Governor: January 2008 Archives
Article Date: Monday, January 28, 2008
Governor Lynch managed to paint a rosy picture about the future of New Hampshire in his State of the State address before the legislature last week. And while we agree that New Hampshire is, "a strong state, with a solid foundation upon which to build," there is still much work to be done to prevent the financial crisis that Republicans have been warning about since last spring.
The governor needs to realize that Republicans are more than willing to reach across the aisle and work together with him to erase the growing state deficit, but first the he must be willing to admit that the problem we are facing is much larger than the one he talked about in his address.
By admitting to a $50 million deficit last week, Gov. Lynch took an important first step, but he did not nearly go far enough. The problem is more like a $150 million problem. In fact, even his own department heads, appearing before the House Ways and Means committee, predicted revenue shortfalls of anywhere between $140 million and $195 million for the biennium. As far back as last spring Rep. Norm Major, a veteran of the House Ways and Means Committee and former chairman, was warning of a "Perfect Storm" should the Democrat-controlled House accept the inflated revenue projections in support of the state's first $10 billion budget-projections that he believed then were overly optimistic and unsustainable.
To compound the problem, in June revenue estimates were artificially raised by close to $40 million, to give the appearance of a balanced budget. Rep. Major's warning fell on deaf ears, the inflated revenue figures were accepted, the General Fund expenditures were increased by 17.5 percent, and now the state is facing a real crisis.
The governor would have you believe that economic forecasters were not predicting the severity of the situation that the nation is currently facing at the time the state budget was being crafted. However, there were clearly a number of economic indicators that were identified last spring by Rep. Norm Major that supported the prediction that revenue streams would continue to falter, setting the state up for a financial crisis.
The governor would also have you believe that revenues for the first six months of the fiscal year are coming in close to their projected levels. What he failed to tell you was that his figures ignore $18 million in one-time money, $5 million in funds not dispersed, and $5.7 million due to the timing of January securities receipts. Projecting the current deficit out to the end of the biennium could result in a deficit as high as $165 million. Despite these facts, he still holds to the belief that the budget shortfall is $50 million.
By recognizing that there is a deficit and by pledging to withhold support for any future spending bills, the governor has taken an important first step. We are ready to work with Governor Lynch to take the next step and make the necessary moves to eliminate the potential deficit of at least $150 million and put the budget back into balance. It is time to face reality and deal with the larger deficit before the taxpayer of this state has to suffer further.
State Rep. Mike Whalley is House Republican Leader. He lives in Alton.
Sent: Wednesday, January 16, 2008 12:19 PM
Subject: press release
Lynch Continues to Ignore Financial
Crisis
Appearing today before the
House Finance Committee, Governor Lynch has proven once again that he is “out of
touch” with the real financial crisis facing the State of New Hampshire and
continues to ignore the fact that the State’s first $10 billion budget was based
on inflated revenue projections.
“You build a budget around
revenues, you don’t build revenues around a budget, which is how this budget was
crafted” said Republican Leader Mike Whalley. “‘The “Perfect Storm’” predicted last
spring by Rep. Norm Major is becoming a reality that the Democrats continue to
ignore.”
The governor today also
told the Finance committee that the budget was “put together with sound revenue
projections,” when in fact, as early as April, 2007, Rep. Norm Major, former
Chair of House Ways & Means, had cautioned that, “the projections are
irrationally exuberant and far too high.”
In an April press release (4/11/07) Major predicted that, “Democrats
would need hundreds of millions of dollars to support their 16% increase in
spending.”
While pointing out that the
first six months of the fiscal year has seen revenues come in close to their
projected levels, the governor ignored $18M in one-time money, $5M in funds not
dispersed, and $5.7M due to the timing of January securities receipts. Projecting the current deficit out to the
end of the biennium would result in a deficit of $165M, according to Major. Earlier today, appearing before the
House Ways & Means committee, agency department heads predicted that we will
be facing a revenue shortfall of anywhere between $140M and
$195M.
