Amherst Republican Committee

February 14, 2009

To the editor:

In only a few months our towns and citizens will feel the results of the grossly unrealistic state budget enacted in July 2006. Had the New Hampshire 2-year budget been reasonable, our state would be the hero state in the union, having only a small or no deficit for the budget year ending June 31, 2009. But, no, the legislature passed a bloated budget, a 17.5% increase over the prior budget. So now we must answer to the piper with tax increases, program cuts and increased burden on the citizen. Here are a few cuts and tax increases the governor has proposed to balance the next 2-year budget and how it will affect you.

The Milford District Court will be closed resulting in extra cost to our towns in police wages and transportation costs. Citizens using a distant district court will suffer greater travel time and court delays.

The towns have always been the last resort for citizens in need. The new budget will substantially reduce state welfare funds provided to the towns, thus shifting an additional cost to the towns The burden of helping those in need will be shifted to the churches, civic organizations and individuals.

The safety complex in Milford may be closed, or at least the motor vehicle registration and licensing function eliminated. As a result citizens will need to travel further and be subjected to longer waits.

Increased taxes and fees are proposed. There will be an additional $10.00 charge to register cars. There will be an increase in the rooms and meals tax and the portion of the tax normally given back to the towns will be eliminated. State revenue sharing with the towns will be reduced. Amherst will loose $573,785, Milford $861,908, Mont Vernon $120,288. There will be a cigarette tax increase and an increase in road tolls. And far more increases are proposed as well as using bonding (credit card) to make road and school capital expenditures, and thus shifting the burden to our children.

These are only a few described in the Governors budget proposal. It is not yet law. Call the Governor, your senator, your representatives and register your opinions.

Robert H. Rowe, Representative,
Amherst and Milford

January 22, 2009

To the Editor;

In a recent letter I listed some of the many new and increased taxes and fees bills that are being presented to the NH Legislature. As a result a number of readers have inquired as to the fiscal state of New Hampshire, so I’ll offer this brief summery.

Revenues have fallen substantially in the past 15 months. Had we not increased the budget by 17.5% for the fiscal years 08 and 09 (ending June 30, 2009) we would have experienced a rather slight short-fall, but that is not the case. The deficit for this two year budget is estimated to be $245,000,000. Executive order cuts, increased taxes, bonding building aid, and a reduction bill, to be taken up by the House on January 28, 2009, will bring the deficit down to $65,000,000. This is an optimistic estimate. We have a Rainy Day fund of $89,000,000 that can be utilized; however a reduction in this fund will reduce the state bond rating. This will increase the cost of borrowing for the state, counties, cities and towns. As such it would be prudent to keep this substantial rainy day fund in tact. If so, the Governor and legislature must decide where we obtain an additional $65,000,000 in savings when there are only 5 months remaining in the biannual budget. We have already bonded roads and school construction aid rather than utilize our traditional practice of using general state revenues to pay for these projects. We simply can’t put more on the credit card.

Then there is the next two year budget that will start on July 1, 2009. If we simply repeat the current adjusted budget (July 1, 2008 to June 30, 2009), without considering any increases such as entitlements, and no revenue growth, the projected deficit will be $521,000,000 for the 2010 – 2011 fiscal term. So in order to submit a balanced budget to the NH House as required by law, substantial additional cuts will be needed.

The good news is that our state still ranks high among all other states. We are number one in the categories of a favorable tax climate, healthiest state, and standard of living. We are number two in the categories of lowest crime rate and child and family well-being.

If only we could return to our traditional fiscal prudence.

Robert H. Rowe,
Representative for Milford and Amherst