New Hampshire’s Democratically-controlled Legislature faces the sobering chore of cutting hundreds of millions of dollars in state spending over the next 32 months to avoid raising taxes.
As the national recession drives up demand for services while driving down the stat tax receipts needed to support them, the state’s financial picture is ugly and getting uglier.
So far, Governor John Lynch and fellow Democrats have made about $100 million in budget adjustments through a combination of new revenue measures and cuts. Next week, Lynch will ask lawmakers to make roughly $160 million in additional adjustments – about 10 percent – to spending funded by general taxes.
He says he’s not looking at options other states are considering, such as selling state property to raise money and leasing it from the buyer. Nor he looking at new taxes or layoffs.