Op/Ed: The $800 Million Budget Deficit Myth
State Rep. Cindy Rosenwald takes aim at what she sees as Republican budget mythology.
By State Rep. Cindy Rosenwald, D-Nashua
For nearly two years now, Republicans in the State House have been telling a favorite story. They have told it so often that it has taken on the aura of sacred truth. The story goes that when the Republicans swept into power in 2010, they, and only they, were able to finally balance the state budget and correct an $800 million deficit left by the Democrats.
Republicans love their sacred story, and I am sure many of them believe it. The problem is, this story is not a sacred truth; it is a myth. The actual truth is much more pedestrian: biennial budgets are always balanced, and there never was a Democratic deficit of any size. In fact, if one looks at the numbers, Democrats left the state with a surplus at the end of the most recent biennium.
Let’s look at this budget deficit story a bit more closely. The Democratic budget, which ended June 30, 2011, was balanced. Not only did the Democratic majority not leave a deficit during the worst recession in most people’s memory, we actually left a net surplus of $11 million, which the House wanted to put in the Rainy Day Fund this year. Leaving a small surplus at the end of a difficult budget period looks like good fiscal management, doesn’t it?
So if Democrats leaving the state budget in good shape with an $11 million surplus is the truth, how did the Republicans turn the reality of the Democratic surplus into the myth of the Democratic deficit? Well, the answer lies in the additional federal stimulus money that flowed into New Hampshire for two and a half years through the American Recovery and Reinvestment Act.
This extra money, $802 million in total, helped maintain essential safety net programs for vulnerable residents hit hard by the recession. The federal money was one-time assistance. The Democratic majority knew all along it would not continue, and that budget cuts would have to be made during the following biennium so that there would not be a deficit. There never was a carry-forward loss; the Democrats never left the state with a deficit. Remember, there was actually an $11 million surplus left by the Democratic majority.
So the Democrats’ deficit is a myth. It makes a good story, but it just isn’t true. What is true, however, is that the Democratic budget surplus is being used to help erase a deficit in the first year of the Republican budget.
The story here is that the Republican leadership in the House insisted on cutting the tobacco tax by 10 cents a pack, ignoring testimony that this tax cut could lead to a multi-million dollar state revenue loss. The cost of cigarettes never dropped for the consumer, but cigarette companies gained a huge subsidy from New Hampshire’s tax payers. In fact, this corporate welfare has led to the state’s cigarette tax revenues falling off almost $20 million so that cigarette companies could increase their profits.
Governor Lynch will be able to apply the surplus left by the Democrats to erase the deficit built into the budget by the Republicans so that they could give a huge tax break to cigarette companies. Who can blame the Republicans for not wanting to tell this part of the narrative? No wonder they stick to the other story.
Everyone loves a good tale, but educated voters look beyond myth for the true story. The truth is that there never was any deficit in the last Democratic budget. The real Democratic legacy was a budget surplus that erased a potential deficit created by the Republicans.
(Representative Cindy Rosenwald of Nashua is serving her fourth term and is a member of the House Finance Committee.)
Keith F Thompson
2:47 pm on Tuesday, July 10, 2012
Thank you, Rep Rosenwald for helping to clear this up. Not only does it debunk this particular republican talking point, but it shows how the republicans twist so many facts to suit their narrative.
News Flash
10:24 am on Wednesday, July 11, 2012
Rosenwald told the truth about the 800 million dollar deficit that democrats created.
Mike Healey
3:00 pm on Tuesday, July 10, 2012
They still try to sell this lie.
News Flash
10:24 am on Wednesday, July 11, 2012
You cannot cover up Democrat Lies with Lies.
News Flash
11:55 pm on Tuesday, July 10, 2012
I Quote
"This extra money, $802 million in total, helped maintain essential safety net programs for vulnerable residents hit hard by the recession. The federal money was one-time assistance. The Democratic majority knew all along it would not continue, and that budget cuts would have to be made during the following biennium so that there would not be a deficit"
Except you said there was a surplus.Democrats never said the budget had to be cut by $802 million did they. Budget BS by democrats.
Voters need to remember this.
Mike Healey
7:45 am on Wednesday, July 11, 2012
Oh boy. Looks like someone got lost in the weeds.
Lets see if I can explain it in simpler terms.
Republicans were counting one time expenses as annual expenses.
You paid $20,000 cash for your car, and the Republicans want to pretend that you will now buy a car every year. They would say that your purchase of the car this year for cash created a $20,000 liability for next year.
