Lawmakers See Movement on Budget

By Josh Rogers on Thursday, July 17, 2003.

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Governor Craig Benson today presented legislative negotiators with several new budget suggestions. For the first time, Benson included ideas for how to raise more money. While lawmakers sharply questioned some of the Governor’s proposals, they also expressed optimism that a compromise might soon be reached.

Governor Benson says his budgetary goals remain the same: trim sixty million dollars in general fund expenditures, replenish the state’s rainy day fund and produce a budget that does not raise expectations for higher spending in the future.

"The way I’m looking at it is…..A dollar spent today is also a dollar spent tomorrow. So Its a two for one almost. So, if you are saving 60 million dollars now 60 million dollars comes out of your budget next time and it would look like an increase if you put it back in versus maintenance of existing programs."

To that end, Benson sketched a grab bag of ideas…….…..On the savings side……He advocates stricter screening for Medicaid recipients entering nursing homes and renegotiating discounts paid for some medical services. Benson claims those changes could net 9 million dollars. He futher hopes to save about 5 million dollars by using federal education money to pay for state testing……A move opposed by the US secretary of education..…..The governor also continues to support cutting 8.7 million dollars from the University system…..

To increase revenues……Benson wants to increase room and board fees for out-of-state students at UNH…...He also wants to open a new liquor store in Nashua…. For deputy house speaker Mike Whalley…..Benson’s newfound attention to the revenue side shows some movement in the negotiations.

"The reasons for the veto were all about spending too much money…..What I’m hearing this morning is that we are going to look at a liquor store in Nashua….that we look at cost of room and board at the university and raise more revenue. So I’m looking at a number of things on this page that are revenue driven and not spending reduction."

Senate leaders also sounded a more upbeat note. Senate President Tom Eaton went so far as to say a deal could be struck by August 1.

"When I met with governor several weeks ago I said I think we can get this done in a month…..And I think I could be two weeks off. I think we are working at an end product here and everyone wants a good state budget and everyone wants to go home."

Governor Benson and legislative negotiators are scheduled to meet again next week. They have until September to reach agreement on a two year spending plan.