Latest news with #SenateWaysandMeansCommittee
Yahoo
08-05-2025
- Business
- Yahoo
Senate sets budget revenue targets below Ayotte's, frustrating governor
Senate Ways and Means Chairman Tim Lang, a Sanbornton Republican (left), speaks to Sen. Keith Murphy, a Manchester Republican, after a Ways and Means Committee hearing, May 7, 2025. (Photo by Ethan DeWitt/New Hampshire Bulletin) As the Legislature crafts the next two-year budget, one question has driven a wedge between House Republicans and Gov. Kelly Ayotte: How much revenue will the state raise in taxes? This week, Senate Republicans drew the governor's criticism, too. The parties have dueling projections. In February, Ayotte presented an optimistic portrait, one that assumed state businesses would overcome a recent slump in earnings and rebound over the next two fiscal years. In April, the House took a less rosy approach, estimating far fewer business tax collections and passing a budget that slashed Ayotte's spending proposals by $643 million. Now, as the budget moves to the Senate, the Senate Ways and Means Committee has recommended a middle ground. On Wednesday, the committee endorsed a series of revenue projections that would put estimated revenues somewhere between the governor's and the House's assumptions for the next two years. Ayotte is not satisfied. 'I disagree with that vote,' she said at a press conference Wednesday, reacting to the Senate's projections. 'And I also will tell you this: I don't understand why Republicans are joining with Democrats who want to put us in a position to raise taxes instead of adopting, I think, what would be a more accurate revenue picture for the state.' The Senate committee's overall revenue estimate for the next budget biennium is about $6.1 billion — $228.1 million higher than the House Ways and Means estimate, but $172.1 million lower than Ayotte's budget, according to numbers from the Legislative Budget Assistant. Much of that difference is driven by disagreements over business taxes. The calculations could allow the Senate Finance Committee to restore some, though not all, of the budget cuts imposed by the House. But as businesses nationwide fret about the effects of President Donald Trump's evolving tariffs, some state Democrats are questioning whether the Senate's new projections are themselves too optimistic. Sen. Tim Lang, a Sanbornton Republican and the chairman of the Senate Ways and Means Committee, acknowledged that New Hampshire businesses could be affected by the tariffs and other economic headwinds. But he said he believes those hurdles will merely dampen growth, not stop it, and that businesses will begin a path to recovery by the new year. 'When you look at what we heard from the industries across the board was that there's not a recession happening. No one's lowering their number,' Lang said in an interview Wednesday. He argued that because inflation has dropped, and interest rates are lower, companies and consumers are in decent financial shape. Lang also said he is not worried about the tariffs long term. 'The general consensus of the committee was that'll play itself out by the end of this year. So it'll affect the first half of the first year (of the two year budget), but after that, we'll see the growth.' But Sen. Cindy Rosenwald, a Nashua Democrat and ranking member of the Ways and Means Committee, is doubtful. 'Consumer confidence is down, GDP shrunk in the first quarter,' Rosenwald said in an interview. 'I'm not hearing businesses saying 'we're doing a great job.' April (state) revenues were off, pretty substantially.' Speaking to reporters in her office at a regularly scheduled press availability, Ayotte did not hide her frustration with the projected numbers. She said the rosier numbers in her budget are still realistic, and urged the Senate to use those. Ayotte's revenues were set in February, before Trump imposed an aggressive series of tariffs on China, which in some cases exceed 100%. But Ayotte said she met with Commissioner Lindsey Stepp of the Department of Revenue Administration and economist Brian Gottlob just after the House passed its budget, on April 25, and that they had said her revenue projections were still sound, even with the tariffs. 'They assured me they're still comfortable with my revenue estimates, and they believe that in the next biennium, we will see a rebound on our business revenue,' she said. The Senate Ways and Means Committee's revenue recommendations will now guide the chamber's budget writing process. The Finance Committee, which heard nine hours of public testimony Tuesday, must make its recommended changes to the budget in time for the chamber to vote for the budget on June 5. Members of Ways and Means set predictions for each category of state revenue Wednesday. In most cases, they predicted slightly more revenue than their House counterparts did in March. Senators set the meals and rooms tax estimate higher than the House's, with Lang saying representatives of the hospitality industry said they are not seeing a decline in bookings. They also quibbled over alcohol sales. Lang argued to the committee that liquor revenues would be higher than the House had predicted, in part due to increasing interest in mocktails. 'We see the (New Hampshire Liquor Commission) moving more towards providing those things in the store for people that are coming in and buying both alcohol for one part of the family, and the other thing,' he said. Sen. Keith Murphy, a Manchester Republican who owns the bar Murphy's Taproom, disagreed, noting that liquor sales have dipped recently as fewer Americans drink. 'I have seen in the younger generation, it's just a catastrophic drop off,' Murphy said. 'It's hard to be upset with people for not drinking as much, right? It's good from a health perspective, but I am very concerned the revenues the state derives from alcohol consumption is going to not recover any time soon.' The revenue projections could force the Senate Finance Committee to make tough decisions over which programs in Ayotte's budget they restore, and which they allow to be reduced or cut. On Wednesday, Ayotte named a number of programs she hopes will stay. 'I can tell you one that's on the top of my list, which is restoring the 3% cut to providers of Medicaid,' Ayotte said. '… (For) the providers across the board, that's a very important core issue when we think about serving our most vulnerable population.'
