Gov. John Lynch Signs State Operating Budget, Capital Budget Into Law

Gov. John Lynch Signs State Operating Budget, Capital Budget Into Law

Budget Spends Less From State Tax Revenues Than Current Budget; Protects Essential Services Without A New Major Tax

Gov. John Lynch today signed the state's two-year operating budget and capital budget into law.

"This is a responsible, balanced budget that reduces general fund spending, protects essential services, without an income tax, a sales tax or an increase in the gas tax, but by closing tax loopholes," Gov. Lynch said.

"We came together to put the interests of the people first, making the tough budget choices necessary in these tough economic times. This budget implements major changes to reform state government, makes the necessary and responsible cuts, and funds essential services without burdening our citizens with a new, major tax," Gov. Lynch said.

The 2010-2011 state operating budget reduces spending from state tax dollars by making difficult decisions, such as:

* Laying off 200 state workers and unfunding 400 positions, which will result in a reduction of the state workforce of at least 5 percent. It also calls for Governor to find $25 million in additional personnel reductions;
* Closing the Laconia prison, several district courts and the Tobey School;
* Cutting medical education reimbursements for hospitals and funding for the Land and Community Heritage Investment Program;
* Delaying implementation of the new state cancer plan.

"This budget also implements major changes aimed at making state government work more efficiently," Gov. Lynch said.

In addition to closing a prison, the budget creates a new Division of Community Corrections to reduce the recidivism rate and gives the Liquor Commission the ability to run like an efficient business. It will move driver's license renewals on line, meaning citizens will only have to go to the DMV once a decade. And it begins a process of reorganizing the Department of Health and Human Services, transforming the way the department provides services.

The budget cuts allow the state to fulfill its essential obligations such as:

* Fully funding aid to local schools, adding $123 million for local districts;
* Helping offset local property taxes by increasing overall aid to cities and towns by 1.7 percent over the next two years;
* Providing $18 million over the next two years to meet our responsibility to provide services to people with developmental disabilities;
* Funding additional Medicaid costs to help our citizens who have lost their jobs and their health care as a result of the recession.

General and education spending from state tax dollars over the next two years is down about 1 percent from the current budget.

The state capital budget makes wise investments in our state's infrastructure, with an eye toward projects that can begin quickly in an effort to retain and create jobs.

The capital budget includes:

* $14.5 million to reconstruct the Seashell and bathrooms at Hampton Beach;
* $1.5 million to construct at chair lift at the Mittersill Ski Area;
* $16 million for career and technical education centers;
* $19 million for projects across the community college system.

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