NH Business: How has legislature tackled housing, education and energy? Michael Skelton, President and CEO of the Business & Industry Association of New Hampshire speaks with Fred Kocher about recent legislation including budget, housing and education. Share Copy Link Copy

WELCOME TO NEW HAMPSHIRE’S. BUSINESS I’M FRED KOCHER. THE NEW HAMPSHIRE LEGISLATURE IS ABOUT TO WRAP UP AND GO HOME. IN THE WAKE OF CONTINUING REVENUE SHORTFALLS OVER SEVERAL YEARS. THE QUESTION IS, HOW HAS OR HAS THE LEGISLATURE TACKLED THREE OF THE MAJOR ISSUES FACING NEW HAMPSHIRE RIGHT NOW HOUSING, EDUCATION AND ENERGY? FIRST, HERE’S WHAT’S BEHIND THE REVENUE SHORTFALLS. NEW HAMPSHIRE REVENUE SHORTFALLS. BUSINESS TAX RATE REDUCTIONS RATE. THE KEY WORD FROM 2016 TO 20 24TH MAY HAVE COST THE STATE BETWEEN 800 MILLION AND 1.2 BILLION. IN 2024 ALONE, THOSE TAX RATE REDUCTIONS LIKELY LED TO BETWEEN 160 MILLION AND 225 MILLION LESS IN STATE REVENUE. THAT’S FROM NEW HAMPSHIRE. FISCAL POLICY INSTITUTE. SO THE QUESTION IS, WAS ECONOMIC GROWTH AFFECTED? SO ALL OF THIS IS A DILEMMA THE LEGISLATURE WAS FACING THIS YEAR AS IT TRIED TO CREATE A BUDGET, MAKING MAJOR FUNDING CUTS IN THE NEW HAMPSHIRE HOUSE, SUCH AS THE UNIVERSITY SYSTEM THAT HAS NOW BEEN REVERSED IN THE STATE SENATE, WHERE IT GOT NEWS THAT BUSINESS AND REAL ESTATE TAX TRANSACTIONS RECEIPTS WERE GOING BACK UP. NEW HAMPSHIRE HOUSE FUNDING CUTS WERE REVERSED IN THE NEW HAMPSHIRE SENATE INCLUDED MEDICAID REIMBURSEMENT TO PROVIDERS, DEVELOPMENTAL DISABILITY SERVICES, UNIVERSITY SYSTEM FUNDS, AND UNIQUE STUDENT GRANTS. COMMUNITY MENTAL HEALTH WITH ME TO BRIEF US ON WHAT HAPPENED TO THOSE THREE MAJOR ISSUES. HOUSING, EDUCATION AND ENERGY. IS THE PRESIDENT AND CEO OF THE BUSINESS AND INDUSTRY ASSOCIATION, NEW HAMPSHIRE. MICHAEL SHELTON. WELCOME. THANKS, FRED. NICE TO HAVE YOU BACK. CREATING A STATE BUDGET WITH REVENUE SHORTFALLS THAT DOMINATED THIS SESSION FROM DAY ONE. ABSOLUTELY. THAT REALLY WAS THE STORYLINE. YOU HAD THE GOVERNOR’S ORIGINAL BUDGET PROPOSAL. THE HOUSE TOOK A VERY DIFFERENT PATH AND ADOPTED REVENUE PROJECTIONS THAT WERE A HALF $1 BILLION LESS. AND THAT REALLY LED TO A LOT OF THE CUTS AND CHANGES THAT THEY MADE AS THEY WERE USING THEIR ASSUMPTIONS. THE SENATE HAS TAKEN A DIFFERENT PATH, MUCH CLOSER TO THE GOVERNOR’S ORIGINAL PROPOSAL. AND I THINK FOR THE BUSINESS COMMUNITY, A LOT OF THOSE CUTS THAT YOU MENTIONED, THE RESTORED, ARE REALLY IMPORTANT TO MAINTAINING OUR ECONOMIC COMPETITIVENESS. LET’S GO TO HOUSING LEGISLATION, AND HERE ARE SOME KEY PIECES. NUMBER ONE ISSUE IN NEW HAMPSHIRE, PER A NEW POLL BY UNH SURVEY CENTER, IS HOUSING. THE SENATE BILL 84 STARTER HOMES INVOLVES ZONING AND LOT SIZE RESTRICTIONS, AND THE HOUSING APPEALS BOARD EXISTENCE WAS RESTORED, AT LEAST IN THE NEW HAMPSHIRE SENATE. AND, MIKE, THERE WERE TWO OTHER HOUSING BILLS THAT WERE OF CONSEQUENCE. SURE. SENATE BILL 84 WAS RETAINED. WILL BE BROUGHT UP NEXT YEAR. IMPORTANT ISSUE TO KEEP WORKING ON. GREAT TO SEE THAT THE SENATE RESTORED THE HOUSING APPEALS BOARD. THAT’S REALLY IMPORTANT