Joyce Craig and Kelly Ayotte made many economic differences clear during a debate Tuesday. Ayotte, the Republican gubernatorial nominee, applauded the elimination of the interest and dividends tax next year, while Craig, the Democratic nominee, said the cut, passed by lawmakers, amounted to a tax cut for the wealthy. 

But the candidates were less forthcoming on one key question: How should the next governor handle a potential significant decline in revenues next year?

“Do you have any contingency plan for dealing with a billion dollar shortfall in our budget?” asked Jac Cuddy, the council’s executive director and the moderator of the debate.

Despite multiple prompts during the Mt. Washington Valley Economic Council gubernatorial debate, neither contender fully answered that question. The candidates instead clung to familiar territory, falling back on the policy disagreements that have defined their campaigns.

But the budget question could be unavoidable for the next governor. 

After multiple years of flush state revenues spurred by historic federal stimulus during the COVID-19 pandemic, as well as strong revenues from the state’s business taxes, the flow of money is likely to decrease. 

New Hampshire’s share of American Rescue Plan Act funds is near an end, with most of the remaining share required to be spent by 2026. And future revenue projections are lower, in part because of the reduction of the interest and dividends tax, according to a monthly revenue report by the Department of Administrative Services.

That means the next governor might face an unpalatable choice when she crafts her first budget: raise taxes to make up revenues or find ways to cut some state programs.

Neither candidate appeared interested in detailing their preferred response to that situation Tuesday.

Instead, the two sparred over the state’s 2022 abortion law barring most abortions after six months of pregnancy, the value of the state’s education freedom account program, and the best approach to diversifying energy sources and lowering costs. 

When it came to the interest and dividends tax, which is due to be phased out after April 2025, Craig painted the tax cut as a handout to wealthier Granite Staters. Research shows that higher income households were much more likely to pay the tax than lower-income households. Craig said she would restore the tax but change the threshold to make sure it would not affect middle class families.

Ayotte said that proposal was tantamount to a tax increase to Granite Staters and used it to bolster her argument that Craig would usher in higher taxes as governor. Craig pledged not to introduce an income or sales tax.

Addressing education funding in the state, Ayotte repeated her opposition to a November Superior Court ruling in which Judge David Ruoff found the state’s $4,100 per pupil base grant for public schools to be unconstitutionally low, and held that it should be at least $7,356.01. 

Ayotte said it was inappropriate for the court to have weighed in, arguing the funding level is a question that should be put to the Legislature and the governor. But she did agree that the state should put more money into targeted funds for school districts in which property taxes are inordinately high 

Craig, who supports the ruling, said the current level of state education funding is woefully inadequate and has helped keep property taxes high. She also criticized the education freedom account program, which she said could “decimate” public schools if allowed to grow.

Ayotte countered that the program, which allows low income families to use state education funds toward private school and home school expenses, provides educational opportunities for children who aren’t succeeding in their public school.

The two agreed that they would not support overriding local zoning codes using state statutes in order to facilitate more housing. But both candidates do support some of those zoning overhauls, and both have endorsed legislation to require towns to allow more accessory dwelling units to be developed by property owners.

On energy policy, Ayotte argued that Craig’s positions in favor of expanding clean energy would prove too costly and were too aligned with other New England states. Craig countered that the reforms are necessary to reduce the state’s carbon footprint and that they would ultimately lower costs.

And on many answers, the two candidates returned to familiar attack lines – Ayotte accusing Craig of adopting progressive policies akin to Massachusetts and failing to lead Manchester through a drug and homelessness crisis, and Craig hammering Ayotte over her past votes as U.S. Senator to defund Planned Parenthood and her support for the overturning of Roe v. Wade in 2022. 

After about an hour, the state budget question remained largely unaddressed. 

“I’m just cranky and old at this point, and I haven’t done very well as far as getting you to answer questions about the huge potential budget deficit that we have,” Cuddy said. “So as we get closer to finishing up, the more specific you can be, the more I’d appreciate it.”

New Hampshire State Police and Nashua Police were notified of a pedestrian walking in the area of the turnpike just before 5:30 a.m. Shortly after the dispatch for the report of a pedestrian, 911 calls came in for a person struck on the turnpike near Mile Marker 5.2, around the Exit 5 northbound onramp.

Nashua Fire Rescue and AMR ambulance arrived at the scene and reported Kruminsh deceased at the scene.

The northbound side of the turnpike was temporarily closed to allow investigators to work; traffic was diverted off the Exit 5 offramp.

The Ford F-150 pickup truck had significant front-end damage and remained at the scene. The body of the victim could be seen next to the rear driver’s side of the truck on the ground.

The turnpike remained closed for several hours as investigators from state police and the Medical Examiner’s Office investigated the incident.

State police did not identify the pickup truck driver but stated he was cooperating with investigators and remained at the scene after the crash.

The accident occurred close to the Mine Falls trail area, which has been the location of several homeless camps in the past. It is unknown if the person walked onto the highway from one of those areas.

The crash remains under investigation, state police ask anyone who witnessed the crash or who has information that may assist the investigation is asked to contact Trooper Timothy Repucci at (603) 223-4381 or Timothy.R.Repucci@dos.nh.gov.

New England leaf-watching season is in full swing, as people from as far as Florida and Berlin flock to the region for scenic drives, train rides and bus tours to soak in the splendid hues of red, orange and bronze. With quaint towns and covered bridges scattered through swaths of changing forest, the rural Northeast provides an ideal setting to view nature’s annual show.

“Leaf-peeping is one of the most accessible tourism things that you can do,” said Teddy Willey, the general manager of the Frog Rock Tavern in Meredith, New Hampshire. “You don’t have to have the athleticism to be a hiker, you don’t have to have the money to own a boat.”

You just need to be able to jump in a car and head north, he said.

“Once you’re there, you just take it in,” Willey said.

He spoke just after his tavern was flooded with tourists from Indiana who had stepped off a sightseeing bus.

Among them was Vicky Boesch, of Fort Wayne, who had made the trip with her sisters.

“We came out to the Northeast to see the beautiful foliage and the colorful leaves,” she said, adding the she was impressed with Vermont.

“The leaves were very pretty on the mountains because the sun was out yesterday, and so that makes them pop more,” she said.

It wasn’t only the fall colors that provided a contrast with Indiana, she said, but also the region’s distinctive architecture, lakes and towns.

Gordon Cochran, of Lake View, Iowa, said he was in New Hampshire to visit his daughter and had a “beautiful ride” on the slow-moving Winnipesaukee Scenic Railroad.

Weather conditions associated with climate change have disrupted some recent leaf-peeping seasons. One problem is that global warming has brought drought that causes leaves to turn brown and wither before they can reach their colorful peak.

Willey acknowledges that he’s not a leaf guy.

“Personally, no. I grew up here, so I think it loses its luster a little bit,” he said with a chuckle, adding that the season still has its moments.

“I’ll be driving somewhere around the Lakes Region, and all of a sudden, you’re like, ‘You know what, there’s a reason why people come here and there’s a reason I live here. It really is quite beautiful,’” he said, referring to a scenic part of eastern New Hampshire.