I find it interesting the way this budget deficit was not the Governor’s or Legislature’s fault when the election season was in full swing. We were told “it’s the economy, stupid!” and people believed it. Never mind the fact that Governor Do-Nuthin’ Lynch proposed a 14.5% spending increase, saying that this is the most we can afford. Ignore the fact that the Democratic Majority Legislature passed a 17.5% spending increase, well beyond what we were told we could afford. Don’t mention the fact that our Governor signed this budget into law without a word about the extra 3% in spending. It’s not their fault.

Who read the report from Charlie Arlinghaus before the budget was passed that told of the impending economic downturn. Clearly not our state leaders, since they were “caught off-guard” by the current economic situation. I think I heard them say “if we only knew then…” which means this catastrophe could have been averted.

Governor Lynch can’t seem to keep his word on Taxes

I just received this press release concerning the State’s Budget Crisis and thought it important enough to pass on to you. This will probably be in the papers tomorrow (maybe not this release but the story will)

“Lynch Turns Back on Citizens, Asks for Tax Increases”

For Immediate Release                  Contact: House Republican Office

May 1, 2008                                                             603-271-3665

Today Governor Lynch announced a plan to raise more money for the general fund, but in doing so he ignored a pledge he made just months ago not to raise taxes or impose new fees on the citizens of New Hampshire. 

The Lynch plan calls for increasing the tobacco tax by 25 cents, imposing a new tax at a rate of 10% on Texas hold’em winnings, raiding dedicated funds in the amount of $1 million, imposing additional costs on business owners by reducing the discount on alcohol they buy to 10%, and forcing lapses of $2.2 million on Home-Community Based health Care (HCBC) and nursing services programs.  This plan would theoretically bring in approximately $45 million for the year, according to Rep. Norm Major (Plaistow), former Ways & Means Chairman.  The governor also proposed to bond $40 million of school building aid, which will free up an additional $40 million in general fund revenues. 

House Deputy Republican Leader David Hess (Hooksett) stated, “I am frankly disappointed that the governor has not kept his pledge to the citizens of New Hampshire. But I am not surprised.”

“Ronald Reagan famously stated in Washington in the 1980s that ‘we don’t have a revenue problem, we have a spending problem.’  That is exactly the case in New Hampshire in 2008.  Rather than looking for reasonable places to reduce the bloated budget passed last year and bring it into line with our rising revenues, the Governor and the Democratic leaders of both the House and Senate want to raise still more taxes and fees.  If we had passed a reasonable budget, with an increase in line with the Consumer Price Index (CPI), we would not be where we are now,” added Rep. Hess.  “While our projected deficit for this fiscal year is $45 million, revenues are actually up $72 million, or 3.7 percent above last year,” stated Rep. Major, who serves on the Ways and Means committee. 

Republican Policy Leader Rep Gene Chandler (Bartlett) said, “This plan is going to hurt more than help our citizens.  Reducing the discount for small business owners to 10% for alcohol, threatening our hospitality industry; it is outrageous to think that either consumers will pay more or small business owners make less at a time when our economy is in trouble.  These businesses are the backbone of tourism for our state economy; we can not and must not do anything to endanger that.  By bonding $40 million in school building aid, we’re mortgaging the future rather than paying our obligations as they come due.  We also should have learned our lesson from last year when we increased the tobacco tax and revenues dropped off.  Here we go again with an additional tax burden to our citizens; it is irresponsible and not in the best traditions of doing what is right for New Hampshire.”

We should let Senator Sgambati know we aren’t happy about (1) the Governor not keeping his word and (2) the fact they are raising taxes during the other economic problems we are facing right now.

Will the Governor be held ACCOUNTABLE for this? Only time will tell.

I came across a story in the Union Leader on the budget issue in Manchester. It is called "Chicken Littles: A School District out of Ideas" and there is quite an online debate taking place. This article says:

Acting Superintendent Henry Aliberti and the teachers union have screamed that the sky is falling ever since Guinta proposed trimming about $7 million from the school budget. They have said that teachers will see massive layoffs and all sports and arts programs will be eliminated. But this is nothing new.

Former Superintendent Mike Ludwell would regularly threaten large-scale layoffs and the loss of extracurricular programs if he didn't get the budget he wanted. In 2006, despite getting $2.5 million less than he'd requested, Ludwell somehow managed to avoid eliminating sports programs and firing teachers.

It appears from the comments made that people think the Manchester public schools are underfunded and there should be an increase in the budget. The ignore the fact that the school population has dropped by over 1,500 students in the past couple of years but the budget has continued to climb. Money is not always the answer.

I have to admit I have given my input to this issue but it is clear many people are in support of the School District and ignore the facts associated with the decision to cut the budget. I encourage you to take a look over there and add your 2 cents worth.