They get into office and claim to have saved you $20,000 bu not buying a second car.
Do you understand now?
News Flash
10:23 am on Wednesday, July 11, 2012
Pathetic Analogy
News Flash
12:14 am on Wednesday, July 11, 2012
State Rep. Cindy Rosenwald. I will be quoting this article a lot in the next four months.
Mike Healey
7:40 am on Wednesday, July 11, 2012
Misquoting it most likely.
News Flash
8:39 am on Wednesday, July 11, 2012
I wont be LYING about the matter, like the democrats have been all along.
Mike Healey
9:08 am on Wednesday, July 11, 2012
You can bring a man to the truth, but if he is conservative he still won't believe it.
News Flash
9:14 am on Wednesday, July 11, 2012
More BS from Healy
Mike Healey
9:34 am on Wednesday, July 11, 2012
Sure.....
News Flash
9:32 am on Wednesday, July 11, 2012
Democrat makes mistake and tells the truth. Oops
News Flash
10:01 am on Wednesday, July 11, 2012
This Op/Ed changes Hassan's and Cilley's Campaign in a major way.
Mike Healey
10:07 am on Wednesday, July 11, 2012
Because it exposes Republican's lie that got them the majority that they have used to push their ugly social engineering agenda?
Remember the "Laser focus on Jobs" Republicans pretended they would adhere to when elected. How disappointing and almost scary they have been in the last two years.
News Flash
10:23 am on Wednesday, July 11, 2012
Democrats have blocked job creation because they have no understanding about JOBS. Same as the President
News Flash
10:14 am on Wednesday, July 11, 2012
It exposes democrats as irresponsible with the people money
News Flash
10:43 am on Wednesday, July 11, 2012
Hey democrats its not Monopoly Money
Jack Flanagan
11:10 am on Wednesday, July 11, 2012
If I read this article correctly, my colleague, Rep Rosenwald states that the Democrats knew they would have to reduce the budget by over $800 million dollars. This is the same reduction that all the "bomb throwers" have been say the Republican were so devastating to everyone? Of course, versus raising MORE taxes. Okay! As it relates to the 11 million surplus she alludes to, it was actually 17.7 million. A surplus that existed solely due to the fact the Republican controlled legislature took $50 million from the 2010-2011 budget to balance it. I don't understand how someone could write article like this with a complete misrepresentation to what happened in Concord. Rep Jack Flanagan
Mike Healey
11:14 am on Wednesday, July 11, 2012
Oh please Jack, are you going to continue this ruse? Where is your pride?
News Flash
11:28 am on Wednesday, July 11, 2012
Healy. You the Captain of Crap talking about a ruse
Mike Healey
11:35 am on Wednesday, July 11, 2012
Well said newsflash, it really helped make your point......
News Flash
11:39 am on Wednesday, July 11, 2012
Well thanks Mike for the compliment.
R. Scott White
11:21 am on Wednesday, July 11, 2012
Wait a second.
This is a total change of tact from the Democratic side on the view of the budget. The "old" (or maybe another?) view was this one summed up by Mark Fernald:
http://www.markfernald.com/content/understanding-nhs-budget-deficit
His argument is basically that state revenues have not kept up with personal earnings in NH (which I thought was a pretty good argument actually.)
Now they're saying there wasn't a deficit in the first place.
Which is it??? Or am I missing something? Because Mr. Fernald's data seems right to me.
Mike Healey
11:55 am on Wednesday, July 11, 2012
The Tall Tale That Won Republicans the State House
In 2010, the Republicans came up with a clever story for their campaign.
They claimed that four years of reckless spending by Democrats resulted in a 25% increase in state spending, and a huge deficit.
Not one part of this story is true.
There was no reckless spending.
There was no 25% increase.
There was no deficit.
http://www.markfernald.com/
Mike Healey
11:42 am on Wednesday, July 11, 2012
Couple of things,
They(Democrats) are actually allowed to have their own opinions.
If One Democrats says something, it is not attributable to EVERY Democrat.
Mark Fernald was talking about the reasonable increase in budget that occurred during the Democratic tenure and not deficit.
He does also agree with Cindy that Republican's dishonest inclusion in one time spending as future deficit is ludicrous.
Yes, your missing something
News Flash
12:04 pm on Wednesday, July 11, 2012
1) Democrats do not know how to handle money
2) It is not their money, it is the taxpayers money
3) Democrats then have to resort to LYING.
