a House-passed bill and try to force a committee-of conference with the House.  If the House does not kill SB 489, chances are that it could pass the bill in a much different form than the Senate version.  This would force a House/Senate committee of conference to iron out the differences.  Meanwhile, Governor Lynch has said he opposes SB 489.

The House vote on April 21 will be the first time in a long time that the full House actually votes on a proposal backed by the Rockingham Racetrack and Hudson developers.  Over the past few years, the House has handily defeated a number of bills to allow video slots and casinos, but the racetrack or Hudson folks backed none of them.  The full House never voted on a racetrack-backed bill last year because it was removed from the budget bill in committee of conference.  While insiders predict that the House will reject gambling, it has not been tested like this in a long time.  Proponents and opponents will deluge rank and file members over the next three weeks.  It will be the issue that's talked about the most in the hallways and in the cafeteria.  Until the House votes on gambling, don't expect any action on further budget cuts or revenue proposals.

Henry Veilleux
Sheehan Phinney Capitol Group
 
Chamber Insight 
 
Governor & Mayor trade remarks (and jokes) at GMCC State of the State/City Event
 
Governor John Lynch and Manchester Mayor Ted Gatsas each delivered prepared remarks this week on the future of Manchester and the state at the Chamber's annual State of the State/City Forum.  The Governor and Mayor's friendship was on display as each ribbed each other multiple times on how to balance the state budget or who visits Manchester's famous "Cremeland Drive In" more often.
 
The Governor preached caution on efforts underway in the legislature to rapidly expand gambling (SB 489). Specifically the Governor stated that he believes there is no such thing as a gambling "pilot project," meaning once gambling is passed, its here to stay and can spread across the state.
 
Mayor Ted Gatsas touted the new City budget which relied on a more open and collobartive process with the Aldermen. He also took the opportunity to promote SB 334 (Manchester solar array project supported by the Chamber) and urged audience members to call the Governor and ask for his support. Finally, the Mayor also touched on gambling, noting that while he was in the Senate he proposed a state controlled gaming operation that would have generated more revenue for the state.
  
Net Operating Loss Reform
 
The GMCC testified in support of SB 383 this week. The bill increases the net operating loss (NOL) carry forward cap from $1 million to $10 million. New Hampshire ranks dead last in NOL caps in the country and is the only state in New England with a cap.
 
The GMCC believes raising the cap to $10 million is a step in the right direction and will allow business owners to reinvest capital in making their business sustainable and creating new jobs.  SB 383 has the support of several other business organizations and is being primarily shepparded through the process by our friends at the Greater Nashua Chamber of Commerce.
 
The bill recieved a less than enthusaistic response from the House Ways and Means committee, which has historically not always embraced past NOL reform efforts. Stay tuned as the Chamber has its work cut out for it on this one. 
  
Michael Skelton
Greater Manchester Chamber of Commerce
michaels@manchester-chamber.org