CONCORD, N.H. (AP) - Senate leaders in New Hampshire expressed confidence Thursday that their budget would pass but it remains unclear how it will be received in the House, which failed to pass its own spending plan last month.
The Senate Finance Committee approved the two-year, $11.8 billion proposal 4-2 on Wednesday, with Democrats opposed. Among the highlights, Republican Sen. Jeb Bradley said, was that spending increases were below 1.5 percent - 1.4 percent in the first year and 1.1 percent in the second year. The plan includes no new taxes and significantly increases funding to fight the opioid crisis as well for as mental health services.
“What we have with the Senate Finance version of the budget is a very responsible budget that meets the needs of everybody in New Hampshire,” Bradley told reporters Thursday.
It also includes a reduction in several business taxes as part of an effort to promote job growth and puts $100 million in the rainy day fund. Under this budget, the state’s business profits tax would drop to 7.7 percent in 2019 and 7.5 percent in 2021. The state’s business enterprise tax would fall to .60 in 2019 and .50 in 2021.
“The Fiscal Year 2018-19 budget lives within our means while providing funding for the needs in our communities, including mental health, substance abuse, families with a disabled child, and abused and neglected children,” Bradley said in a statement. “It also serves to grow jobs and drive our state’s economy through tax relief for small businesses, ensuring that New Hampshire is a competitive state to grow and expand business.”
Senate Democrats have said the budget increases don’t go far enough.
The full state Senate is scheduled to vote on the plan as early as Wednesday. Should it be voted through the Senate as expected, the budget would go to the House for a vote.
The House can concur and the budget would move to New Hampshire Gov. Chris Sununu’s desk, or vote it down. That would kill the plan and force the state to revert to the current, $11.35 billion spending plan. The third option is to reject the document, but agree to set up a committee of conference where both chambers would meet to hash out their differences.
Senate leaders said they were optimistic it would be received well in the House, since they attempted to address the concerns of the more conservative members known as the House Freedom Caucus who were blamed for killing the House bill.
They noted the Senate budget was about $19 million less than what the governor had proposed and included a reduction in the business taxes which are popular with conservatives.
“I’m not sure where they are on positions,” Republican Sen. Gary Daniels, the chairman of the Senate Finance Committee, said.
“Obviously, we hope they will concur. It would make the process easier,” he said. “That is one of the reasons I went to both chambers, both parties, because I was trying to formulate something that everyone could agree upon.”
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This story has been corrected to say that Chris Sununu (soo-NOO’-noo) is the Governor of New Hampshire.
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