State union has itself to blame

The Portsmouth Herald says that the State Employees Association is responsible for the round of layoffs now hitting state workers.

While the SEA membership can have many reactions to the layoffs the one reaction they have no right to is surprise.

The governor made it absolutely clear that if the union rejected a plan that included 19 furlough days he would have no choice but to go forward with layoffs. He was also clear that he didn't want to pink-slip state employees.

In our view, the union left him no choice. So 250 state workers will receive layoff notices and 60 others will be moved to lower-paying jobs. Another 60 vacant positions won't be filled.

Leaders of a people's veto effort to overturn Maine's newly enacted tax law changes plan to turn in petitions seeking a referendum to state election o

The Portsmouth Herald runs an AP story on efforts to rescind new taxes in Maine.

Leaders of a people's veto effort to overturn Maine's newly enacted tax law changes plan to turn in petitions seeking a referendum to state election officials on Friday.

The Republican-led campaign called Still Fed Up With Taxes needs to turn in more than 55,000 certified voters' signatures in order to force a June 2010 referendum.

We would certainly miss Maine as a valued member of the New Hampshire Economic Recovery Coalition if this effort succeeds in reducing taxes over the border.

Lawmaker considers ban on smoking at local beaches

The Portsmouth Herald reports on a Hampton lawmaker who wants to ban smoking on the beach in order to prevent cigarette butts in the sand.

State Rep. Susan Kepner, D-Hampton, told the town's Board of Selectmen this week she is thinking of submitting a bill in the coming legislative session that would ban smoking at state parks in New Hampshire. The bill would also outlaw smoking at playgrounds, concerts and other places where a significant amount of people congregate outdoors.

“I'm still trying to figure out the wording and exactly what it will entail,” Kepner said.
Discussion over Kepner's bill arose during a meeting between the town's local delegation and selectmen. The local delegation met with the board to ask which issues selectmen would like representatives to tackle in Concord in the upcoming legislative cycle.

Selectman Rick Griffin said his biggest pet peeve as of late has been the number of cigarette butts left at the beach.

“It's a huge problem and it's so offensive,” he said.

A recent cleanup of Hampton Beach by the Blue Ocean Society saw volunteers remove more than 20,000 cigarette butts.

Kepner said banning smoking in areas where people gather is one way to address this issue.

“If they can't light up, they can't leave it on the ground,” Kepner said.

I'm sure litter is also a problem at the beach. Perhaps we should close all the drive-throughs in Rockingham County. If they can't pick it up, they can't leave it on the ground. Or maybe just ban food and drink on the beach completely. If they can't bring it, they can't leave it on the ground.

Look, anyone who discards cigarette butts on the beach is an idiot. There's no excuse for littering. But the anti-smoking mafia is really getting out of hand. Besides, if people can't smoke anyway, how will we replace all those revenues from the cigarette tax?

Norelli upset at Income Tax Backlash

House Speaker Terie Norelli is hitting at critics who disliked her telling the Portsmouth Herald that she was open to all options for the New Hampshire budget, including an income tax. The Herald gets Norelli's reaction.

On Friday, she continued to maintain that such a broad-based look at revenue would be helpful.

“It's prudent to gather as much information as possible about everything we're doing outside of the pressure and constraints of budget gathering,” she said. “That includes everything, except for gambling because there's an independent commission looking at gambling. Why would anybody be afraid of looking at everything to see whether it's good or bad for our economy? It's irresponsible not to.”

She said she's upset with Republicans for what she seeks as grasping at straws. “They've got me conjuring up new taxes for the public,” she said. “They're making me look like an evil witch. They've been given every opportunity to participate in the process. For them to put out there that I'm going to be putting out an income tax is nothing more than a cheap political trick.”

Terie Norelli is an income-tax supporter. She's voted for it in the past, and been quite eloquent about what she sees as a lack of steady revenue for the workings of New Hampshire government. When asked by the Herald about the possibility of an income tax, she could have said many things.

She could have said that she used to support one, but know thinks it's a bad idea.

She could have said that as long as John Lynch is Governor, there is no prospect for an income tax.

She could have simply said that the House will not be considering an income tax when it returns.

