CONCORD -- Today, former New Hampshire Governor and Republican State Committee Chairman John H. Sununu released the following statement on Governor John Lynch’s budget proposal:
“It is always difficult to comment on a complex budget without having time to examine all the details. However, some aspects ofGovernor Lynch'sbudget are readily apparent, and can be addressed after a first review.
The Governor is to be commended for applying fiscal discipline to the spending side of the budget. He made some of the hard decisions required at this time.
However, there are serious issues on the revenue side, even beyond concern over his increases in taxes, tolls and fees. Tapping the long standing malpractice fund for $110 million over three years is very questionable, as is covering school building aid by $83 million of bonds. Serious problems are created for future budgets by counting on a one-time federal bailout program to make up for short changing the cities and towns of $167 million due to them from rooms and meals taxes and direct aid. And the additional $230 million in one-time federal stimulus money also included on the state revenue side is a serious concern for future budgets. These one-time patches on the revenue side completely undermine the integrity of the fiscal system of the State of New Hampshire.
But of course the Governor's biggest problem will come when his budget works its way through the legislature. Historically the House and Senate Democrats have spent more than the Governor has proposed. The critical question for this budget will be whether Governor Lynch will be willing and able to get the Democratic legislature to send him back a responsible fiscal package.”