TO GETTING PROJECTS COMPLETED IN PROGRESS. WHERE THERE’S CONFLICT, WHERE THERE’S CONFLICT BETWEEN LOCAL COMMUNITIES AND DEVELOPERS. THE TWO OTHER BILLS, ACCESSORY DWELLING UNITS AND ALLOWING FOR RESIDENTIAL DEVELOPMENT AND COMMERCIAL ZONES. REALLY IMPORTANT TO GENERATING MORE HOUSING OPPORTUNITIES. OKAY, GOOD. YOU AND LEADERS FROM A NUMBER OF NEW HAMPSHIRE ORGANIZATIONS FORMED A COALITION TO PUSH THEIR LEGISLATION, AND IT SEEMS TO HAVE WORKED. HOUSING SUPPLY COALITION HAS MADE A BIG DIFFERENCE. YEAH. EDUCATION LEGISLATION. UNIVERSITY SYSTEM OF NEW HAMPSHIRE, 85 MILLION PER FISCAL YEAR, UP FROM PROPOSED 66.2 MILLION IN THE NEW HAMPSHIRE HOUSE. ALSO, THE UNIQUE GRANTS FOR ELIGIBLE STUDENTS IN THE UNIVERSITY SYSTEM. THOSE CUTS ARE RESTORED IN THE SENATE. NOW, THE STATE APPROPRIATIONS MIKE, FOR UNIVERSITY SYSTEM CURRENTLY 95 MILLION. IF THE SENATE’S NUMBER OF 85 MILLION STICKS WITH THE SENATE, WITH THE GOVERNOR. THAT’S STILL A HAIRCUT, AS YOU PUT IT. IT IS. YEAH. BUT WE KNEW COMING INTO THIS LEGISLATIVE CYCLE THAT THIS WAS GOING TO BE A TIGHTER BUDGET YEAR. THE GOVERNOR’S PROPOSAL WAS 91 MILLION FOR THE UNIVERSITY SYSTEM, WHICH THEY WERE PREPARED FOR. AND IT WAS A REASONABLE PATH FORWARD. REALLY, THE HOUSE CUT WAS FAR TOO DEVASTATING AND NOT PALATABLE. THE UNIVERSITY SYSTEM IN OUR COMMUNITY COLLEGE SYSTEM, OUR ECONOMIC ENGINES FOR OUR STATE, WE NEED TO CONTINUE INVESTING THERE. I THINK THE THE ROADMAP OF THE SENATE HAS LAID OUT IS MUCH CLOSER TO WHERE THE GOVERNOR STARTED AND IS THE DIRECTION WE NEED TO GO. SO IT WILL BE LESS, BUT NOT A LOT LESS. RIGHT. ENERGY LEGISLATION, NUCLEAR POWER. AND THIS IS INTERESTING PROMOTING DEVELOPMENT OF ADVANCED TECHNOLOGIES IN SMALL MODULAR REACTORS HERE IN NEW HAMPSHIRE. AND ALSO RENEWABLE ENERGY FUND KEEPS 2 MILLION IN THE RENEWABLE ENERGY FUND. BUT ALTERS USES. AND THEN THERE WAS A NUCLEAR BILL IS INTERESTING COMMENT ON THAT. AND THEN ALSO SENATE BILL 106 INDUSTRIAL SELF-GENERATION. RIGHT. WE NEED ALL OF THE ABOVE WHEN IT COMES TO ENERGY AND BRINGING NEW ENERGY SOURCES TO NEW HAMPSHIRE TO LOWER ENERGY COSTS. NUCLEAR IS MAKING A COMEBACK, AND THERE’S NEW TECHNOLOGY THAT IS MAKING IT MUCH MORE FEASIBLE. AND THIS LEGISLATION IS GOING TO PAVE THE WAY FOR THAT DOWN THE ROAD. BUT IN THE SHORT TERM, SENATE BILL 106 IS GOING TO ALLOW OUR MANUFACTURERS AND INDUSTRIAL USERS TO INSTALL SOLAR ARRAYS ON THEIR FACILITIES. AND SELF-GENERATE. IT’S BEEN INCLUDED IN THE SENATE’S VERSION OF THE STATE BUDGET. IT COULD MAKE A HUGE DIFFERENCE. YEAH, YEAH. AND QUICKLY, WHAT’S BEHIND THIS NUCLEAR BILL, THIS NUCLEAR ENERGY BILL? I MEAN, THAT’S THAT’S NOT IMMEDIATE. IT’S NOT IMMEDIATE. WE’RE LOOKING FIVE, TEN YEARS DOWN THE ROAD AS THE NUCLEAR INDUSTRY MAKES A COMEBACK. BUT THIS NEW SMALL NUCLEAR MODULAR REACTORS IS SOMETHING THAT EVERY STATE CAN DO. MIKE SKELTON, PRESIDENT AND CEO OF THE BUSINESS AND INDUSTRY ASSOCIATION OF NEW HAMPSHIRE. THANK YOU. THANKS, FRED. AND IF YOU MISSED PART OF THIS BRIEFING ON LEGISLATION AT THE END OF THE SESSION, YOU CAN GO TO WMUR.COM, WHERE IT WIL