The NH Legislature Ignores Your Calls for Lower Property Taxes

The lowering of the NH Business Profits and Business Enterprise taxes have had no material effect on NH’s economy. Businesses would prefer investment in education, health care and affordable housing instead.

Greenland, Rye State Representative Dennis Malloy serves on the Ways and Means Committee that crafts NH’s taxes and revenue policies.

New Hampshire has reduced taxes on corporate profits and eliminated the interest and dividends tax. Twice the legislature has shifted the cost of public employee pension obligations from the State to municipalities. The Motor Fuels Tax (MFT) revenue has not kept up with state road maintenance and the tobacco tax is showing signs of eroding.

By lowering some taxes, eliminating others, abandoning support for public employee pensions, and ignoring business friendly infrastructure needs both business and private property owners will be forced to make up for projected revenue losses with increased property taxes.

A recently released report from the non-partisan, non-profit New Hampshire Fiscal Policy Institute (NHFPI) reports that revenue generated from all New Hampshire sources amounts to more than $2.9 billion annually with more detail about NH’s tax revenue and the pressure it puts on our property taxpayers otherwise known as COST SHIFTING.

New Hampshire’s largest source of tax revenue is the property tax, the second largest source is the business profits tax (BPT), at 52 and 17 percent, respectively. Most businesses do not pay a BPT and after a series of reductions, the new 7.5 percent rate matches the corporate taxes levied by other New England states. Some believe that by lowering this rate from 8.5 percent just a few years ago current businesses will expand, and new ones to form in New Hampshire.

However, the Business and Industry Association (BIA) has repeatedly said that a lower corporate profits tax is not their biggest concern. Instead, New Hampshire should prioritize attracting and retaining workers for existing businesses, and invest in public education, health care and affordable housing. Lowering property taxes, improving transportation infrastructure, and expanding broadband access are just as important. New Hampshire’s corporations are asking us to create a friendlier business climate by investing in our people, our roads and our telecommunications resources. Gradually lowering the BPT has had little to no effect in helping business with their more important needs.

In another tax cutting move, the Interest and Dividends (I&D) tax has been eliminated. Gone is $158 million or 8 percent of NH’s General Fund revenue in tax year 2022. The I&D It is levied on individuals with over $2,400 and couples with $4,800 in annual income from savings and investments and disproportionally benefits wealthy households.

Historically, New Hampshire has supported the retirement system for certain public employees by funding over one-third of this obligation. Following the Great Recession of 2007-2009 the contribution was reduced and eliminated entirely in 2012 forcing local governments to pick up the tab since 2013 except for a smaller one-time aid last year. This year we proposed a 7.5 percent contribution, but it failed to be included in the budget. Since 2010 local property taxpayers have been making up for this loss.

Our MFT is flat at 10 percent of our budget and has not kept up with the soaring costs of road maintenance. Monies from the General Fund have been used to supplement the building, repairing and plowing of our state roads during the past four budget cycles. Currently, drivers of electric or hybrid vehicles either pay little or no MFT. The MFT also helps fund block grants to towns and cities for upkeep of the local transportation infrastructure.

The $232 million dollars collected by the state in tobacco tax is teetering due to shifting demographics and increasing health awareness. This is just over 7 percent of NH’s tax revenue.

There are many in New Hampshire who support the tax cuts, leaving the MFT alone, and letting municipalities be the sole source of support for local public employee pensions.

There has not really been a tax reduction, just COST SHIFTING. These moves will eventually show up on our property tax bills and it will be up to personal and business property taxpayers, to cover the costs.

The reliance on property taxes to pay our bills will only grow. Both businesses and our citizens have clearly stated that enough is enough. Investing in our people, resources and infrastructure is the way to grow the economy, retain our most talented citizens and give us some relief on our property taxes.

For a complete report by the NHFPI go to State Business Tax Rate Reductions Led to Between $496 Million and $729 Million Less for Public Services - New Hampshire Fiscal Policy Institute (nhfpi.org)

House Democrats Committed to New Hampshire’s Top Needs

By restoring balance in Concord, House Democrats produced a less partisan budget while passing helpful legislation and killing harmful initiatives.

