Let the raiding begin!

Tomorrow, the House and Senate are scheduled to release their latest attempt to resolve the state’s unbalanced budget at an information session scheduled for 1:00 in Representatives Hall.   The public is invited to attend and comment, although just what is contained in the final package is not yet known, but what we do know is that at least three conservation funds are on the Governor’s “target” list.

For a bit of background, you may have read that House and Senate negotiators were not able to come to an agreement on how to bring the current fiscal year budget (and FY 2011) into balance.  Because of the impasse, Governor Lynch was forced last Wednesday to ask the Executive Council to call for a special legislative session beginning June 9th to find a workable solution.  Of course, there are lots of rumors circulating over what revenue will be included in any budget package, where cuts will be made, and the impacts of all these decisions.

While we do not pretend to know what Governor Lynch and the Democratic leadership will finally decide is the right solution, we are very concerned about the impact that these decisions will have on New Hampshire’s environment, the future of several important conservation programs, and the precedent that the raiding of dedicated funds establishes for future state budgeting.

Three dedicated funds are specifically being targeted :

• The Land and Community Heritage Investment Program (LCHIP) provides matching grants to NH communities and non-profits to conserve and preserve New Hampshire’s most important natural, cultural and historic resources.  Funding for LCHIP comes from a fee collected when certain filings are made with the County Registrars of Deeds. Because LCHIP is a matching grant program, for every $1 that the state invests, multiple dollars are raised by individuals, organizations, municipalities and the federal government.   The Governor has already used this fund as a piggy bank when the general fund has needed a boost.  He has raided the fund to the tune of about $5 million over the past several years, and those most familiar with the LCHIP program tell us that another raid may effectively put an end to the conservation program for good.
• The Regional Greenhouse Gas Initiative (RGGI) is an 11-state agreement (and is the nations first cap and trade program) to reduce carbon emissions. NH, along with the rest of the RGGI states, auction the right to emit carbon pollution and utilizes the funds generated by the sale of the pollution permits to invest in energy efficiency improvements. These investments are matched by private investments in new equipment, insulation and other improvements to reduce energy and save money.   Since the fee is paid for by electric ratepayers, some are calling the taking of RGGI money an “electricity tax” on NH’s homeowners and businesses.  One problem with raiding this fund is that an economic analysis of the program done for the Governor and legislature suggests that using the RGGI money for purposes other than energy efficiency will have a negative impact on  New Hampshire’s economy.
• The Sportsman and Boaters Public Access dedicated fund provides  funding for public access to New Hampshire’s lakes, ponds, rivers and ocean and is funded through a $5.00 fee that is assessed on each boat registration. Again, this fund was established for the specific purpose of providing public access to the state’s water bodies – not to suppliment the state’s general fund.  In addition, there is a 75% federal match for this program, so the state will be losing that money if they decide to take from this fund.

Even if you do not agree with the aims of these specific programs, you should be concerned with the precedent that taking these dedicated funds for general fund purposes represents.

Not only will these specific conservation programs be affected, but  allowing the legislature to dip into accounts established by “user fees” for general fund purposes sets a poor precedent.  These funds can no longer be relied upon for their intended purposes, which will affect municipalities, homeowners, businesses, sportsman – and the state’s environment.  The Governor and the Legislature are  essentially pulling a “bait and switch,” telling fee-payers their money will be used for one purpose while instead using the money for general operations. Funding state government is done through taxation, and that is essentially what Governor Lynch and the Legislature will be doing by reaching their hands into these funds – turning  fees into new state taxes.

In the end, if the Governor and Legislature decides to raid these dedicated funds, what should the reaction of the conservation community be?  Most of the people we talk to are at best disappointed in the actions of those legislators who claim to be “conservationists” but will vote for a budget that includes taking from these programs. At worst, there is a feeling that a shake-up in the leadership over at the statehouse may be needed, and the environmental community should find and support candidates who will actually stand up and protect the funds that have been put in place to  preserve New Hampshire’s environment and quality of life.

If you have a moment, perhaps you can let Governor Lynch and your legislators know what you think.