Legislators can balance the budget if their priorities are straight

By CHARLES M. ARLINGHAUS

While the state still struggles to fix a $250 million budget deficit in the last year of this budget, a much bigger problem looms just after the new year. The next budget will start with the largest budget hole in recent history. Politicians of all stripes will need to put principle over politics and avoid the sniping that too often replaces debate in modern times.

Legislators dealing with the current two-year budget had to resolve a $71 million revenue shortfall in the first year and an additional $250 million problem in the second year. A series of spending cuts, small tax increases and borrowing has trimmed the second-year deficit to $75 million. However, some of these proposals have put problems off until next year's budget.

As the governor prepares a budget proposal due in February, estimates of the gap between current programs and likely tax revenues range between $250 million and $800 million. Although much depends on whether the economy recovers quickly, a good median estimate is that we face a $500 million problem. By almost any measure, this will be the most difficult budget in many years.

Many politicians and outside observers will be tempted to pick apart the details of any proposal to score points against their political opponents. Instead of squabbling over details, politicians should agree on broad goals to limit the games that can be played over small points selected out of context.

Broadly speaking, I think the vast majority of elected officials can agree on the end goal. At the end of the budget cycle, regular expenditures and regular revenues should be in balance. That may sound like a fairly simple goal to the average citizen who has no choice but to balance his or her own budget. However, New Hampshire's budget is not balanced that way and is not currently required to be balanced that way.

The last couple budgets, for example, have spent more than they hoped to raise. The current budget got in trouble because revenues fell quite a bit short of the estimates used to balance spending. However, even if revenues had come in as budgeted rather than $300 million short, the state's general fund had planned to spend $108 million more than it hoped to raise.

The extra spending was balanced with one-time revenue sources, notably surplus money from the previous budget. Generally, regular recurring programs should be paid for with regular recurring tax revenues, not one-time windfalls, just as you wouldn't pay for a mortgage payment with an unexpected lottery windfall.

Getting back to a truly balanced budget will take both years of the next two-year state budget. In the current economic climate, it is reasonable to expect the first year to be a transition period. Many unusual and one-time sources are being used to balance the current budget, and it will take some time to readjust.

The current budget will be balanced with $40 million of "bonded" or borrowed money. It also includes a series of one-time revenues, such as a large transfer from the Pease Development Authority and the governor's recent proposal to take $15 million from other dedicated funds to bail out the state general fund. In addition, the incoming President is likely to propose a bailout package that could include $50 million to $100 million in one-time aid to the state.

The one-time revenue and borrowed money cannot be expected on a regular basis. Therefore the state must wean itself from it. Adjustments to spending this year and next must be made so that spending and revenue in the second year of the next budget balance.

Once the budget is restored to balance, our sloppy balancedbudget law should be amended. Each year the budget should be in balance, and surpluses carried forward from the previous year should not be counted toward balancing current spending and revenue. The sloppiness of the existing law makes it possible to defer some decisions and put off problems into the second of the two budget years.

The legislative session will see many arguments and debates over raising taxes, cutting spending, finding new revenue sources and changing the budget process. But both parties and most factions ought to be able to agree on the ultimate goal of getting back to balance at the end of the second year. Agreement on that goal offers some hope that the real debates will center on differences of principle and put at least some modest limits on less productive political bickering.

Charles M. Arlinghaus is president of the Josiah Bartlett Center for Public Policy, a free-market think tank in Concord.

Gas Tax on the Horizon?

With gas prices dropping under $2 a gallon for the first time in over three years, maybe New Hampshire drivers are willing to pay higher gas taxes. Maybe not. But some lawmakers are turning to the gas pump to try to replenish a Highway Trust Fund depleted by spending on other agencies and drivers staying home this summer.

The Concord Monitor reports on two Representatives who see higher gas taxes as the only way to pay for roads:

Rep. David Campbell, who has chaired this year's committee to study the highway fund, has said he will sponsor a gas-tax-increase bill. He said he hasn't sorted out all the details - including how big a raise he'll support - because it's not clear how much federal aid the state will receive. But, he said, he's come to believe that cutting alone won't right the road budget.

"At some point you can't cut the highway fund any more," said Campbell, who is not related to the transportation commissioner. "Are you going to cut winter salt? Are you going to cut snowplowing? Are you going to cut paving?"

Campbell, a Nashua Democrat, said he has backing from both sides of the political aisle.

"It's something that I'm hopeful the leadership of both parties, in both parties, can get behind," he said. "If they don't, I want them, whoever they are, to answer for the consequences if we don't do it. Show me where we're going to cut."

Rep. Candace Bouchard, a Concord Democrat who chairs the Public Works and Highways Committee, said she will support Campbell's bill.

