Lynch’s two-year plan spends $2.8b, lays off 255 employees
CONCORD – Gov. John Lynch today is proposing a two-year budget that spends about $2.8 billion in state dollars, lays off 255 workers and eliminates on paper 1,100 jobs, Lynch press secretary Colin Manning has confirmed. State spending would dip in the first year by 5.5 percent compared to the current budget – although that’s if you include the $100 million in federal stimulus that supports this year’s budget. If you peeled away those stimulus dollars, state spending next year compared to this one would go up by just over 1 percent. Spending in the second year of Lynch’s budget would go up under the assumption that the end of the recession will lead to healthier returns from existing taxes and fees. Lynch’s plan would make hundreds of changes to existing state programs that essentially brings the cost structure of state government back to 2008-09 before the Obama administration sent nearly $400 million in stimulus aid to directly support functions in the past paid for with state dollars. Last fall, state agency heads asked for $3.7 billion or 31 percent more to maintain existing programs. In Lynch’s budget plan, spending from all sources, including federal dollars to support New Hampshire government, would dip just below $11 billion. This would represent a net cut from all spending for the two-year period that begins July 1 compared to the current biennium. The layoffs are targeted across state government functions, and Lynch’s budget would eliminate 850 jobs on the books that aren’t currently filled, Manning said. State Employees Association President Diana Lacey cautioned the layoff news was the first step in a long process. “We are obviously disappointed that the administration is considering putting more people on the unemployment line rather than taking them off of it,” Lacey said in a written statement. “Nonetheless, we will continue to work with the governor and Legislature to pursue a budget solution that focuses on growing the good jobs that NH needs right now. We will also work with agencies to ensure personnel rules are followed and that employees are placed into other positions where possible.” Lynch administration officials said his ambitious and sweeping budget proposals eliminate some state programs and close district offices to support core priorities in education, health care and public safety. Many state agencies and all forms of state help including aid to cities and towns will face a net cut in state support in the range of 5 percent, officials said.
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