New Hampshire Governor Lynch Delivers Budget Reductions

Fiscal Committee Approves Financial Strategy As Part of Continuing Efforts to Address National Economic Slowdown

June 17, 2008 -- CONCORD - New Hampshire Governor John Lynch today presented additional budget reductions to the Joint Legislative Fiscal Committee as part of a continuing effort to ensure a balanced budget and protect vital services.

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“New Hampshire, like other states across the nation, is experiencing the impact of the downturn in the national economy. Our families and our businesses are being impacted, as are state revenues,” Gov. Lynch said.

“Over the last six months, we’ve been acting to implement a financial strategy that will ensure a balanced budget at the end of this biennium. And, thanks to our willingness to work together, to work quickly, and to act decisively, Fiscal Year 2008 will end with a balanced budget,” Gov. Lynch said. “We must keep working together to make sure that Fiscal Year 2009 ends with a balanced budget as well, while protecting services to our most vulnerable citizens.”

The Fiscal Committee voted to approve the two Executive Orders issued by Gov. Lynch. The first Executive Order extends a freeze on state purchasing to cover all but essential equipment and commodities. Gov. Lynch’s executive order freezing hiring and out-of-state travel remains in effect.

The second Executive Order includes specific agency reductions of approximately $30 million.

“Some of these reductions are painful. I have consulted extensively with agency heads and legislators and tried first and foremost to protect existing services to our most vulnerable citizens,” Gov. Lynch said. “Unfortunately, that means we have had to make some hard decisions, including delaying parts of some worthy new initiatives.”

For example, the Executive Order approved by the Fiscal Committee includes a reduction in funding for the Comprehensive Cancer Plan, which was created last year through the budget. However, $750,000 was left in the program, which Gov. Lynch said he hoped would be used to expand cancer screening programs.

Also, these reductions will hold the Governor’s Commission on Drug and Alcohol to the same funding it received after last year’s budget reductions, which still represents a $3 million increase over the biennium to support the state’s efforts to fight substance abuse.

In February, as the national economy began to slow, Gov. Lynch began a series of steps, including budget reductions and freezes on hiring, purchasing and out-of-state travel to help ensure a balanced budget. As a result of those steps, the state erased an expected deficit for fiscal year 2008.

In addition to the budget reductions approved by the Fiscal Committee today, Gov. Lynch worked with the legislature to take a number of additional steps, including cutting the legislative and judicial budgets; increasing revenue from the tobacco tax; changing liquor commission discounts; assessing games of chance; requiring the Pease Development Authority to repay $10.5 million it owes the state; and allowing the bonding of school construction should there be a deficit in Fiscal Year 2009.

“The steps we’ve already taken, our actions today, and continued vigilance and careful management, will help ensure that we maintain a balanced budget for this biennium,” Gov. Lynch said.

Source: New Hampshire Governor