NFIB/New Hampshire 2008 Recap
With the next legislative session around the corner in January 2009, let's look at where we are at the close of 2008. Below is a recap of key issues that were addressed both in the positive and the negative for New Hampshire's small business community.
State budget deficit and taxes
- For almost two years, many lawmakers have publicly stated that NH's operating budget that had a 17.5 percent increase in spending could not be sustained by the state's revenues. Last spring the governor and the Legislature admitted this failure.
- A part of the response has been to cut back on some spending, however the majority of the effort to close the deficit was to raise taxes and fees on businesses. And, lawmakers chose to bond an operating expense in the budget that also gets bonded by the local municipality: school building aid. That is certainly not a good business practice.
- The deficit continued to grow these past six months and new cuts may soon be announced.
- The Legislature passed a new school-funding program that adds over $100 million to the next two-year budget.
- As a result of the above actions, a deficit in the coming year or two is looming. It could be as large as $300-500 million when writing the next two-year budget. Taxes and tax increases are on the horizon.
- While the governor has said no to an income tax, it is no secret that solution is the preferred choice of the House leaders.
- Let's also remember that this deficit occurred despite the fact that the state has taken in more revenue than for the same time a year ago. Too much spending, too soon.
- NFIB/New Hampshire continues to work with legislators to slow this growth in spending and to oppose tax increases as the solution.
Environment
NFIB/New Hampshire continues to track and weigh in on legislation relative to new and burdensome business regulations in the environmental arena of issues.
- For small businesses that need access to water for their operations, NFIB/New Hampshire successfully opposed onerous legislation that would have given cities and towns veto authority over water withdrawals despite the fact that the law permits riparian users (land owners situated on bodies of water) to make reasonable withdrawals.
- The House killed a very reasonable bill that would have established a factual database for wetland decision accountability.
- NFIB/New Hampshire has monitored studies of issues relative to land development and land development regulation, storm water regulation, and whether new groundwater withdrawals for previously grandfathered wells should be regulated in the future.
Human resources
NFIB/New Hampshire opposed a bill that would have prohibited "at will" employment between an employee and employer and fortunately it was defeated. NFIB/New Hampshire joined forces with the business community at large to oppose this measure, a measure that exists in only one other state in the nation. However, the mere fact that this bill was introduced demonstrates the influence of the unions these past two years under the leadership in Concord.
The Legislature adopted a new health insurance wellness plan that is based on helping people maintain good health in hopes of having lower healthcare costs. The new law will require health insurance carriers in the small group market to offer one of these wellness plans. The plan's requirements mandate that the premium rate be at or below 10 percent of the prior year's median statewide wage. The plan will also include benefit design, cost sharing requirements and provider payment incentives. The goal is to save small business 15 percent in insurance premiums. While well intended, with all of the new mandated benefits enacted by the Legislature in the past two years, it is very questionable as to whether this laudable goal can be achieved. NFIB/New Hampshire tracked and monitored this bill closely but did not support or oppose the measure.
Economic development
Created this year was an economic development advisory council to assist the division of economic development to aid in establishing goals, measurements, and strategic planning efforts related to economic development. NFIB/New Hampshire supported this measure. The council shall provide a mechanism for the private sector to advise the division of trends and needs and to disseminate information among public and private sector units. Council members shall act as advocates and work to educate businesses, citizens, and communities on the benefits of economic development. It is a large commission with potential small business representation coming in the form of the two positions representing a "chamber of commerce" or "travel and tourism." Additionally, there are three at-large positions appointed by the governor. If there is an NFIB/New Hampshire member interested in serving, we can pursue the possibility.