HELPFUL LEGISLATION SUPPORTED BY DEMOCRATS

● Public Education –$170m funding increase statewide

● Health Care – $134m increase for Medicaid Providers

● Affordable Housing – $30m investment in affordable units

● Child Care – $15m funding for workforce enhancement

● Homelessness Support – $10 million in Funding

● PFAS Response Fund – $2 million in funding

● Public Safety – Provides Public Notice of Immigration Checkpoints

Reproductive Rights: Passed bills to remove criminal and civil penalties from New Hampshire’s abortion ban (HB 224- blocked by GOP Senate) and passed the Access to Abortion-Care Act codifying abortion rights in state law (HB 88- blocked by GOP Senate)

Worker’s Rights: Passed bills requiring employers to honor paid time off (HB 74- blocked by GOP Senate) and gave state employees a 10% raise in fiscal year 2024 (HB 2)

Cannabis: Passed legislation to legalize and regulate adult use recreational cannabis (HB 639-blocked by GOP Senate) and established a commission to study a state-run model (HB 611) (While the House did vote to pass this, I did not)

Anti-Discrimination: Passed bills to ban racial profiling in law enforcement (HB 596 - blocked by the GOP Senate) and use of the ‘gay panic defense’ (HB 315)

HARMFUL LEGISLATION BLOCKED BY DEMOCRATS

LQBTQ+ Discrimination: Blocked attempts to target and discriminate against LGBTQ+ youth in schools (HB 10, HB 104, SB 272)

Voting Restrictions: Blocked legislation that would eliminate voter identification affidavits (HB 460)

School Voucher Expansion: Blocked attempts to expand taxpayer funded school vouchers to millionaires (HB 331)

Abortion Restrictions: Blocked a six-week abortion ban (HB 91) and legislation requiring a 24-hour waiting period & misinformation regarding abortion-care (HB 562)

Anti-Immigration: Blocked an attempt to prohibit local control by restricting municipalities from implementing Sanctuary City policies (SB 132)

2023 Year End for NH House

Above, Greenland & Rye State Representatives Peggi Balboni, Dennis Malloy and Jaci Grote wrapping up the legislative session for 2023

The New Hampshire House voted to establish new districts for Strafford County Commissioners.

“HB 75 is a brazen partisan effort to change the make-up of Strafford County Commissioners outside of the established redistricting process,” according to Representative Laurel Stavis (D-Lebanon), Ranking Democrat on the House Municipal and County Government Committee.

Strafford County has elected its County Commissioners county-wide for decades, and after receiving public input during the established redistricting process last year, its county-wide districts were reaffirmed in legislation passed by the House and Senate and signed by Governor Sununu.

Representative Stavis believes “this bill sets a dangerous precedent of annually reopening the once-a-decade redistricting process and will result in instability and chaos. Rigging districts for partisan gain breeds distrust among voters and is not the New Hampshire way” and strongly encourages Governor Sununu to veto this legislation.

Bill to prohibit ‘Gay Panic Defense’ passes House in final vote.

The New Hampshire House adopted the committee of conference report on HB 315, a bill to prohibit the ‘Gay Panic Defense.’ This is the final vote on the bill which will now head to Governor Sununu’s desk.

The ‘Gay Panic Defense’ is a disturbing legal measure that allows a person to, quite literally, get away with murder by claiming provocation by a person’s sexuality or gender expression according to House Democratic Leader, Rep. Matt Wilhelm (D-Manchester).

At a time in our state and nation when LGBTQ+ people are being targeted with violence and hatred for merely existing, making such a legal measure available to homicide defendants is dangerous and wrong for New Hampshire.

Representative Wilhelm said the House took a strong stand against the ‘Gay Panic Defense’ today and urges the Governor to promptly sign HB 315 into law.

The House passed an energy bill containing many changes to state law including net metering.

“Expanding renewable energy and net metering has long been, and will continue to be, a House Democratic priority,” according to Science, Technology, and Energy Ranking Member, Rep. Kat McGhee (D-Hollis). She added that, “HB 281 allows for solar and net metering projects across municipalities, allowing crucial partnerships to lower energy costs. House Democrats unequivocally support expanding net metering, a commitment consistently reflected in our voting record.”

However, Rep. McGee clearly stated that “HB 281 is a tough pill to swallow because it contains many deregulations that will ultimately increase our energy prices and put our environment at risk if not addressed this term. The bill repeals the integrated least-cost resource planning statute, which ensures projects are cost-effective and in the best long-term interests of ratepayers. It also repeals the Energy Efficiency & Sustainable Energy Board. Although breaking these systems without replacing them puts the cart before the horse, House Democrats have received assurances from Republican leadership that we will work together in a bipartisanship manner to address the shortfalls HB 281 has created.”

Legislation That Tackles Challenges Facing Granite Staters

This budget is one that tackles a broad range of challenges currently facing our state. However, as with any budget compromise, it is not perfect. There are policies within it that Democrats fought strongly against, like the continued downshifting of expenses to property taxpayers through a massive tax cut for the ultra-rich, which they do not need nor did they ask for. Frankly, too, we remain concerned about performance politics on our northern border that will waste $1.4 million dollars. It is also disappointing that retirement benefits for police and firefighters were excluded from the budget, but we won’t stop fighting for our first responders.

