For Immediate Release:                                  Contact: Colin Manning
Wednesday, January 23, 2008                                     (603) 271-2121

Gov. Lynch: Bipartisan Cooperation, Continued Fiscal Responsibility Will Keep New Hampshire Strong

Governor Unveils Plans to Assist Lagging Coos County Economy,
Help Small Businesses Better Afford Health Insurance

CONCORD - Saying New Hampshire is fundamentally strong, Gov. John Lynch today called for continued fiscal responsibility and bipartisan cooperation to implement a comprehensive agenda that includes addressing the downturn in the national economy, unprecedented help for the lagging Coos County economy and a new effort to help more small businesses afford health insurance.

 "We face many challenges. But we are a strong state, with a solid foundation upon which to build," Gov. Lynch said. "We must keep working to make New Hampshire a place of opportunity for all of our citizens. A state where every child gets the chance for a good education, where more of our citizens can afford health care, where families feel secure, and where hard work is recognized and rewarded. This is the future we are building together for New Hampshire."

Gov. Lynch said the state should continue to put partisan politics aside to make New Hampshire a place of opportunity for all citizens. Gov. Lynch laid out a comprehensive agenda for strengthening the economy and creating jobs; fixing aging roads and bridges; continuing to make progress on education funding; protecting the environment through cleaner and more efficient energy; better protecting children; and helping small businesses continue to offer health insurance for workers.

New Hampshire must also exercise continued fiscal discipline in the midst of this national economic downturn, Gov. Lynch said. In the past three years, New Hampshire has been restored to a solid financial footing. The previous budget ended with a surplus, the Rainy Day Fund has increased to a record $89 million, up from just $17 million when Gov. Lynch took office. But the national slowdown is beginning to impact state revenues.

"Barring an emergency, I will not support any bills that require additional spending this year," Gov. Lynch said. In addition, the Governor has been meeting with major state agency heads to develop contingency plans to address a projected revenue shortfall and plans to appear before the Fiscal Committee in a few weeks.

The economic slowdown is impacting New Hampshire families, but the state is in better shape than much of the country.

"Economists predict that New Hampshire will continue to lead the region in economic growth and our unemployment rate remains well below the national average. We are better positioned because of our strong and educated workforce, the diversity of our economy, our tax structure, and also because we've worked together to make sound investments in our future," Gov. Lynch said. Those efforts including a new research and development tax credit, cutting the insurance premium tax and a new job training fund.

Gov. Lynch unveiled two new initiatives during the address, including a Coos County Tax Credit to help the North Country economy, which is lagging behind the rest of the state. The proposal would give a business that creates a job in Coos County that pays at least twice the minimum wage a $1,000 credit against its business taxes for each of the next five years. Most new businesses would pay no business taxes for their first five years. Existing businesses in Coos County would be eligible for new jobs they create.

"In Groveton and Berlin, I've met workers whose families have lived in the North Country for generations. They love their homes and their communities, but they worry they will have to move to find good work. Many of their children don't see their futures in the North Country," Gov. Lynch said. "This is not just a North Country issue. It is a New Hampshire issue. We all care about the North Country. That is why we cannot, and will not, just stand by."

Gov. Lynch also announced a new, innovative health insurance proposal called New Hampshire HealthFirst, which would require insurance companies to offer a wellness insurance plan to small businesses. Rhode Island passed similar legislation last year and reports a savings to small businesses of more than 15 percent when compared to similar coverage available in the market.

"Many of our small businesses are struggling to keep providing health insurance to their workers. HealthFirst will offer our small businesses a new, more affordable choice for good health insurance coverage," Gov. Lynch said. "Let's continue to lead the way in health care innovation. Let us look to the future and begin changing how our health care system works. Let's pass this bill and help more of our small businesses and their workers afford health insurance."

Gov. Lynch asked lawmakers to join him in passing the Online Child Safety Act, legislation aimed at better protecting children who use the Internet. As the mortgage crisis continues across the country, Gov. Lynch said the state must pass legislation licensing all mortgage originators to better protect consumers.

And to protect the environment, create better energy efficiency and create jobs, Gov. Lynch called for the passage of legislation allowing the state to implement the Regional Greenhouse Gas Initiative, or RGGI. The initiative was developed by New Hampshire and other Northeastern states in 2005. New Hampshire will be the last of the 10 Northeastern RGGI states to pass legislation allowing membership in the initiative.

