The New Hampshire Budget

by | Dec 8, 2021 | Legislation, Special Alerts

Positive Changes in the New Hampshire Budget passed this year.

In the run-up to the 2022 election, it’s useful to remember the benefits in the budget passed this year.
Following are some important points to remember and use in discussions with others.

A Budget that Delivers for NH Families

KEY MESSAGE:
This is the most transformational budget for New Hampshire families in history, providing increased educational opportunities, real property tax relief, economic opportunity, and more.

EDUCATION FREEDOM ACCOUNTS:
New Hampshire is empowering families who may not be able to afford alternative education opportunities by providing flexibility for families to ensure that students receive the education best fit to meet their needs.
• This program provides pathways of opportunity for low-income students, some of whom may have special needs, to receive funding to attend a carefully individualized private school or to receive modest funding to help homeschooling
• A win for every low-income family in the state of New Hampshire
• The four walls of the classroom do not always meet the needs of each child
• EFAs will not affect public schools or funding, despite what critics say
• New Hampshire’s program is specifically and carefully designed to ensure integrity in the system
• Public schools only work for the teachers’ unions, and the teachers’ unions hate this. They advocated from the beginning that schools should be fully remote, which only hurt the poorest and most vulnerable students who are unable to have their parents help them with remote school while their parents were at work

TAX RELIEF:
From the family of four going out to eat to seniors in retirement, to small businesses just getting started, this budget cuts taxes across the board
• Provides over $1 billion in tax savings for Granite Staters over the next 10 years
• Lowers the Rooms and Meals Tax by 5.55%
• Reduces taxes on small businesses with an 8.33% reduction in the BET and 1.30% reduction in the BPT
• Fully eliminates the Interest and Dividends Tax over 5 years
• Exempts over 300,000 small businesses in the state from even filing taxes by raising the minimum business tax thresholds
• Provides $100 million to NH small businesses in PPP tax relief

PROPERTY TAX RELIEF:
The state is doing its part to lower our property taxes by sending historic cash back to cities and towns. Towns must follow that lead by lowering taxes.
• The state’s move to leverage state funds to lower property taxes is well-timed, with cities and towns receiving more money than ever due to an increase in federal funding
• This budget allocates nearly $400 million to mitigate property taxes, with a $100 million cut to the statewide property tax
• Invests $30 million in school districts for school building aid
• Allocates $83 million in road and bridge construction to ensure the safety of our communities and to keep NH as one of the most desirable locations for families to relocate to
• Returns $50 million more to cities and towns through an increase in the Meals and Rooms tax revenue distribution, allowing municipalities to target key areas of need
• Instead of downshifting costs, this budget downshifts cash for municipalities to create opportunity and keep our economy growing for the benefit of our families

PAID FAMILY MEDICAL LEAVE:
Without an income tax, this budget creates a transformational family friendly paid family medical leave program that will benefit Granite State families when they need help the most.
• Creates the first paid family leave program in state history
• A responsibly crafted program that doesn’t leave taxpayers on the hook
• Truly voluntary, available to any individual or business willing to buy into the program, but not forced upon anyone who does not
• Does not create an income tax, unlike the Democrat plan
• Run by the private sector and will therefore not grow government
• Helps individuals that opt into the program take paid time off to care for a loved one in a time of need
• Will help to attract young families to the state

OTHER ITEMS:
• Increase of the Rainy Day Fund by $36 million to a total of $158 million at the end of FY23 to better prepare NH for the next crisis
• A balanced budget without reliance on federal stimulus funds
• Removal of the Merrimack tolls
• Fully funds construction of a new forensic hospital and invests in mental health
• Closure of the Sununu Youth Services Center
• Restoration of appropriations for Veterans Services
• Increases state grant funds for OHRV trail maintenance

Posted by GST Chairman Ray Chadwick

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