KAREN BURNETT-KURIE'S PRIORITIES

Housing is essential to everyone - individuals, families, seniors, communities and businesses. And yet two out of three of our communities in District 7 (Wolfeboro and Ossipee) have lost housing stock in the last 15 years. This while the mean house price has increased substantially. NH ranks 42nd in housing affordability. 40 to 50% of young adults are living with their parents (national average is 30%). The average age of a first time home buyer is now 40 years+. This issue is reshaping who lives in New Hampshire. We are losing young adults and young families to other states. But we need these young people to stay and move here. As our state’s population continues to age, and deaths outnumber births, these young people are critical to our businesses, communities and economy. THREE MUNICIPAL FUNDING PROGRAMS were established by the NH legislature to combat the state's affordable housing shortage. They are all under the Housing Champions umbrella: Housing Planning and Regulation Municipal Grant Program Housing Production Municipal Grant Program Housing Infrastructure Municipal Grant and Loan Program All three were zero funded in our present budget. In order to assure seed funding for these programs I propose converting the existing Education Tax Credit (ETC) program – which allows businesses to donate their business taxes to an eligible scholarship program (which benefits individuals) – to a Housing Tax Credit which benefits everyone. This tax credit model has produced between $2.5 to $3.5 million annually. If redirected to housing this funding would directly impact New Hampshire’s affordable housing crisis. NH limits total aggregate donations to $6,000,000 per year, translating to a maximum of $5.1 million in available tax credits. There would be no change to this limit. NH Businesses will continue to earn a tax credit toward 85% of their BET or BPT taxes (up to $600,000) while supporting housing for their workforce. This will support employees which NH businesses desperately need. Too often, potential workers are unable to find and hold on to affordable housing in the Granite State which has created the workforce shortage many businesses face. In addition, I propose two cuts of the BET be reinstated and the added revenue be dedicated to these Housing Champions Funds. By generating dedicated revenue on an on-going basis these instrumental initiatives can be sustained and have the long-term impact needed. SUPPORT FOR WATER AND SEWER INVESTMENTS Town/municipal water and sewer infrastructure is one of the greatest limitations on expansion of housing in many communities. Years ago, the state legislature committed to supporting funding for these needed infrastructure expansion and upgrade projects. But recently the Legislature has reduced or suspended their financial support. Restoring this funding is key to many communities supporting affordable housing projects. In order to provide necessary state funding I would eliminate any program established in the last ten years, which did not come with an associated dedicated funding mechanism, which is not constitutionally or federally mandated. The funds used for this/these programs would be redirected to these investments. Additional funding would come from a tax on large trust funds invested in New Hampshire or a capital gains tax. If we can tax unrealized gains on a house, a basic necessity, it is not unreasonable to tax capital gains.

SCHOLARSHIPS It can easily cost $30,000 per year to have two children in day care in New Hampshire. This is a heavy burden for low and modest income families. For them, NH’s Child Care Scholarship Program (NH CCSP) is essential. It means, for eligible families, they pay no more than 7% of their gross income on child care. NH CCSP pays their portion of child care fees directly to qualified child care providers for children up to age 13 (and through age 17 for children with disabilities). This not only allows families to have two incomes but also provides businesses with needed employees. While the state increased the funding for the NH CCSP in 2024 there is still a significant unmet need for scholarships. I propose creating a Child Care Tax Credit similar to the existing Education Tax Credit to increase funding for child care scholarship and start-up costs for new providers across the state. Modeled after the existing Education Tax Credit this would increase funding and NH businesses would earn a tax credit toward 85% of their business taxes, up to a maximum of $600,000. In turn, these tax credits will support employees which these businesses rely on. CHILDCARE CAPACITY NH has lost child care capacity in the last decade. Tuition has not covered overhead costs, even with the modest wages, typically $15 per hour, earned by the workers. (Wages which are 45% of public school educators wages.) The result is an almost 20% turnover in staff annually. Plus, NH does NOT accept childcare federal money because of DEI rules directed at providing childcare for special needs children. This has severely impacted some workers' ability to return to the workforce. (Evidence of our capacity to change this situation is in the free childcare provided during WWII). Rural areas lack local centers and if they have a center there is typically a one year wait list. Some parents drive 45 minutes to an hour each way to access childcare – adding to the cost and stress on the family. Home based centers have been closing rapidly due to many factors including insurance and staffing which is difficult for all providers. As a result we are short over 9,000 child care slots in this state. We need to realize childcare is not like a normal small business. It, in fact, is a public good/service with the associated legislatively dictated standards and regulations which are necessary for the safety and benefit of our children, but which also increase costs beyond the ability of parents to pay. There are many innovative ways New Hampshire can increase its childcare capacity. Some apprentice programs, partnerships, college credit collaborations and parent coops are already being tested. In order to foster these and other innovations, I propose two of the previous cuts to the BPT be reinstated with the revenue produced dedicated to the building and maintaining childcare capacity in the state. This would provide ongoing funding for sustained impact and would support the workforce NH businesses require.

