N.H. House Candidate Questionnaire
The Keene Sentinel - October, 2008

Biographical information:

Name: Andy Peterson

Age: 51

Town: Hillsborough District #3 /Towns of Peterborough, New Ipswich, Greenville and Sharon.

Peterborough native

Family: Married to Kirsten (Brownwood) Peterson, four daughters Jennifer, Anna, Sarah and Ellie

Education: Dartmouth College, BA 1978

Occupation: Co-owner/Broker The Petersons, Inc. Real Estate

Organizational Memberships: New England Board of Higher Education (NH delegate 1998-present) Peterborough Rotary Club (1983-present, President 1991), All Saints Parish (Vestry), Realtors Association (1980-present), Amoskeag Veterans.

Public Service: Served on various town committees including Trustee of Trust Funds (Sharon 1983-85), Peterborough Charter Commission (2006), Former member Peterborough Zoning Board of Adjustment and Peterborough Budget Committee (Chair 1996), NH State Legislator (1996-2002, 2006-present) and NH State Senator District 11 (2002-2004).

Questions:

1. WHY ARE YOU RUNNING FOR THE N.H. HOUSE?

I am running for re-election to the NH House to bring concrete proposals to Concord to address the pressing problems facing our state. I am particularly interested to play an active role in finding a sustainable solution to the state’s school funding problem which will help local homeowners by reducing their property taxes.

2. WHAT ARE THE THREE TOP ISSUES FACING STATE GOVERNMENT AND HOW WOULD YOU DEAL WITH THEM?

The three top issues facing New Hampshire’s government today are:

1.) the budget,

2.) the related issue of the failure to deal with state education funding, and 3.) the pressing need to set aside petty political infighting and reason together to forge practical solutions, which must be done to keep the Granite State a place with a singular quality of life and preserve economic opportunity for its citizens.

The current budget, which I voted against this session because it overspent revenues, borrowed to fund current year obligations and included an unconstitutional education funding formula, is now understood to be at least $100 million dollars in deficit. The upcoming budget, due to the impact of a state employee pay raise, increases in contributions to the retirement system, rising health care and energy costs and other factors, is projected to have a considerably larger shortfall.

The budget extended a formula for education funding found unconstitutional by the Supreme Court in the Londonderry decision of 2006, while local property taxpayers are picking up the tab for new state and federal mandates and ever-increasing costs.

The polarization of opposing viewpoints and political infighting has reached new heights in our legislature, sadly mirroring a national trend. Progress on the most important issues affecting us all in our daily lives is stymied by this approach to governing, and thus we suffer the consequences of failing to deal with our greatest common concerns. We need leaders in our legislature today who understand that to face the great challenges of our time (such as access to affordable health care, a clean environment, and an equitable tax policy which promotes economic opportunity and job growth) we will need to draw on the insight and intelligence of all, regardless of political affiliation, and work together to achieve positive results.

3. What, specifically, should the state do or not do regarding the funding of education?

As lead sponsor of the NH Homestead Plan in the legislature, I am offering a    comprehensive and sustainable plan to create a reliable source for state education funding obligations and lower homeowner property taxes, without requiring new taxes such as taxes on income or sales or an expansion of legalized gaming. The plan proposes establishing a low rate statewide property tax subject to a “homestead exemption” applying to the first $150,000 of equalized assessed valuation on primary residences. The plan would not require a constitutional amendment, would be extremely useful (in combination with spending restraint) in eliminating the state’s deficit and would retain and enhance the advantages of New Hampshire’s tax burdens in comparison to surrounding states. The property tax, the largest tax we pay, is particularly difficult to bear for homeowners and tax rates vary widely between towns. To see how the Homestead plan would affect your tax bill view town by town figures online on an interactive chart.

4. How could legislators help residents deal with higher
energy costs?

The legislature recently met and approved an additional $10 million dollars in low income heating assistance aid, in order to ensure residents of ready availability of funds that eventually will arrive from federal sources. But discussions occurring in my household and in those of my neighbors about how to retrofit, conserve, seek alternative sources for winter heating and just plain old ‘how to pay’ oil bills that have increased this year by over 150%, signal that this is a major issue affecting us all as the cold weather approaches this year. Self reliant as we are, it is no surprise that we are seeing our region lead the way in the expanded use of geo-thermal, solar, and pellet stove furnaces to heat personal residences. State government needs to find the most effective ways to promote the use of alternatives sources to foster energy independence.

5. How should the state cope with its projected budget deficit?

Our state budget increased by 17.5% last time around, which I opposed. We must have spending restraint in Concord. But the projected deficit we are facing in the coming year, combined with the current shortfall, cannot be dealt with while maintaining essential services unless we squarely face the education funding side of the budget-in a fashion that does not simply increase local property taxes by up to 20% or more. Thus I feel it is critical that the legislature gets serious about a practical proposal to fund education, such as the homestead plan outlined above.

