Governor-elect's budget analysts blame Benson's "shortsighted" budget strategies.
The projected hole matches estimates Governor Benson has repeatedly dismissed as overblown……But according to Stan Arnold, leader of John Lynch's budget team, and former state revenue commissioner, the 300 million dollar number is accurate.
"The major issue is that from a federal standpoint we are receiving a 180 million dollars less in the next beienuum than we are receiving in the current biennium…..That money is real that money is gone at this point in time…..And you look at the remainder of the budget, the savings that had been projected, they are not there…..The savings are not there in the current year are going to be there in the future years."
The 180 million dollar figure represents the loss of so-called mediscam money --federal funds NH received in the guise of Medicaid reimbursements, but used for other purposes. Much of the remaining hole derives from Benson-backed savings proposals such as reforming state technology practices and self insuring state employees…..Both were supposed to net the state plenty -- 11 million for the technology, and 25 million for self-insurance. Self-insurance has already cost the state millions. Arnold says IT consolidation could also prove a money loser. The veteran budget hand adds that after a month of looking at the state's finances, there's nothing to indicate Benson's ever looked to any solution other than simple across the board cuts.
"And we should have been taking steps as soon as we knew there was a problem…..and there was an understanding that steps were being taken. But we get into the agencies and they don't have any magic plan in order to take care of it."
Such words come in stark contrast to the message Benson delivered last month when the state agencies made their spending pitches.
"I know in the last two years we have worked exceptionally hard and it's created the first surplus that we have had in quite some time and I know that did not come about because of lacksidasical behavior on the department heads And I want to thank them for their attention to detail."
The Lynch transition team says that attention to detail will be essential to the Governor elect as he builds his budget proposal…Lynch has thusfar shied away from any sweeping plan to close the budget hole. And Yesterday the main stress was on his call for agencies to rebuild their budgets from the ground up. That much, says Stan Arnold, will be good start.
"We're not saying the sky is falling, we're saying this is the situation where we are and why it's important that the transition team go forward with the zero-baed budgeting will all of the agency heads."
John Lynch has until February 15th to present his budget to lawmakers.
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