Yahoo
07-05-2025
- Business
- Yahoo
Senate revenue forecasts higher than House's, but well below Ayotte estimate
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Generate Key Takeaways The Senate panel in charge of tax and fee legislation forecasts rosier revenue growth for the next two years but more than $260 million less than what Gov. Kelly Ayotte had estimated in presenting her spending plan last February. Ayotte told reporters she stands behind the estimates of her experts and said she couldn't understand why Republicans on the Senate Ways and Means Committee were 'working with Democrats' in a manner that could force a state tax increase to support needed services. 'I disagree with that vote and I also will tell you this, I don't know why Republicans are working with Democrats, putting us in a position to raise taxes,' Ayotte said. Democratic members of the Senate Ways and Means Committee were less optimistic about future revenue growth and Ayotte said the reason is political. 'It is pretty ironic the Democrats are trying to masquerade as fiscal conservatives on revenues,' Ayotte said. 'They want to raise taxes and to have Republicans join Democrats on the revenue numbers doesn't make any sense to me.' Ayotte said she remains just as certain her revenue numbers will prove more accurate as she did in first putting them together three months ago. 'At the end of the day, the budget that passes, the lady who has to manage all this is me,' Ayotte added. The Senate Ways and Means Committee estimates were $228.1 million more than what the House's counterpart panel had come up with to help produce a House-approved budget in March. But Ayotte's numbers were higher nearly across the board, $42 million more in the current year that ends June 30, $37.5 million next year and $183 million more in the last year of the next budget cycle that concludes June 30, 2027. Chairman Tim Lang, R-Sanbornton, came to the committee after huddling with Ayotte's staff on the numbers and had suggested in several cases higher figures than what his committee settled upon. 'The issue is where we think the economy is going,' said Lang, adding he believes growth will be slower next year but should ramp back up in the second year. 'I do think it's going to be improving in 2027.' Senate Deputy Democratic Leader Cindy Rosenwald of Nashua said she was much more pessimistic, particularly in the short term. 'The economy has shrunk in the first quarter, consumer confidence has slipped and we're likely to see supply chain problems in the next few months,' Rosenwald said. 'I think the chances for recession are much higher than they were a year ago.' Senate Dems view "extreme uncertainty" Sen. Donovan Fenton, D-Keene, the owner of an automotive sales business, said at one point revenue growth will be on the 'low end," with tariffs, higher prices and an economic slowdown all combining to confound experts about the future. 'I think there is extreme uncertainty,' Fenton said. Sen. Keith Murphy, R-Manchester, the owner of a restaurant and conference center, said he agreed the future was cloudy. 'I don't talk to anyone at my businesses that says the economy is going to be surging,' Murphy said. As a former House member, Murphy recalled Democrats in control of the Legislature in 2008 forecast huge revenue growth that didn't come to pass. An $800 million budget deficit at that time led to layoffs, deep spending cuts, an ill-fated LLC Tax that was later repealed and many higher fees to balance the books. 'I was here in 2010 when we came out of a big, big hole. I don't want to see a repeat of that. I'd rather be surprised that more revenues came in than we had expected,' Murphy said. The biggest rift between Ayotte's team and the Senate's numbers were in expected returns from the state's two main business taxes — the 7.5% Business Profits Tax and .55% Business Enterprise Tax — that generate about 40% of main taxes that support the budget. Revenue Commissioner Lindsey Stepp had estimated a range of business tax growth between 2 and 8% for each of the next two years. Ayotte took the higher number with the blessing of Stepp and Brian Gottlob, the state's chief economist who works with the Department of Employment Security. The House budget had relied on the lower range while the Senate prediction falls somewhere in the middle which means it calls for bringing in $160 million less than Ayotte had forecast. Ayotte's estimates were not all higher than the Senate. After meeting with Lottery Executive Director Charles McIntyre, Lang convinced his panel to raise the estimate for legal wagering profits $35 million in each year over Ayotte's estimate. Lang said the growing popularity of historic horse racing machine playing, the returns from the opening of a mega-charity casino in Nashua and one to come in Salem, and a future legalization of slot machine gambling all justify raising this forecast. What's Next: The Senate Finance Committee will use these higher revenue estimates to restore some but not all of the cuts in state spending contained in the House-approved budget. Prospects: A House-Senate conference committee on the budget will decide what the final revenue forecast is with the benefit of reviewing receipts that come in during May and some of June. In the past, the final revenue numbers on occasion have come in even higher than what the governor, House or Senate had settled upon. klandrigan@