4) Reject the LYING DEMOCRATS
News Flash
12:50 pm on Wednesday, July 11, 2012
Democrat NH House Rep Cindy Rosenwald – About That 800 Million Dollar Deficit
http://granitegrok.com/blog/2012/07/democrat-house-rep-cindy-rosenwald-about-that-800-million-dollar-deficit
Mike Healey
1:16 pm on Wednesday, July 11, 2012
What? A right wing activist wants to continue the lie? Who would have thought?
Jack Flanagan
12:54 pm on Wednesday, July 11, 2012
Mr Healey, what have you been smoking? If there was no deficit, why is Rep Rosenwald saying there would have to be budget cuts? There $900+ million was close to 25% of the state's portion of the budget. No reckless spending? The budget went up a total of 2.5 billion under Democratic control! It took from, I believe 1951, to get to a little over 9 billion. It is now over 11 billion. 100 new taxes and fees! Facts are Facts. No myth here! Rep Jack Flanagan
Mike Healey
1:06 pm on Wednesday, July 11, 2012
How many of those 100 taxes and fees have you removed Jack?
Mike Healey
1:17 pm on Wednesday, July 11, 2012
Does your wife take care of the check book by any chance?
News Flash
1:28 pm on Wednesday, July 11, 2012
Healy you just have no clue about HUMOR, nor State Budgets. Typical Democrat.
News Flash
1:10 pm on Wednesday, July 11, 2012
A democrat lies about lies and mistakenly tells the truth. Says a lot about CILLEY AND HASSAN AND KUSTER AND PORTER. Yes there is a connection.
News Flash
1:56 pm on Wednesday, July 11, 2012
Sponge Bob Democrat Economics Exposed
News Flash
3:49 pm on Wednesday, July 11, 2012
Three things cannot be long hidden: the sun, the moon, and the truth.
Buddha
Atlant Schmidt
4:17 pm on Wednesday, July 11, 2012
Do you figure that by posting 75% of the replies in this topic* that you're somehow "winning" something?
* And most of your replies are nothing but insults.
News Flash
4:27 pm on Wednesday, July 11, 2012
Maybe the Democrats should not LIE about the 17 million surplus vs the 800 million dollar deficit. Who is insulting who.
Jack Flanagan
10:21 pm on Wednesday, July 11, 2012
Mr Healey, 30 were removed and I am not sure how many reduced. No to the checkbook questioned. I am glad you have given up on trying to argue against facts. But now it is insults. Rep Jack Flanagan
News Flash
11:38 pm on Wednesday, July 11, 2012
Democrats always fold under the pressure of the truth
Mike Healey
2:13 pm on Saturday, July 14, 2012
You ran against these evil taxes but keep them?
Andrew M. Zuba
11:31 am on Thursday, July 12, 2012
Wasn't $500k moved from the conservation fund to the general fund to help balance the budget? I thought the account was funded by fishing and hunting license fees and that the intended use was for upgrades to boat ramps, trails and recreation areas and the like. Will that money ever be replaced or has it vanished forever? I do not know who took the money but I would like to see it returned if that is at all possible. There are shenanigans on both sides of the aisle so I take Rosenwald's offering here w/a healthy amount of skepticism.
News Flash
3:02 pm on Thursday, July 12, 2012
"Evil Tea Party Manipulates NH House To Produce First Balanced State Budget Since 2006"
http://granitegrok.com/blog/2012/07/evil-tea-party-manipulates-nh-house-to-produce-first-balanced-state-budget-since-2006
Mike Healey
4:19 pm on Thursday, July 12, 2012
New Hampshire's Overall Economic Ranking Dropped from 10th to 34th in “America’s Top States for Business”rankings. NH has seen its rankings in workforce, economy, infrastructure and transportation, and education all drop. These areas received what the Nashua Telegraph called “devastating” blows from the GOP legislature’s cuts to the state budget.
http://nhdp.org/under-gop-nh-drops-in-cnbcs-best-state-for-business-rankings-republican-legislatures-cuts-have-hurt-new-hampshire/
News Flash
4:22 pm on Thursday, July 12, 2012
Quoting the NH Democrat Party. Healy now that is a joke
News Flash
3:38 pm on Thursday, July 12, 2012
About That 800 Million Dollar Deficit
http://granitegrok.com/blog/2012/07/democrat-house-rep-cindy-rosenwald-about-that-800-million-dollar-deficit
Mike Healey
4:10 pm on Thursday, July 12, 2012
What? A right wing activist wants to continue the lie? Who would have thought?
