New Hampshire Advantage Coalition - Kenney and Guinta sign on
New 'pledge' would cap state spending
By KEVIN LANDRIGAN Staff Writer
klandrigan@nashuatelegraph.com
CONCORD – The two possible Republican candidates for governor signed a pledge that would cap state spending at the rate of inflation plus population growth.
Sen. Joseph Kenney, R-Wakefield, charged that Democratic legislative leaders and Gov. John Lynch are bent on spending the state into needing a broad-based sales or income tax.
"We are being backed into an income or sales tax by this spending," Kenney told reporters.
"They want an income tax; there is no doubt about that."
Leaders of the New Hampshire Advantage Coalition insisted the pledge is meant to dovetail with – not dilute – the vaunted pledge to veto a broad-based sales or income tax.The group is staging a drive to get a local spending-cap petition before the voters in several communities across the state, including Merrimack.
Manchester Mayor Frank Guinta said lawmakers "fleeced" taxpayers by increasing state spending by 17 percent in the two-year state budget that concludes June 30, 2009.
Asked to give an example of the excess, however, Guinta offered a proposed reform of the state retirement system that GOP gubernatorial candidate Kenney voted for earlier this month.
"That's an example of fleecing the taxpayers," Guinta said.
The Senate passed its retirement reform proposal (HB 1645), 24-0. Kenney said he voted yes only to get it to a negotiated settlement that he hopes will generate a better, final product for taxpayers.
"We are going to come with a situation that does not please both sides," Kenney warned.
Kenney said his most specific example of waste was to increase spending on the state's preservation and historic buildings program instead of using that money to fix more of the state's most dilapidated bridges.
Lynch press secretary Colin Manning referred questions to party officials Monday.
Lynch has said all but 3 percent of the added spending is discretionary. Higher health care, retirement, labor and energy costs drove most of the rise in spending, Lynch said.
Democratic Party Executive Director David Scannell said this appears to be more of an argument among Republicans than a contrast between the two parties.
"They may have to do some convincing in their own back yard," Scannell said.
Any spending limit must account for emergencies, Scannell said, such as the major floods in each of the last two years.
"Everyone wants a responsible state government that spends money wisely, but you'd really want to flesh out the details," Scannell added.
The sluggish economy has led to state revenues coming in below estimates. Lynch estimated the latest shortfall to be $225 million.
Spending cuts already approved have closed the gap.
Lawmakers will vote later this month on other changes such as raising the tax on cigarettes if returns still fall short of the mark and paying the state share of spending on local school construction projects with state-backed bonds rather than cash.
More than 40 elected officials and candidates signed the pledge according to Coalition Executive Director Michael Biundo.
Those signing it Tuesday at the news conference included Republican House members from Hudson and Merrimack.
Fundraising to promote this spending limit pledge begins soon, Biundo added.
Kenney said his most specific example of waste was to increase spending on the state's preservation and historic buildings program instead of using that money to fix more of the state's most dilapidated bridges.
Lynch press secretary Colin Manning referred questions to party officials Monday.
Lynch has said all but 3 percent of the added spending is discretionary. Higher health care, retirement, labor and energy costs drove most of the rise in spending, Lynch said.
Democratic Party Executive Director David Scannell said this appears to be more of an argument among Republicans than a contrast between the two parties.
"They may have to do some convincing in their own back yard," Scannell said.
Any spending limit must account for emergencies, Scannell said, such as the major floods in each of the last two years.
"Everyone wants a responsible state government that spends money wisely, but you'd really want to flesh out the details," Scannell added.
The sluggish economy has led to state revenues coming in below estimates. Lynch estimated the latest shortfall to be $225 million.
Spending cuts already approved have closed the gap.
Lawmakers will vote later this month on other changes such as raising the tax on cigarettes if returns still fall short of the mark and paying the state share of spending on local school construction projects with state-backed bonds rather than cash.
More than 40 elected officials and candidates signed the pledge according to Coalition Executive Director Michael Biundo.
Those signing it Tuesday at the news conference included Republican House members from Hudson and Merrimack.
Fundraising to promote this spending limit pledge begins soon, Biundo added.
