Concord update: NH Legislature wrapping up its work. Here's the latest
Happy May! I hope you and yours have a safe, happy and – hopefully – dry and warm Memorial Day Weekend!
Since my last update to you, the House has met five times, and we are scheduled to meet at least three more times to complete our work in June. Some of the work we have completed is highlighted here:
Expanded eligibility for free and reduced meals
HB 1212-FN-LOCALwould have raised the eligibility for free and reduced meals for children of lower-income families from up to 130% of the federal poverty level (equivalent to about $28,000 per year for a single mother with one child) to up to the same 350% level (equivalent to about $64,000) included in the school voucher program. Research suggests children can face long-term consequences from food insecurity, likely affecting their future abilities to engage in the workforce, which impacts all of us. Rather than vote on the merits of the bill, Republican leadership’s motion to table consideration of this bill passed 192 in favor (Emerick and Janvrin) to 191 opposed (Edgar and Muns), with the Speaker of the House – Rep Sherman Packard – casting the deciding vote. Democrats tried twice to remove the bill from the table so that a straight up or down vote on the merits of the bill could be cast. Both of those motions were defeated, 188 in favor to 189 opposed and 185 in favor to 188 opposed. In both of those votes, Reps. Edgar and Muns voted to take the bill off the table and Reps. Emerick and Janvrin voted not to take the bill off the table, effectively killing the bill for this session.
In one of those strange “you can’t make this up moments,” the initial vote to table this bill (and thus kill it) was the last business of the morning on April 11. After that, representatives left to enjoy a free lunch provided by Walmart in the State House cafeteria. I ate the lunch I brought from home.
Funding for public education
There are two lawsuits pending before the N.H. Supreme Court, which could have a dramatic impact on Hampton.
In a suit brought by the ConVal School District, a Rockingham Superior Court judge ruled that the state’s current allocation of $4,100 per pupil to fund an adequate education falls far short of what the state constitution requires. Instead, he ordered a minimum of $7,356 per pupil, or $537.5 million across the state, is necessary to meet the state’s obligation. However, he also said that the “true cost” to be in full compliance with the constitutional guarantee of an adequate education is probably much higher than that. On March 13, the N.H. Supreme Court granted a stay, which allows the state time to appeal this decision to the N.H. Supreme Court.
As an immediate response to the ConVal lawsuit, the House passed HB -1583 FN-Ato increase the state’s current allocation of $4,100 to $4,404 per pupil to fund an adequate education, provide $25 million in additional state assistance to school districts with a large number of students receiving free and reduced lunch and $39 million in additional Fiscal Disparity Aid to school districts. While not nearly enough to address the concerns raised in the ConVal lawsuit this was viewed as an immediate response to the courts that the state is taking the court decisions seriously. HB - 1583 passed205 in favor to 177 opposed. I voted in favor, because not only is this a small – but important – step towards fulfilling our obligations under the N.H. State Constitution, but it will offer real property tax relief to property owners in Hampton and elsewhere. The Senate Finance Committee held a hearing on the bill on April 30, but no vote has yet been taken.
In another suit – brought by Steven Rand and five other property taxpayers - the same judge issued a partial summary judgment ruling that found that the Statewide Education Property Tax (SWEPT) is not constitutional and should be changed to redistribute revenue from wealthier towns to poorer towns. On March 27, the N.H. Supreme Court granted a stay to that order that prevents its immediate enforcement, and on April 25, the Superior Court ruled that a trial on the case would start on Sept. 30.
Under current law, some towns are permitted to retain approximately $29 million in SWEPT taxes collected in their town that are more than what they should receive from the state to meet the state’s obligation to fund an adequate education. For the fiscal year running from July 1, 2023, to June 30, 2024, Hampton will be the recipient of and get to “keep” approximately $121,000 in extra SWEPT revenues collected in Hampton.
However, during the prior year (July 1, 2022, to June 30, 2023), the SWEPT revenues raised in Hampton fell short of the amount the state needed to fulfill its adequate education commitment for students in Hampton and the state sent Hampton over $1.3 million in additional state revenues to make up the difference. During the next fiscal year (July 1, 2024, to June 30, 2025) the amount in extra state revenue Hampton will receive is projected to be about $74,000.
