Sequestration to cost State of New Hampshire
more than $6 million in federal funding

DomesticSpending

The White House has released fact sheets showing state-by-state impacts of the automatic budget cuts known as “sequestration”, which are scheduled to go into effect on Friday. This year alone, state and municipal governments in New Hampshire will lose:

  • almost $3.3 million in federal funding for k-12 education
  • almost $1.8 million in federal grants for environmental protection, including fish and wildlife grants
  • more than $1 million in other funding for health programs, job training, justice programs and meals for seniors.

About 1,000 civilian Department of Defense employees will be furloughed, reducing their pay (and the amount they can spend in local businesses) by about $5.4 million. And other federal employees based in New Hampshire will also be furloughed.

Read the New Hampshire fact sheet here.

Domestic Discretionary Spending

During the past few Congress-created crises, federal spending has already been cut by over $1.4 trillion – bring domestic discretionary spending to its lowest level as a share of the economy since the Eisenhower era.

GOP House leadership refuses to do anything except cut spending even more. Read “The Republicans Make an Offer on Sequestration” here.

The Democrats’ plan is to defer the sequester with a mix of tax revenues and more-targeted spending cuts. Read more in the Washington Post here. In that mix: $54 billion would be raised by ensuring that that most millionaires pay at least 30 percent of their income in taxes. But that proposal was immediately dismissed by GOP Senate leadership – and we all know the GOP’s record at filibustering legislation they don’t like.

At this point, most observers expect sequestration to go into effect as scheduled. Remember who created this crisis, when you see the trickle-down effect on state programs and local school districts.

Next crisis date to watch? March 27th, when the current budget resolution expires and the federal government faces shutdown.

Voter ID Impact on NH Taxpayers

get out and vote

When New Hampshire voters went to the polls this year they were asked to show an ID due to the new Voter photo ID bill. On September 1, 2013, that law changes and becomes more restrictive by limiting the list of ID’s that will be accepted in order to cast your vote. The law removes the ability to use most forms of photo ID including those issued by a state, county or municipal government, a valid student ID, an ID determined to be legitimate by local election officials, and simple identity verification by local town officials. Voters without acceptable ID’s will not only have to sign an affidavit but will be required to have a poll worker take their photo before being allowed to vote. The poll workers will then have to print a color copy of the photo in real time and affix it to the voter’s signed affidavit. Not only will the number of individuals who get caught up in the process increase but so will state expenditures to implement the changes.  How much more will this cost the state? Roughly a quarter million dollars was requested by the Secretary of State’s office for FY14 & FY15.

America was founded on the principle that we’re all created equal.  Inside the voting booth, all Americans have an equal and unencumbered voice in our democracy. But instead, some want you to believe it’s a privilege to vote and not a right and those people are willing to make it harder for some to cast their ballot. That’s the real reason why they want to limit the number of ID’s that are acceptable. They will try to convince you that voter impersonation is rampant in New Hampshire, but we know from thorough investigations that this just is not the case. There have only been three cases of voter fraud according to fraud reports issued by the SOS and AG’s office since 2006. The most recent case at the polls in NH was that of James O’Keefe, the conservative activist who was attempting to make a point that voter impersonation is possible, but fell short of proving anything about actual voter impersonation; instead all he proved was his unfamiliarity with New Hampshire voting law, landing himself in hot water. We all agree that protecting the integrity of our elections is vitally important—that’s why we already have strict laws and protections in place.

Proponents of Voter photo ID will also try to convince you that Voter ID laws are no big deal – that you need an ID to get on an airplane or buy a beer. The problem is that neither of those actions is enshrined in our Constitution – voting is. And contrary to their belief, not everyone does have an ID. Just this past election 5,424 people in New Hampshire didn’t have an ID to vote. That’s 5,424 people who might not  cast a vote next election year because they lack ID – no matter who they are, where they come from, what they look like and who they vote for, that’s 5,424 too many.

If those reasons alone don’t give you pause to think twice about the real implications of voter photo ID, then I hope the financial implications will. It is just too expensive to implement when there have only been three cases of voter fraud as reported by the Secretary of State’s office and the Attorney General in the last 8 years. More people get struck by lightning than impersonate another voter at the polls. Is a quarter of a million worth those odds? I think not.

Jess Clark
Political and Field Director
America Votes

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Only Two Months until the NEXT Congress-Created Crisis

is_this_tomorrow

Congress creates another crisisLate last night, one-third of House GOP members voted with the Democrats to pass legislation avoiding the “Fiscal Cliff”.  Congressman Bass voted in favor of the bill; Congressman Guinta voted against it.

Even though the Senate had passed the bill almost unanimously, until dinnertime, it looked like the bill would fail in the House.  What happened at dinnertime?  The House took up a brand-new bill bashing federal employees and attempting to rescind their 0.5% cost-of-living increase, which is scheduled to go into effect at the end of March.  [Federal employees have already supplied $108 billion in “budget savings” through a two-year pay freeze and increased retirement contributions.]

Sure, there were only a few hours left for Congressional action.  Sure, there was no chance whatsoever that a brand-new bill would become law.  The House still took 90 minutes to debate it and hold a roll call vote. [Both Guinta and Bass voted for the bill.  Please remember that, if either of them run again for Congress in 2014.]

And after that last symbolic attack on federal employees, GOP House leadership was finally able to get around to the business of avoiding the Fiscal Cliff.  Gotta wonder about their priorities.

When it finally passed at 11:00 last night, the Fiscal Cliff bill was a true compromise.  It included concessions that angered people on both sides.   (Read the bill here.)

But it also set up yet another Congress-created crisis, scheduled to hit in only two months.

  • The bill did not address the federal debt limit – and two months from now, the Treasury will have exhausted the debt limit “headroom” created by taking “extraordinary measures” with government and postal employee pension funds.
  • The bill did not resolve “sequestration” spending cuts – but rather postponed them for two months.

So, the nation is rolling straight from one Congress-created crisis into another Congress-created crisis.

Gotta wonder why Congress keeps creating crises.  (Journalist Naomi Klein has an interesting theory about how crises – real or perceived – are used to further corporate goals.  Read more here.)

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One of many things the Fiscal Cliff bill didn’t address was restoring the state share of federal estate taxes.

In a “sponge tax” system dating back to 1924, estate tax revenues were historically shared between the states and the federal government.  Back in 2001, Congress federalized the states’ portion of these revenues to help pay for the “temporary” Bush tax cuts.

Restoring the “sponge tax” system could mean more than $3 billion in annual revenues for state governments.  New Hampshire could receive an estimated $27 million in annual revenues.  Read more here.

frigateThe estate tax has a long and patriotic history.  It was created to raise funds for the country’s first Navy, and was used to fund almost every war before Iraq.  Read more here.

But for the past few decades, “members of a handful of super-wealthy families have quietly helped finance and coordinate a massive campaign to repeal the estate tax.  …The families also have helped finance outside groups that have spent millions on fear-mongering ad campaigns intended to sway public opinion against the estate tax.”  Read more here.

Who knows?  Maybe restoring these state revenues will be a part of whatever bill resolves this next Congress-created crisis.