Jackie Cilley

Creating a robust economy entails more than simply a focus upon taxes, something that is often overlooked by my friends on the other side of the aisle. However, even on the subject of taxes, different forms often have drastically different impacts. For example, while we can boast that New Hampshire does not have a broad-based sales or income tax, our over-reliance upon the property tax has led to our having the third highest in the country. This form of taxation hits those on fixed incomes the hardest. Those who have worked a lifetime to own their home are often at risk of losing their most important asset in their later years due to increasing property taxes. Moreover, for all the talk of business taxes among current Republican legislators and the Governor, the property tax is the largest tax (57% of typical business taxes in NH, well above the 40% average nationally), the business owner pays. And a business must pay these in good times and in bad.

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One of the most important factors that drives up property taxes is the downshifting by lawmakers. That is, when the state refuses to fund or fully fund its obligations to our communities, the burden for such obligations (think roads, bridges, dams, local schools, and so on) falls squarely on property taxpayers. Thus, one of the duties of the NH Legislature should be to investigate ways to reduce the property tax and to fulfill its commitments to our communities. You can count on me to do all that I can to stop that practice if elected.

 

More than taxes, however, three of the most challenging issues that we hear from our business community are the labor shortage, the lack of affordable housing, and the high costs of electricity. There are no easy solutions to any of these challenges, but there are policies that will create a more welcoming environment to start or relocate a business to our state.

 

For example, with a median age of 43.1 years New Hampshire’s population is the second oldest in the US. 18.7% of our residents are 65 or older compared to 16.5% nationally. For a number of years earlier in this century we lost more young people and young families to out-migration than to those moving to New Hampshire. That pattern has leveled off and reversed over the past several years, but more needs to be done to ensure a viable workforce in our state. For example, recent studies suggest that among the most important factors considered by a young person in determining where to live, beyond simply available employment and housing, is public transportation. If we want a vibrant state and a vibrant economy, we should be carefully considering the factors that attract young people to remain in, or to move to, New Hampshire.

 

In that regard, it is already clear that the lack of affordable housing is having a significantly negative impact on business’ ability to attract and/or retain talent. This issue is reaching crisis proportions in some areas of the state and is projected to continue to present challenges in the coming years. Addressing this issue requires a common vision and cooperation between our local communities and the state. It will also require innovative, out-of-the-box thinking. Some states are working closely with local communities to relax regulatory and/or zoning laws to accommodate more workforce housing, while others are developing incentives to stimulate the creation of affordable housing. Again, there are no simplistic answers to this challenge, but we can readily see the effects of a lack of affordable housing on the labor shortage.

 

High electric rates are also cited by businesses as leading to difficulty in being competitive with similar companies in other states. At this time New Hampshire has commercial rates that are 51% higher than the national average and residential electric rates that are 41% higher than the national average. While there are a number of reasons for these higher rates, some such as the “stranded costs” of the Seabrook Nuclear Station that were passed on to NH rate payers decades ago, others have resulted from policies of the current administration. For instance, a number of bills creating or stimulating energy efficiency and alternative energy programs have been put forward by Democrats. Some were killed within the legislature and some vetoed by Gov. Sununu. Many of these would have brought down our electric rates. Instead, the most recent increases (as high as 125% in some cases) have far outpaced any increases experienced by states around us, states that invested in a diversified energy portfolio and which have significantly increased sources of renewable energy.

 

We are facing serious challenges over the coming years. However, we can meet these challenges and lay a foundation for a vibrant, inclusive economy if we set aside partisan labels on certain solutions and work together for the benefit of NH families and businesses.