In fact, between July 1, 2009, and June 30, 2025, Hampton has/will have gained more than it has lost in terms of SWEPT collected in Hampton. We have received – in aggregate – an additional $1.8 million in SWEPT revenues from the state than was collected by the state from property taxpayers in our town; we have been a net recipient of state aid and not – as some have suggested – a “donor” town.
To address the concerns raised in the Rand lawsuit, HB 1686-FNwould have required that all the proceeds raised from the SWEPT be deposited in the NH Education Trust Fund and prohibit any of those funds from being used to set negative local or county property tax rates. This bill was tabled 193 in favor, 181 opposed. I voted not to table, as I believe this is an important issue that needs to be resolved.
Property tax relief
The N.H. Legislature established the N.H. Retirement System in 1967 to give our cities, towns, and school districts an efficient and cost-effective way to offer our policemen, firefighters, and teachers a safe and secure retirement plan. In exchange for agreeing to join the system, the state agreed to contribute 40% of the total required employer contribution to the plan. That promise enabled our cities, towns and school districts to offer prospective employees an attractive retirement benefit at a reasonable cost to local property taxpayers.
The Legislature honored that “grand bargain” for most of the next 44 years, until 2011 when the Legislature eliminated the state subsidy of employer contribution rates for teachers, police, and firefighters. To this day, that action remains the single largest tax increase ever imposed by our state Legislature on the residents of and businesses located in our cities, towns and school districts.
Through the leadership of state Rep. Mike Edgar HB 1279-FN-Local requires the state to again pay 7.5% of the contributions for our police, firefighters and teachers. It is a small – but significant – step to restore the grand bargain that benefitted our state for so long. It will provide immediate local property tax relief during the fiscal year beginning on July 1, 2024, of $18.2 million to school districts and $8.9 million to cities and towns across our state. Passed 194 in favor (Edgar and Muns) to 178 opposed (Emerick and Janvrin).
Unfortunately, on April 18, the Senate effectively killed the bill by referring it to interim study.
Hampton Beach development
I was very excited to watch the March 20, 2024 Meeting of the Hampton Planning Board and learn about the preliminary plans to redevelop the Hampton Beach Casino Ballroom. The Ballroom has always been the engine that drives economic activity at the beach, but it is showing its age and reaching the end of its useful life. Given the significant impact the proposed re-development will have on not only Hampton Beach and the entire town of Hampton, but our entire state, it’s exciting and reassuring that the owners of the facility want to move forward with it. One of the biggest outstanding questions for them is whether they will be able to count on being able to incorporate the land under D Street into their plans.
D street is a short (maybe 500 feet) stretch of roadway with limited traffic that runs between two parcels of property owned by the same property owner. I was asked if I would support giving the Hampton Board of Selectmen a limited opportunity (if they chose to exercise it) to act on behalf of the town to close the roadway and allow the planning process for the proposed project to move forward as expeditiously as possible.
Working with Senator Debra Altschiller, we introduced an amendment to HB 1215 that will give the Hampton Board of Selectmen that opportunity. If the board decides to exercise this option, the bill requires that they hold two public hearings as well as consult with the Hampton Planning Board, Hampton Beach Village District and Hampton Area Beach Commission before they make their decision.
The five members of the Select Board were all elected by the voters of Hampton to act in our best interests. I am confident that after receiving input from the public and those local boards that are most vested in the process, the board will make the decision they believe is best for the town. They can, of course, also decide they do not want to take advantage of this expedited process and instead follow the process currently in place, which requires a vote of the entire town. That, however, could either delay the planning for this project for at least a year or result in the town incurring the extra expense of a special town meeting.
Whatever the Select Board decides, the owners of the Ballroom will continue to need to submit their plans to the Hampton Planning Board and Hampton Zoning Board of Adjustment for their review and approval of the overall project plans, subject to existing ordinances on the books in Hampton.
On May 14, the Senate Committee on Election Law and Municipal Affairs voted to approve the amendment Sen. Altschiller and I submitted and recommended HB 1215 to the full Senate as ought to pass as amended. The final vote on the Senate floor is still pending.
Chris Muns is one of Hampton’s five N.H. state representatives. He is currently serving his second term, having previously served between 2012 and 2014.
This article originally appeared on Portsmouth Herald: Concord update: NH Legislature wrapping up its work
