That Pesky Revenue Problem

The highway fund is "a piggy bank for budget writers?" (4.00 / 4)

Rep. Bettencourt doesn't know much about New Hampshire government.

The Highway Fund can only be used for road and bridge construction, per a 1930s amendment to the state Constitution. It can't even be used for light rail - let alone for plugging some unrelated budget hole.

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by: elwood @ Wed Feb 22, 2012 at 11:18:00 AM UTC

And it's a great example (4.00 / 1)

of why budget and tax policy should not be enshrined in the state constitution. Because of some fears in the 1930s about misuse of funds, an excessively narrowly worded amendment now prevents New Hampshire from sensibly funding transportation alternatives to costly highway expansion. Just think of what constitutionally disallowing an income tax or requiring a super-majority to raise taxes (above today's measly and arbitrary level) would do.

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by: FrankLloydMike @ Wed Feb 22, 2012 at 16:06:59 PM UTC

[ Parent ]

DJ never lets details (4.00 / 4)

like that get in the way of a good lie.

November 2012
Hope for a return to sanity.

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by: GreyMike @ Wed Feb 22, 2012 at 19:20:50 PM UTC

[ Parent ]

From the New York Federal Reserve, a staff report you might consider (4.00 / 2)

interesting in terms of austerity and the deficit.

http://www.newyorkfed.org/rese...

That link only leads you to the summary.  The whole report is a pdf.

The summary is interesting in itself. It states, in part:

Cutting government spending on goods and services increases the budget deficit if the nominal interest rate is close to zero. This is the message of a simple but standard New Keynesian DSGE model calibrated with Bayesian methods. The cut in spending reduces output and thus-holding rates for labor and sales taxes constant-reduces revenues by even more than what is saved by the spending cut.

In case you haven't noticed, the Federal Reserve has set the base interest rate at 0.025%  Moreover, it has announced that this rate will not be increased before 2014. Obviously, the Fed is trying to wean people off speculating on the interest rate in deciding where to invest their extra cash.
Also remember there was a time (which most rich people can recall because it was only 20 years ago) when the Fed rate was 8.1%  See how far the prospect for free unearned income has fallen?

What's even more telling about that staff report is the assertion that the effects of budget policies depend on what people expect to happen.

If deficits trigger expectations of i) lower long-run government spending, ii) higher long-run sales taxes, or iii) higher future inflation, they are expansionary. If deficits trigger expectations of higher long-run labor taxes or lower long-run productivity, they are contractionary.

Which simply means that the analysts haven't a clue. But, what it means in the context of deciders who have no rational expectations (no-one would be foolish enough to argue that "nobody could expect" Condi Rice is a singular phenomenon), is an unasked and unanswered question. It does, however, provide a hint at why banksters (national and international) keep yammering about "confidence." Confidence seems to be a synonym for rosy expectations that are created by positive statements--like "morning in America."  Or, in other words, the analysts at the Federal Reserve have bought into the notion that the global economy runs on hype.
Which is actually consistent with the belief that humans are all automatons and respond to prompts--i.e. it's just a matter of the right buttons being pushed.

If that's a valid interpretation, then perhaps we should reconsider and conclude that lies aren't deceptions--they're just efforts to find the right buttons that will set everything right.

"How can we get people to do what we want? Let's see if a prod here and a stick there will work." That's what the phrase "deficits trigger" says, right?

It's a very primitive way of looking at human behavior.  But it is consistent with the binary model. Do you see how human agency or responsibility is left out of the phrase "deficits trigger"?

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by: hannah @ Wed Feb 22, 2012 at 11:24:12 AM UTC

Jobs, jobs, jobs (0.00 / 0)

This might be the one thing that they could do about jobs but it is "off the table." I wonder what the next excuse will be.

Wearing a ring doesn't make you a bath tub.

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by: xteeth @ Wed Feb 22, 2012 at 13:13:56 PM UTC

"This is the direct result of pledge politics." (0.00 / 0)

Nice diary, and I appreciate that you wrote it, up to that that point. I read this as a slanted political hit piece masquerading as an objective attack on DJ. Any messenger as long as the message gets delivered...why pray tell do you think Gov.Lynch has served an historic 4 terms, and held the line on so many issues? More people like his policies than any other governor ever. You may disagree with his politics, but you can't disagree with his sky high personal popularity compared to anybody around as long in office, or that he has held together a very important coalition of center left and center right folk, who have supported his historic signing of HB-474 for Marriage Equality, and who have with strong organized Union support, upheld the veto on Right To Work Legislation. We disagree on some things, but these are incontrovertible facts.
For the progressive agenda you want to advance and move forward, you need to have wins. No wins, no moving forward. No compromise, no wins, no moving forward. Agreed? That's how the system works.