Yahoo
07-05-2025
- Business
- Yahoo
Senate on board with shelter system spending cut
BOSTON (SHNS) – Top legislative Democrats appear to be in early agreement on cutting funding for the emergency shelter system that has been under enormous pressure for most of the last two years. The Senate Ways and Means Committee on Tuesday rolled out a fiscal year 2026 budget bill that calls for $275 million for emergency assistance shelters, the same amount in the budget draft the House approved last week. Healey administration officials expect the state will spend more than $1 billion on the system through the end of fiscal 2025. A series of eligibility reforms and service caps have decreased the caseload in recent months, and lawmakers now appear confident enough to try to trim spending dramatically. Senate budget chief Michael Rodrigues told reporters the $275 million proposal 'makes sense at this time' as demand drops and as the balance of families in the system shifts toward more long-term Bay Staters and fewer newly arriving migrants. Asked if $275 million will be enough to meet demand for all of fiscal 2026, Rodrigues replied, 'We think so.' 'We never plan on supps,' he said, referring to midyear spending bills known as supplemental budgets. 'We budget what we think is going to provide us enough resources for the fiscal year. But supps happen, other stuff happens.' Lawmakers and Gov. Maura Healey underfunded the emergency assistance shelter system in the annual budget in each of the past two years, requiring the administration to seek additional funding partway through the year to keep services running. In February, Healey signed a bill pumping another $425 million into the system while enacting a series of reforms, including shorter stay limits, a cap on families the state will serve in 2026 and tighter security measures. Shelter caseload has been dropping. In mid-April, the administration announced the number of families in the system fell below 5,000 for the first time since July 2023, a 33% decrease from its peak. Healey proposed $325 million for emergency family shelters in her annual budget, which she filed in January. Rodrigues said Tuesday that 'a lot's changed since January.' Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to WWLP.
Yahoo
06-05-2025
- Business
- Yahoo
In new budget, Mass. Senate Democrats to propose $25M for healthy food program
Bay State families struggling with their food bills could get some extra help if a western Massachusetts lawmaker has anything to say about it. The budget plan that majority-Senate Democrats are expected to unveil Tuesday will fully fund the state's Healthy Incentives Program, which allows qualifying people to buy locally grown fruits and vegetables from participating farmers. The language, backed by Sen. Joanne M. Comerford, D-Hampshire, Franklin, and Worcester, would provide some $25 million in funding for the new fiscal year that starts July 1, up from the current $15 million. 'It really speaks to this critical moment,' Comerford, of Northampton, said of shifting federal winds that affected social services programs across government. The 'HIP' program, as it's known in legislative shorthand, traces its roots to 2017. It is intended as an adjunct to the federal government's Supplemental Nutrition Assistance Program (SNAP), sometimes referred to as 'food stamps.' With that federal program potentially on the chopping block on Capitol Hill, Comerford and her allies exclusively told MassLive that the expanded state support is even more critical. 'It is urgent and timely and necessary,' Comerford, the vice chairperson of the budget-writing Senate Ways and Means Committee, said. If it's finally approved, the additional money would also restore the maximum benefit under the program to $80 a month for a family of six or more. Right now, that benefit is flat-funded at $20, irrespective of the size of the household. The state was forced to trim support for the program after huge demand, which meant that an initial round of funding that was supposed to last three years was exhausted in 10 months, Rebecca Miller, the policy director for the Massachusetts Food System Collaborative, said. The advocacy group has been pressing the case for full funding for months, arguing that it provides a critical lifeline to hungry families and the farms that serve them. 'It's been devastating for farmers,' she said. 'A lot of farmers grew products to serve folks [in the program],' she said. 'Anecdotally, we've heard about people going to food pantries and having less options. Seniors have had to rely on other sources for food.' At the same time, 'we've seen a lot of chaos from the federal government,' as it's cut other programs that support access to fresh fruits and vegetables, including one that allowed schools to buy farm-fresh foods. That, too, rolled downhill on farmers. 