MEDICAID Starting later this year, a NH single Mom making $60,000 per year will be charged $270 per month for Medicaid healthcare for herself and her children. This is an untenable charge and will too often mean the entire family will be without healthcare. The whole point of Medicaid is to address the lack of healthcare for low income families. The impact of the loss of Medicaid will be higher costs for all of us because of the increases in the uninsured population. In order to return Medicaid insurance to its qualifying status for recipients, I propose the following sources for the $23 million per year needed to cover the state’s cost resulting from reduced funding from the federal government. Adding some combination of excise taxes to achieve $23 million. Adding excise taxes on: a. fireworks – an 8 to 12% fireworks safety fee would collect taxes from our substantial number of out of state buyers as well as in-staters buying fireworks. *potential earnings from this excise tax TBD b. beer and wine sold outside of NH liquor stores - given grocery stores and convenience stores already collect/submit prepared food tax, tobacco taxes, and in some cases gas taxes, this will be a familiar mechanism for them to manage. In addition, it will collect from out of state buyers on top of NH buyers. *potential earnings from this excise tax TBD c. a luxury tax on non-essential, high-value goods and services such as recreational vessels, aircraft, premium travel & services. MEDICARE ADVANTAGE PLAN New Hampshire needs to assure all seniors in the state have access to a Medicare Advantage Plan. These Advantage plans are often the only affordable options for Seniors to obtain the supplemental insurance they need. Carroll County was singled out in 2026 for not having a ‘regular’ Medicare Advantage Plan. This absence needs to be addressed in a coordinated effort by our NH Commissioner of Insurance, our federal delegation and the state legislature. Thousands of seniors should not be left without care because their county is suddenly dropped by companies serving all other parts of NH (and neighboring Maine). If Medicare Advantage companies want to serve NH Seniors they need to provide plans in all counties in the state. Given the small size of the state – geographically and by population – the state should be considered one Medicare Advantage market to be served equally statewide. This can be achieved with companies singularly or collaboratively providing coverage statewide. RURAL HOSPITALS In addition, all Granite Staters deserve reasonable access to healthcare facilities and resources. This has been achieved through our network of rural hospitals. However these hospitals are struggling financially. Too often they are ending services if not closing all together. Birthing care is becoming increasingly challenging. These hospitals rely on Medicaid and Medicare funding to stay open. In order to fund the state’s contribution for Medicaid, NH instituted a tax on hospitals. This originally was matched by federal dollars. However, the federal government has now dictated that this tax must decline by ½% per year which will result in one billion less in state funding for Medicaid unless NH alters its funding strategy. NH needs to establish a more sustainable method of paying its share of healthcare for low income children, the disabled, and seniors, as well as keeping rural hospitals afloat.

NH needs to raise the minimum wage to a rate comparable to our neighboring states. It is detrimental to our economy and businesses to be known as the only state in New England to have such a low minimum wage. This may be seen as symbolic to many, since most jobs in NH pay above minimum wage. But it sends a critical message to young people and it is those young people who our Granite State businesses need to attract and retain as employees. These young people need to know they are valued. It will take a constitutional amendment to raise our minimum wage. Yet, it is worth it for our state’s workforce and economy.