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	State Budget Draws Plenty of Protest By Kevin Landrigan Nashua Telegraph April 3, 2011 http://www.nashuatelegraph.com/newsstatenewengland/914554-227/state-budget-draws-plenty-of-protest.html What a week it was. We knew the two-year, $10.2 billion state budget was going to engender a lot of opposition, but 2,500 people worth? The crowd that packed the Statehouse Plaza was indeed the largest seen at least since the mid-1980s. That's when then-President Ronald Reagan spoke at a re-election campaign rally at the invitation of Gov. John H. Sununu. Some who witnessed that event insist Thursday's anti-House budget rally was slightly larger. The only other massive audience that rivals it would be a public protest against the Seabrook Nuclear Power Plant during the early 1980s. At that time, residents were outraged that electric ratepayers were having to pay "Construction Work in Progress" charges on their monthly utility bills. There were many quality speeches during the 90 minutes of festivities, but most observers credit U.S. Episcopal Bishop Gene Robinson with the most fiery, effective rhetoric. "We demonize state workers, scapegoating them to balance the state budget partially on their backs," said Robinson, whose gay husband is a state employee. "State workers are not parasites living off the body politic; they are human beings." Here's a shout-out to Chris D'Allesandro, the daughter of Manchester Democratic Sen. Lou D'Allesandro, who helped coordinate the event. Innocuous remarks What's most stunning about House Majority Leader D.J. Bettencourt's full-frontal attack against Roman Catholic Bishop John McCormack on Friday as a "pedophile pimp" was that McCormack's remarks at the rally were relatively tame. McCormack went out of his way to say House Republicans were "doing their best" as they crafted the budget, but faulted them for not putting spending on the poor as a top priority. What may have upset Bettencourt the most was that McCormack would choose to use the state Constitution against actions of the House GOP leadership group. "While the fundamental requirement of our religious heritage is care for the poor, it is worth noting that this principle is not simply a moral obligation, but it was enshrined by our founding fathers in our state Constitution," McCormack said. "The founders wrote that forming people into a society was intended 'to ensure the protection of others.' "They also declared that it is the 'duty of the legislators and magistrates, in all future periods of this government … to countenance and inculcate the principles of humanity and general benevolence … public and private charity … and generous sentiments among the people.' "Thus, care for the poor is not just an ideal principle; it is a duty assigned to the general court by the constitution of our state." All for one It was a raucous week for House Speaker William O'Brien, but a successful one. Yes, Republicans outnumber Democrats in the House 3-to-1, so it isn't all that difficult getting a majority. But the fact is House Republicans so far this year have stayed united with O'Brien, consistently getting more than a 2-1 vote on issues that matter. The House budget and trailer bill were last week's chief exhibit. In the House GOP caucus, Republicans went for the budget by a staggering margin of 243-26. The vote reveals how pitifully small the so-called Main Street Republicans, or those of a moderate variety, are in today's House chamber. The dissidents are also scattered throughout the state, with not even 10 of them in a single county; the nine Republican "no" votes was their biggest showing. Only four House Republicans from Hillsborough County opposed the budget, and only one in Greater Nashua, Carolyn Gargasz, of Hollis. To their credit, House Democrats showed up and stuck together. In fact, all House Democrats were present for the debate on the budget trailer bill (HB 2) Wednesday, and they all opposed it. A 100 percent attendance of any caucus may sound like a common occurrence, but it isn't in the House, which typically has 50 no-shows each time it meets. Business tax questions Administrative Services Commissioner Linda Hodgdon said she has concerns about how legislative actions on business taxes could affect the behavior of business owners. Both branches of the Legislature want to shift the burden of proof from taxpayers to state tax auditors when it comes to a business owner justifying how much income paid to him or her is "reasonable compensation" exempt from business taxes. Revenue Commissioner Kevin Clougherty has warned that the House-passed plan that faces a Senate hearing on Tuesday could cost state coffers $49 million a year. "My concern is what if some business owners expect this change is going to applied retroactively to the 2011 calendar year," Hodgdon said. "If that happens, it could affect our business tax collections for these last few months." Hodgdon said she's pleased that March taxes and fees came in slightly above (1 percent) the forecast and the business taxes came in a healthy 4.9 percent over expectations. The state is now $17 million, or 1 percent, short of its target for revenues with three months, or a quarter, left in the budget year. "I am hopeful now that we can come in on plan," Hodgdon said. The House budget assumes state revenues come in $50 million short of estimates this year. Pension payments The House budget does a credible job of restoring some of the downshifting of costs to cities and towns contained in the budget Gov. John Lynch offered. But they didn't do all of it. A notable exception that didn't get any attention last week was the state's contribution to retirement costs for municipal, county and school employees. The state traditionally paid 35 percent of this cost, but in the current budget this was cut to 30 percent in 2010 and 25 percent in 2011. Lynch would eliminate that subsidy altogether, and in its place called for retirement reform that would make Group II, or public safety employees, contribute more from their paychecks to their pensions. The House budget likewise would shift the responsibility from the state to one for which employees would be responsible. House budget writers point out the increase in employee payroll contributions to pensions more than makes up for what the state has been giving to local communities as the state share of pensions. Try convincing town selectmen and city mayors that this is an equitable trade, since it means that some communities won't be getting a seven-figure check from the state to offset their own hefty payments for pensioners. The other big downshift that occurs is from the room and meals tax, which under state law is supposed to go up by $5 million annually. Lynch's budget suspends next year's increased payment, then gives the communities $5 million in 2013. The House budget suspends any upgrade for both years, which costs communities $15 million – $5 million for 2012 and $10 million for 2013. Contact: klandrigan@nashuatelegraph.com
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