When Democratic Gov. John Lynch delivers his state budget address tomorrow, it will be a dramatic change from his last budget speech in February 2009.
Democratic majorities in both the N.H. House and Senate have been replaced by Republican super-majorities, and the state’s budget crisis has deepened. The next two-year budget hasn’t even been crafted yet, and deficit estimates range from $400 million to the $1 billion figure claimed by Republican leaders.
Lynch told business leaders in Manchester last week that he will present a balanced budget, a “tough budget” without any new taxes or tax increases, according to the Union Leader. His budget proposal would also benefit the business community and keep education funding level.
When the current biennial budget (2010-2011) was written, Lynch and Democratic budget writers projected the state would bring in a little more than $4.5 billion in revenue. Republicans have already lowered that figure, projecting $4.4 billion in revenue over the next two years. It’s lower, in large part, because Republicans want to be asking for less.
In addition to bringing down the tobacco tax and rooms and meals tax, for example, the evolving Republican budget plan also targets recent tax and fee increases passed under Democratic control. They propose repealing the $30 car registration fee hike, eliminating the gambling winnings tax, and reducing fees for auto inspections, marriage licenses, vital records, builder applications, pet store licenses, and license renewals for restaurants and lodging facilities.
Republicans also challenge the very integrity of the process used by Democratic leaders when they crafted the current budget. “Revenue estimates contained within the Governor’s previous budget were artificially inflated,” said House Majority Leader D. J. Bettencourt (R-Salem).
It’s a charge the Lynch administration has disputed. In 2009, Lynch said projected revenues would remain flat — nearly the same as the previous biennium (2008-2009).
Lynch’s budget address from 2009 (which you can see here) also presented budget-cutting proposals that led to an estimated 300 state employees being laid off, and proposed closing one-quarter of the state’s district courts. That budget also suspended revenue sharing to cities and towns and cut the state’s contribution to public employee retirement plans to provide an additional $123 million in education adequacy aid for communities — and called for a one percent decrease in spending from the previous budget.
>> Tuesday, Feb. 15, Gov. John Lynch’s budget address to the Legislature, Representatives Hall at the State House, 10:00 a.m.
This Daily Dispatch was written by Michael McCord, with contributions from Hilary Niles.