Who knows, enough people putting their 2 cents in can make up for the $7 million cut.

Diplomacy working to make the United States LOVED around the World

I came across the AP story below, which can also be viewed at Channel 7 WSAW-TV in Wausau, WI. (Click here to view the story yourself) and thought about how we are told that our country is “hated” by other countries around the world. This is a different approach at creating the “Love Connection” others have with us.

SANTIAGO, Chile (AP) -- A working class suburb of Chile's capital began handing out free Viagra to senior citizens on Wednesday. Lo Prado Mayor Gonzalo Navarrete said he launched the program because "an active sexuality improves the overall quality of life."

About 1,500 residents of the working-class area are eligible to receive as many as four pills of the erectile dysfunction drug each month, the mayor said. They have to be at least 60 and be registered with the municipality's health service.

"A doctor will have to certify that they suffer from erectile dysfunction and that their condition would not put them in danger of suffering cardio-respiratory side effects," Navarrete told The Associated Press by telephone.

He said he has assured about US$10,000 (euro6,400) in financing for the program through the end of the year.

Some government insurance plans in the United States and elsewhere provide Viagra, but Lo Prado hands the 50mg pills out free, with no membership in any public or private insurance plan required.

Navarrete said some other mayors in the Santiago area, which includes 34 municipalities, have told him they plan similar programs.

Navarrete said he did not know how many pills had been distributed so far

Another possible by-line for this story is “State Department tries hand at Universal Healthcare to make others feel better”

 It's campaign season and catchy slogans are needed.

I wonder if this could be said of the New Hampshire politicians, regardless of party affiliation, with regards to how they view the PROPERTY OWNERS in this state.

Makes you wonder!

Federal Government Spending is hitting an all time high and, even though they aren’t hitting the taxpayers directly, we will feel the effect. All of the increased spending is from money the feds are borrowing, thus increasing the National Debt.

Our representatives in Washington D.C. think they can get away with this because the American People don’t follow all of their actions that closely. Most people see the members of the Republican Party as Conservatives and forget that the Conservative Movement is only a portion of the party.

People blame the war in Iraq and all of the media hype for the fall of the Republican Party in the 2006 elections. The Democrats in New Hampshire only rode the wave of discontent to take over our state legislature. What we need is more spending accountability for our elected FEDERAL and STATE Representatives. All of their votes on spending should be recorded and reported so we all know who they are representing.

The video below is a CNN report about the current spending issue and how accountability can be established.

The important thing to remember is that conservative principals require a reduction in spending to off-set any reductions in the tax rates we pay. This holds true for federal, state, county and municipal spending and taxation.

This November we will be facing some important choices and it is important that we not just elect Republicans to control taxes but that we elect Conservatives to control spending.

We become like zombies when deciding who to cast our vote for elected officials. We only pay attention to what the main stream media says and do not become informed from other sources. Please do your research and vote for the people who will fight to protect our wallets.

I receive regular e-mail updates about important information from MyHeritage.org and I have re-printed the story below.

This article looks like it could be concerned with the State/County payments for Medicaid/Medicare and the Nursing Home issues relating to HB2. Just an important reminder that Senators Sgambati and D’Allesandro will be at the City Council meeting on Monday, March 24, 2008 at 7:30 PM in room 200A at City Hall. They will be bringing a representative from HHS to answer questions.

I have added some comments and talking points after the facts for each of these myths.

(If you would prefer to see the e-mail I received you can click on the link MyHerigage.org/E-mail Archives)

Government spending is spiraling out of control.

Over the next several decades, spending on the big three entitlement programs—Medicare, Medicaid and Social Security—will more than double as a proportion of the economy. Without reform, these massive spending increases will squeeze other programs, including the military, and could compel unprecedented tax increases.

Many liberals claim that reform isn’t needed, and their budget plan fails to curb this ever-rising spending. They base this inaction on five common myths that Heritage’s Brian Riedl debunks.

(see http://www.heritage.org/Research/Budget/bg2114.cfm)

Myth 1: There is no need to hurry on reform.

The Facts: Entitlement programs are big and getting bigger—quickly. Riedl notes that “Social Security, Medicare, and Medicaid already absorb 42 percent of the federal budget and are growing by 7 percent annually, making them the largest impediment to balancing the budget.” And unless lawmakers act soon, “all 77 million baby boomers will have turned 55, leaving future lawmakers with the unpalatable options of massive, economy-stagnating tax in­creases, unprecedented program terminations, or the paring back of benefits for those over 55. Tack­ling reforms immediately will reduce their ultimate costs, spread the burden across more people, and give baby boomers more time to adjust their retire­ment strategies.”

