House lawmakers got some bad news yesterday about the state’s finances. According to the legislative budget assistant, New Hampshire is on course for a 52 million dollar deficit by next year.
When the budget compromise was reached last summer, legislative leaders expressed confidence the budget was balanced. The Governor, meanwhile, went them one better. …….After the deal was struck, Governor Benson promised the agreement would not only fund state services responsibly…….but would put the state 70 million dollars in the black by 2005.
"I look at it as 70 million dollars as the floor. Some others may look at it as the ceiling, but since I’m the one who has to drive this process, I’m going to look at it as the floor."
At the time the Governor listed a number of items inititives that would save money of generate new revenue. Projected savings included 15 million dollars from a preferred drug list. Result: zero. Another 13 million was to come from from a program to improve Medicaid access -- result:zero. And the list goes on -- 11 million dollars in savings from better use of computers is now pegged at less than 2 million. And a move to fast track a liquor store for Nashua that was supposed to generate 7.5 million dollars has been shelved. Legislative Budget Assistant Mike Buckley tallied the numbers for lawmakers.
"The 2005 column shows an estimated deficit at of $52, 636,000."
All told the forecast last summer now seems to be that’s 105 million dollars off the mark.
"We’ve gotten some information -- it’s very helpful information. And of course there were some items in there that had a great deal of uncertainty about them."
That’s House finance committee chairman Neal Kurk. After listening to yesterday’s presentation, Kurk promised lawmakers will do their best to try to reduce the deficit to zero…..He pointed to a better than expected revenue picture and a plan to build two additional liquor stores as way to help make that happen……Kurk added that lawmakers also await Governor Benson’s plans for as yet unspecified executive branch savings.
"We have the Governor, who you know is coming before fiscal to propose additional savings…..So I don’t believe there is any immediate or urgent need for the legislature to take action on the basis of what we’ve seen at this point in time."
But if key Republicans feel further initiatives for the corner office will be crucial to sorting out the fiscal mess, Democrats say Benson's failure to come to terms with reality casued the problem in the firsts place. Durham Representative Marjorie Smith.
"The Governor’s committment to refuse to raise taxes despite the basic needs of the citizens of this state is a shortsighted and irresponsible goal. The difference….between house bill one and two and house bill 3 and 4 is that there is made up money in there so that the Governor could grandstand. And until he is called on it publically and comes to understand that he has to be responsible, that will continue."
For his part, Governor Benson said yesterday that he's working aggressively to reduce state spending thoughout the executive branch. And though he offered no details, Benson repeated his earlier promise to exit the biennium with a healthy surplus.
"I think we projected about 50 million dollars…..And I’m talking off the top of my head so I could be wrong……But yes….we are projecting to go get those savings and put them into the rainy day fund."
Lawmakers say they expect the governor to present his proposed budget cuts to the legislative fiscal committee on March 24th. The Governor, meanwhile, says he’s not sure about that timetable.
