Governor John Lynch says cuts could reach $50 million. As Democrats point to a slowing national economy, Republicans point to overspending.
Governor Lynch announced the possible cuts during a visit to the house’s budget-writing committing. He began by praising lawmakers for their work last year in creating a spending plan that he says was smart and responsible….. Lynch then added that being responsible now means making changes..
"When we crafted this budget however, economic forecasters were not predicting the severity of the situation the nation is now facing….The ways and means committee is now hearing testimony from agency heads on expected revenues and the news is sobering."
How sobering? Well after briefing the committee, Lynch told reporters the shortfall will likely reach into tens of millions of dollars.
It’s too early to say definitively at this point, but I would anticipate it’s somew"here around the 50 million dollar range between now and the end of this fiscal year."
In the meantime, Lynch promsised to fight any bills that would increase spending or create new state jobs……As might be expected, reaction to the Governor’s pronouncements broke pretty much along party lines…..
"Look back to what Republicans said six month ago."
New Hampton Republican Fran Wendelboe sits on the House finance committee.
"We were going to be about 100 to 150 million dollars short, and I think that’s about exactly where we are going to be. And that’s short of other things out there, like the retirement fund, like education funding. When we’ve got all of that hanging, I would have begun trimming back spending 3 month ago, if I were Governor."
"I think the Republicans ought to go to Michigan and listen to what their two candidates for the presidency are saying, unemployment is high, the economy around this nation is going south."
Democrat Lou D’Allesandro is chair of the Senate finance committee…..
"RI 500 million dollar problem; MA is facing a billion dollar problem; ME facing significant economic problems. It’s not confined to NH, and it has nothing to do with the budget. We put together something very solid and the proof was in the pudding."
More detail on how Governor Lynch may alter the recipe for New Hampshire’s budget pudding should emeerge next week, when he addresses the full legislature during the state of the state address.