Ultimately though, despite hard compromise, this budget does incredible things for Granite Staters during a time of economic uncertainty. Granite Staters looked to their elected officials to come together to pass a budget that will meet their needs, and we did it. This budget is an actionable, multi-faceted plan to address the issues that most directly impact the constituents we serve.

The New Hampshire House Democrats voted to pass a historically bipartisan state budget, securing a deal that addresses Granite Staters’ concerns and helps deliver the resources families need to thrive. This budget reflects many of the urgent needs we hear about time and again from every community across New Hampshire.

Thanks to collaborative work, this budget is truly different from budgets we have crafted in recent years. The magnitude of stakeholders who showed up to lend their voices — legislators, advocates, community leaders, parents, teachers, and others — led to support for dozens of policies that work for all Granite Staters.

If you’ve tried to find housing in New Hampshire, you are acutely aware that the cost of rent is rising nearly 20% year-over-year, which is unsustainable for workers and young families. To alleviate this crisis, Democrats fought to include $25 million for the Affordable Housing Fund, $10 million for InvestNH, and $5.25 million for the newly formed Housing Champions program. Together, these programs implement new incentives for cities and towns to build and maintain affordable housing. The budget also provides $10 million for shelters to support our unhoused neighbors, ensuring that all Granite Staters are able to find a safe and accessible place to live, even in the short-term. We didn’t stop there.

Another key priority for Democrats throughout this process has been securing a significant investment in public education. From the beginning, we’ve been clear: all New Hampshire students are entitled to high quality public schools and an education that does not overburden local property taxpayers. We know schools are not just places where students learn and grow — they are community hubs, upheld and enriched by our public school teachers and by our neighbors. This is why we advocated for a budget that invests $169 million in public education, with specific provisions for the schools and students that need it most. These investments put New Hampshire students first, while providing the necessary funds to protect education access for all.

Expanding health care access, and equally prioritizing mental and physical health, was also at the top of the Democratic priority list. Hundreds of thousands of Granite Staters have relied on expanded Medicaid access for their health care. Together, we were able to reauthorize our Medicaid expansion program for seven years and significantly increase Medicaid provider reimbursement rates.

We know that our health care workforce shortage has affected our residents’ ability to access the health care they need, and with this increase in provider rates, health care facilities will be better positioned to hire and retain staff. A healthy workforce is crucial to the health of our state overall, and this budget takes the necessary steps to ensure that.

We were also able to provide support for our young working families in this budget. To confront New Hampshire’s severe child care crisis, where 16,000 Granite Staters on average cannot work because they are caring for a child, we voted for increased funding for child care and Family Resource Centers. This shortage has a devastating impact on the state’s workforce potential and our entire economy and has for far too long.

Without question, the Democratic initiatives we championed into the budget are exactly what makes this budget work for all Granite Staters. Compromise, commitment, and the advocacy of so many is what made this budget happen. With these investments, we are confident that this budget brings positive change to communities across New Hampshire, ensuring that every citizen reaps the benefits of the Granite Advantage

Sen. Donna Soucy, Rep Matt Wilhelm editorial in the Manchester Union Leader June 2023

Energy Policy Committee in Greenland

If you are interested in lowering your electric rates and relying more on “green energy,” contact Greenland Town Administrator Paul Sanderson for details on how to join a committee that will develop a plan.

Details of the formation of the committee and its charge can be found in NH RSA 53-E:6 Electric Aggregation Plan.

The RSA allows an energy policy committee to develop a plan for providing universal access, reliability, and equitable treatment of all classes of customers subject to any differences arising from varying opportunities, tariffs, and arrangements between different electric distribution utilities in their respective franchise territories, and shall meet, at a minimum, the basic environmental and service standards established by the commission and other applicable agencies and laws concerning aggregated service.

There are several for-profit and non-profit companies that will help guide a community through the process and Greenland is now hearing from these companies.

Piscataqua Region Estuaries Partnership Report

State Rep. Dennis Malloy, State Senator Deb Altschiller, State Rep. Allison Knab and State Rep. Chris Munns at the Piscatagua Region Estuaries Partnership June 5, 2023.

The condition of New Hampshire estuaries are improving including shellfish harvesting opportunities, bacteria, nutrient concentrations, conserved land, and seaweeds, according to a new report from Piscataqua Region Estuaries Partnership (PREP) at the University of New Hampshire.