"I'm pretty hopeful that people will understand the need to maintain our transportation system," Bouchard said. "I think we need to make our argument and show everyone that we've done our homework."

New Hampshire drivers currently pay 38 cents per gallon in gas taxes, 19.4 cents to New Hampshire, and 18.4 cents to Washington.

The Editorial Page

The Union Leader comes out against tapping New Hampshire's Rainy Day Fund to pay down the state's budget deficit:

The budget situation is likely to get worse next year. Tapping reserves now would leave less in savings for a real emergency. As bad as things seem now, this isn't a real emergency.

And depleting savings now would only delay the inevitable cuts. By contrast, cutting now saves more over the long term and reduces the amount that might be needed from the rainy day fund down the road.

That's why Lynch should have made the additional $75 million in cuts he has already identified as needed, but has decided to delay until next year.

Drawing down the Rainy Day Fund would not only remove the safety net against even tougher times, but would have serious implications for New Hampshire's bond rating, making it even harder to finance long-term capital projects like roads, schools, and bridges. Then again, bo

Meanwhile, Foster's Daily Democrat describes last week's proposed cuts as "reaching to meat and bone":

Friday's cuts will affect everything from school aid to overtime and carpooling.

Water and pollution grants will be deferred until next year. LCHIP will not enter into any more funding commitments this year, and the program will repay the state for the $3 million in its budget last year.

The current University System of New Hampshire budget will be slashed by $4.5 million, and the community colleges will lose $1.7 million. The university system and community colleges have agreed to not raise tuitions to cover the losses.

The agency with the largest budget — historically more than half of all state funding — is the Department of Health and Human Services. It is HHS that is the most people-related department in the state, administering to often the most needy and most vulnerable members of our society — people to whom we have a moral and financial obligation.

Many of the Governor's cuts are superficial, such as directing state agencies to reduce overtime and travel where possible. Others simply defer spending into the 2009 budget, adding millions to next year's mounting deficit. None of the cuts proposed last week eliminate state jobs or bring agency spending back near where it was before last year's record increases. The tough spending cuts are coming, but they haven't happened yet.

Trimming the Council Agenda

Governor Lynch has sent up a trial balloon to see if the Executive Council would give up its review of low-dollar purchasing and contracts. It popped. Several Councilors were very cool to the idea of lessening their oversight role of state spending and contracting, as Kevin Landrigan reported in the Nashua Telegraph:

Expensive reviews

The Executive Council decided it would take public testimony in the coming months before deciding whether to review fewer government contracts in the future.

As a cost-cutting move, Pignatelli had suggested the threshold for council review be raised. It now deals with personal-service contracts of more than $2,500 and all other contracts above $5,000.

This threshold hasn't been changed in more than a decade.

Massachusetts ($100,000), Vermont ($100,000) and Connecticut ($10,000) all have higher thresholds, while Maine's is set lower ($2,500), according to Administrative Services Commissioner Linda Hodgdon.

Rhode Island reviews all its contracts regardless of costs, although that state doesn't have an executive council that has to approve them.

This state estimates that in the last budget year, the cost to prepare the 3,255 contracts the council reviewed was $594,508. If the threshold were raised from $5,000 to $20,000, this would get rid of 455 items at a savings of $78,125.

Hodgdon said one advantage of this reform is it would save vendors from having to wait an average of six weeks to get started on a job.

"This will make it easier to do business with the state,'' she said.

Manchester Republican Councilor Raymond Wieczorek said he doesn't like the idea of raising the limit.

"I am not inclined to increase the amount," he said. "You would be surprised the things you can catch through this process as it uncovers the loopholes that could occur."

Burton agreed.

"I feel comfortable with the way that it is right now,'' Burton said.

Hampton Democratic Councilor Beverly Hollingworth said she, too, wasn't moved to act.

"I'm not ready to make any kind of decision on this,'' Hollingworth said.

Pignatelli said she merely brought it up for discussion, given that the state is facing tough economic times.

Slow Week at the State House

It's Thanksgiving Week, and a slow one at the State House.

The Governor and his budget team continue to accept budget submissions from agencies and departments today and tomorrow. The Department of Health and Human Services is due up at 9:45 this morning, and makes up about half of the state budget.

The Commission to develop a plan for the expansion of transmission capacity in the North Country meets this morning at 10am at the Public Utilities Commission in Concord. Several commissions hold their final meetings of the year this week and next.

The House Republican Caucus meets to choose its leader for the upcoming session. That begins at 7pm tonight at the State House and is open only to Republican Representatives-elect.

The new Legislature meets next week on Wednesday, December 3rd at 10am for Organization Day. The House and Senate will officially choose their officers, including Speaker of the House and President of the Senate, and elect the Secretary of State and State Treasurer.

Cut the Commission?