6. Should State government help people get affordable health care? Why or why not? And, if it should, what kind of help should be provided?

Yes, state government should be involved, as we have been most effectively in the “Healthy Kids” program which I strongly support. Heath Care is a complex issue to tackle, where the ‘devil and the divine’ are very much in the details. The problems local hospitals are facing which result in huge cost escalations for insured fall into two main subgroups, the insufficiency of reimbursement payments for patients covered by Medicaid and the loss from the provision of unpaid emergency care to the uninsured. I feel that a ‘New Hampshire style’ solution to this problem is overdue and that all stakeholders need to participate in a discussion to improve matters. I have been interested in exploring a variant on ideas that have been successful in other states and develop a public-private partnership, managed by a state sponsored non-profit, to provide access to preventative care to the uninsured.

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Homestead Plan

 

Opinion
The Keene Sentinel Sunday, December 3, 2006 Page D-2

‘N.H. Homestead Plan’ solves the school-funding problem

By ANDY PETERSON
This year the voters delivered a re-election victory of historic proportions to Governor Lynch and unceremoniously replaced Republican majorities in the New Hampshire House, Senate and Executive Council. The after-effect of this “blue tsunami” leaves the Democratic Party with a greater ability to formulate and implement state policy than at any time in living memory.
But sooner than we can imagine, Republican sorrows and Democratic joys alike will be eclipsed by the massive responsibility which confronts the governor and Legislature this session: the need to resolve the education funding issue by the July 1, 2007, deadline imposed by the N.H. Supreme Court.
Education Funding has for years now loomed like a foreboding shadow over our state’s efforts to support beneficial programs and protect the many advantages that provide New Hampshire citizens with a vibrant economy and singular quality of life. In what I hope will be a constructive contribution to the upcoming debate, I have proposed a comprehensive legislative solution to state education funding requirements entitled “The N.H. Homestead Plan.”
The bill includes a formulation of state adequacy grants of about $4,500, which will be inflation indexed and paid directly to school districts annually on a per pupil basis. In addition, the legislation calls for over $200 million dollars to be paid to communities annually in the form of targeted aid and approximately $36 million to be distributed in stabilization grants. The total state funding provided for in the plan would be nearly $1.15 billion in the 1st year, or over $300 million more annually than provided for in the existing law, which has now been ruled unconstitutional.
The funding for the plan is based on one simple premise: The education of the next generation of New Hampshire citizen’s is everyone’s business, we’re in this together!
I propose that we raise the needed additional revenue by forming a single taxing district for the purpose of raising basic state education expenses and tax property at an even rate of $7.50 per thousand, via the statewide property tax.
The plan is called the “N.H. Homestead Plan” because residents’ primary homes across the state will receive an exemption from this base tax rate for the first $200,000 of equalized accessed valuation, or a $1,500 tax reduction, estimated to provide over $430 million dollars of direct property tax relief to homeowners statewide.
In addition, the moderation of local property tax rates, which now vary statewide from between only about $3 per thousand to more than $25 per thousand (equalized total rates based on full value assessments/market value), will create a more equitable distribution of tax burdens and lower property taxes for communities that have long been overtaxed when compared with the state average.
These changes require no sales or income taxes, nor do they require other changes such as legalizing casino-style or other expanded gambling. They would, however, achieve two valuable goals: remove the need for further intervention by the state courts and provide long overdue property tax relief to NH homeowners.
According to Legislative Budget Assistant Office estimates, a resident owner of a $300,000 home in Keene would experience the double benefit of a 95 cent reduction in the property tax rate and also gain a $1,500 reduction via the plan’s homestead exemption, lowering their 2005 tax bill of $7,857 to $6,072.
In Manchester, where the tax rate would rise by approximately 74 cents (based on the recently established 2006 rate), owners of $300, 000 homestead properties would see their taxes fall from $5,055 to $3,777. No Manchester homeowner would see an increase for property valued under $2,000,000. In Dublin the tax rate is also projected to increase. However, due to the homestead benefit, primary homes in Dublin valued under $750,000 would see a decrease in total property taxes. As a result of these changes, the “donors” would henceforth truly be individuals, rather than communities.
Owners of second homes, businesses and speculative property in low tax towns will no doubt object to these changes, but the maximum increase in property taxes is limited to $3 per thousand on an equalized basis, and those who will experience these increases will still pay less than if they were located in a neighboring community.
When I compare the overall affects of this plan to other alternatives, I believe it has significant advantages and merits serious consideration in this pivotal year. Take a look at www.AndrewPeterson.org , click on “issues” and see the details for yourself.
Andy Peterson, R-Peterborough, is a N.H. state representative-elect.

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