"By joining RGGI, and investing its proceeds in energy efficiency, New Hampshire ratepayers will save money and our state will add jobs. That's why we must join together to pass the Regional Greenhouse Gas Initiative this year," Gov. Lynch said.

Gov. Lynch stressed he will continue to work in a bipartisan manner to implement the important initiatives he outlined, and to continue making progress on the issues that matter most to the people of New Hampshire.

"One of the messages we heard loud and clear during the primary this year is that our people want leaders who work together to get things done. They don't care about what's a Democratic issue or a Republican issue, they care about the issues that affect their lives. They don't care who wins that day's partisan war of words, they care about whether we are making their lives better," Gov. Lynch said. "That's what we've been doing here in New Hampshire. And that's what we will keep on doing."

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Gov. John Lynch
2008 State of the State Address
Highlights

Building a Stronger Economy

Standing Up for Families: "In Claremont, I met a man who saw the company where he had worked for 23 years shut its doors almost over night. He took pride in his work, and had trouble imagining what he would do next.

"Our rapid response team is working to help him and other workers who have lost their jobs. They are providing job training, counseling and one-on-one assistance to help people find new work. Our economic development team is working to help existing businesses grow, and attract new jobs to the state. And when companies abruptly shut down, ignoring laws that require them to give their workers notice and severance, we stepped in. Here in New Hampshire, we stand up for our workers."

New Hampshire Better Positioned for Economic Downturn: "New Hampshire is better prepared for this national economic downturn than much of the country. Economists predict that New Hampshire will continue to lead the region in economic growth and our unemployment rate remains well below the national average. We are better positioned because of our strong and educated workforce, the diversity of our economy, our tax structure, and also because we've worked together to make sound investments in our future.

"Because companies that innovate create jobs, we created the research and development tax credit. Because we know workers need new skills to compete in the global economy, we reinstated the Job Training Fund. And in just two months, we're already training 237 workers. And because we wanted to make New Hampshire more competitive, we cut the insurance premium tax. Now Acadia Insurance has moved from Maine to New Hampshire."

Coos County Tax Credit: "... today I am proposing a new tax credit to encourage businesses to create good-paying jobs in Coos County. A business that creates a good-paying job in Coos County - a job that pays at least twice the minimum wage -will receive a $1,000 credit against its business taxes for each of the next five years. Most new businesses would pay no business taxes for their first five years. Existing businesses would get the same credit for every new job they create. This credit will help companies overcome some of the unique barriers that exist in bringing jobs to Coos County.

"Please join me in making sure Coos County not only survives, but thrives."

Mortgage Crisis: "Some of the nation's current economic problems can be traced to abuses in mortgage lending. And across New Hampshire, families are coping with losing the homes they dreamed of for years. Last year, we passed a law to prevent people from taking advantage of families facing foreclosure. Now, we need to make sure the people who are developing mortgage agreements are responsible, follow national standards, and recognize their obligation to consumers. We should act this year to license mortgage originators and protect consumers from future abuses."

Continuing Fiscal Responsibility

New Hampshire on a Solid Financial Footing: "Because of our work together in the past three years to restore New Hampshire to a solid financial footing, we are in better shape than most states. We ended the last biennium with a surplus. And together, we built up our Rainy Day Fund from just $17 million when I took office to a record $89 million today."

National Economic Slowdown Impacting New Hampshire's Revenues: "For the first six months of the fiscal year, revenues came in almost exactly as we estimated. But since we passed the budget in June, the mortgage crisis has grown, the stock market has dropped, and oil prices have increased more than 50 percent. And we are beginning to see the impact of that national downturn in state revenues."

Addressing Revenue Shortfall: "Barring an emergency, I will not support any bills that require additional spending this year. In addition, I've been meeting with major agency heads to develop contingency plans. I expect to come to the Fiscal Committee shortly with a proposal to ensure that we end this biennium with a balanced budget."

Fixing Retirement System: "Last year, we began fixing the Retirement System, and that law has already improved the system's finances. We also created a commission of financial experts, employers and employees who have presented a series of thoughtful recommendations. Those recommendations should be the foundation for further reform. State government, local governments and employees all have a stake in this issue, and solving it will require continued compromise on all our parts. We should not leave this challenge to others. We must all work together to fix our retirement system and ensure that our public employees have the secure retirements they've earned."