'A lot of folks are scrambling, trying to figure out what they are going to do,' she said. If the new Senate language is approved, the infusion of additional taxpayer cash means families can buy 'tomatoes, lettuce, carrots, apples, strawberries and blueberries,' from local growers to augment the food they purchase through SNAP, Comerford said. And that also matters because every county in Massachusetts experienced some degree of food insecurity in 2023, according to the Greater Boston Food Bank. All told, that came out to 1.9 million adults, or 34% of the state's total population. In Bristol, Hampden and Suffolk counties, 45% of adults reported food insecurity in 2023, data show. The number is even higher among families with children, with 1 in 3 households with children statewide reporting food insecurity in 2023, the same data shows. The issue is particularly pressing in western Massachusetts, where the prevalence of child-level food insecurity hit 43% in 2023, data show. As a practical matter, that means a child went hungry, skipped a meal, or didn't eat for an entire day because there wasn't enough money for food. It also comes as families in Massachusetts and nationwide continue to contend with high prices on supermarket shelves, while the Trump administration says it's working to bring them down. 'Food insecurity is real. It's happening to people all over the state,' Nicole McKinstry, of McKinstry Farms, which participates in the program, told MassLive. McKinstry told MassLive that she's seen families with children come into her shop on Montgomery Street and heard them turn down their kids' pleas for strawberries and raspberries because they need to buy such longer-lasting produce as potatoes. 'It's hard for them to understand why they can't get those fresh fruits and vegetables,' she said. McKinstry said she's had to make financial adjustments, trimming staff to account for that reduced state funding. The program also helps her through the leaner winter months when there's not as much fresh produce at hand. While the Senate plan that's expected to be unveiled on Tuesday is one voice in the annual budget derby, it is far from the final one. Democratic Gov. Maura Healey included $18.8 million for the program in the $62 billion spending bill she filed earlier this year. The $61.4 billion budget proposal approved by the majority-Democrat state House last week sets aside $20 million for the program. That means the final amount, like nearly everything else surrounding the state's final budget, will have to be ironed out in closed-door talks that could stretch well into early summer. Comerford, the veteran of more than a few budget battles, is hoping for the best. 'It has been a win-win kind of program,' she said. More political news Read the original article on MassLive.
Yahoo
05-05-2025
- Business
- Yahoo
Senate Dems plan another big bump in financial aid
BOSTON (SHNS) – The Senate Ways and Means Committee wants to keep its foot on the gas of ballooning financial aid with a 25% increase to the MASSGrant Plus program, according to someone with knowledge of the committee's plans for next year's state budget. The MASSGrant Plus program, which is meant to cover unmet costs of tuition and mandatory fees for low-income community college students attending public higher education institutions, was expanded to an $80 million investment last year. The committee's fiscal year 2026 budget, set to be unveiled Tuesday, will recommend increasing that investment to $100 million. The goal is to make public higher education close to completely free for more lower income students, including those who also qualify for federal Pell grants. The financial aid investment has grown rapidly in recent years. When it was launched under former Gov. Charlie Baker in 2018, the program had just $7.5 million to distribute to students in need. Under the $80 million invested in fiscal 2025, MASSGrant Plus covers the full cost of tuition and fees and an allowance of up to $1,200 for books and supplies for full- or part-time students at public four-year colleges and universities from families earning up to about $85,000 per year. For families earning up to $100,000, the program covers about half of the out-of-pocket costs for tuition and fees for full-time students at the state's community colleges and 15 state universities. Additionally, the University of Massachusetts announced last fall that through the expansion of MASSGrant Plus, any in-state student coming from a family who earns under $75,000 will be able to attend a UMass school for free by next school year. The current state budget included a number of other higher education financial aid investments as well, including making community college free for every Massachusetts resident and an additional $175.2 million for other scholarships awarded through the General Fund. The Board of Higher Education approved budget recommendations in December for fiscal 2026 which included, 'expanding the Massachusetts financial aid programs to make all public colleges and universities debt-free or nearly debt-free for almost all without an existing college degree.' Gov. Maura Healey and the House proposed level-funding the program after years of rapid growth, keeping it steady at $80 million. The most recent big increases in financial aid have been mostly funded through a pot of revenues collected from a 4% income surtax on the state's highest earners. That surtax was approved by voters in 2022, and may only be spent on education or transportation initiatives. The committee plans to release its full annual budget bill Tuesday in advance of floor debate on it during the week before Memorial Day. WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