My Comments: We have already seen what happens in New Hampshire because of the inflationary growth in these programs. Entitlements are partially cut because the State passes the costs onto the property taxpayers through the Counties. This strategy may help hide the problem at the federal level because New Hampshire apparently likes leaving money on the table in Washington D.C. when we don’t pay the full share, thus passing on more costs to the taxpayers. Expenses need to be brought under control sooner rather than later, when everyone is homeless because they can’t pay their property taxes.

Myth 2: These budget projections are unreliable.

The Facts: Incontestable demographics make clear that the retiring baby boomers will drive up entitlement costs. “The impending retirement of 77 million baby boomers is not a vague theoretical projection,” Riedl argues. As more and more boomers retire, the government will face increased Medicare spending, higher long-term care costs and Social Security benefits determined by a specific formula.

My Comments: They may say the budget projections are unreliable (except at Belknap County) but no one argues that the aging population is growing faster than other segments of the population. Is this why the state decided to get out of the business with HB2? Real reform is needed in the system, not pretend reform that only “passes the buck” to the everyday citizen. This effect is being compounded by the slowing economy and increasing energy costs.

Myth 3: Economic growth will solve the problem.

The Facts: “Revenues associated with higher economic growth would help only marginally,” Riedl explains. In addition, because entitlement costs are tied to economic indicators like income, “the same factors that could increase tax revenues would also increase spending.”

My Comments: Economic growth will help to lessen the impact on taxpayers, but as long as the state and county are happy with passing on the expenses nothing will be done until we make our voices heard. Imagine the impact we will feel when mandatory “universal” health care is instituted, depending on what November brings.

Myth 4: Cutting government waste and pork is enough.

The Facts: Cutting waste alone will not cover the massive new spending on entitlements. “In fact,” Riedl writes, “offsetting this spending hike would require eliminating every other federal program by 2049 except interest payments on the federal debt. Non-defense programs would be eliminated by 2030, and defense spending would be eliminated by 2049.”

My Comments: I agree that cutting government waste and pork isn’t enough to achieve the goal of affordable benefits, but it is a good place to start. I have to give credit to my friend Skip Murphy, with whom I am having a blog debate (click here and here for his side of the debate), this item does point to your main theme for the debate “reduce the expenses to bring the budget in line with reality” does cover reducing waste and pork.

Myth 5: Letting the 2001 and 2003 tax cuts expire will solve the problem.

The Facts: “Losing the tax cuts would close less than 1 percentage point of the 10.2 percent gap” between current and future entitlement costs. And that projection from the Congressional Budget office doesn’t take into account the likely economic consequences of such a tax increase.

My Comments: Have our representatives at the state and county level taken the likely economic consequences of a tax increase into account? I think not. The main point of this article is that expenditures (costs) must be controlled, which will reduce the effect on revenues (taxes) needed.

Speaking of the economic consequences of taxes, has anyone pressed the issue about expanding the tax credits Gov. Lynch is advocating for the North Country to other areas of the state? is this because we don’t need economic growth in this state, we have property taxpayers to pick-up the bills.

My hope is that everyone takes these considerations into account as we head to the primary in September and the polls in November. We can only complain about the cards we are dealt with if we refuse to admit that we are the ones dealing the cards.

YOUR VOTE COUNTS.

Do the research so it isn’t wasted.

Now it’s “Where’s the Answers?”

At the Laconia City Council meeting on Monday, March 10^th during the City Manager’s Report item on the agenda there was more discussion about the Belknap County budget and the Public Hearing. This was reported in both the Citizen of Laconia and the Laconia Daily Sun. (click this link to view the March 11^th edition)

If you read these articles you can easily see that nobody on the council feels we received adequate answers to our questions about why the revenues are so short. It is getting quite frustrating for us and, I imagine for others in the county.

If you have read any of the blog debate (Post 1 and Post 2) I am having with Skip Murphy at Granitegrok.com or any of my previous posts or responses (Post 1, Post 2, Response 1, Response 2) on this subject you will know that this is a subject very dear to my heart. The TAXPAYERS can’t afford double digit increases in their taxes and we in Laconia have let it be known by passing the Spending-Tax-Cap. The problem is that this increase at the county level still affects us because even though this increase will not be passed onto the property taxes raised, the city still has to pay the county. This reduces the funds available for operating the city and schools. The county increase (10.417%) is greater than the reported CPI-Urban rate of inflation increase (2.9%) by over 3 ½ times.

My friend Skip has concentrated a lot of his effort on the expenditure side of the equation and I don’t disagree with his assertion that the county expenses should be trimmed and kept in check. My issue is that this problem was stacked on the revenue side of the equation and a lot of the blame has been indirectly placed on HB2.

