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CARES ACTION ALERT – MAY 20, 2007 – CALLS NEEDED

THE SENATE WILL DECIDE NEXT WEEK on ITS BUDGET and CUTS to the HOUSE BUDGET

Based on the schedule presented at Friday’s Senate Finance Meeting, the Senate plans to FINISH ITS BUDGET BY NEXT FRIDAY (May 25) INCLUDING MAKING FINAL DECISIONS ON CUTS STARTING MONDAY.

This is sooner than we had thought and IT MEANS IT is IMPORTANT to CONTACT SENATORS NOW on the WAYS & MEANS and FINANCE COMMITTEES NOW to:

#1 - SUPPORT the HOUSE DHHS BUDGET

Why & Rationale: The CARES analysis has found no significant program funding that can be cut from the House Budget without hurting safety net services and the people who rely on them. This analysis is strongly supported by the testimony the Senate received in the last two weeks from DHHS. This repeatedly described the details of how the House DHHS budget barely maintains basic safety services and has gaps that need filling (e.g. too low rates and estimates of people served). Indeed, after two weeks, the Senate has yet to offer any specific cuts that will not hurt people and communities, cost more money than they save, and erode the essential safety net infrastructure so critical to our well-being. For more details, see CARES Web Page at www.drcnh.org – and make sure the Senators know we are in favor of legitimate money-saving plans and improvements - and are waiting for them and not "across the board cuts."

#2 SUPPORT the HOUSE REVENUES and ESPECIALLY the House’s $.17 per pack INCREASE in the CIGARETTE TAX ($.45 increase total).

Why? - (1) This increase will benefit the health of our state immeasurably by getting thousands of residents to stop smoking. It is well documented that this will save thousands of premature deaths and millions of dollars for the State, businesses, and families. Low-income youth and adults will stop smoking the most, so do not accept the argument some Senators use that the increase is regressive and hurts poor people. It will save thousands of poor people from dying early, reduce their tax to zero when they stop, and fund services that give them opportunities to better themselves. (2) The increase still keeps our reputation as “low tax NH” because the $.45 increase is still far below other states ($.98 per pack less than ME, $.46 less than MA). Further, if it had been responsibly increased more in the last budget, less of an increase would be needed now for health & revenue reasons. (3) Finally, the increase is essential for providing basic services in the DHHS budget, unless the Senators are willing to come up with other revenue to replace it.

WHY CALLS (good) and CONTACTS (Better) ARE NEEDED NOW

In spite of the fact many Senators on Finance have supported the DHHS safety net in the past when they were in the minority, we have to take them at THEIR WORD that THEIR GOAL is to now make tough choices and BRING in a BUDGET CUT BACK to the GOVERNOR’S BUDGET level. This is a cut of up to $60m from the House Budget (depending on whether the Senate accepts House adjustments agreed to by the Governor’s Office).

IF WE DO NOT CALL NOW, they will LISTEN primarily to the loud VOICES of the RETAILERS and the strong ANTI-TAX LOBBY (who have been very vocal) and CUT the DHHS BUDGET so they can CUT the HOUSE’S CIGARETTE TAX INCREASE. They need to hear from you what is rare in NH politics – that you SUPPORT the House's $.17 CIGARETTE TAX INCREASE and a total $.45 increase is acceptable.

WHO to CONTACT

CALL SENATE WAYS & MEANS MEMBERS FIRST since they plan to decide on revenues TUESDAY Morning

Members of the Senate Ways and Means Committee who will decide on revenues are:

Sen. Bob Odell (Chair, 863-9797 and 271-6733 at the State House, rpojr@aol.com )

Sen. Harold Janeway (746-3818 home, 224-1600 office and 271-3041 at State House harold.janeway@leg.state.nh.us or haroldjaneway@verizon.net )

Sen. Deborah Reynolds (536-5553 and 271-3569 at State House deb.reynolds@leg.state.nh.us ) and

Sen. Michael Downing (893-5442 and 271-2674 at the State House michael.downing@leg.state.nh.us ).

