NH Supreme Court hears JUA case

The Concord Monitor runs Norma Love's AP preview of today oral arguments in the JUA case at the New Hampshire Supreme Court.

The policyholders, who include doctors and medical providers, also argue that if the state takes the $110 million and the fund fails to retain enough reserves to pay claims, their costs would be driven up to cover the claims.

Kevin Fitzgerald, the policyholders' lawyer, argues that the constitution requires the state to pay compensation if it takes property, but that can't happen if the property is money.

"If the state takes $1, it has to pay $1 for it. At the end of the day, it can't take it," Fitzgerald said last week.

The state is arguing that it set up the fund, the Medical Malpractice Joint Underwriting Association, in 1975 to fill a gap in the availability of malpractice insurance and did not give policyholders a vested interest in any surplus.

Concord Monitor- "'Third way' would tax refinancing"

The Concord Monitor puts Norma Love's AP piece on the front page describing Governor John Lynch's search for new taxes to balance the state budget:

Lynch said the alternative package would include expanding a tax on property sales to include refinancing mortgages and closing a loophole affecting limited liability companies. He said his revenue estimate assumes the two sides will agree on the spending levels under discussion.

They have until Thursday to agree on a compromise budget for the two fiscal years beginning July 1. Debate focuses on $3.2 billion supported by general state taxes. The total budget is expected to be closer to $11.6 billion when federal and other money is included.

The Lynch Mortgage Tax would expand the Real Estate Transfer Tax to include anytime a homeowner refinances, even if there's no real estate transfer to be taxed. This would make refinancing more expensive, and thus limit the opportunities for homeowners to save money when mortgage rates drop.

The Lynch Small Business Tax would take money from small businesses that are too small to get hit by the existing business taxes in New Hampshire. Now wouldn't seem to be the best time to force the housing sector and small business community to fork over more money, but the alternative is limiting spending increases in Concord.

AP- "Negotiators begin talks on $11.6 b NH budget"

The Union Leader runs Norma Love's AP report on the first of negotiations for the House-Senate Committee of Conference on the state budget:

New Hampshire House and Senate negotiators started work Monday on a budget compromise as they typically do: getting the easy stuff out of the way.

For example, they agreed to use federal funds for a cottontail rabbit management program, but did not tackle the big differences in their versions of the $11.6 billion budget for the two years beginning July 1.

Those decisions will come as talks progress. The deadline to agree is June 18.

NH biz groups pan suspension of tax credit

The Union Leader runs Norma Love's Associated Press article covering the BIA's opposition to business tax increases to fund state spending:

Jim Roche, president of the Business and Industry Association, joined two dozen business leaders in urging the state to cut spending. Roche said businesses are struggling in the poor economy and suspending the tax credit will cost the state jobs and delay the economic recovery.

The Senate Finance Committee proposed suspending the credit for two years to raise $80 million. But Roche said the losses to businesses could be much greater. He predicted lawmakers will eliminate the credit in two years when businesses seek to recoup their losses.

After sitting on the sidelines during last year's budget debate, and seeing spending increase 17.5%, the business community is now getting involved as state budget writers have targeted the private sector to pick up the public sector spending spree.

These tax increases are technically written as the suspension of a tax credit, but you should understand that no one was getting a tax break under current law. Just as federal income taxes are deductible against state income taxes, for those states foolish enough to have such things, the Business Enterprise Tax was fully credited againt the Business Profits Tax to make sure private firms weren't paying the state twice on the same money. The Senate Finance Committee thinks avoiding doubel taxation is a loophole.

Lynch Comes Out Against Gas Tax

In the past, NH Watchdog has criticized Governor John Lynch for downshfiting the cost of the stat budget onto cities and towns, threatening the New Hampshire bond rating by borrowing money for operational costs, and for using highway spending gimmicks.

So we're happy to praise the Governor when he has not only gotten out in front of an issue, but made the right decision, according to Norma Love's AP article in the Union Leader:

Gov. John Lynch said Friday he would veto the state budget if it contained a gas tax increase.

