Lawmakers Sign Off On Governor's Spending Cuts

The cuts came in all sizes, and included payments to hospitals and nursing homes; money for towns and cities for environmental grants, and on cash earmarked for land preservation, higher education, and aid to local schools. Lynch stressed that the choices were hard.

“These decisions are painful and I recognize how painful they are. We are not cutting fat. Instead, we are making tough decisions to defer worthy programs – some new, some existing – until better times.”

Lynch added that more tough decisions remain. In the meantime, he called for limits on state worker overtime, on use of state vehicles and cell phones. He also wants agencies to eliminate their subscriptions to periodicals, and make many state publications available exclusively on-line. He proposed another 20 million dollars in savings that will require action by the full legislature. But even if all comes off as advertized, he and lawmakers will need to find another $75 million by June 30th to avoid ending the fiscal year in the red. Lynch promised to tap the state’s 89 million dollar rainy day fund to make up that gap only as a last resort.

"And I’ve further asked revenue producing agencies, such as lottery and liquor to look at ways to continue to maximize their revenue, and I am absolutely open to hearing your ideas and thoughts about how we address this challenge together."

The fiscal committee offered no ideas on the spot, and after some pro-forma questions, quickly signed off on the Governor’s suggestions. Outside the committee room departments heads, lobbyists and concerned citizens took stock of the situation. The consensus seemed to be that the more serious work lay ahead.

"The real difficult choices haven’t yet been made."

Steve Norton is director of the New Hampshire Center for Public Policy Studies.

"Look at HHS, 25 million dollars in budget reductions. About 5 million came from efficiencies, 7 million dollars from changes in sources in funds, and another 6 million dollars in some rate adjustments. But most of the cuts were not materially affecting programs.

Which is not to say all the cuts went down easily. The American cancer society condemned the decision to defund a nascent cancer screening program. The association of counties, meanwhile, argued that eliminating 8 million dollars in provider payments to county nursing homes violated current state law.

“The Governor doesn’t have the option to come into the fiscal committee and try to include that in the cuts.”

Bob Dunn is the counties' lawyer.

“The statute makes it mandatory.”

-So, where to from here? Are you guys mulling your options?

“Yes.”

And lawsuits aren’t uncommon when money gets tight. Cuts made during the early 1990s budget crisis prompted suits against the state, and more lawsuits might have been brought had the state had the benefit of a timely infusion of federal Medicaid money. Plenty in Concord hope Washington again rides to the rescue. Governor Lynch, for his part, said he’s hoping for the best, but isn't taking anything for granted.

"I do not believe we can count on those funds, nor do I believe we should commit to spending those funds in any particular manner given the uncertainty of the economy."