CONCORD – NH GOP Chairman Fergus Cullen issued the following statement in response to results of the special election for State Representative in Rockingham’s 15^th district. Republican Chris Nevins won the seat yesterday with over 57% of the vote. Republicans lost four of the five previously Republican-held seats in this district during the 2006 elections.

NH GOP Chairman Fergus Cullen said, “The New Hampshire Republican Party extends our congratulations to Chris Nevins for running a great campaign. It’s easy to read too much into Special Election results, but this victory points to the fact that 2008 will be an equilibrium election. In 2006, the political pendulum swung too far to the left in New Hampshire and we lost seats like this one in Hampton where Republicans can perform well. Fiscal responsibility was a major issue in this race. Gov Lynch and the Democrats in Concord have demonstrated that they are the party of higher taxes, higher spending, budget deficits, and fiscal mismanagement. If Chris Nevins’ election is any indication, Democrats will have a tough time holding on to their already tenuous grip on the legislature this November.”

From the Hampton Union : “Democrats rode disfavor of President Bush and federal Republicans to victory in 2006 that gave them majority control of the state. Despite proclamations from Democrats that they crafted a responsible budget, the $50 million deficit falls to them. Even if their revenue projections were sound but felled by unforeseen elements of a national recession and unanticipated prolonged softening of the housing market, the deficit is theirs. Many state Democrat candidates in 2006, took up the traditional Republican position of fiscal conservatism that would keep the state in the black. They collectively failed to deliver on that campaign promise. So, the choice in this election is the Republican. Based on the first term of Democrats' control, Concord could use another Republican. If the two are going to espouse Republican fiscal conservatism, at least that of the Granite State, wouldn't independent voters be better off voting for the candidate of that party?” (Editorial, “Spending Makes Nevins Choice For Hampton’s State Rep.” The Hampton Union , February 1, 2008)

CONCORD – Fergus Cullen, Chairman of the New Hampshire Republican Party, releases the following statement in response to today’s stories in the Union Leader concerning Representatives Paul Hodes and Carol Shea-Porter’s use of franked mail:

“Today’s Union Leader stories make clear that Representatives Paul Hodes and Carol Shea-Porter have used taxpayer dollars to send targeted, politically-driven mail from their Federal congressional offices at taxpayer expense.”

“They purchased a political list from the New Hampshire Democratic Party using tax dollars, and used that list to send taxpayer-funded mail to targeted voters.”

“Hodes, Shea-Porter, and the New Hampshire Democrats can’t have it both ways. New Hampshire Democrats say it’s legal to sell the voter file for campaign-related purposes. If that’s true, what were Hodes and Shea-Porter doing with the list in their congressional offices except using it for campaign-related purposes at taxpayer expense?”

KEY EXCERPTS FROM THE UNION LEADER STORIES:

HODES, SHEA-PORTER USED A POLITICAL LIST TO SEND FRANKED MAIL

• “Both congressional offices last year directly or indirectly purchased from the state Democratic Party the state-generated voter mailing lists, which, under state law, should be made available only to entities that use them solely for ‘election or political campaign’ purposes.” (John DiStaso, “Mailings Targeted To Boost Political Fortunes?” The Union Leader, January 4, 2008)

• “Shea-Porter purchased the list directly from the Democratic Party last May for $5,000, according to official House disbursement records and the state party's financial report to the Federal Election Commission.” (John DiStaso, “Mailings Targeted To Boost Political Fortunes?” The Union Leader, February 4, 2008)

• “Hodes chief of staff [Matt] Robison said his office ‘does not own the voter list’ of the state Democratic Party. But records show a printing firm hired by his office, Smith-Dunlap-Edwards, purchased the list from the state party last June 26 for $5,000, two weeks after Hodes’s office had paid Smith-Dunlap-Edwards $5,000 for ‘publication/reference material,’ according to an official House publication of congressional disbursements.” (John DiStaso, “Mailings Targeted To Boost Political Fortunes?” The Union Leader, February 4, 2008)

POLITICAL MAILING COST THE TAXPAYERS THOUSANDS OF DOLLARS

• “Hodes' office paid the same firm $29,580 for ‘Mass Printing #1’ on July 25 and $1,000 for ‘publication/reference material’ on Aug. 28.” (John DiStaso, “Hodes Won’t Say How Much He Spent,” The Union Leader, February 3, 2008)

• “Hodes is far from alone when it comes to franking. His New Hampshire Democratic colleague, Rep. Carol Shea-Porter, spent $63,270 on production and about $80,000 on postage for four mass mailings - a total of about $143,000 - during 2007, according to chief of staff Harry Gural.” (John DiStaso, “Tax Dollars Paid For Slick Mailings,” The Union Leader, February 4, 2008)

