Budget Roundup

Lots of coverage of yesterday's budget debate in the House, where Democrats pushed through an 11% increase in overall spending and a slew of new and increased taxes largely along party lines.

In the Concord Monitor, Lauren Dorgan outlines who will pay for the spending spree:

Few are untouched under the House budget plan, which largely follows that proposed by Democratic Gov. John Lynch. One key difference: While Lynch expected current state revenue to hold steady for the next two years, House budget crafters foresaw a $140 million decline.

Drivers, gamblers, smokers, diners and hotel patrons would all pay new or increased taxes.

The state's wealthiest residents would pay two new taxes crafted by House budget writers: an 8 percent estate tax on inherited estates above a $2 million threshold and the 5 percent capital gains tax on all gains over $5,000 per person. The estate tax is expected to reel in $10 million over two years, while the capital gains tax is expected to bring in $75 million.

State employees who aren't laid off will pay more into their pension system - and those who are laid off would lose for the next two years their "bumping rights," seniority protections fiercely guarded by unions that allow more senior employees to bump junior employees from their jobs. Retired state employees who are under the age of 65 would no longer have free state-provided health insurance; they'd have to pay 11.5 percent of their pensions.

In the Nashua Telegraph, Kevin Landrigan lists jsut some of the many changes to the state's finances:

Among its 197 state law changes to accommodate the budget, the trailer bill would create a new saltwater fishing license of $15 a year and raise annual boat fees and the cost of a motor vehicle inspection sticker along with other fee increases.

It also withdraws $110 million from a quasi-public authority set up 30 years ago to help physicians afford medical malpractice insurance.

Opponents noted the state did not invest any money in this authority and physicians would likely challenge in court the state's right to claim any of it.

Supporters said this move still leaves a $50 million surplus in the account.

Rep. David Hess, R-Hooksett, said taxing capital gains would stifle investment and cause some of the state's wealthiest residents to leave.

"We are targeting first of all our best, our brightest and our most successful," Hess said.

Rep. Robert Walsh, D-Manchester, said the state cannot afford to do without the $75 million the capital gains levy would bring in and taxes only those who made large investment profits.

"This measure will only affect those citizens with an ability to pay," Walsh said.

Tom Fahey outlines some of the policy changes in the bill in this morning's Union Leasder:

In addition to the tax package, the bill makes changes that allow four district courts to close; give the liquor commission flexibility to close stores and sign agreements with private stores; allow tracks to simulcast races from other locations without running live race events, and allow the commercialization of state welcome centers and rest areas.

The bill also eliminates bumping rights among state workers, 250 of whom are expected to be laid off.