January 6, 2005

CONCORD - Senate President Tom Eaton said Monday he supports legalizing video poker at New Hampshire's four racetracks to help shore up the state's finances.
Eaton said he also would consider expanding gambling in the future to include the state's grand hotels.

State Sen. Lou D'Allesandro, a Manchester Democrat, is working on a bill to legalize the machines, said Eaton.

Both Eaton and D'Allesandro estimate putting state-operated video poker machines at the four tracks will raise $200 million a year for the state.

D'Allesandro has tried unsuccessfully in the past to pass the bill, but the composition of the House and Senate has changed since his last attempt. Eaton said he doesn't know if gambling will fare better this time, but there are not many other alternatives to raising money to help pay for spending in the next state budget.

Gov.-elect John Lynch estimates the state faces a $300 million budget shortfall if spending on existing programs continues at their same levels. Lynch, Eaton and House Speaker Doug Scamman oppose income and sales taxes. Lynch says the state must resolve the shortfall within existing revenues.

Lynch has taken a cautionary approach to expanding gambling.

"Gov.-elect Lynch would have to see convincing evidence it could be done without harming New Hampshire's quality of life," spokeswoman Pam Walsh said Monday.

With tax hikes ruled out, legalizing video poker could be the state's only option to budget cuts, said Eaton.

"We're still going to be living within our means" if gambling isn't expanded, he said.

As part of the budget preparation, lawmakers also will carefully review proposed changes to the state's Medicaid program, said Eaton.

Health and Human Services Commissioner John Stephen said the state can't afford to leave things as they are. He wants to shift the emphasis from nursing home care to providing more care at home and in community settings. He also wants to give some clients budgets to spend on care to make them more aware of costs.

Lynch has said he has reservations about the plan and will hold hearings on it this month.

Eaton said efforts to reform the state's ethics laws will share the spotlight with the budget. He said he does not support drastic changes that might discourage people from running for office.

"I would not want the pendulum to go too far one way," he said. "The bottom like is everything should be declared."

Eaton said lawmakers will debate what to do about conflicting laws governing gifts and contributions to public officials. Former House Speaker Gene Chandler withdrew his bid for a third term as speaker after a legislative ethics committee filed charges against him over $64,000 in unreported gifts.

Executive Councilor Ruth Griffin, a Republican from Portsmouth, also is under the spotlight for allegedly using $80,000 in donations for personal expenses, such as clothing, lodging and meals.

Lynch wants to establish an ethics commission with broad authority to investigate members of the executive branch.

Eaton said lawmakers probably "will tweak" a controversial small business insurance law that Lynch wants repealed. The law allows insurers to use demographic data to set rates and work to provide health coverage for every child in the state.