• “Kyle Anderson, a spokesman for the House Administration Committee, which oversees ‘franked’ publicly funded mass mailings, told the New Hampshire Union Leader in an e-mail: ‘Official mailings may only be distributed on a non-, non-political basis and official mailing lists may not include any party affiliation, voter history by party or campaign information.’” (John DiStaso, “Mailings Targeted To Boost Political Fortunes?” The Union Leader, February 4, 2008)

• “Shea-Porter chief of staff Harry Gural said that in four mailings sent last year, ‘New Hampshire veterans, plus seniors over a certain age, got the veterans piece. Seniors got the senior piece. People under 50 got the environmental piece. All households got the year in review.’” (John DiStaso, “Mailings Targeted To Boost Political Fortunes?” The Union Leader, February 4, 2008)

MOST TRANSPARENT CONGRESS? PAUL HODES WOULDN’T SAY HOW MUCH HE SPENT

• “While Rep. Carol Shea-Porter's chief of staff disclosed that her office spent $143,000 on production and mailing costs for four franked mass mailings in 2007, his counterpart in Rep. Paul Hodes’s office refused to provide similar information.” (John DiStaso, “Hodes Won’t Say How Much He Spent,” The Union Leader, February 3, 2008)

• “Matt Robison of Hodes’s office declined to provide copies of Hodes's four Quarterly Mass Mailing Reporting Forms, which congressmen are required to submit to the House Administration Committees’ finance office every three months. And he declined to simply say in an interview how much was spent.” (John DiStaso, “Hodes Won’t Say How Much He Spent,” The Union Leader, February 3, 2008)

Chairman Cullen Calls on Shea-Porter and Hodes to follow suit

CONCORD – New Hampshire GOP Chairman Fergus Cullen issued the following statement today about President Bush’s decision to issue an Executive Order directing federal agencies to ignore certain earmarks approved by Congress:

NH GOP Chairman Fergus Cullen said, “Congressmen Carol Shea-Porter and Paul Hodes said they were going to Washington to end earmarks and instead they have sought them. The Democrats promised change but instead we got more of the same. I call on Representatives Carol Shea-Porter and Paul Hodes to join with the President to block ‘bridges to nowhere’ and ‘monuments to me.’”

Carol Shea-Porter and Paul Hodes have terrible records when it comes to Earmark Reform

Shea-Porter’s Office Claims That There Is A Difference Between “Good” And “Bad” Earmarks. “Earlier in the week, Shea-Porter's press secretary Clark Pettig addressed the issue. ‘People sometimes confuse “good” earmarks with “bad” earmarks,’ he said.” (Adam D. Krauss, “Shea-Porter Won’t Disclose Earmarks,” Foster’s Daily Democrat , June 25, 2007)

Meanwhile, Shea-Porter Has Refused To Disclose Her Earmark Requests. “Congresswoman Carol Shea-Porter says she won't disclose her ‘earmark’ spending requests until they're acted upon.” (Etienne Vallée, “Carol Shea-Porter Wants To Make A Difference,” Carroll County Independent , March 15, 2007)

Shea-Porter Calls Her Requests “Perfectly Legitimate, Good Things To Do.” “Falling in line with the vast majority of her colleagues, Congresswoman Carol Shea-Porter says she won't disclose her ‘earmark’ spending requests until they're acted upon. . . . Though she wouldn't disclose the number or sum of her requests, Shea-Porter did say she submitted a request on behalf of Rochester's Avis Goodwin Community Health Center. ‘These are perfectly legitimate, good things to do,’ she said.” (Adam D. Krauss, “Shea-Porter Won’t Disclose Earmarks,” Foster’s Daily Democrat , June 25, 2007)

USA Today Has Named Hodes As One Of The House’s Worst Special-Interest Earmark Spenders. (Matt Kelley, “'Earmark' Analysis Shows Money Follows Power,” USA Today, December 11, 2007)

The New Hampshire Union-Leader Described Hodes And Shea-Porter As “The Pork Twins.” (Editorial, “The pork twins: Hodes, Shea-Porter love earmarks,” The Union-Leader , August 22, 2007)

In Today’s State Of The State Address, Lynch Called New Hampshire A “Fiscally Responsible State,” But Under His Watch It Has Been Anything But…

We’ve Seen Out Of Control Spending

The Spending In Lynch’s Budget Was $475 Million Higher Than The Last Biennial Budget. “Recession or no, the state wouldn't be $50 million or more in the hole if they didn't spend $475 million more in the 2008-09 budget than in the 2006-07 budget.” (Editorial, “The State Budget Hole; Just Blame Bush!,” Union Leader , January 20, 2008)

