New Hampshire House Refuses Expanded Gambling, Sets Up Showdown

The New Hampshire legislative chambers are at odds over how to fix a $150 million budget shortfall, as the House rejected the Senate's gambling expansion plan.

Late yesterday, the House budget committee for New Hampshire rejected a Senate plan to expand gambling by placing slots at select gaming venues, including state race tracks. Irritated at the House move, the state Senate then refused to consider two House budget projects, an estate tax and a capital gains tax.

So far, the chambers have agreed to increase revenues through raising fees and permits, including an extra forty-five cents per pack of cigarettes and higher costs for vehicle registration. Possible sources to be considered as ways to create revenue include another hotel and restaurant tax, a tax on mortgage refinancing, and an entertainment tax.

But many members of the legislature are adamantly opposed to turning to taxes to fix the budget shortage.

"I will not raise taxes in a recession," said Senator Lou D'Allesandro, a gambling advocate.

Governor John Lynch had recently said both taxes and gambling revenue might be necessary to reach revenue levels that would adequately fund the budget, requiring compromise on both sides. The state is $150 million short of balancing its budget.

Polls of New Hampshire residents say as high a number as 72 percent prefer expanded gambling to raising taxes as a source of revenue.