She did not. She left the door open to all options, including the one she's voted for in the past. It is not unreasonable to conclude that Speaker Norelli continues to support an income tax, and that the Ways and Means Committee, chaired by income tax supporter Rep. Susan Almy, will report favorably on the idea this fall.

Speaker Norelli was asked if the Legislature would consider an income tax to balance the state budget. She could have said no. She choose not to, and now wishing us to ignore those words.

N.H. smart to protect its tax-free status

The Portsmouth Herald editorializes on the benefits New Hampshire reaps by protecting its customers from Massachusetts tax collectors.

Look at the license plates in shopping plazas along Route 1 in Seabrook. About half of them are from Massachusetts.

They're outside Wal-Mart and Lowe's and Home Depot. Increasingly, they're outside Shaw's and Market Basket.

They're in lines at the discount gas stations where prices are 20 cents or more a gallon cheaper that just across the border.

Even with the increase in the New Hampshire cigarette tax, they're buying cigarettes in New Hampshire.

Anecdotally, there is a hand-written sign near the cash register in a small grocery store in a Massachusetts town near the border that reads: "To our valued customers" and goes on to recommend they buy their cigarettes in New Hampshire because of the savings.

House Speaker opens door to Income Tax

In an editorial board interview with the Portsmouth Herald, House Speaker Terie Norelli says that she's open to an income tax to fix New Hampshire's budget problems.

Looking toward the future, she said, "I'm open minded to taking a look at revenue structure in the state," including an income tax, she told the Herald editorial board on Wednesday. An economic summit will be held in Concord this fall "to try to figure out whether the way we do things in New Hampshire is working" — and all revenue sources would be on the table.

Norelli also defends the $11.5 billion state budget passed in June, which included 38 tax and fee increases and boosted total state spending by over $1 billion. She also expects the state to win its appeal in the Joint Underwriting Association case.

A Threat to the New Hampshire Economic Development Coaltion

We've spent a lot of time covering efforts by our neighboring states to boost the New Hampshire economy by continually raising their tax rates. They've certainly done more to create jobs in the Granite State than our own spendthrift Legislature.

Now comes word from the Portsmouth Herald that a group of citizens in Maine is trying to lower its tax rate through the petition process.

The voices of these men and women have convinced us that a petition drive currently under way to repeal a new tax reform law has merit. The law, passed in the waning days of the legislative session last in June, reduces the state income tax on all but the wealthiest Mainers, by instituting a flat tax of 6.5 percent. Currently, income taxes top out at 8.5 percent.

Petitioners must get 55,087 verified signatures to the secretary of state by Sept. 11. If they are successful, the law will be put in abeyance and voters will decide whether to repeal it next June.

The Herald editorial page comes out in favor of the effort, which is fine for Maine taxpayers. But what about us? How will New Hampshire be able to keep raising its taxes, fees, and budgets if our neighboring states start lowering theirs?

Selling out to socialists in a shiny new car

Rick Fabrizio, Managing Editor of the Portsmouth Herald, has a tongue in cheek (we think) article about buying a new car through the Cash for Clunkers program.

By RICK FABRIZIO
August 30, 2009 2:00 AM

I am the proud driver of a shiny new car, purchased with $4,500 of government aid through its "Cash for Clunkers" program.

My purchase was quick and easy. So, I drive happily along as a big fan of the economic/environmental stimulus package. When I see other shiny new cars on the road proudly adorning temporary license plates, I give the drivers a thumbs-up, maybe even a wink depending on the driver.

It's like the 1990s when everyone was making scads of cash and were buying SUVs and German sports cars. Well, it's not exactly like the '90s in that there were no public dollars for those rides, but if you think about it, the '90s cash was just as fake as the federal dollars being churned out today. (more)

Gregg's 5 points on health care

The Portsmourh Herald praises Sen. Judd Gregg and his contribution to the health care debate with this week's events in Salem and Portsmouth.

Gregg's work in the Senate has focused on four areas: prevention, a better structure for managing the chronic ailments that drive up costs, tort reform and a shift from paying for procedures to paying for the quality of outcomes. He has been part of the health care debate from the start. But regardless of his "Rx" versus the House and competing Senate bills, he made five important points for all of us to bear in mind as the five bills out of House and Senate committees are reconciled later this year.