Gov. Lynch also explained
to the Finance committee that when the budget was originally crafted, economic
forecasters were not predicting the severity of the situation that the nation is
currently facing. In reality, there were a number of
economic indicators that were identified last spring that supported the
Republican belief that revenue streams would continue to falter, setting the
state for a financial crisis in
“Ultimately it will be the
taxpayer of this State who will have to suffer,” said Rep. Gene Chandler,
Republican Policy Leader. “Last winter we urged the passage of a reasonable
budget and one that was based on accurate revenue projections and economic
forecasts. Now we will have to wait
and see whether the governor intends to increase taxes and fees or propose major
cuts in spending to correct a problem which could have been avoided,” he
added.
Union Leader:
John DiStaso's Granite Status: Guinta sizing up run for
governor
By JOHN DISTASO
Senior Political Reporter
14 hours, 55 minutes ago
And there just may be a competitive race for governor
shaping up -- for a change.
Guinta gearing up?
Republican Manchester Mayor Frank Guinta is very
interested in running for governor but is weighing the pro and cons. At the same
time, serious steps are being taken to help him size up the outlook, needs and
challenges of a statewide candidacy.
We've learned that Guinta's senior advisor, Mike Biundo
of Meridian Communications, was in
Guinta was urged to run by many New Hampshire
Republicans he met on the presidential primary campaign trail with his
candidate, Rudy Giuliani. But many questions are to be answered, not the least
of which undoubtedly involve Guinta's ability to raise enough money to mount a
serious campaign.
If he does run, Guinta also would be questioned locally
about his ability to devote enough time to his job while also focusing on a
statewide campaign. Lots of private discussion will take place before a final
decision is made.
"It's certainly very flattering" to be asked to run,
Guinta said yesterday. "People look at the accomplishments we've had in
"But I love my job as mayor, and right now I'm focused
on delivering on the agenda I've set for the city."
What will happen? Our guess -- and it's truly a guess at this point -- is that he'll run, he'll mount a strong campaign and even if he loses by a respectable margin, at 37, he likely remains the leading candidate for the 2010 cycle.
Bruce, Chuck and Joe
What of Bruce Keough? While chairing Mitt Romney's
campaign in the state, he also was often encouraged to run, but when we asked
him about his plans yesterday, he refused to comment. Republicans, both in the
State House and outside, are under the impression he's leaning against
it.
Keough, a careful man, may believe that 2008 will be
another tough year for Republicans, especially after looking at the presidential
primary vote totals. About 50,000 more people voted in the Democratic primary
than the Republican contest.
Keough also has business and family considerations and
has never considered himself a career politician. But if he does not run this
time, then when?
Former state Sen. Chuck Morse of
"At this point, we've been heavily involved in our
business and I haven't been thinking about it," he said. "It's just not on the
agenda." He said he, too, received calls from people asking him to be a
candidate.
"It's nice to still be wanted," he said. "We're not
leaving politics, but we've got a lot to get accomplished (in the private
sector) right now."
State Sen. Joe Kenney leaves no doubt about his
intensions. He's in.
He said this week that with the holidays and primary
over, he will be back on the campaign trail with several speaking engagements
lined up.
Gov. John Lynch yesterday deflected a question raised at
a news conference about his plans to run for a third term, but he already has a
political team in place and began raising money with a fund-raiser last
fall.
Kenney and other State House Republicans believe they
have plenty of issues on which to base challenges to Lynch and the
Democrats.
GOP chair
Kenney says the governor approved $12 million for the
Land and Community Heritage Investment Program (LCHIP) "to fix broken down old
buildings," while a host of bridges across the state are red lined and while
tolls have been raised.
He says Lynch raised the cigarette tax and signed a
bloated budget into law but "lost a golden opportunity to eliminate" the
developmentally disabled waiting list.
Then, there are the social issues. Parental notification
is back, with bill sponsor Rep. Fran Wendelboe saying that her plan is
constitutional and contains an emergency health exception and a clear judicial
bypass.