Lynch said he told legislative leaders he would not accept the 15 cent tax increase passed by the House and under consideration in the Senate. Lynch and lawmakers are at odds over how to fund badly needed repairs and maintenance to the state's highways and bridges.

"In very difficult economic times, the last thing we should do is increase the gas tax," he said.

Lynch's announcement makes it much less likely that the Legislature will pass a gas tax, which is good news. It also makes it more likely that it will adopt some of Lynch's bad ideas, such as toll increases and a raid on the Turnpike Fund.

NH's revenue picture still bleak

Norma Love of the Associated Press reports on New Hampshire's revenue reports. To use a technical term, it ain't good:

Revenue Commissioner Kevin Clougherty told Senate legislators Tuesday that business tax receipts so far were 17 percent behind collections for the same time last April. Clougherty said he expects more tax returns will be filed before the end of the month, but doesn't anticipate a big turnaround in the state's tax income or the economy overall.

April is one of the state's best months for business tax collections, which produce nearly one-quarter of New Hampshire's general tax revenue. The Senate Finance and Ways and Means committees will study the month's receipts before producing a revenue forecast and the Senate version of the state's two-year budget, beginning July 1.

Earlier this month, the House passed an $11.5 billion budget based on spending cuts, federal stimulus money, new taxes and increases in existing taxes. During debate in the House, Finance Chairwoman Marjorie Smith, D-Durham, said she hoped the Senate would improve the House version after lawmakers have additional information on tax receipts.

AP: State may charge for health care

Norma Love of the Associated Press reports on one way state budget writers are looking to reduce costs; requiring health care copayments from retired state workers younger than 65:

State government retirees younger than 65 would start paying for their health insurance if legislators approve the plan Friday.

The 2,400 such retirees do not pay a premium now but would start paying $100 a month for themselves and $100 for their spouses on July 1 if the Legislative Fiscal Committee approves.

The committee also will consider aligning health coverage for 10,000 retirees and their spouses with the plan for active employees to save money. The proposal also would change the prescription drug benefit.

All retired employees except those under the state troopers' health plan would be affected.

New Year- New Laws

January 1st is often used as the day on which new laws go into effect. Norma Love of the Associated Press runs down some of the new laws that become official yesterday in New Hampshire, including a cap on payday loans:

Payday lenders typically charge $20 per $100 for two-week loans backed by the borrower's car title or next paycheck. That amounts to 1.43 percent interest per day, an annual rate of 521 percent.

The cap translates to a daily interest rate of about 0.1 percent, or total interest charges of $1.38 – a dime a day – on a $100, two-week loan.

The rest of the list is quite eclectic:

• State transportation officials must minimize hazards to bicycles from rumble strips, drain grates and road surface treatments by establishing placement standards that keep cyclists in mind. The law also allows cyclists to pass stopped vehicles on the right without penalty.

• Insurers and pharmacy benefits managers must require pharmacies they contract with to charge enrollees the pharmacy’s usual and customary price for a prescription or the insurance copayment, whichever is less.

• Urinating or defecating in a public place (other than a restroom) is now a violation if the person knew or should have known the act would cause affront or alarm.

• People with seizure disorders diagnosed by a physician may use service dogs in public facilities and places the public is invited.

• Judges can no longer keep traffic convictions from appearing on the records of commercial drivers by placing the convictions on file, deferring judgment or allowing drivers to enter diversion programs that eliminate a conviction. Parking tickets are exempt.

• Administering drugs to wildlife without state permission is now a misdemeanor. The law covers drugs for fertility control, disease prevention or treatment, immobilization and growth stimulation administered to any mammal, bird, reptile or amphibian under the jurisdiction of the Fish and Game Department. The law does not apply to drugs used in normal animal husbandry practices.

• People alleging they were victims of sexual assault as minors have more time to file civil lawsuits. Lawsuits can now be filed until age 30 – a five year increase from the old law – or later if filed within three years of when injury from the assault was discovered or should have been discovered.

• Courts now have specific power to prohibit people convicted of conducting illegal animal fights from having custody or control over the species in the future.