Time is money in retirement system fix

The Portsmouth Herald has a good grasp of the problems facing the New Hampshire Retirement System. Simply put, "This retirement package is not sustainable and far more generous than public workers receive in many other states, including Maine and Vermont."

August 21, 2009 6:00 AM

Remember Dick Ingram, former president of the Greater Portsmouth Chamber of Commerce?

After a brief stint at The Housing Partnership in Portsmouth, he has become executive director of the New Hampshire Retirement System. If you want to know if that's an easy or tough job, consider this: Ingram is the fifth executive director in the past 24 months.

The NHRS is the pension system for all state workers and most teachers, government employees, police and firefighters. At this time, there are 52,000 active members and 23,000 retirees. While the retirement system is fiscally sound for now, if it doesn't change its policies soon, particularly for police and firefighters, it projects an unfunded liability of $3.4 billion.

This is where Ingram's job gets tough. He can see the problem and make recommendations to fix it, but he doesn't actually have the power to make substantive changes needed to bring pension revenues in line with expenses. That power belongs to the New Hampshire Legislature, which did very little in this last legislative session to bring long-term expenses under control. (more)

A Small Victory for Transparency

The Portsmouth Herald is to be congratulated for posting on-line the list of Outstanding Property Taxes due in Exeter. Is this a big issue with far reaching public policy implications? Probably not. And that's all the more reason to do it.

The Transparency movement in America, and right here in New Hampshire, is about open government. The goal is to increase the public's access to public records, even records that may not seem very important. If information is power then the best way to empower average citizens in a democracy is to make their government transparent.

To view the list click here.

Beginning of end for treatment facilities

Lost in much of the debate over Health Care Reform is one simple truth - what the government giveth the government can taketh away. The free market approach to health care lets patients decide what treatments they want and from whom they will purchase them. However, as the Portsmouth Herald observes, when treatment facilities are dependent on the government for funding they are at the mercy of "... a shift in the state's approach to supplying the services."

August 14, 2009 6:00 AM

It was sad to learn this week that OdysseyNH, formerly Odyssey House, a residential substance abuse treatment facility for adolescents in Hampton, is closing its doors for good.

To our minds, there is a desperate shortage of residential facilities for the treatment of alcohol and drug abuse in this state, and a particular need for facilities that focus on young people caught in the cycle of parental neglect and/or substance abuse. (more)

State failed to control retirement system cost

The Portsmouth Herald faults the Legislature for failing to address a problem that drawfs the state's budget problem; the New Hampshire Retirement System.

Lawmakers did virtually nothing to bring the system in line with the realities of the times we live in and, in fact, downshifted some of the state's excessive retirement costs onto cities and towns.

This is unconscionable given both the decision to require municipalities through their property tax structure to pay 70 percent of the retirement costs instead of the previous 65 percent and the timing of that decision — after municipal budgets had already been prepared and approved.

Maine lawmakers boost NH economy

Maine is continuing its efforts as part of the New Hampshire Economic Recovery Coalition.

Maine small business owners, already feeling the competitive pinch from their counterparts across the Piscataqua River, are joining area legislators in trying to repeal a tax reform law that they say is unfairly burdensome.

The tax reform measure, passed by the Legislature earlier this year, reduced the state income tax while adding a 5 percent sales tax to nearly 100 services not currently taxed, such as auto repair, tailoring, gym memberships and dry cleaning. It also increases the meals and lodging tax. (more)

NH Economic Recovery Plan goes into effect

Massachusetts raised its sales tax from 5% to 6.25% over the weekend. The Portsmouth Herald reports that New Hampshire businesses are already feeling the impact:

Parking lots for the larger stores off Route 1 in Seabrook were just about 50/50 between Mass. and N.H. plates on Saturday. Many of the shoppers, like Jameson, were border town residents who regularly drive north to save money. (more)

We would once again like to thank Massachusetts for its lead role in the New Hampshire Economic Recovery Coalition.

Rye considers suing state over downshifted costs

The Portsmouth Herald reports that another town is thinking about joining a lawsuit against the state.

