Governor Benson Urges 30 Million in Budget Cuts

By David Darman on Wednesday, July 9, 2003.

listen:

Governor Craig Benson yesterday told a panel of lawmakers where they should begin cutting the state's biennial budget to save 30 million dollars.

But lawmakers found little appeal in the Governor' suggestions.

New Hampshire Public Radio's David Darman has more.

Governor Benson told several members of the Senate and House joint committee that they could save the state money in a few key areas.

For instance, the governor urged the committee to lower Medicaid payments to doctors and hospitals.

Benson also told lawmakers they could cut costs in the state retirement system by lowering fees paid to brokers.
ï¿½so instead of putting the money into the fund in the way we have to with the fee structure the way it is, if we could reduce the fee structure the fund actually would start self healing itself to that extent, and we wouldnï¿½t need as much to get it whole, back to a hundred percent. :22

But Republican Senator Dick Green says lawmakers canï¿½t do what the Governor proposes.

Green chairs the Senate Finance Committee.

He says the governorï¿½s plan would be unconstitutional.
17 324 there is a section of the constitution which prohibits interfering with the administration of the retirement system. And I would say that that language is very clear. It may be a good idea because they see a lot of money there, but every time they go there, the legislature has said ï¿½noï¿½, both on the basis of the concept as well as realizing what the law is. 17 346

Governor Benson also proposed making cuts to the university system.

Benson told lawmakers that the system charges too little for out of state students.

And the governor also complained that some university system salaries are too high.
when youï¿½re trying to make tradeoffs on where you think the dollar can go a little bit more effectively. And you see some things that are out of whack with what you see as the norm, it tends to jade your judgement, and in this case it has jaded my judgement, Iï¿½ll be exactly honest with you, to see administrative salaries not going to the kids and not giving them a better education by hiring better professors and doing distance learning and doing all those types of things, thatï¿½s where my issue is. :29

But again, Senator Dick Green says Governor Benson and the legislature donï¿½t have the power to lower university salaries.

Green says university trustees set the salaries.

And Green says the role of state lawmakers is clearly defined regarding the university system.
17 251... We give 20% of the total cost of the university, and we donï¿½t administer the university. So to think that he as governor is going to run the universities, he better change the law, and he better figure out a way to do away with the trustees. 17 312

The joint House and Senate committee is scheduled to meet again next week.

Deputy Speaker Micheal Whalley chairs the committee.

He says heï¿½s looking forward to hearing more ideas about the budget from Governor Benson.
18 ..we need to provide the governor the time that he needs to look at the budget with his experts and to make some moreï¿½quanitifiable recommendations so we have something to begin from, today was just the first day and it was a way to get everyone into the room and work toward the end gameï¿½

Several members of the committee complained Governor Benson did not have hard numbers in his presentation.

The governor says he hopes he and lawmakers can work together.

The state is operating under a continuing resolution through the end of September.

Lawmakers and the governor have until then to finish their joint task.