FACT CHECK: New Hampshire ALREADY has one of the BEST “Business Tax Climates” in the Nation
Fact: Despite Walt Havenstein’s misleading claims, the very study his campaign has cited – the Tax Foundation’s State Business Tax Climate Index – shows that New Hampshire’s business tax climate ranks 7th best in the country (and number one in New England).
The Council on State Taxation (COST) also tallied “all of the taxes paid by businesses in a given state, not just corporate income taxes, but property, sales, and personal income taxes as well” and found “that figure was 4.2 percent in FY 2012, markedly lower than the national average of 4.8 percent and less than 38 other states.” [NHFPI, 8/6/14]
FACT CHECK: So-Called “Right to Work”
Fact: Despite Havenstein’s claims, so-called “right to work” really means “right to work for less.”
The Economic Policy Institute’s report, “’Right-to-Work’ Wrong for New Hampshire,” explains that “Contrary to what RTW backers have claimed, the scientific analysis of right-to-work laws shows that they lower wages and benefits for both union and nonunion workers alike without exhibiting any positive impact on job growth.”
FACT CHECK: Havenstein’s Misleading and Dishonest Budget Attacks
Fact: Governor Hassan has repeatedly pledged that she would veto an income or sales tax if one were to reach her desk.
Walt Havenstein’s false attack ignores that agencies are required by law “to submit both a maintenance budget that includes the cost of existing services going forward and a budget that incorporates new costs such as additional personnel or new legislatively mandated programs or technology.” [Union Leader, 10/14/14]
Havenstein’s misleading attack also ignores that Governor Hassan told state agencies their budget requests are non-starters, and already instructed agencies to submit lower proposals. [Union Leader, 8/7/14]
FACT CHECK: Havenstein’s Highway Fund Plan Cuts Troopers, Ignores Constitution
Fact: Walt Havenstein’s plan to cut the Department of Safety’s funding would take troopers off the road and make New Hampshire’s highways less safe.
The New Hampshire Constitution says that the highway funds shall be used for “the construction, reconstruction and maintenance of public highways within this state, including the supervision of traffic thereon.” [NH Constitution, Part Second, Article 6-a] The reference to the “supervision of traffic” allows highway funds to be given to the Department of Safety to fund state troopers.
In her bipartisan budget, Governor Hassan worked to maintain New Hampshire’s status as one of the safest states in the nation by putting more troopers on the road. By cutting the Department of Safety’s highway funding, Havenstein would reverse this effort and pull troopers off New Hampshire’s highways.
FACT CHECK: Havenstein’s Failed Record as CEO of SAIC
Fact: Failed CEO Walt Havenstein drove SAIC into the ground, the company lost millions, shed thousands of jobs, and saw its stock value nose-dive.
Despite Havenstein’s attempts to duck responsibility for the company’s performance during his disastrous tenure, the Nashua Telegraph pointed out that, “there’s little to dispute the company’s stock and job loss performance.”
Speaking of the strategy Havenstein put in place at SAIC to push for big government contracts, the Washington Post added, “The company struggled under the strategy, watching its profit and revenue decline.”
FACT CHECK: Over a Year Into Havenstein’s Tenure as CEO, SAIC Gave a 5% Raise to Consultants at Heart of Massive CityTime Fraud Scandal
Fact: During Walt Havenstein’s time as CEO of SAIC, the U.S. Department of Justice discovered that his company was involved in a massive, $500 million fraud scheme against taxpayers.
Despite Havenstein’s claims that he took action and held people accountable, the New York Daily News reported that, “In early December 2010, only weeks before federal agents launched the first arrests in the scandal, the city’s Office of Payroll Administration permitted SAIC to give 5% across-the-board pay increases to all consultants supplied by Technodyne.” [NY Daily News, 11/21/13]
The employees and owners of the TechnoDyne consulting firm were at the heart of the massive CityTime fraud scheme. Before the U.S. Department of Justice discovered the scheme, SAIC employees funneled $400 million in taxpayer dollars to TechnoDyne. [US DOJ Press Release, 6/20/11]
The across-the-board pay increase for all TechnoDyne consultants came over a year after Havenstein became CEO of SAIC on September 21, 2009. At the time of the raise, the CityTime project was already hundreds of millions of dollars over budget. [NY Times, 12/15/10]
See here for public documents showing that SAIC gave a five-percent raise to the TechnoDyne consultants on December 9, 2010, just six days before the U.S. Department of Justice’s first round of arrests in the case.