Press Release - House Leaders Release Balanced Budget that Reduces Spending, Cuts Taxes

FOR IMMEDIATE RELEASE
Contact: Shannon Shutts – (603) 271-3664
March 24, 2011                                                                                              


CONCORD – House Leaders today released the House Budget (HB 1 & 2) for state fiscal years 2012 and 2013.  The budget, which spends $10.15 billion over the two years, reduces spending by $742 million over the current budget.  In state taxpayer dollars, it spends $2.47 billion, or $318 million less than the Governor’s proposed budget, despite not accepting the over $150 million in downshifting to local communities in the Governor’s budget.  In addition, the House budget closes an anticipated $47 million hole in the current budget.

The House budget also makes tax reductions, including eliminating the gambling winnings tax, reducing the cigarette tax and provides protection for reasonable compensation for small businesses.  The House budget also grows the state’s Rainy Day Fund from its current $9 million to $24 million.

House Speaker William O’Brien

“This budget lives up to our commitment of making government live within its means, not raising taxes and fees and sets us on a path of sustainable spending that encourages growth.  Not only does this budget balance honestly, but it also closes the budget hole that we inherited in the current budget.  It eliminates the downshifting in the Governor’s budget and rebuilds our Rainy Day Fund without gimmicks or additional borrowing.”

House Majority Leader D.J. Bettencourt

“I applaud the Republicans members of the House Finance Committee who have delivered a responsible budget that meets the state's needs during one of the worst economic downturns in history. Every area in which savings could be found was considered, and every state agency was asked to cut back while prioritizing and supporting those areas most likely to support economic growth, educate our citizens, and protect the most vulnerable. Any claim that these decisions were done recklessly or without forethought is nonsense. We have never forgotten that the actions that we take affect our residents, their families, and their communities. But it is time to bring the years of overspending to an end. Governor Lynch always seems more concerned with his popularity numbers than with doing the right thing when it comes to the state budget; and now he chooses to stand on the sidelines and criticize the hard and difficult work of the House Finance committee. Solving our difficult budget challenges is not about me, the Finance Committee, the Legislature or Governor Lynch. It is about New Hampshire residents.”

“What we are witnessing today are the consequences of growing government by 24 percent and then utilizing higher taxes, downshifting and various accounting gimmicks to balance the budget.  We warned Democratic leadership for the past four years that their fiscal irresponsibility was leading the state into a financial mess and they chose to ignore those warnings.  As a result of their mismanagement, the voters of this state entrusted us with the task of returning fiscal sanity to New Hampshire. But the House cannot make the difficult but responsible decisions alone.  This is just the second step of a four step process and it is going to take further hard work from everyone to arrive at a finished product that will best serve the citizens of New Hampshire. I am grateful for the leadership and focus the Finance committee has provided for us to move us forward.”