Lawmakers approved Governor John Lynch’s proposal to cut the state budget by an additional $30 million dollars.
The governor says he expects the state to finish 2008 in the black, but anticipates the budget will fall $120 million short in 2009.
New Hampshire Public Radio’s Dan Gorenstein reports.
Governor Lynch was the bearer of bad news when he appeared before the joint fiscal committee.
:22 NH like other states across the nation is expereiincing the impact in the downturn in the national economy. Our families and our businesses are being impacted and, as you know, so are state revenues.
Given that, Lynch urged lawmakers to extend the freeze on state agency purchases, hiring and out of state travel.
But that represents only $8 million in savings.
The game- based on early 2009 revenue projections- is to cut $120 million.
5:10 $8 from cuts...$18 from the tobacco revenue....$7.5 from liquor....
That’s Lynch staffer Pam Walsh, ticking off both revenue increases like the new tobacco tax and budget cuts like the elimination of a wine discount.
In an effort to inch the state closer to the magic number, Lynch proposed 1.2 million in psychiatric service cuts at the Department of Corrections, another 1.2 million in source water protection grants, and a$2.5 million dollar reduction to the University System.
But those weren’t the most controversial suggestions at the meeting.
Lynch also called for a $3.5 trim to a new cancer screening program for some of the state’s neediest residents, and $1.5 million less for drug and alcohol treatment.
Democratic Senator Kathy Sgambati- who worked at the Department of Health and Human Services for 26 years- told the governor that drug and alcohol issues are a major cost driver in the state.
1:23 we pay for untreated substance abuse in child abuse, corrections, in almost any single state system that exists. So I think it’s essential if we are going to get ahead of the curve we make the commitment and we stay with it.
Sgambati asked the governor to consider restoring funds for drug and alcohol abuse if revenues come in better than expected.
For Republicans on the Fiscal Committee, their concerns go beyond issues of policy.
They continue speak harshly about a decision made nearly two weeks ago to bond school building aid.
Senator Ted Gatsas questioned whether departments would return in the fall asking for the money back to help cover increased energy costs.
Representative Neal Kurk had procedural complaints.
6:52...we are allowing the governor and this small body to act for the entire legislature. When there was opportunity for the full legislature to act, to have testimony to make the tough decisions about where the cuts should be...when governors do this...it’s basically a take it or leave it proposition. And invariably these thigns will pass, as I am sure this one will. But that’s not the way to make responsible cuts by the legislature.
Representative Kurk was right, the bill passed on a party line 6-3 vote.
Democrats on the Fiscal Committee applauded the governor side-stepping direct service cuts and limiting the impact to federal funding.
Towards the end of the hearing, Senator Gatsas asked the governor if he had a priority list of so-called put-backs- items that would get funding if revenues improved.
The Governor said if the economy perks up, he would like to do that.
But he added, he’s not expecting that to happen.
For NHPR News, I’m DG.
