With the National Economy Declining, Gov. Lynch Stresses Continued Fiscal Responsibility, Says He is Readying Possible Spending

With the National Economy Declining, Gov. Lynch Stresses Continued Fiscal Responsibility, Says He is Readying Possible Spending

For Immediate Release

CONCORD - With the national economy declining, Gov. John Lynch today stressed the importance of continued fiscal responsibility and said that he is readying possible spending cuts during a meeting with the House Finance Committee.

Gov. Lynch and legislative budget writers worked together craft a responsible budget that makes smart investments, addresses long-neglected needs and builds a better future for New Hampshire's citizens. But the nation and the state's economic situation has changed significantly since the budget was developed in June, Gov. Lynch said, with the national mortgage crisis continuing to grow and a dramatic spike in energy prices.

Agency heads were to begin briefing the Ways and Means Committee on their revenues today.

"The news is sobering. We are beginning to see the impact of the national economic downturn here in New Hampshire. But we can minimize that impact, if we continue to be fiscally responsible," Gov. Lynch said.

"Barring an emergency, I will not support any bills this session that require additional general funding spending. I also will not support bills that create positions or programs to be funded in the next budget. Those proposals should be considered in the context of the next biennial budget and weighed against other priorities," Gov. Lynch said.

The Governor has also begun meeting with the heads of the major state agencies and directed them to revise their revenue estimates based on these new economic conditions and to develop contingency plans for spending reductions.

"We must be prepared to cut spending to keep the budget balanced and meet our responsibilities to the people of New Hampshire," Gov. Lynch said,

"I expect that in the next several weeks, we will know what spending reductions we may need to make, and I will be able to present you with a proposal," Gov. Lynch told the committee, saying he would work with lawmakers to minimize the impact of any reductions on direct services to people.

Last year, Gov. Lynch and lawmakers acted to reinstate the Job Training Fund, create a research and development tax credit, invested in higher education, which is giving businesses the tools they need to compete and grow, and to strengthen New Hampshire's economy for the future.

"We can and will weather this storm. New Hampshire's economy, while it is feeling the impacts of the downturn, is stronger than the rest of the region because of our strong workforce, the diversity of our industries, and the investments we have made in New Hampshire," Gov. Lynch said.