Governor Seeks Cooperation Amid Fiscal Worries

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By Josh Rogers on Wednesday, January 23, 2008.
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Lynch uses State of the State speech to call for government belt-tightening and help for North Country. GOP says Lynch should have crimped spending last year, when Democrats passed a budget that increased spending by 17 percent.

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Standing next to his wife, Dr. Susan Lynch (left) and House Speaker Terie Norelli (right), Governor John Lynch waves to legislators before giving his State of the State address. (Cheryl Senter, NHPR)

Standing next to his wife, Dr. Susan Lynch (left) and House Speaker Terie Norelli (right), Governor John Lynch waves to legislators before giving his State of the State address. (Cheryl Senter, NHPR)

The economy was expected to lead the Governor’s speech, and after an quick detour in praise of the NH primary, John Lynch put the bottom at center stage.

"We face many challenges, but we are a strong state with a solid foundation upon which to build. We must keep working to make NH a place of opportunity for all of our citizens."

Lynch then reiterated what he told lawmakers last week --- that the national economic downturn and home-mortgage crisis are beginning to make life hard on state citizens. He say he won’t let new state spending add to that burden.

"Barring an emergency, I will not support any bills that require any bills that require additional pending this year."

The Governor added that he’ll present plans to cut 50 million dollars from the current state budget in the coming days. But he says the state needs to help Coos County recover in the wake of recent mill closings. To that end, he proposes a business tax credit as a first step.

"A business that creates good paying jobs in coos county, a job that pays at least twice the minimum wage, will receive a $1000 credit against its business taxes for the each of the next five years. Please join me in making sure that Coos County not only survives, but thrives."

The Governor made other requests of lawmakers. That they get behind his recommended highway plan, which cut 2 billion dollars in spending but targets suspect bridges for immediate fixes fixed; that they back a plan to require insurers to offer wellness programs; and that move to cut power plant emissions by implementing the regional greenhouse gas initiative known as rggi. The Governor’s most passionate request, though, was reserved for the hot-button topic of a school funding constitutional amendment.

"After ten years, the best chance for us to move forward with education funding is to give the people a say. Whether you are for an amendment or against and amendment, let the people vote."

During the 33 minutes Lynch the vibe from lawmakers reaction was generally positive, and featured numerous bipartisan standing ovations. Afterwards, the reaction from Republicans was sharper.

"We will work with the Governor, but we have some major problems to overcome. And with all due respect to the Governor, he was largely responsible to their creation."

That’s Weare lawmaker Neal Kurk. He says Lynch’s call for austerity should have come last year, before the Governor signed on to a Democratic budget that Kurk says featured flawed revenue assumptions and irresponsible spending.

"A 17.5 percent budget increase, the largest in New Hampshire in 20 years is just not in the NH tradition."

Key house Republicans also doubt that Lynch’s 50 million dollar cut goes far enough, they peg the likely deficit at closer to 3 times that amount. To a man though, house Republican leaders say they do hope the Governor prevails on the constitutional amendment front.

"I agree with the governor 100 percent the people should be able to vote on it, and I don’t know what everybody is so afraid of."

That’s House Republican Leader Mike Whalley. Last year he and other house Republicans voted against a Lynch-backed amendment, despite having supported similar proposals when Republicans were in the majority. Any amendment that emerges this year will start in the State Senate. Democratic Senator Lou D’Alessandro cited Lynch’s stress on the amendment as the high point of the speech and says it is clearly Lynch’s top priority.

"We’re entering an election year, and so given the timing it's the right time and the right place to push this, and I think he did that. He was very very clear. And those who talk about the ambivalence on the part fo the Governor, there was no ambivilance the Governor he was very direct."

But in an election year, when both parties tend keep at least one eye of on positioning themselves for election day gains, progress tends to be slow. Stoddard House Democrat Dan Eaton acknowledges that reality, but predicts failure to cooperate this year says the stakes this year will come at a cost.

"We will always have an olive branch and we will do everything we can to work together if they chose plan to abandon the people of NH purely for reelection purposes or partisan purposes, they will suffer for it."

Expect the political jockeying to continue when Governor lynch presents his proposed cuts to lawmakers in the next month.

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