NHGOP STATEMENT ON COURT FREEZING MEDICAL MALPRACTICE FUND MONEY

FOR IMMEDIATE RELEASE
CONTACT: Ryan Williams
June 30, 2009   
(603) 225-9341


CONCORD – Today, former New Hampshire Governor and Republican State Committee Chairman John H. Sununu released the following statement on a Superior Court judge freezing $110 million that Governor Lynch has tried to steal from the New Hampshire Medical Malpractice Joint Underwriting Association fund:

“Unfortunately what we feared would happen has begun to happen. Republicans in the House and Senate warned Governor Lynch that the $110 million he is trying to steal from the Joint Underwriting Association to balance the state budget would likely be tied up in litigation.

“Yesterday a Superior Court judge ruled that the money has to be frozen until there is a final court decision on the ownership of the assets. This means the state budget closes out the last fiscal year $65 million in deficit and we start out next year’s budget $45 million in deficit. That makes $110 million dollars worth of shortfall.

“And with the inflated revenue estimates this may only be the beginning of even more serious problems for Governor Lynch’s budget.”

 
BACKGROUND:

The Laconia Citizen Reports That A Superior Court Judge Has Frozen $110 Million In Surplus Money From The New Hampshire Medical Malpractice Joint Underwriting Association Fund That Governor Lynch Is Trying To Steal To Pay For Excessive State Spending:

Laconia Citizen: “Judge Kathleen McGuire's action on Monday will keep the state from taking $110 million in surplus in the New Hampshire Medical Malpractice Joint Underwriting Association fund and using it to help balance the newest state budget. Specifically the judge ruled: ‘The funds at issue will not in any way be transferred prior to the final order of the court.’” (6/30)

$65 Million Has Been Used To Balance The 2009 Fiscal Year Budget That Ends TODAY, June 30, 2009:

Union Leader: “The first impact the standoff hits at the end of July, the date the new budget calls for a transfer of $65 million onto state books for the 2009 fiscal year.” (6/28)

$45 Million Has Been Used To Balance The 2010 Fiscal Year Budget:

Union Leader: “Another $45 million is supposed to come out for the 2010 fiscal year.” (6/28)