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2021-2022 New Hampshire budget: Continuing local aid critical to property taxpayers

By Renny Cushing and Mary Jane Wallner - Guest Columnists | Feb 13, 2021

Last week, Gov. Chris Sununu presented his proposed budget to the state Legislature. The contents of the governor’s budget provided a glimpse into how the new Republican majority proposes to allocate scarce state resources this term.

Two years ago, Democrats held a majority in the House and Senate and proposed a budget that prioritized public education and property tax relief for New Hampshire families. While Sununu resisted and initially vetoed the budget, Democrats held strong and the final budget provided nearly $180 million in additional direct aid to communities throughout the state. By making smart decisions with the state revenue available, Democrats were able to provide unprecedented investment in education and property tax relief without the enactment of a broad-based tax.

Next month marks a year since the COVID-19 pandemic changed the everyday lives of Granite Staters. A year of children in hybrid or remote schooling, of families adapting to work schedules or even losing employment, and of businesses changing the way they operate in every way. Every Granite Stater has sacrificed for the health of themselves and their neighbors. As New Hampshire looks to continue building back, it is imperative that the state budget reflect the same community obligation that Granite Staters employ in our daily lives.

One of the cornerstones of the Democratic budget last term was the largest education funding increase in decades. Combined with municipal aid sent directly to towns and cities, these funds helped to stabilize municipal budgets and reduce property tax burdens on every citizen and business in this state. Due to changes in enrollment during the pandemic, public schools are at risk of losing significant funding this year. This budget must continue to assist our municipalities and schools, as every cut in state funding is made up in property tax increases.

After acquiescing and signing the Democratic budget two years ago, Sununu tried to claim credit for the popular influx in local aid. Touring across New Hampshire presenting giant Publisher’s Clearing House-style checks to municipal leaders, Sununu saw firsthand how important state aid is to property taxpayers.

Unfortunately, Sununu and the new Republican Legislature have indicated that continuing property tax relief will not be a priority this year. Instead of investing in our communities, Republicans are looking to cut business taxes for the fourth time in six years, a move that would drain more than $100 million annually from state revenues to increase the bottom line for large, out of state corporations.

If tax cuts for big business are jammed through by the governor and Republican budget writers, local property taxpayers will be forced to make up the difference. Granite Staters deserve for the state to look out for them like they have looked out for their neighbors this past year. Let us continue to build on the progress of last term by continuing to provide necessary aid directly to our local communities.

The state budget provides a clear, transparent look at the governor’s priorities and intentions for the upcoming term. Our state has the means to provide relief for Granite Staters if we are responsible and put the needs of our constituents first. Building on our investment in local communities will be the most important piece to the 2021-2022 budget. If Sununu allows the giant checks to bounce this year, it will harm our communities and turn up the heat on property taxpayers. Granite Staters cannot afford that.

Rep. Renny Cushing, D-Hampton, serves as the House Democratic Leader and Rep. Mary Jane Wallner, D-Concord, serves as the Ranking Democrat on Finance.

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