THE GREAT DIVIDE: To say relations between the judicial branch and the current Legislature have been frosty would be an understatement.

The deep divide was apparent at last week's swearing in ceremony for Supreme Court Associate Justice Jim Bassett.

The Supreme Court chamber was filled with Bassett's family, friends and colleagues from the Orr & Reno law firm, where he worked, as well as attorneys from law firms across the state and judges from all levels of the state and federal court systems.

However, there were more lobbyists at the ceremony than lawmakers. The only prominent lawmaker there was House Judiciary Committee Chairman Robert Rowe.

The head of the executive branch, Gov. John Lynch, who nominated Bassett, swore in the new justice.

The head of the judicial branch, Chief Justice Linda Dalianis, acted as master of ceremonies and part-time comedienne.

But there were no signs of House Speaker William O'Brien or Senate President Peter Bragdon anywhere near One Charles Doe Drive.

No one doubts the Claremont decisions drove a wedge between lawmakers and the courts and did away with some of the trust that had existed between the two branches. Some lawmakers view the decisions as a judicial power grab usurping their constitutionally given power, but others see them as righting the ship of state to make lawmakers live up to their responsibilities.

No matter how lawmakers feel or what they think about those decisions, the fact is: Not one justice who participated in the two Claremont decisions is on the Supreme Court bench today, and only Dalianis remains from the five justices who ruled on the auxiliary Londonderry case that every child in public schools has to receive a basic amount of state aid, something lawmakers and Lynch have wanted desperately to change but so far have failed to accomplish through a constitutional amendment.

Over the past two years, relations between the courts and the Legislature have been particularly strained.

House members bristled when the court ruled they could not order the attorney general to join a federal lawsuit against health care reform because doing so would violate the separation-of-powers provision of the Constitution.

During the two years, lawmakers introduced dozens of bills that would have reduced the court's powers or circumvented its rulings. Working together, however, lawmakers and justices consolidated the district, probate and family courts into the circuit court, though O'Brien tried unsuccessfully to undo some of that at the end of this year's legislative session.

And lawmakers tried several ways to limit the court's ability to establish its own rules, finally giving voters an opportunity during the November general election to approve a constitutional amendment that would essentially give lawmakers authority to negate court-approved rules.

The founding fathers intended the three branches of government to serve as a system of checks and balances to guard against one branch usurping power from the other two. And sometimes the checks-and-balances process becomes a little contentious, as it has during the last two years.

But Bassett, in his remarks after his swearing-in, explained how the process should work.

“I understand the important — but limited — role of the judiciary and of the court itself, and how our state constitution carefully allocates power among three co-equal branches of our state government.

“I have argued the issues of separation of powers before this court. I appreciate that mutual respect between the branches — and an appreciation of their unique roles — is critical for the proper functioning of our government.”

- - - - - - - -

CAREFUL WHAT YOU WISH FOR: Much has been made this month about electronic benefit transfer cards and their alleged misuse.

Not that long ago when the cards were introduced, they were touted as a way of preventing the individuals and families receiving state help from spending their money on things they shouldn't, such as lottery tickets or drugs.

Before the cards, welfare recipients received checks in the mail, and once those checks were cashed, there was no way to control how the money was spent.

Several weeks ago, media attention turned to Jackie Whiton of Antrim, who was fired from her job in a Peterborough convenience store because she refused to let a man buy cigarettes with an EBT card.

Last week, O'Brien met with two other people with gripes about the system, Mark Hopkins, owner of Hoppy's Country Store in New Ipswich, and Janet Kalar of Middleton, who worked as a cashier at Market Basket in Rochester.

“Today, we heard about welfare recipients with multiple EBT cards, including those with multiple cards from different states, about the fact that these cards have no names listed on them and about concerns about a lack of responsiveness and guidance from the state's fraud hot line,” O'Brien said in a news release. “This is a program that is clearly overdue for needed reform, and we will certainly address these issues and others in the next legislative session.”

The real issue of how public aid should be used and what controls should be placed on it is a little more complex; witness the op-ed piece by Grant Bosse of the Josiah Bartlett Center for Public Policy, who says messing around with the EBT system will make New Hampshire more of a Nanny State.

Currently, New Hampshire has few restrictions on how the cards can be used. One thing they cannot be used for is to purchase a cooked meal, uch as would be served at a restaurant. Wonder where the hospitality association lobbyists were when that rule was approved?

On the other hand, there are no restrictions on purchasing cigarettes or booze with the cards.