The reason I see the revenue side of the equation as the most important part of the county budget is that the spending on Medicaid/Medicare programs, especially the Nursing Home, will far outpace any other spending going on in the county budget. These programs are set up as a Federal Cost-Sharing plan requiring either the state or local government to pay 50% of the costs. Skip argues that this is only “account transfer” that is paid by the taxpayers, which is true. The problem is this is the program we were dealt by the feds and the feds don’t care who pays the non-federal share. Thus HB2 comes into play.

Councilor Lipman predicted that in coming years, care for the elderly is not going to carry an annual inflationary factor of less than high single digits. The entire council agreed the city cannot handle those kinds of numbers and stay within the local property tax cap without significantly impacting city services, including schools. Mayor Matt Lahey said “At some point it’s going to go beyond our ability to absorb it,” which I think hits the nail on the head.

As Ed Engler reported in the Laconia Daily Sun:

“The tax cap covers everything passed on through property taxes, including the city’s share of running Belknap County government in general and the Belknap County Nursing Home in particular. And the city’s 20-percent share of that bill for 2008 is going up $164,000 more than is being allowed, proportionally, under the cap. The difference will have to me made up, for fiscal year 2008-2009, out of city and school spending plans and City Manager Eileen Cabanel indicated she will recommend that additional burden be split 50-50 with the School District.”

City Manager Eileen Cabanel stated “We seem to be getting different answers from different people on HB-2” and Mayor Lahey added “We really couldn’t get an answer” to any of the questions we were asking.

The Mayor has spoken with Senator Kathleen Sgambati about this and she volunteered to come to a council meeting to explain the way the bill is supposed to work. Mayor Lahey is going to ask Sen. Sgambati to attend the next council meeting on Monday, March 24^th at 7:30 PM. She will also bring Senator Lou D’Allesandro (D-Manchester) and at least one official for the state Department of Health and Human Services with her.

I would everyone to attend this meeting to show support for our position that costs are being unfairly passed on to the property taxpayers. My feeling is that Mayor Matt Lahey will allow some questions from the public during this debate. If you are unable to attend then I would encourage you to forward any questions you may have to myself, the Mayor or one of the other council members.

LET’S GET THE ANSWERS WE DESERVE!!

This is an example of

"Wealth Redistribution"

The translation is:

There are people that have needs greater than yours, now give me all of your money so I can help them!

A friend of mine sent me these stories and I think with all of the discussion that has taken place over taxes that I should lighten it up a little. I don't want everyone getting depressed with what is going on.

The Father/Daughter Talk

A young woman was about to finish her first year of college.

Like so many others her age, she considered herself to be a very liberal Democrat, and was very much in favor of "the redistribution of wealth."

She was deeply ashamed that her father was a rather staunch Conservative, a feeling she openly expressed. Based on the lectures that she had participated in, and the occasional chat with a professor, she felt that her father had for years harbored an evil, selfish desire to keep what he thought should be his.

One day she was challenging her father on his opposition to higher taxes on the rich and the addition of more government welfare programs. The self-professed objectivity proclaimed by her professors had to be the truth and she indicated so to her father. He responded by asking how she was doing in school.

Taken aback, she answered rather haughtily that she had a 4.0 GPA, and let him know that it was tough to maintain, insisting that she was taking a very difficult course load and was constantly studying, which left her no time to go out and party like other people she knew. She didn't even have time for a boyfriend, and didn't really have many college friends because she spent all her time studying.

Her father listened and then asked, "How is your friend Audrey doing?"

She replied, "Audrey is barely getting by. All she takes are easy classes, she never studies, and she barely has a 2.0 GPA.

She is so popular on campus; college for her is a blast.

She's always invited to all the parties, and lots of times she doesn't even show up for classes because she's too hung over."

Her wise father asked his daughter, "Why don't you go to the Dean's office and ask him to deduct a 1.0 off your GPA and give it to your friend who only has a 2.0. That way you will both have a 3.0 GPA and certainly that  would be a fair and equal distribution of GPA."

The daughter, visibly shocked by her father's suggestion, angrily fired back, "That wouldn't be fair! I have worked really hard for my grades! I've invested a lot of time, and a lot of hard work!  Audrey has done next to nothing toward her degree. She played while I worked my tail off!"

The father slowly smiled, winked and said gently, "Welcome to the Conservative Way."

--------------------------------------------------------------------------------------------------------------------

The Republican and The Democrat

A Republican and a Democrat were walking down the street when they came to a homeless person. The Republican gave the homeless person his business card and told him to come to his office for a job. He then took $20 out of his pocket and gave it to the homeless person.

The Democrat was very impressed, so when they came to another homeless person, he decided to help. He walked over to the homeless person and gave him directions to the welfare office. He then reached into the Republican's pocket and got out $20. He kept $15 for administrative fees and gave the homeless person $5..

Now, do you understand the difference?