This morning's Union Leader suggests a cut in the state budget, the Commission on the Status of Women:

Gov. John Lynch last week ordered the commission to return to the general fund $6,556 to help fill the estimated $250 million hole in the state budget. Legislators ought to take the obvious next step and decommission the commission. Its existence is no longer justified.

While they are at it, they can zero out the Commission on the Status of Men, too. This gem was created after men's advocates complained for years that it was unfair for the state to have a Commission on the Status of Women but no similar commission for men. Let's be fair and eliminate both of them. Neither is needed.

Meet the New Press Podcast

Here's the podcast of Grant's hour with Doug and Skip on Meet the New Press.

Meet the New Press

9am on AM1490 WEMJ or streaming live.

We were pleased both for our friend Grant, who we enthusiastically endorsed in the NH 2nd CD Republican primary, and for the Josiah Bartlett Center, an excellent Granite State public policy think tank. Grant will join us in the studio to discuss his new position, Governor Lynch's budget cuts in Concord (yep-- they all made fun of Joe Kenney for his cell phone usage reduction to save $$ and, guess what?!) and proposed budget requests for next year. What's a couple billion dollars more among friends?

Watchdog on the radio

Grant Bosse, PolitickerNH's Winner this week, joins Meet the New Press Saturday morning at 9am on 1490AM WEMJ. Listen live online.

Lynch's Opening Statement

Governor Lynch opened the public hearing on agency spending requests by commenting on the current economic climate nationally, and by reminding the audience of the shortfall of at least $75 million left over from the current biennium.

"These are extremely challenging times, both for our state and our nation," Lynch said. "In crafting our next two year budget, our priorities must be protecting our most vulnerable citizens and protecting public safety."

Lynch has already requested that each agency use "zero-based" budgeting, rather than simply tacking new requests onto their current services. He has asked each department to submit budgets 3% lower than current levels for FY10, and level funded for FY11. This would require reductions of $75 million, or 18.7%, from today's requests.

Lynch will accept formal requests from 44 agencies and departments between now and December 1, which he will then use to craft his official budget submission to the Legislature. The University System leads things off this afternoon. The hearings continue Monday, November 24th, Tuesday, November 25th, and Monday, December 1st, all beginning at 9am.

Budget Season is Open

Governor John Lynch opened the budget season this afternoon with the first of four days of public hearings on agency budget requests.

The General Fund request for Fiscal Year 2010 is $1.95 billion, up from the adjusted FY09 total of $1.65 billion. This represents an increase of 17% in one year. The FY11 request of $2.07 billion would be a 25% increase over two years.

The request for all funds, including federal funds passed through state government, but over which the Legislature has no control, total $6.24 billion inFY10 (17% from FY09), and $6.46 billion in FY11 (22% increase).

Final Fiscal

The Fiscal Committee has wrapped up what is likely their last meeting of the biennium.

Legislative Budget Assistant Michael Buckley submitted his resignation after ten years as the Legislature's top number cruncher. Fiscal Chairwoman Marjorie Smith (D-Durham) said that with Buckley, the House, Senate, and their committees were "served in the most exemplary way." The next Fiscal Committee will name Buckley's replacement after it is organized in January.

Two Fiscal members also said goodbye as Representatives Ken Weyler (R-Kingston) and Peter Franklin (D-Newport) were not re-elected. Senator Lou D'Allesandro (D-Manchester) and Representative Neil Kurk (R-Weare) spoke on behalf of their departing colleagues.

I asked Rep. Smith about the fiscal challenges facing the next Legislature, compared to the budgets she has seen over the past 12 years.

"Anyone who knows anything about the state budget and its history expects the next biennium to be the worst we've ever seen. It continues to be my hope and certainly my intention to have everybody at the table to do the best that we can for the citizens of this state," Smith said. "This is too important to use the state budget for the purpose of gotcha politics."

Medicare Outpatient Rates Cut

The Fiscal Committee this morning unanimously approved a significant cut to reimbursement rates to non-critical access hospitals. The State had been reimbursing 81.24% of allowable expenses for outpatient services, which was estimated to cost $69.4 million.

An increase both in hospital costs and increased caseloads pushed that cost to $95 million. In order to cut back the $25.6 million excess, DHHS Commissioner Nicholas Toumpas and Medicaid Director Katie Dunn requested that the reimbursement rate be cut to 54.04%. Representative Neil Kurk (R-Weare) explained that hospitals would either make up the difference out of their bottom line, or pass along the costs to insuruers. Many hospitals in the northern part of the state are classified as critical access hospitals, and will not be affected. Most hospitals in New Hampshire's southern tier are subject to the lower rate.

Senator Molly Kelly (D-Keene) led the questioning prior to the vote, expressing concern about how the rate cut would hit hospitals.