Note 1: Call the Committee Office at 271-3092 to get a message to a Member.
Note 2: Senators D’Alessandro, Janeway, and Odell are also on Senate Finance, so also talk to them about the importance of keeping the House DHHS Budget as well as your support of the House revenues.

This needs to be your first call because the SENATE WAYS & MEANS COMMITTEE PLANS to DECIDE on THEIR REVENUES THIS TUESDAY MORNING (22nd) – and because, as Senator D’Allesandro made clear on Friday, the plan is for Senate Finance to fit their budget to the revenues that the Ways & Means Committee approves on Tuesday. This means that they plan to cut the House Budget one dollar for every dollar that their revenue estimate is lower than the House’s estimate.

We do not know how much lower their revenues will be, although all indications so far are for lower. Nonetheless, based on the Ways & Means initial reduction of $39m from House estimates last Tuesday and the negative reaction by several Senators to the House’s $.17 per pack increase in the cigarette tax (and no Senator has come out in favor of it), our guess is they will come up with a minimum of $50m in lower revenues ($25m per year). This would mean $50m in State Fund cuts to the House Budget.

There is always hope the Senate has some revenue enhancements in mind – and the Senate usually comes with some every session. These have not surfaced yet, and with the Governor’s opposition to revenues not in his budget and the sensitivity of the Democratic Senate to being labeled “tax and spenders,” these may be less likely than usual. Your calls may help the Senate get creative.

THE NEXT CALL is to the SENATE FINANCE COMMITTEE

Members are:

Senator Lou D’Allesandro, Chair (also Ways & Means, 669-3494 home and 271-2117 at State House, dalas@leg.state.nh.us )

Senator Harold Janeway, Vice Chair (also Ways & Means, 746-3818 home, 224-1600 office and 271-3041 at State House harold.janeway@leg.state.nh.us or haroldjaneway@verizon.net )

Senator Bob Odell (also Ways & Means, 863-9797 and 271-6733 at the State House, rpojr@aol.com ), and Senate President Sylvia Larson: 225-6130 & 271-2111; Sylvia.Larsen@leg.state.nh.us

Senator Maggie Hassan: 772-4187 home, 373-2007 office, and 271-4153 at the State House, maggie.hassan@leg.state.nh.us

Sen. Kathy Sgambati: 286-8931 & 271-3074 at the State House,
kathleen.sgambati@leg.state.nh.us or sgambati@metrocast.net

Senator John Gallus: 752-1066 and 752-6000 office and 271-3077 at the State House, john.gallus@leg.state.nh.us or gallus@ncia.net

The Finance Committee phone for messages is 271-3095

SENATE FINANCE SCHEDULE for NEXT WEEK to TALK in PERSON

Monday the 21st @ 10:30 AM
Tuesday the 22nd @ 1 PM
Wednesday the 23rd @ 9 AM,
Thursday the 24th @ 1 PM or right after the Senate session ends Friday the 25th @ 9 AM.

The meetings are in Room 100 of the State House, and they plan to go for as long as it takes (which may be into the night, if needed, according to Sen. D’Alessandro). Because the subcommittees in charge of different parts of the budget (Sens. Sgambati & Odell are the DHHS subcommittee) have not yet come up with many cut recommendations, it is unclear how the meetings will work. The plan is to begin voting on subcommittee recommendations on Monday morning – and it may be that they will break into subcommittees to continue to develop their recommended cuts and then meet in full committee to vote on them. Unfortunately, as indicated in our alerts last week, the instructions from the Chair so far are only to develop recommendations for cuts.

NOTE: HOW the SENATE BUDGET USUALLY AFFECTS the FINAL BUDGET

The House and Senate budgets are reconciled in the Budget Committee of Conference. Historically the final budget is about halfway between the two, so for every $1 the Senate cuts below the House, the final budget will be cut by $.50. (For example, if the Senate Budget is $60m below the House, the final budget will likely be $30m below the House.) This means reducing the Senate cut is very important to the final budget. And this year it may be harder for the House to get to halfway because the Governor will likely be supporting the Senate position.