Never argue with stupid people, they will drag you down to their level and beat you with experience. ~ Mark Twain

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by: JonnyBBad @ Wed Feb 22, 2012 at 16:07:39 PM UTC

Feeling threatened some? (2.00 / 1)

I am sure that Maggie Hassan has broader shoulders than some of her supporters.  

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by: Lucy Edwards @ Wed Feb 22, 2012 at 16:36:52 PM UTC

[ Parent ]

ad hominem n/t (0.00 / 0)

Never argue with stupid people, they will drag you down to their level and beat you with experience. ~ Mark Twain

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by: JonnyBBad @ Wed Feb 22, 2012 at 17:05:04 PM UTC

[ Parent ]

It will be disappointing (4.00 / 5)

and an insult to the intelligence and maturity of Blue Hampshire readers if every criticism of pledge politics is now read as a subtle hit on Maggie Hassan or boost to Jackie Cilley.

I trust that the readers/contributors on this site, if they support a candidate, can, will, and do just come out and state honestly their support and why.

I think it is reasonable to discuss the implications and relative merits of taking pledges without necessarily getting into an internet brawl over Hassan vs. Cilley. Unless, of course, that's what you want to do. In which case, have at it.

For myself, I dislike taking pledges for the same reason Jon Huntsman does: the only pledge I ever plan on taking is to my life partner.  

"We now know that government by organized money is just as dangerous as government by organized mob." - FDR

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by: Granite Gnome @ Wed Feb 22, 2012 at 18:47:04 PM UTC

[ Parent ]

agreed (0.00 / 0)

We'll criticize talk of pledge politics if it comes up in every diary...its so one dimensional, and I think we agree that Gov. Lynch accomplished much. I implied directly that I feel the knock is on his accomplishments,no one else mentioned. C'mon though diarist, the body isn't even cold yet. We will miss him.

I would like to elect a strong pro-choice, pro-labor, pro marriage equality Governor, and I think NH voters will support that. We must try and continue to have a Democratic Team with a Governor at the head who is widely popular...it is critical to everything we care about, especially getting rid of Bully and his whipping boy.

Never argue with stupid people, they will drag you down to their level and beat you with experience. ~ Mark Twain

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by: JonnyBBad @ Wed Feb 22, 2012 at 22:03:55 PM UTC

[ Parent ]

That line rang funny to me, too, for a different reason. (4.00 / 2)

Compared to many/most other states, we're not bad... so it's a little hard to blame pledge politics, which is unique to NH AFAIK, when other states are a lot worse.

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by: The Money Magician @ Thu Feb 23, 2012 at 02:30:39 AM UTC

[ Parent ]

By what metric are we "not bad?" (4.00 / 2)

Not a challenge, but I'm more than a bit curious how we're evaluating this.  The diary is specifically about infrastructure and I'd encourage you to check in with DOT as a taxpayer and ask about their new metrics program that they've developed.  Using empirical data, they are demonstrating to legislators the dangerous and deteriorating cycle we are in regarding infrastructure.  It's very impressive and quite alarming.

Also, the PEW Center released a report on government performance (including infrastructure and money management) of the states a few years ago, and NH received a D+ - by their rankings, last in the US.  We've only cut spending since the report was first issued, so I'm guessing we haven't improved that mark much.  Link:  http://www.pewcenteronthestate...

Now, it could be that despite the DOT and PEW reports, we could still be much better than many states.  But it would be helpful to know how we're making that comparison.  And if we're not disputing the DOT and PEW reports, both of which link the deteriorating infrastructure to revenue, how can we not make a positive link to pledge politics?

In the immediate aftermath of Since the start of the financial crisis, the Fed/Treasury lent, spent, or guaranteed $28 $29 $30 trillion to save the banking system.

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by: StraffordDem @ Thu Feb 23, 2012 at 02:53:55 AM UTC

[ Parent ]

By most of the sources I can find... (4.00 / 1)

There's nothing definitive, and some of the best information isn't provided in a way that's easy to compare.  But for instance, compare the American Society of Civil Engineers report cards for New Hampshire, Vermont, New York, and Massachusetts.  I also looked at reports from other sites, but this seems like the best data.  (I didn't cherry-pick the other three states, but it's possible that I just picked some bad ones to look at.)

I'm not trying to say everything's hunky dory - I'm just saying that our problems are shared by many other states, so blaming them on the pledge seems dubious.  I'd agree that the pledge is a limiter on addressing these problems - but it's far from the only one, and probably isn't even the most important.  Right now, I'd consider the political pendulum and the global economic doldrums to be more directly causal.

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by: The Money Magician @ Thu Feb 23, 2012 at 15:41:59 PM UTC

[ Parent ]

thanks MM (0.00 / 0)

# 1 in median income

June 15, 2011
NH ranks on top of freest states
By Cara Hogan
chogan@eagletribune.com

It's truly the Live Free or Die state.