That is not the case in Massachusetts, however, where residents are prohibited from using the cards for lottery tickets, tobacco and alcohol. The Bay State is also considering banning their use to pay for tattoos, pornography and guns and for use at nail salons, casinos and jewelry stores.

The federal government prohibits the cards' use for purchasing tattoos, body piercings, alcohol and tobacco. It also recently passed legislation prohibiting use of the cards in bars, bail bond agencies, strip clubs, casinos and liquor stores. States will have to follow suit by 2014, but until that time, they will set the limits on what the cards can be used for.

The rhetoric will be hot before the general election, but probably a little more subdued once lawmakers get to work next year. This is the “Live Free or Die” state after all.

- - - - - - - -

PENSION PROBLEMS: New Hampshire Retirement System returns for the recently completed fiscal year are not looking very good. The investments returned .7 percent, based on preliminary figures, while the assumed rate of return is 7.75 percent.

With the system's nearly $4 billion unfunded liability hanging over the heads of state, county and local governments, one bum year is going to make a big difference.

The official rate of return will not be final until the profits from real estate and private equity portfolios are verified.

“These returns are reflective of a difficult and volatile market environment,” said NHRS Executive Director George Lagos. “From the U.S. debt ceiling showdown last August to the ongoing European debt crisis, the past 12 months have been challenging for all investors.”

Last year, the retirement system's rate of return was its best in 25 year when it had a 23 percent return on investment.

“Year-to-year market fluctuations are going to occur; our focus is to meet or exceed the retirement system's assumed rate of return over the long term, while carefully managing the risk, return and liquidity of the portfolio,” Lagos said.

Since 1992, the retirement system achieved an average annual return of 7.8 percent, with the three-year return at 11.8 percent.

Pension fund assets are about $5.7 billion as of June 30.

NHRS has about 50,000 active members and 27,000 pension recipients.

Last year, lawmakers overhauled the retirement system, making new hires work longer and contribute more while reducing benefits.

A superior court judge ruled against the higher contribution rates for employees, but let stand changes in law that reduced benefits for future retirees.

House lawmakers are considering changing the system from one that defines the benefit an employee will receive at retirement, to one that limits the employers' contribution to the system.

- - - - - - - -

A NEW BEGINNING: Longtime Public Utilities Commission Chairman and employee Tom Getz announced last year he was stepping down, and not too many people blamed him because the tangle of hot button cases at the agency was growing longer, not shorter.

Getz assumed the chairmanship in 2001 after helping negotiate the state's deregulation agreement with Public Service of New Hampshire, his former employer.

While those negotiations were difficult sledding, they have to have paled in comparison to the headaches brought on by the Verizon land-line sale to FairPoint Communications and its subsequent bankruptcy, or the protracted fight over the Berlin wood-burning power plant and power purchase agreement with Public Service, not to mention the ice and wind storm fiascoes that left hundreds of thousands of utility customers without power or telephones for weeks.

When he announced he would be leaving in January, 18 months before his six-year term expires, he said he was leaving to pursue new professional opportunities, which is often shorthand for: “I don't have a job, but I can't take any more of this,” or “I'm leaving because I know I don't have enough support on the Executive Council for another term.”

However, in Getz's case, he did leave for new opportunities.

He joined the Devine Millimet law group and is chairman of the firm's Energy and Regulatory Affairs Division.

Recently, he testified before the U.S. Senate Committee on Energy and Natural Resources about weather-related electrical outages New Hampshire experienced from 2008 to 2011.

The former PUC chairman who Getz replaced, Doug Patch, went to work for Orr & Reno and often appears before the commission on utility issues.

There is life after Concord.

- - - - - - - -

HONORING FORMER GOV. WALTER PETERSON: The New England Board of Higher Education on Monday will officially name its building at Temple Place in Boston The Peterson Center in honor of former Gov. Walter Peterson, who was a longtime board member.

In addition to serving as governor, Peterson was the president of Franklin Pierce College and the University of New Hampshire and acting commissioner of the Community College System.

One of the New England Board's annual Excellence in Education Awards is named after Peterson, as well.

Peterson died June 1, 2011, at the age of 88.

- - - - - - - -

HAPPY BIRTHDAY: Longtime Peterson friend and cohort Sen. Lou D'Allesandro is having a birthday party on Tuesday from 5:30 to 7 p.m. at the Athens Restaurant, 31 Central St., Manchester.

The event serves as a fundraiser for D'Allesandro's reelection campaign. He's seeking his eighth term in the state Senate representing District 20. He faces a general election challenge from Rep. Phil Greazzo, R-Manchester.

- - - - - - - -

Garry Rayno may be reached at grayno@unionleader.com.