However, PREP director Kalle Matso says that climate change and increasing human development are a threat to the ecosystems of estuaries.

Over 200 interested people and organizations attended the PREP presentation in Portsmouth on June 5, 2023 including your local state representatives pictured above.

The report also measured community involvement. Volunteer hours decreased during the pandemic, but the authors said federal and local leaders have begun to work together more effectively, particularly on permitting decisions.

Residents who live near Great Bay including Greenland, Rye, Dover, Durham and Newington and our community leaders can play an important role in protecting the bodies of water.

While oysters are at their highest level since 1998, and the oyster aquaculture industry has never been more vibrant, the levels of natural oyster reefs are still down 80% from where they were 30 years ago.

Eelgrass, which can help keep estuaries resilient against challenges, is continuing to increase in the Portsmouth Harbor regions and migratory fish are returning to the water shed in the highest numbers since 1992 following the removal of a dam in Exeter.

The complete 105-page interactive report is available at StateOfOurEstuaries.org.

Thanks to NHPR for reporting on this conference. Sources of this report include the State of Our Estuaries 2023 and NHPR reporting.

Medicaid Expansion Survives

Expanded Medicaid has provided healthcare to over 200,000 Granite Staters – our friends, neighbors, and colleagues are served by this program and the health of the entire state of New Hampshire is better for its existence.

The NH House agreed and voted in favor on May 18, 2023.

While House Republicans made repeated attempts to table the bill and block its passage, House Democrats held strong, knowing that Granite Staters’ healthcare should not be contingent on unreasonable requirements or arbitrarily ended after a random number of years. Medicaid patients, providers, and so many in the healthcare and business community believe this program should be permanent and we are glad to have been able to deliver a strong vote.

Parental Bill of Rights Dies

The protection of students, teachers, and family relationships prevailed in the New Hampshire House of Representatives on May 18, 2023. Not only did the House Democrats stand strong in killing the dangerous “Parental Bill of Rights,” but 70% of Seacoast residents wanted it to go away too.* Even Greenland residents rejected the bill by a 7 to 1 margin.

SB 272 would have wrongfully forced school personnel to ‘out’ vulnerable LGBTQ+ students and insert government needlessly into conversations that should be left to the parent and child. This session, we heard from thousands of Granite Staters who urged us to oppose this legislation and we are proud to have delivered a strong win for them today.

The debate was heated, with the majority party leader calling out his caucus in an uncontrolled rant saying that our public education system is a “black hole.”

Reason and thoughtfulness prevailed and with the NH House rejecting the national agenda put forth by Republicans that the public education system has failed our children and our society.

*Results from the UNH Survey Center Granite Poll conducted in March 2023.

Parental Bill of Rights, EFA's Coming to the House

By a 7 to 1 margin, Greenland residents said no to SB 272, the so called “parental bill of rights” initiative, but both chambers of the NH legislature insist on passing this bill in spite of statewide opposition, as expressed by the overwhelming negative response this received from NH voters. Thousands weighed in on this bill before the Senate voted to approve SB 272.

The bill is coming to the House this week and I’ll vote against it.

Proponents say the bill includes additional rights to address current concerns related to gender identity that have only recently emerged as relevant issues for legislation. Passage of this bill would assure parents that their rights are well respected and would prevent a likely mass exodus of students whose parents would seek alternative educational options that would respect their rights. A failure to value truth and parental authority, as this bill does, will inevitably lead to dysfunctional governments.

Democratic leaders of the House Education Committee say that reiterating existing parental rights is not the intent of the bill. This bill targets transgender and gender nonconforming students under the guise of “parental rights.” It singles out those students for special surveillance and reporting upon parental inquiry.

Singling out some students is a deeply concerning and unconstitutional requirement that violates the principle that all students come before the law as equals. Nearly every student will explore their identity in some shape or form that may not meet the approval of their parents. Teens do have rights of privacy.

There will be a very close vote on this on May 18. It will be critical for Democrats to attend this important session.

On the Educational Freedom Accounts (EFA) the Senate Education Committee voted to recommend a bill that would expand the Education Freedom Account program by increasing the income threshold. The committee voted 3-2 down party lines to approve House Bill 367, which just barely passed the House last month on a 187-184 vote.

The bill is one of three House bills to be approved on the new school voucher-like program that has been way over budget for the first two years of operation. HB 367 would increase parents’ income threshold for a child to be eligible for the program from300 percent of the federal poverty level to 350 percent or from $82.410 to $105,000 for a family of four.

I have consistently voted against any expansion of the EFA program, and will continue to do so.