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Sponsor's Insight
The Budget
The currently proposed State budget for 2012-2013 is well into the third leg of a four legged journey. It's now the responsibility of our Senate to look at the Governor's budget as amended by the House and to hear from those who are required to comment on the differences in the numbers.
While the Senate is hearing from state agencies regarding the proposed budget numbers, it may be time to reflect on what the long term effects might be to businesses as a results of some of these "budget recommendations".
First of all let me say that I do not envy the choices our legislators have to make. Given the current state of our finances, reduced spending is a must. But that reduced spending has to be coupled with intelligently modifying existing revenue streams by assisting the marketplace in becoming more successful. As an example, that is what was used as an incentive in reducing the current cigarette taxes by .10 a pack: lower taxes are thought to increase sales thereby creating more tax revenues.
Businesses also look at the availability of a well-educated workforce when relocating or expanding their current initiatives. A large part of that well-educated workforce should be home grown and we should make an affordable education available to as many NH students as we can.
One of the ways we can do that is to provide access to scholarships to those who need the help and there are several state programs out there that do just that. Some of the dollars that go to support scholarships are not collected directly from the public. This is the best kind of public support and the political behavior that creates this kind of funding should be encouraged. It must also be said that all programs that are created as a result of dedicated funds should be used for the purpose they were created.
So, be sure to follow this budget process carefully to see what lies just below the surface. What isn't always obvious can often cause the most harm!
Climate Changes?
If the Senate passes HB519 in its current form, it would repeal NH's involvement in the Regional Greenhouse Gas Initiative (RGGI). NH is one of ten northeastern states in the current program which is designed to take proceeds from the sale of carbon credits (sold at auctions) and invest those dollars into a designated fund that would be used exclusively for energy efficiency programs. Those programs are designed to reduce energy consumption and consequently the need for more electricity generation. Utility ratepayers ultimately pay for the dollars used to buy the carbon credits.
Opponents of the program say RGGI has become more about the money than about climate change and this is just a stealth tax. Besides, last year the State raided the "designated fund" for $3.1M to help balance the budget. So much for dedicated funds!
Proponents of RGGI say that the program is working well and a study that will be forthcoming will prove that fact. They do concede that distribution of the auction dollars could be "fine tuned".
Governor Lynch has made it very well know that he opposes NH's withdrawal from the program, but unlike the House, there is not overwhelming support for the repeal of RGGI in the Senate. Consequently Sen. Jeb Bradley has put forth an amendment that would lower the cost of participation in RGGI for NH ratepayers, remove some of the oversight boards and allow NH to automatically withdraw from RGGI if one of the larger participating states withdraws. In the end, our electric bills and possibly our air will show results of being in this program.
Erle Pierce
Sheehan Phinney Capitol Group
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