New budget proposal: raid energy fund

This week House budget writers drafted a new proposal for funding the Department of Transportation (DOT).  The proposal uses money from the Renewable Energy Fund and decreases funding for UNH.

Originally a group of four Republicans proposed raising the gas tax to fund a major shortfall in the DOT, but that idea fell flat in the House.

Electricity providers pay into the Renewable Energy Fund when they do not buy enough electricity from renewable sources, according to New Hampshire's Renewable Portfolio Standard.  The Renewable Energy Fund is intended to fund grants and rebates for individuals and businesses working on renewable energy projects.

"We made the policy decision that a temporary hiatus on that program was the price we had to pay so that the state's highways were maintained and properly funded for the next two years," said Rep. Neal Kurk (R-Weare), chairman of the Finance Committee.

Supporters praise the new budget proposal for not raising taxes.

Opponents argue that raiding the Renewable Energy Fund is dishonest budgeting.  Because electricity providers pass some of the cost of the Renewable Portfolio Standard onto ratepayers, this budget proposal funds the Department of Transportation on the back of ratepayers' electricity bills.

The proposed budget also decreases funding for local road maintenance, downshifting some costs to towns.

Lastly, UNH says they will raise tuition if funding decreases.