News Flash
4:23 pm on Thursday, July 12, 2012
Healy you got a problem reading what Rosenwald said. I think so. Then again democrat activists like yourself have a hard time with the truth
Mike Healey
2:15 pm on Saturday, July 14, 2012
NF,
You should try to work on your spelling, lots of people will pick on your for that.
Seamus Carty
7:47 pm on Monday, July 16, 2012
"lots of people will pick on your for that"? Pick on your what? Maybe this was meant to be "pick on you for that"...
Seamus Carty
7:49 pm on Monday, July 16, 2012
"Prior to January 2007, the New Hampshire’s State Budget was just over 9 billion. The State budget Republicans inherited when they won the legislature back four years later was 11.5 billion. So Democrats, when given complete unrestricted stewardship of the budget and a Democrat governor willing to sign off on it, ballooned the cost of your state government by 17.5% in the first biennium (before the fiscal crisis) and by as much as 25% over four years"
"it took 219 years (2628 months) to get the New Hampshire budget to just over 9 billion dollars a year. New Hampshire Democrats added 2.5 Billion to that in just 48 months."
Any dispute on these numbers?
Jim U Lacrum
1:13 pm on Saturday, July 14, 2012
This article, the story upon which it is based, and the comment thread are a solid microcosm for the immature playground fight that our political system has become. It costs us absurd amounts of money and freedom so that these children can keep us bickering with each other while they carve up the playground amongst their respective camps.
We need to drop this foolish idea that every issue of public policy needs to be labeled "liberal" or "conservative," "left-wing" or "right-wing," or "Democrat" or "Republican" in order for anyone to make a decision about it. We've been divided and conquered this way for a very long time, and it has gotten us nowhere good.
The two parties, for all their apparent differences, have one major interest in common: maintaining their own power at any expense to the public. Every problem they encounter while in office is supposedly the fault of the other party; they feed on our polarization in order to continue taking turns holding the reins. The truth is that most of our problems are the fault of both parties, collectively, and we need to be rid of them both.
Joe Barton
10:05 am on Tuesday, July 24, 2012
Democrats lie all the time just look at William Hudson Connery III
http://granitegrok.com/blog/2012/07/running-in-rockingham-17-a-democrat-socialist-from-tenessee
C Barry
10:22 am on Tuesday, July 24, 2012
Democrats cant help but lie. They would not get elected if they told the truth now would they.
Mike Healey
10:29 am on Tuesday, July 24, 2012
C Barry make baseless comments.
C Barry
10:31 am on Tuesday, July 24, 2012
Name one time where a democrat has told the truth.
Mike Healey
10:35 am on Tuesday, July 24, 2012
C if Barry could pick out a lie.
C Barry
10:43 am on Tuesday, July 24, 2012
Tell me one time a democrat has told the truth about the 800 million deficit. Democrats lie abut spending and taxes.
Mike Healey
10:55 am on Tuesday, July 24, 2012
Are you talking about the one time expenditure of stimulus money that the GOP wants to call a deficit?
Joe Barton
10:39 am on Tuesday, July 24, 2012
It depends on how you look at it but the bottom line is the Democrats left 802 million in unfunded liabilities to the next session. These liabilities were covered by Federal stimulus money that would knowingly not be available for the next house session.
So a better analogy would be the democrats using a credit card to pay for stuff; getting a cash advance; and then leaving the next session to pay the bill when it comes in.
Mike Healey
10:56 am on Tuesday, July 24, 2012
Not even close Joe.
Jack Flanagan
11:25 am on Tuesday, July 24, 2012
Joe Barton, you are 100% correct. The Democrats had left $900 million dollars of UNFUNDED mandates or a deficit in spending. The Republican controlled legislature reviewed anticipated revenues, sat down with all department heads to review budgets and then made the required cuts. The hypocrisy is that the Democrats knew the shortfall was coming, but now just throw bombs because they don't like the process or the cuts. To Mr. Healey, you have no clue what you are talking about, AGAIN!
News Flash
11:26 am on Tuesday, July 24, 2012
Right on Joe. You have it absolutely correct. Ignore the PAID CAMPAIGN WORKERS.
C Barry
11:30 am on Tuesday, July 24, 2012
Who the heck is the democrat jerk that talks and talks. The guy does not shut up. Just like an old women.