An analysis of the Governor’s 2021 Budget Address shows that if enacted will hit property tax payers in NH with costs that are normally covered by the many established and approved revenue sources such as the business and rooms and meals taxes. By proposing cuts to these revenue sources, our towns and cities will be subject to higher property taxes otherwise known as “downshifting,” The Governor’s proposal of cutting corporate taxes, mostly paid by large multi-national corporations, and no mention of school aid will hit property tax payers directly.
Children’s mental health will also be on the agenda this year as the 2021 budget is crafted. The Governor needs to address why inpatient psychiatric needs for children was approved but not implemented and whether there be help for children and families through funding of DCYF.
Downshifting
Representative Mary Jane Wallner (D-Concord), Ranking Democrat on the House Finance Committee, said, “That this budget proposal would do a lot of downshifting back to our local communities and our local property taxpayers. In the budget that passed last term we included an additional $138 million for our public schools and $40 million for municipal aid to cities and towns. The Governor mentioned $30 million in onetime grants but said nothing about continuing the level of investment that our schools actually need. To be clear, if we reduce the amount of money we are investing in our schools and cities and towns, local property tax payers will be forced to make up the difference. As we dig into the details of this budget, House Democrats will be fighting to make sure that we are not downshifting costs to our citizens and municipalities.”
“The proposal for additional corporate tax cuts greatly increases the risk of economic damage as NH strives to recover from the pandemic, draining over $50 million per year once fully implemented,” said Representative Susan Almy (D-Lebanon). “Every dollar cut from state services and aid to municipalities is made up through increased property taxes on families and NH-based businesses. We can provide financial relief to small businesses without busting the budget, and Senate legislation that is in the works does just that. Cutting aid to Granite State communities to fund more corporate tax cuts would harm New Hampshire’s economy and turn up the heat on property taxpayers.”
Children and Families
In February 2021, 44 New Hampshire children were sitting in our hospital emergency rooms in mental health crisis waiting for inpatient psychiatric beds,” stated Senator Tom Sherman (D-Rye). “Failing to provide essential services to these young patients who need us most represents an intolerable deficiency in our state’s healthcare system.
We have known what needs to be done because we funded it in the final state budget back in September of 2019, six months before the impact of the COVID pandemic. The money was there as was the statutory authority and still it has not been implemented. Governor Sununu must demonstrate the leadership and determination that is needed to solve this crisis once and for all by making this pediatric mental health crisis one of his top priorities. These children are all of our children, and they are our future. They deserve nothing less.”
The past year at home for children and families has only exacerbated an already existing need for increased DCYF funding,” added Representative Pat Long (D-Manchester). “Recovering from the COVID-19 pandemic must include funding for the safety and welfare of our children and for the overburdened staff at DCYF. Support from this state budget will be an imperative measure in determining how New Hampshire’s children succeed moving forward.”