Restoring Roads and Bridges : "We recognize the importance of well-maintained roads and bridges to our economy and public safety. But New Hampshire hasn't been keeping its commitment to maintaining roads - ignoring real problems on our turnpike system, letting the highway plan grow out of control, and neglecting real fiscal responsibility in both the highway and turnpike systems ...Last week, we submitted a realistic 10-year plan to the Legislature. This plan returns honesty and fiscal responsibility to the process, and meets critical needs. It allows us to repair the Memorial Bridge in Portsmouth; widen Interstate 93; complete the Southern leg of the Conway Bypass; complete the Granite Street exit in Manchester; and repair 89 red-listed bridges. Together, we can make sure our citizens are once again proud of their roads."

Health Care Affordability Through Innovation

New Hampshire HealthFirst:  "To put health care in reach for more people, we must work to make it more affordable. We must increase the use of technology and make sure doctors are coordinating patient care. We must focus on helping people stay healthy, and on them taking responsibility for keeping themselves healthy ... I ask you to join with me to create New Hampshire HealthFirst, which would require insurance companies to offer a wellness insurance plan to small businesses. Rhode Island passed similar legislation last year. It reports a savings to small businesses of more than 15 percent when compared to similar coverage available in the market."

Citizens Health Initiative:  "Through the Citizens Health Initiative, we are working to make New Hampshire a center of health care innovation. We are working to make more information about health care costs available, to expand the use of electronic medical records and to make New Hampshire the first state where all our providers can prescribe medications electronically."

Improving Education

Equal Opportunity: "We do have a responsibility to ensure all our children have an opportunity for a quality education. But it is not good policy to send the same base amount of education aid to every school district before we help the schools that really need it. Yet that is what the Supreme Court has said we must do. That type of approach does not reduce the inequity that exists between schools. It only widens disparities and maintains the status quo. I believe we must pass a constitutional amendment to allow us to direct more aid to communities with greater needs.

"Now we must come together to develop an amendment that lets us do the right thing for our kids. And we must not let unreasonable demands or partisan politics interfere with that goal. I also believe that, after 10 years, the best chance for us to move forward on education funding is to give the people a say. Whether you are for or against an amendment, let the people vote."

Building on Success: "We doubled a University System scholarship program to give the neediest New Hampshire students two years free tuition. And to help families save on tuition costs, we expanded Project Running Start, which allows high school students to earn college credits right at their own schools. We've expanded early learning programs. We increased alternative learning programs to help more of your young people graduate from high school. And we raised the compulsory attendance age from 16 to 18, sending a powerful message to our young people that we will not give up on them; and we won't let them give up on themselves. And we met our responsibility to define an adequate education. An education that begins with kindergarten."

Reducing Pollution, Improving Energy Efficiency

RGGI: "New Hampshire has joined nine other states, stretching from Maine to Delaware, to develop the Regional Greenhouse Gas Initiative, or RGGI, to reduce greenhouse gas emissions from power plants, a leading cause of climate change. We must work together to develop the best possible legislation for New Hampshire. But we must also make sure New Hampshire does not get left behind.
The rest of the Northeast is already implementing RGGI. According to the University of New Hampshire, if we do not join RGGI, New Hampshire will see higher costs and job losses. By joining RGGI, and investing its proceeds in energy efficiency, New Hampshire ratepayers will save money and our state will add jobs. That's why we must join together to pass the Regional Greenhouse Gas Initiative this year."

Renewable Energy: "We passed the Renewable Energy Act to stabilize energy prices, protect our environment and bring good jobs to New Hampshire. Now we must develop a transmission system - working with the federal government and the rest of New England - to ensure that the North Country can sell renewable power across the region."

Better Protecting Children

Online Child Safety Act: "With technology we can sit in our living rooms and pay our bills or keep in touch with friends and family with just a couple of clicks. Unfortunately, technology also makes it easier for criminals to sneak into our homes. Parents must take the lead in monitoring their children on the Internet. But they need help . . . The Online Child Safety Act modernizes our laws to protect our children from the threats of the 21st century. It increases penalties for enticing children over the Internet, toughens laws on repeat offenders, and requires convicted sex offenders to register their email addresses and online identities. We will not allow sexual predators to hide in the shadows of cyberspace. Together, we must act to keep our children safe online."

Colin Manning
Press Secretary
Office of Gov. John Lynch
(603) 271-2121
colin.manning@nh.gov