After a three-month limbo, the state legislature and Governor Chris Sununu were able to reach a compromise on the state’s budget – one that keeps proposed additional education and municipal aid intact.
The compromise went before the legislature on Wednesday and was passed by both the House of Representatives and Senate.
The original $13 billion budget was vetoed by the governor in June. Since then, the state has been operating under a temporary budget resolution, which kept spending at the previous year’s level.
The compromise deal was hammered out between Sununu and Democratic leaders of the House of Representatives and the Senate, all of whom expressed satisfaction with the deal in a joint statement issued Tuesday.
“The people of New Hampshire won today,” Sununu said. “This compromise budget does not increase taxes, and ensures financial promises can be kept to the people of New Hampshire. This budget is something I can support.”
Speaker of the House Stephen Shurtleff (D-Concord) said the compromise budget kept Democratic priorities, including investments in job training and public education and reinstating municipal aid.
“Budgets are a statement of our values, and this budget compromise makes clear that New Hampshire values the people of our state and is committed to ensuring every Granite Stater has the resources and opportunities they need to thrive,” said Senate President Donna Soucy (D-Manchester).
The compromise budget included increased education aid, which will benefit districts across the state. However, the compromise budget specifically marks those aid funds as one-time spending, state Senator Jeanne Dietsch (D-Peterborough) said Wednesday.
Over the next two years, Wilton-Lyndeborough Cooperative School District will see an increase of $337,000 in additional education adequacy funding, Mascenic Regional School District $1.14 million, ConVal Regional School District $1.5 million, and Jaffrey-Rindge Cooperative School District $860,231.
WLC Superintendent Bryan Lane said districts like WLC have seen their federal funding continually decrease from year to year.
“Those funds are gone, and they’re essential to keeping tax rates under control,” Lane said. “There is a level of inequity in how things are, and anything that brings equity back to the scenario is welcome.”
That money won’t be guaranteed past this budget cycle, however.
Mascenic and ConVal brought a lawsuit against the state earlier this year, along with two other districts, challenging the state’s funding formula for adequacy aid, saying the provided funds fall far short of what it takes to educate students in the state. Cheshire County Superior Court Judge David Ruoff sided with the districts, agreeing the current level of adequacy aid isn’t sufficient, but left it to the legislature to work out what a new adequacy formula would be.
The budget compromise also includes other education boosts, including a community college tuition freeze, $9 million for University of New Hampshire’s nursing program to help fill the growing need for health care professionals and funding support for full-day kindergarten students at the same level as grade-school children, a first for the state.
One of the sticking points for Sununu in the original budget was business taxes. This budget addresses that point, keeping promised business tax rate reductions in place, unless certain revenue thresholds aren’t met.
Towns will also be seeing additional state funds this year, as the budget includes about $40 million in revenue sharing for municipalities. Again, these funds aren’t guaranteed past this budget, but the towns can use the money as they see fit such as one-time projects, or to lower tax rates.
Dietsch said between education and municipal funding, she expects towns to see some relief in their local tax rates.
“If the budget is passed and the governor signs before Oct. 1, property tax rates will be significantly lower,” Dietsch said in the early afternoon, shortly before the House approved the budget.
While he hasn’t signed the amended budget yet, Sununu has given his unofficial approval, praising the legislature for passing the compromise in tweets and an official press release following the vote of the Senate.
Ashley Saari can be reached at 924-7172 ext. 244 or asaari@ledgertranscript.com. She’s on Twitter @AshleySaariMLT.