The Budget Increased Spending By 17.5%. “Although overall spending increases by 10.8 percent, spending of state revenues will increase by 17.5 percent.” (Tom Fahey, “$10.3 Billion State Budget Approved,” Union Leader , June 28, 2007)

We’ve Seen Higher Taxes And Fees

Lynch’s Budget Contained “A Package Of Tax And Fee Increases.” “It took a package of tax and fee increases to balance a $10.3 billion budget for the next two years.” (Editorial, Foster’s Daily Democrat , June 27, 2007)

Among Others, Lynch’s Budget Increased The Tobacco Tax And Car Registration Fees. “Both budget bills, the budget itself and a companion bill that raised the tobacco tax by 28 cents a pack, created an Land and Community Heritage Investment Program fee on registry of deed documents, raised car registration fees by $6 a year, and shifted nursing home costs entirely to counties, passed the Senate easily, 16-8. In the House, the budget itself passed, 211-146.” (Tom Fahey, “$10.3 Billion State Budget Approved,” Union Leader , June 28, 2007)

Lynch Has Also Hiked Tolls, And Is Scheduled To Hike Them Again. “The toll hike that acting DOT Commissioner Chuck O'Leary proposed last week matches the first phase laid out in the memo. Phase 1 raises tolls to $1 at Hooksett and Bedford on the F.E. Everett Turnpike, 75 cents at Dover and Rochester on the Spaulding Turnpike, and $1 at ramps in Hampton on I-95. That would bring turnpikes an extra $16 million a year, enough to cover $200 million in new turnpike bonds. The memo suggests other steps to raise another $46 million a year: a Hampton toll of $2 by mid to late 2009 (for a $25 million annual revenue bump) and all mainline tolls at $1 by 2010.” (Tom Fahey, “State House Dome: Tolls And Gas Taxes To Be Big Issues,” Union Leader , September 23, 2007)

We’ve Seen Rosy Revenue Projections That -- Coupled With Higher Spending -- Have A Created Budgetary Crisis

In His Address, Lynch Blamed A National Economic Downturn For His Current Revenue Shortfall. (John Lynch, State of the State Address, January 23, 2007)

However If This Were True, The Governor Should Have Seen It Coming Since National Economists Have Provided Ample Evidence Of A Slowdown:

Federal Reserve Chairman Ben Bernanke: “[T]he U.S. Economy Appears To Be Making A Transition From The Rapid Rate Of Expansion Experienced Over The Preceding Several Years To A More Sustainable Average Pace Of Growth.” (Ben Bernanke, Testimony Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, February 14, 2007)

Ø “Economic growth in the United States has slowed in recent quarters, reflecting in part the economy’s transition from the rapid rate of expansion experienced over the preceding years to a more sustainable pace of growth. Real gross domestic product (GDP) rose at an annual rate of roughly 2 percent in the second half of 2006 and appears to be expanding at a similar rate early this year.” (Ben Bernanke, Testimony Before the Joint Economic Committee, U.S. Congress, March 28, 2007)

Business Week: “A Slower Pace Of Economic Growth.” “Small businesses are losing confidence as the economy continues to soften. A slower pace of economic growth in the U.S. is translating into reduced sales and income, which is likely to cause smaller businesses and entrepreneurs to reduce hiring and capital spending early in 2007.” (James Mehring, “Small Business: Just When Hopes Were High”, Business Week , January 8, 2007)

Business Week: “Profits Slowdown Already Appears To Have Started.” “Corporate profits have been on a tear for more than three years. . . .Get ready for a change. The profits slowdown already appears to have started, and margins are getting squeezed. For 2007, the combination of cooler demand and warmer labor costs will create a tough economic climate for earnings.” (James C. Cooper, “Earnings Season Is About To Get Chilly,” Business Week , April 16, 2007)

And We HAVEN’T Seen Spending Reports

In Lynch’s Budget Address Last Year, He Proposed Making State Expense Reports Publicly Available. “As a state, we receive monthly revenue reports and we continually debate revenue projections. But we need to do a better job of tracking expenses on a statewide basis. That is why I have asked Commissioner Hill to develop expense reports, similar to the revenue reports, which will be available for our review monthly.” (John Lynch, Budget Address, February 15, 2007)

Yet These Spending Updates Have Not Been Released. “To make matters worse, we have no idea where we are on spending. A year ago, the governor proposed monthly spending updates like the monthly revenue updates the state publishes. But one year later, no spending updates have been released and spending is still hidden from the public.” (Charles Arlinghaus, “We Face A Two-Year Budget Crisis, Not A $50 Million Problem,” Union Leader, January 23, 2008)