Major Tax Hike Possible in New Hampshire

This is an editorial from the New Hampshire Union Leader, the author was not credited:

TAXES, FEES and spending are all going up in New Hampshire now that the elected branches of government are controlled by Democrats. As the spending is going up fastest, we are being set up for a major tax increase.

Charles Arlinghaus, New Hampshire Union Leader columnist and president of the Josiah Bartlett Center for Public Policy in Concord, released an analysis of the House-passed budget on Thursday that ought to scare senators into breaking out their budget-cutting scissors. Arlinghaus estimates that this year’s budget could contain a more than $1 billion hole that would have to be filled by future tax hikes.

He estimates that revenues will be short of expectations by between $151.5 million and $235.8 million, while spending is between $665 million and $885 million over budget. That makes for a total shortfall of between $816 million and $1.12 billion. And that is after the House already voted for $185 million in tax and fee increases.

The bulk of the shortfall comes from the House definition of adequate education. The bill defining that term commits the state to providing certain school services, including kindergarten, but does not include the cost. Legislators say they’ll get to that later.

Later will be too late. Once the bill is passed, the state will have to pay for whatever it mandates, no matter the cost. Arlinghaus’ estimates range from $620 million to $840 million.

Such financial irresponsibility is appalling. And it is not just happening at the state level. In Manchester, the Democratic majority on the board of aldermen passed a budget that will create a hole of up to $9 million next time around because, like the state budget, it obligates the city to spend far more in future years than the tax base is prepared to provide.

New Hampshire, with its history of frugality and smart spending, is about to learn what it’s like to be grossly, incompetently irresponsible with money. Welcome, everyone, to Blue Hampshire.

You got what you wanted New Hampshire voters. I hope you are happy.