Despite significant financial challenges in the state budget, Governor John Lynch today announced the unaudited financial statement for Fiscal Year 2012 is showing the state has a surplus of $13.8 million.
"This surplus was achieved through aggressive scrutiny of costs and strong fiscal management by department heads. The hard work and commitment of the people in our state agencies produced a surplus despite a number of challenges that had to be overcome," Governor Lynch said.
The Legislature assumed and built into its budget a $14 million deficit for FY 12. Other challenges included cuts to hospitals that resulted in significantly less Medicaid Enhancement Tax revenue - $22.2 million less than projected. A cut in the tobacco tax resulted in $12 million less than prior year, and the laying off of 14 auditors in the Department of Revenue Administration meant New Hampshire recouped $22 million less in audit revenue owed to the state than was realized in the prior year.
Generating a surplus of $17.7 million in Fiscal Year 2011, and Governor Lynch's insistence that surplus be carried forward, helped ensure FY 12 ended in the black.
"The budget will need continued strong management to ensure New Hampshire can meet the budget challenges in Fiscal Year 2013," Governor Lynch said.