Budget Bill Passes, Deficit Talk Continues

By Josh Rogers on Thursday, June 5, 2008.

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Governor Lynch says the plan puts the state on solid financial footing. Republicans say budget problems will be their top campaign issue.

Getting to yes on this budget package wasn’t pretty, and it wasn’t bipartisan. At one point, Republicans even tried to flee the chamber en masse. That drew a quick response from House Speaker Terie Norelli.

“Will the sargeant-at-arms please lock the doors? The house will be the house will be in order."

But despite the near mutiny, by shortly after midnight, the majority party had gotten its way on every issue. A relieved-looking Governor Lynch greeted some of the bedraggled house members as they headed home for the last time this year.

"Thanks, thanks. Thank you,"

"You owe us."

"I know."

Beyond the 80 million in school aid bonding, Lynch’s proposal includes an additional 5.5 million dollars of bonding to allow the Stratham community college to move to Pease. It also orders the Pease development authority to repay the state a 10 million dollar debt. A separate, Lynch-initiated measure could hike cigarette prices and the cost of wine for large retailers who buy from the state. The Governor says taken together, such policies will go a long ways towards plugging a budget gap that some believe could top 150 million by next year.

“I think the state’s fiscal situation is in good shape we will have a balanced budget in fiscal year 08 and we’ll have a balanced budget in fiscal year 09. So I think the outlook for our financial picture is really positive.”

Top lawmakers say they hope the governor --who will present another 40 million dollars in budget cuts to lawmakers later this month – is right. But few, and this includes democrats, seem quite as optimistic as the man in the corner office.

“I think the state is going to be ok for fiscal year 2008. Fiscal year 2009 is still problematic.”

Manchester Democrat Lou D’Allesandro is the Senate’s top budget-writer. Like most in his party, he stresses broader economic trends when discussing the state’s budget problems. He says energy costs alone will probably force lawmakers to take further action when they return in Concord in January. And D’Allesando says fully expects a 2009 budget shortfall.

“It could be in the 100 million dollar range, I think it’s going to be less than that – that’s a guess. We’re all guessing at this point in time.”

But one certainty is that talk of the budget and looming deficits will be front and center as election season begins in earnest.

“Spending, spending and spending are going to be the top three issues for Republican candidates this year.”

Fergus Cullen is chairman of the state Republican committee. He says the GOP will make the most of what he claims is Democratic mismanagement of the state’s finances. How well that works remains to be seen. A UNH poll taken last month found more than 80 percent of respondents largely unaware that the state was even facing a budget difficulties.