Big House majority backs return to state helping towns with pension costs

CONCORD — To the surprise of many, a bill to restore a portion of the state contribution toward the retirement costs of school teachers, police officers and firefighters carried the New Hampshire House of Representative on Wednesday by the convincing margin of 267 to 83.

House Bill 413 would require the state to pay 15 percent of the employer contribution beginning in fiscal year 2018. After contributing 35 percent toward the pensions of school teachers, police officers and firefighters since 1967, the state trimmed its share to 30 percent in 2010, to 25 percent in 2011 and eliminated it altogether in 2012.

The margin of the vote in the House followed was not expected after the bill won the endorsement of the House Executive Departments and Administration Committee by a single vote — 10-to-nine— as the committee divided largely along party lines. Moreover, the Republican leadership of the House opposed the measure and Governor Chris Sununu, after indicating he was open to restoring an unspecified portion of the state contribution, did not include funding for it in his budget.

Laconia city manager Scott Myers estimated that the city and the school district would be spared $240,000 and $300,000 in retirement costs respectively if the bill becomes law. The New Hampshire Municipal Association estimates that the return to school districts in the Lakes Region would be about $86,200 in Alton, $70,600 in Barnstead, $215,3000 in Gilford, $55,100 in Gilmanton, $196,700 in Inter-lakes, $144,000, in Moultonbrough, $202,300, in Newfound, $216,400, in Shaker Regional, $212,000 in Winnisquam Regional and $140,000 in Franklin.

The association estimates that in Belknap County the state contribution of 15 percent to the cost of pensions for police officers and firefighters would represent $40,000 in Alton, $30,400 in Barnstead, $79,000 in Belmont, $9,000 in Center Harbor, $107,300 in Gilford, $22,800 in Gilmanton, $47,600 in Meredith, $14,400 in New Hampton, $18,000 in Sanbornton and $45,000 in Tilton.

The 14 of the 17 representatives from Belknap County who voted were divided, with eight voting in favor and six against. Those in favor were Representative David Huot of Laconia, the lone Democrat in the delegation, who was joined by Republican representatives Glen Aldrich and Norm Silber of Gilford, Dennis Fields and Tim Lang of Sanbornton, Don Flanders of Laconia, Michael Maloney of Gilmanton, John Plumer of Belmont. Six Republicans voted against: Marc Abear and Herb Vadney of Meredith, Valerie Fraser of New Hampton, Ray Howard of Alton, Peter Spanos of Laconia and Michael Sylvia of Belmont. Representatives Barbara Comtois of Barnstead, Robert Fisher of Laconia and Peter Varney of Alton were excused and did not vote.

By passing House Bill 413 the House has made a statement of policy. The bill will be referred to the House Finance Committee, which will address the question of funding it. Altogether a state contribution of 15 percent would represent estimated expenditures of $40.8 million in 2018, $42.1 million in 2019, $43.4 million in 2020 and $44.7 million in 2021.