The Illusion of Fiscal Responsibility: A Call for Republican Accountability in Property Tax Escalation
Rep. Eleana Colby, Merrimack District 9
In its unwavering commitment to serving the interests of the wealthy, the New Hampshire GOP has abandoned its constituents.
The State of New Hampshire’s budget crisis is an entirely self-inflicted wound, created by repeated and purposeful fiscal mismanagement of the Republican controlled Legislature and Governor. Over a period of eight years, the State reduced the business profits tax five times and the business enterprise tax four times for an estimated loss of $1 billion in revenue. More than three-quarters of these taxes are paid by only 2% of all business taxpayers, all large corporations.
Republican House Finance Members have proposed devastating cuts to essential programs while shamelessly prioritizing tax breaks for the ultra-rich and offering educational subsidies for students attending private schools. Their regressive tax policies have resulted in staggering revenue losses. Yet, they insist that funding initiatives like school vouchers—with no income caps—are essential rather than extravagant. During committee meetings, they have shifted the blame to everyone from the Biden administration to scholarship recipients, all the while draining the State’s Rainy-Day Fund and refusing to take any accountability for the mess they’ve made.
It’s ironic to witness their purported discontent over these revenue losses, since just months ago, House Republicans celebrated the elimination of the Interest and Dividends tax. They even staged a mock funeral, complete with a coffin. They knew damn well that this decision would hit low- and middle-income Granite Staters the hardest.
The recklessness we are witnessing is comparable to someone abandoning their job, canceling their family’s health insurance, encouraging their children to skip meals, and then proclaiming it essential to spend their life savings on a vacation to Hawaii after a trip to the Super Bowl.
In a recent email press release, Sherman Packard, the Republican speaker of the New Hampshire House, boldly proclaimed, “The Property Tax Protection Act is the heart of this budget. It will ensure municipalities stay fiscally responsible, curb runaway budgets, and protect Granite Staters from tax hikes—without cutting essential services.” However, this statement warrants serious scrutiny as it glosses over the far-reaching consequences of the proposed budget, which shows nothing but a callous disregard for the needs of people in our communities.
HB 675, the provision added to the state budget that is misleadingly named the “Property Tax Relief Act,” does anything but provide relief. Instead, it strips local taxpayers of the ability to directly fund their own public schools, effectively tying the hands of communities that want to invest in education. By blocking this local funding authority and failing to provide adequate state resources in its place, towns are then forced to make deep cuts to essential services, starting with the very schools that serve their children. HB 675 doesn’t just jeopardize school funding, it undermines the principle of local self-governance, putting decisions about our children’s futures in the hands of distant lawmakers instead of the people who know their communities best.
The proposed House Budget and accompanying bills do not pave the way for any tax relief; rather, they will drastically increase the financial strain on local communities. Reduced state funding will increase county tax rates, putting additional pressure on nursing homes that are unsure about the future of Medicaid and Social Security. Families relying on CHIP and WIC programs will face greater challenges, necessitating municipalities to allocate more for local welfare support.
Cuts of over $37 million to mental health services, nearly $8 million from the judicial branch, and eliminating 150 corrections department positions will strain local police, fire, and EMS departments, compromising public safety. Proposed drug co-pays for Medicaid recipients may lead many to skip doses, increasing demand for life-saving emergency care and further burdening already understaffed departments. To meet these demands, our local budgets will swell, and along with them, our property taxes.
Capital projects and infrastructure improvements are facing significant challenges. The first comes from anticipated tariffs on materials, supplies, and tools, which act like a right hook to budgets. The knockout punch is a state-mandated ban on contracting with any company that incorporates diversity, equity, and inclusion initiatives. School districts and municipalities depend on the bidding process to ensure that taxpayer-funded projects are completed at the best financial terms by companies that deliver the best results. However, this process is being obstructed by State House Republicans, who seem more interested in pursuing a culture war than in saving taxpayer dollars.
More direct cuts include $4.6 million for municipal wastewater grants and $11 million in Rooms and Meals revenue. These direct revenue reductions contradict claims that there will be no impact on property taxes.
The false assertion that municipalities and school districts are “spending like drunken sailors” with “runaway budgets” serves only as a scapegoat for Republican lawmakers who must be held accountable for their long history of financial mismanagement. We deserve a budget that genuinely meets the needs of our community without compromising our health, safety, or education. It’s time for the wealthiest to contribute their fair share instead of depending on handouts from everyday, hardworking Granite Staters.