By Beth LaMontagne Hall

news@seacoastonline.com

July 24, 2009 4:20 PM

RYE — The Board of Selectmen will discuss at its meeting Monday night whether to join a possible lawsuit against the state over what it says are unfunded mandates that violate the state Constitution.

The New Hampshire Municipal Association, along with the New Hampshire School Boards Association and the New Hampshire Association of Counties, is currently considering legal action against the state for shifting some of the state’s financial responsibilities to local governments. The groups said this move is in violation of Part 1, Article 28-a of the State Constitution.

Portsmouth, North Hampton and Seabrook have already expressed an intent to join the suit.

The Legislature has shifted more than $117 million in state costs to local governments in the 2010-11 state budget, according to NHMA. Part of this includes reducing the state’s share of the employers’ retirement contribution for teachers, police, sheriffs and firefighters.

The request came in a letter sent by the NHMA July 9 and asks the town of Rye to contribute $1,048.13 to the proposed lawsuit. The selectmen would need to vote on the allocation and designate a primary town contact for relaying information with the NHMA.

The New Hampshire Retirement System has informed local governments that the first payment for the increased employer retirement payment amount is due next month. The three associations representing municipalities, counties and schools are recommending to their members that they pay the amounts owed, but do so under protest to preserve their right to sue the state for violating Article 28-a.

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City fights state's 'unconstitutional' cost-shifting

By Adam Leech

aleech@seacoastonline.com

July 22, 2009 7:23 PM

PORTSMOUTH — The city is joining other communities in the state and the New Hampshire Municipal Association in a potential lawsuit against the state for what they say are unfunded mandates that violate the State Constitution.

The New Hampshire Municipal Association — supported by the New Hampshire School Boards Association and the New Hampshire Association of Counties, 140 municipalities and 53 school districts — is currently considering legal action against the State of New Hampshire for cost shifting state financial responsibilities to local governments, which they say is in violation of Part 1, Article 28-a of the State Constitution.

The Legislature downshifted more than $117 million in state costs to local governments in the 2010-11 state budget, according to NHMA.

“We believe that we must start legal proceedings against the State in order to challenge this unconstitutional action and stop the downshifting of state obligations to local governments,” said John Andrews, executive director of New Hampshire Local Government Center, home of NHMA. (more)

Leading the economy recovery

50 new jobs in Greenland, NH. As far as know, they did not receive stimulus funds.

Lynch Signs Use Tax Roadblocks into Law

The Portsmouth Herald runs the AP's account of a new New Hampshire law designed to protect Granite State customers from Massachusetts taxes:

New Hampshire doesn't have a general sales tax, a selling point it uses to attract out-of-state retail dollars. Lynch said Thursday the new law will protect the state's businesses and will help to strengthen our its economy.

Retailers wouldn't have to provide sales information to out-of-state tax collectors. The other state would have to prove a good or service bought in New Hampshire is used, stored or consumed in the other state. (more)

The new law doesn't supercede Massachusetts' claim on goods bought outside the Bay State but brought back into it. It does provide New Hampshire retailers with legal cover to avoid cooperating with out-of-state tax collectors, and generally makes it harder for Massachusetts to enforce its laws. Kinda like Mel Thomson, but without using the State Police.

Time for the Reign to End

Portsmouth Herald columnist Lily Robertson looks at New Hampshire's unemployment statistics and its budget, and finds both wanting:

Taxes are being raised left, right and center on anything and everything Lynch can think of. When you’re a small business owner, and most of New Hampshire businesses are small, how on earth can you expect to pay ever increasing taxes and still have money left over to offer a living wage to an employee? Yet, they’re supposed to be out there hiring new workers, paying for health care for them, and keep their own heads above water all at the same time.

It’s time Lynch stopped running the state like a philanthropic society of do-gooders and started running it like a business. When he ran Knoll, Inc., he raised revenue from 50 million in the red to 240 million in the black. Did he suddenly forget how he did it, or is he just using his office as a sweepstake seat?

Oh, he cares about us. He wants to fund charity organizations that should be operating with privately donated money. He wants to save all the children. Who doesn’t? Unfortunately, he’s saving children at the cost of destroying entire families. Well, lucky families can take comfort knowing once they’ve been reduced to living on the streets, they can get assistance faster than they can get a job.