Lynch Declines To Rule Out Tax Increases

Governor Lynch says he’s open to using what he termed “a combination of levers” to address the budget woes he blames mainly on the national economy. Speaking to reporters, Lynch stressed his first move will be to further rein in government spending.

"I will be expanding the executive order which I issued to include purchases. And I am also scrutinizing very carefully any proposed consulting contracts."

But the Governor didn’t go so far as to deny the possibility that new revenue or new taxes could also be in the offing.

"Well, I’m going to be looking at everything."

Statehouse reaction to that comment broke predictably.

"Well, I think that’s the best sign I’ve heard in a long time. I hope he’ll look at expanded gambling at the tracks."

That’s Manchester Senator Lou D’Allesandro, chairman of the Senate’s budget writing committee. When he was done touting games of chance. D’Allesandro quickly added that he in no way anticipates that Lynch – who’s repeatedly pledged to veto sales or income taxes – will end up pushing for new levys.

“I don’t think taxes are part of the picture. The power to tax is the power to destroy.”

That adage – which comes from Supreme Court Justice John Marshall by way of Daniel Webster – is probably one House Republican policy leader Gene Chandler agrees with. Chandler blames the budget Democrats passed last year for the anticipated shortfalls. And says cuts – to state programs and the state workforce -- should be the first order of business.

"The last thing we need anytime, but especially in this economy, is taxing citizens more and increasing their fees. We’ve done that enough in the legislature in the last year and a half and we don’t need to do it anymore."

Whether new state taxes are actually in NH’s future remains to be seen. What's known is that the state's rany day fund now stands at a record 89 million dollars. That’s in addition to 33 million dollars left unspent from last year’s budget. Thusfar the Governor’s hinted at no plan to tap either pot of money. But apart from indicating that he’d like to increase the state's take from lottery and liquor sales, neither has he said how he’d raise more money absent new taxes and fees. Governor Lynch is expected to present lawmakers with his revised executive order crimping state agency spending by month's end.