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Lynch Descibes Budget Plan as "Honest and Balanced"

Gov. John Lynch outlined a budget he describes as "honest and balanced" during a joint session of the Legislature on Feb. 15.

Slightly more than a month after the first-term governor was inaugurated, he continued to stress the themes of fiscal responsibility and taking care of human needs.

Gov. John Lynch (left) is welcomed to the joint session of the Legislature by Senate President Tom Eaton (right) and House Speaker Douglas Scamman Jr. (center). Lynch described his budget as fiscally responsible while meeting human needs.

Until the budget is analyzed in detail, it will be impossible to tell its exact effects on state services and the SEA members who provide them. It is not known if the proposed budget includes funding for any new state employee contract that would emerge from continuing negotiations.

 Employee Health Costs

Lynch did describe a 28 percent increase in state employee health costs as one of the challenges to be overcome in balancing the budget.

Using the "zero based" budgeting concept of requiring departments and agencies to justify all spending, Lynch said his budget cuts $70 million from requested amounts.

He announced the elimination of 150 vacant jobs, but said they would all be administrative positions. Front line employees would not be affected, he said. The budget summary released by the governor's office puts the number of eliminated positions at 100 at the Department of Health and Human Services (HHS).

 Offices Consolidated

Under the Lynch plan, travel-related offices at the Department of Resources and Economic Development (DRED) would be consolidated. The two existing offices now promote state parks and tourism. The budget includes a $100,000 increase in tourism advertising.

He made both humanitarian and economic cases for taking care of the very young, elderly people, and people with disabilities.

At a time when the state is considering the GraniteCare proposals for restructuring Medicaid, he acknowledged a need for reform. However, he said any changes would be made thoughtfully and with full participation from the state's community partners.

 Veterans

Lynch said the budget includes funding for a new wing at the Veterans' Home in Tilton and for new staff for the Veterans' Council.

The only new revenue described by Lynch is a 28-cent increase in the tobacco tax. The money would be reserved for education. In addition, Lynch said that the state's revenue picture has been improved by a growing economy.

More information and commentary will be posted here as the budget is analyzed.