CONCORD, N.H. (AP) – Gov. Maggie Hassan will outline her proposal for spending taxpayer dollars Thursday, using her budget address to set the stage for this session’s battles over state revenues and spending.
The budget address is Hassan’s opportunity to put money behind the proposals she outlined during her January inaugural address. Lawmakers will then modify the budget and a final version must be signed into law by June 30. The current two-year state budget is $10.7 billion. Hassan’s team has kept her budget plans under wraps, but her address will show whether she plans to battle with Republicans or be more cautious and bring forward proposals that are likely to gather bipartisan support.
Hassan will deliver her address at 1 p.m. in Representatives Hall. Here are some key issues to watch:
UNIVERSITY FUNDING
The university system has promised to freeze tuition for another two years if it gets an additional $21 million in state money to bring its state funding to just above 2009 levels. The system’s board of trustees has delayed setting its tuition until the state funding is sorted out, meaning students planning to attend a state university this fall won’t know their tuition until mid-summer.
CASINO GAMBLING
Hassan balanced her 2013 budget proposal by including $80 million in revenue from a non-existent casino that failed to get approval by the House. Many around the Statehouse don’t expect Hassan to include casino revenue again. She could include new revenue from a different gambling source, such as Keno or new lottery games. Neither would bring in the same amount of revenue as a casino.
PASSENGER RAIL
Hassan strongly supports bringing passenger rail from Boston to Nashua and Manchester. Rail would cost the state at least $72 million and Republicans are asking where that money would come from. Given Hassan’s emphasis on the topic during her inaugural address, it would be surprising if it didn’t come up in the budget proposal.
REVENUES
Any significant new spending will require new revenue or cuts elsewhere. Hassan has repeatedly said she believes the state has a revenue, not spending, problem. Changes to the capital gains and interests and dividends taxes, proposed by Democratic lawmakers, are two options for bringing in new revenue. Another Democratic proposal would make it harder for companies to shift profits overseas to avoid taxes here. Getting any tax or fee increase past Republican senators will be tricky.
OTHER INITIATIVES
-Hassan offered support for full-day kindergarten during her inaugural address. A Democratic bill would give schools more money per student for adopting full day kindergarten.
-The Department of Corrections wants $47 million more mostly to pay for personnel costs.
-The Department of Transportation says it needs more money for basic operations.
-The Department of Health and Human Services is facing significant budget problems due to increased Medicaid caseloads, the mental health settlement and implementing the state’s Medicaid expansion program. If the Legislature decides to reauthorize Medicaid expansion beyond 2016, when federal funding begins to drop below 100 percent, state money will be needed to make up the difference.
Copyright 2015 The Associated Press.
