No major tax increases; lots of small ones

In the Laconia Citizen, State Rep. Jenn Coffey pens a column excoriating the dozens of small tax and fee increases fueling increased spending.

I know voters do care about these issues and the effects all of these increased fees and taxes are having on their lives. How many are making cuts elsewhere in order to afford the increased fees on their vehicles? How many LLC are now struggling to hold on to their businesses?

Recently I was in a restaurant that had a sign posted informing their patrons of the increase in the meals tax; they stated they were going to try to absorb the increase for as long as they could, but foresaw having to raise their prices and possibly cut staff. (more)

Court Freezes JUA Money

The Laconia Citizen's Bea Lewis reports that Belknap County Superior Court has frozen $110 million in disputed funds owned by the Joint Underwriting Association until the lawsuit filed by a coalition of health care providers is settled:

Judge Kathleen McGuire's action on Monday will keep the state from taking $110 million in surplus in the New Hampshire Medical Malpractice Joint Underwriting Association fund and using it to help balance the newest state budget. Specifically the judge ruled: "The funds at issue will not in any way be transferred prior to the final order of the court."

The state's fiscal year ends today, and budget writers had counted on $65 million from the JUA to balance the current budget. However, a late change to the budget bill delayed transfer of the $65 million until the end of July. Judge McGuire's ruling delays the transfer indefinitely.

This means the state's 2009 budget will not be balanced, but since state officials lack a unified accounting system for state spending, that shouldn't matter much. Agencies will simply continue operations using Fiscal Year 2010 revenues to pay the bills.

The order also slows down the JUA case. McGuire held a conference call with lawyers for the two parties yesterday, and canceled a hearing set for tomorrow. Without the July 31st transfer looming, the Court is in less of a hurry to settle the matter, though still hopes to have a final ruling by that date. The next hearing is now scheduled for July 10.