Benson to Agency Heads: Cut Budgets

By Josh Rogers on Friday, December 6, 2002.

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GOVERNOR ELECT CRAIG BENSON RAN ON A PROMISE TO LIMIT THE GROWTH OF STATE SPENDING.

YESTERDAY HE TOLD STATE AGENCY HEADS TO CUT THEIR BUDGETS.

HE WANTS A 5% CUT FOR FISCAL YEAR 2004?..AND ANOTHER 2% FOR 2005.

THE SAVINGS WOULD BE ABOUT 76 MILLION DOLLARS FROM CURRENT SPENDING.

DURING BUDGET HEARINGS LAST MONTH, STATE AGENCY HEADS PITCHED FOR AN 18 PERCENT OVERALL SPENDING INCREASE.

NOW, GOVERNOR ELECT CRAIG BENSON HAS GIVEN THEM UNTIL DECEMBER 19TH TO SUBMIT BUDGET PROPOSALS THAT CALL FOR DRAMATICALLY LESS.

A MEMO SENT TO AGENCY HEADS INSISTS ON A 5% CUT IN 2004 FROM THIS YEARS SPENDING.

IN 2005, AGENCIES WOULD BE ABLE TO INCREASE SPENDING 3% OVER 2004 LEVELS.

BENSON SPOKESMAN TOM RATH SAYS THE GOVERNOR-ELECT SEES THE REQUEST AS A DIAGNOSTIC EXERCISE.

"WELL, I THINK IT WILL HELP HIM GET A BETTER HANDLE ON WHAT THE BUDGETING PROCESS WOULD RESULT IN IF WE HAD TO GO TO 95 PERCENT OF CURRENT REVENUES.....WHAT THAT BUDGET WOULD LOOK LIKE WHAT THAT WOULD MEANS IN TERMS OF DIMINISHED SERVICES.....IT IS A MODEL....IT IS AN EXERCISE....IT IS NOT A PROPOSED BUDGET."

RATH STRESSES THE REQUEST IS JUST AN INITIAL STEP IN A LONG BUDGET PROCESS.

THAT SENTIMENT IS ECHOED BY ADMINISTRATIVE SERVICES COMMISSIONER DON HILL.

HILL, HOWEVER, ALSO ADMITS SOME CUTTING IS SORELY NEEDED.

HE SAYS IF NEGLECTED, THE 80 MILLION DOLLAR PROJECTED DEFICIT COULD BALLOON TO 250 MILLION DOLLARS BY FISCAL YEAR 2005.

HE ALSO POINTS OUT THE PROBLEM IS NOT EXCLUSIVE TO NEW HAMPSHIRE.

"MANY STATES ARE FACING THE SAME FISCAL SITUATION OR WORSE THAN WE ARE.....MANY STATES ARE LOOKING AT LAYOFFS......REDUCED BENEFITS FOR MEDICAID RECIPIENTS.....DOING VERY DRASTIC CUTS.....I'M HOPING IF WE MOVE NOW AND SEE OUR SITUATION WE WON'T BE IN THE SAME SITUATION THAT OTHER STATES ARE IN."

BUT OTHERS AROUND THE STATEHOUSE.... BELIEVE THE PROPOSED BUDGET CUTS GO TOO FAR.

"THIS IS A HERCULEAN TASK AT BEST. YOU'RE ASKING PEOPLE TO DO THINGS THAT ARE ALMOST IMPOSSIBLE TO DO."

THAT'S DEMOCRATIC STATE SENATOR LOU D'AllESANDRO.

HE SAYS NH'S COMMITMENT TO LEAN GOVERNMENT HAS HELPED THE STATE AVOID THE BUDGET DIFFICULTIES OTHER STATES FACE.

HE SAYS THE INCOMING GOVERNOR IS BLOWING NH'S BUDGET WOES OUT OF PROPORTION.

"WE'RE IN BETTER FINANCIAL SHAPE IN NH THAN ANY OF THE OTHER NEW ENGLAND STATES. WE'RE LOOKING AT A PROJECTED 80 MILLION DOLLAR DEFICIT. WE'VE GOT A RAINY DAY FUND OF 55 MILLION.....THE PRO-SHARE MONEY WE'RE HOPING COMES THROUGH WILL OFFSET SOME OF THAT DEFICIT. SO WE'RE IN VERY GOOD SHAPE...WHICH MEANS WE'RE MANAGING OUR MONEY EXTREMELY WELL."

OTHER DEMOCRATS WORRY THAT BENSON'S REQUEST IS A HARBINGER OF LIKELY CUTS TO WHAT THEY CALL VITAL SOCIAL PROGRAMS.

DEPUTY HOUSE DEMOCRATIC LEADER SHARON NORDGREN.

"I'VE BEEN ON THE FINANCE COMMITTEE. I KNOW THERE IS NOT A LOT OF FAT, IN THE HEALTH AND HUMAN SERVICES BUDGET FOR INSTANCE. THERE IS ALSO THE ISSUE OF FEDRAL MATCHING MONEY. WE WOULD BE AT RISK I THINK, PUTTING CHILDREN AT RISK PUTTING FAMILIES AT RISK IF WE CUT."

"AT A 95 PERCENT LEVEL, LIFE IS GOING TO BE TOUGH."

HHS ACTING COMMISSIONER KATHY SGAMBATI HAD ASKED FOR A 16 PERCENT INCREASE IN GENERAL FUND EXPENDITURES.

SHE SAYS HER AGENCY WILL MAKE ADMISTATIVE CUTS.

SHE ALSO PLANS TO REEXAMINE EXISTING PRACTICES IN HOPES OF BLUNTING THE EFFECT OF A LOWER BUDGET.

BUT SGAMABATI SAYS IT'S A NEAR CERTAINTY THAT THE BENSON'S BELT-TIGHTENING REQUEST IS BAD NEWS FOR SERVICE PROVIDERS.

MANY OF THEM ALREADY LOOSE MONEY ON THE WORK THEY DO FOR THE STATE..

"CHILD CARE CENTERS, AREA AGENCIES FOR PEOPLE WHO PROVIDE SERVICES FOR PEOPLE WHO HAVE DEVELOPMENTAL DISABILITIES. DOCTORS, HOSPITALS, THERAPISTS, ANYONE WHO RECEIVES PAYMENT FOR SERVING SPECIFIC POPULATIONS."

SAGAMBATI SAYS SHE HOPES COMPROMISES CAN BE REACHED BETWEEN NOW AND FEBRUARY.

THAT'S WHEN CRAIG BENSON MUST PRESENT HIS BUDGET TO THE LEGISLATURE.

STATE SENATE PRESIDENT TOM EATON SAYS HE SHARES BENSON'S BELIEF THAT CITIZENS WANT LEANER GOVERNMENT.

AND HE INSISTS THAT REPUBLICAN ELECTION GAINS WERE A MANDATE TO REIN IN STATE SPENDING.

BUT EATON, WHO?S THREE YEARS IN STATE POLITICS MAKE HIM A COMPARATIVE VETERAN, ALSO POINTS OUT THE BUDGET IS ULTIMATELY THE PRODUCT OF MANY HANDS.

"THE GOVERNOR ELECT HAS TAKEN A STAND. THIS IS THE FIRST STEP. YOU HAVE TO START SOMEWHERE, AND I THINK THERE'S GOING TO BE A LOT OF PLAY WITH IT OVER THE NEST TWO MONTHS."

CRAIG BENSON MUST PRESENT HIS BUDGET TO THE LEGISLATURE BY FEBRUARY 15TH.

THE LEGISLATURE HAS UNTIL JULY 1ST TO ADOPT ITS OWN.