A study by the Mercatus Institute, a libertarian think tank, found New Hampshire is the freest state in the nation. The study, which was released yesterday, determined the Granite State had the least number of government restrictions on economic and personal freedoms, including gun ownership.

William Ruger, co-author of the study and professor of political science at Texas State University, said they defined freedom according to a universally accepted idea.

"Freedom for us is the ability to do what you want to do with your life and property, as long as you don't directly infringe on the rights of others," he said. "This is a pretty standard definition that Americans for hundreds of years probably would have accepted."

NH Ranks as One of the Least Expensive States to Close on a Home Loan

Read more: http://blog.verani.com/nh-chea...  

http://www.tnhonline.com/nh-ra...
New Hampshire is the safest state in the nation, according to a report released Monday by Washington, D.C.-based CQ Press. The report, titled "Crime State Rankings 2010," evaluated states based on six main categories of crime: murder, robbery, assault, rape, motor vehicle theft, and burglary.  The overall number of reported crimes in each of those categories was evaluated based on the crime rate per 100,000 people, and then compared to other states to come up with the final ranking.
New Hampshire was not the only New England state near the top of the list. Vermont was ranked second and Maine was ranked fourth. Nevada was ranked last as the "least safe" state.

http://www.governor.nh.gov/med...
8/11
Kids Counts Again Recognizes New Hampshire as the Best Place to Raise a Child ~New Hampshire Ranks First for Child Health and Well Being for 4th Year in a Row
CONCORD - For the fourth year in a row, the Annie E. Casey Foundation's Kids Count survey has named New Hampshire the best state to raise a child.

Never argue with stupid people, they will drag you down to their level and beat you with experience. ~ Mark Twain

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by: JonnyBBad @ Thu Feb 23, 2012 at 16:02:50 PM UTC

[ Parent ]

Off-topic? Or am I missing something? n/t (0.00 / 0)

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by: The Money Magician @ Thu Feb 23, 2012 at 17:32:41 PM UTC

[ Parent ]

I heard the DOT Commissioner speak on this issue (0.00 / 0)

By reimposing the registration fee, and/or, with an increase in the gas tax, he seemed to think that we could adequately fund the 10 year plan and solve these infrastructure issues. The failure to do either has more to do with the legislative majority's being obtuse than anything else.

My problem with this criticism of "pledge politics": doesn't every candidate have particular bills they would pledge to veto? I would hope that every Democratic candidate would pledge to veto the repeal of insurance coverage for birth control, the repeal of marriage equalty, the various bills restricting voting rights, right to work, etc.  



"When you get to the end of your rope, tie a knot and hang on."  Franklin D. Roosevelt    

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by: Kathy Sullivan 2 @ Thu Feb 23, 2012 at 21:19:14 PM UTC

[ Parent ]

Oh, Kathy (1.00 / 1)

that is one sad attempt at disingenuousness.

Do you criticize Guinta, Ayotte, and Bass for taking the Norquist pledge? One of these things is just like the other.  

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by: susanthe @ Fri Feb 24, 2012 at 01:57:26 AM UTC

[ Parent ]

In the post's context, I think we're talking about one pledge in particular. n/t (0.00 / 0)

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by: The Money Magician @ Fri Feb 24, 2012 at 02:16:39 AM UTC

[ Parent ]

Mitt Romney is really into (0.00 / 0)

self-deportation as the solution to the immigration problem. I am wondering if O'Brien and Co. are hoping to force some self-deportation from NH of those who would prefer not to drive over bridges that might fall down, who can't afford to do weekly wheel alignments on their vehicles, and who wish for public transportation as an alternative to buying gas.  

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by: Lucy Edwards @ Wed Feb 22, 2012 at 16:35:44 PM UTC

I'm far from being a single issue voter, but if I were, (0.00 / 0)

I would find it very difficult to send anyone to Concord who isn't trying to get the I-93 project done as quickly as possible.

Then again, I was not about to go out and support the current legislative majorities before I read this, either.

--
Twitter: @DougLindner

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by: Douglas E. Lindner @ Thu Feb 23, 2012 at 05:45:47 AM UTC

DOT revenue problem (0.00 / 0)

I don't know how the secondary roads are in Mr. Bettencourt's district but up here, north of Concord, many secondary highways are nearly impassible. When the frost leaves the ground the damage doesn't disappear, it just improves slightly. What business would locate in areas where transportation is so difficult? There are two things that voters pay attention to - property taxes and the condition of the roads. Taxes are rising because of decisions to flop costs onto the towns and the roads are worse that ever. When the taxpayers wake up, watch out!

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by: frant @ Mon Feb 27, 2012 at 15:19:30 PM UTC