"I had concerns about the burden this would place on hospitals. Hospitals in my part of the state, which is in the souther tier; this will affect them," Kelly said after the hearing. "In my discussions with the (Lynch) Administration, they are committed to meeting the needs of people in this state. These are difficult times nationally. New Hampshire is not alone."

Lynch Statement and Executive Orders

I'll scan in these documents for easier reading at some point.

For Immediate Release:      Contact: Colin Manning
Friday, November 21, 2008      (603) 271-2121
        (603) 361-4459(cell)

Gov. Lynch Delivers Spending Cuts As National Economic Downturn Continues

Fiscal Committee Approves Financial Strategy As Part of Continuing Efforts to Address National Economic Slowdown

CONCORD - Gov. John Lynch today presented the Joint Legislative Fiscal Committee with a financial strategy to address a projected revenue shortfall and help ensure the state has a balanced budget by the end of the current fiscal year.

"We are in the midst of an unprecedented global economic crisis. We are in the midst of an unprecedented global economic crisis. When we crafted this budget 18 months ago, no one could have predicted the depths to which our nation's economy would sink," Gov. Lynch said.

"This crisis has led to budget shortfalls in states across the nation. And while we are better positioned than most states, New Hampshire is not immune to the global economic conditions. The challenge before us is very real and very significant," Gov. Lynch said.

The fiscal committee voted to approve two Executive Orders issued by Gov. Lynch.

The first Executive Order includes specific agency reductions totaling $53.6 million. As part of these reductions, The Department of Environmental Services will be deferring new state aid grants until the next biennium, which will save $3.3 million.

The Land and Community Heritage Investment Program will not enter any new commitments for 2009, and will repay the general fund $3 million of 2008 fiscal year funds. The University and Community College systems both agreed to pay their 8 percent reduction targets without increasing tuition.

The second Executive Order implements several cost-saving measures across state government directing agencies:

 * To limit overtime wherever possible.
 * To ensure that all state vehicles are parked overnight at state offices, unless absolutely necessary for a state employee to carry out their job responsibilities.
 * To limit mileage reimbursement by requiring employees to car pools and use pooled state vehicles wherever possible.
 * To print all publications exclusively online wherever possible.
 * To retain only essential consulting services and to terminate existing consulting contracts where feasible.
 * To cancel subscriptions for books, newspapers and periodicals wherever possible.
 * To undertake a reduction in their telephone landlines where possible - a move that is saving the Judicial Branch $10,000 - and to reduce mobile cell phone use and encourage the pooling of cell phones.

In addition, no tuition reimbursements will be authorized without a waiver for the remainder of the fiscal year.

Together these Executive Orders will produce a savings of at least $56.6 million.

In addition, Gov. Lynch has been in discussions with the legislative leadership about the need for legislation that allows the state to reduce the revenue shortfall by about another $20 million. It would include legislative and judicial branch reductions and an additional lapse from the retirement system valued at about $2.6 million; authorize the Highway Fund to repay $5 million in general funds; to transfer about $10 million in surplus from various dedicated funds to the general fund; and to make $2 to $3 million in additional agency reductions that would require full legislative approval. It would also recommending the deferral of pay increases for non-classified and unclassified employees, which would save $500,000.

Gov. Lynch said he will continue discussions with representatives of employees about additional steps to address salary or benefit costs. Those changes would need to be agreed to as part of a renegotiation of the Collective Bargaining Agreement.

The executive orders and proposed legislation, the revenue shortfall gap will be reduced from $250 million to about $75 million.

"We have made significant progress, but we must still work together to address the remaining challenge," Gov. Lynch said.

Gov. Lynch said that while a record  $89 million remains in the Rainy Day Fund, those savings should be used only as a last resort.

"These are tough times for New Hampshire families and businesses. The global economic situation continues to be volatile, and we must continue to carefully watch revenues closely and take the necessary steps to manage the budget," Gov. Lynch said. "I am committed to ensuring we continue to be fiscally responsible and end the biennium with a balanced budget."

Copies of the Executive Orders are attached.

# # #

State of New Hampshire
By His Excellency
John H. Lynch, Governor

Executive Order 2008-10

An order directing a reduction in Executive Branch expenditures

 WHEREAS, RSA 9:16-b provides that "[n]otwithstanding any other provision of law, the governor may, with prior approval of the fiscal committee, order reductions in any or all expenditure classes within any or all departments, as defined in RSA 9:1, if he determines at any time during the fiscal year that:  (a) Projected  state revenues will be insufficient to maintain a balanced budget and that the likelihood of a serious deficit exists; or (b) The actual lapse for each fiscal year is not going to equal the level estimated in the forecast of funds, unappropriated surplus, as issued by the legislative budget assistant;"

 WHEREAS, the Governor has determined that the budgeted state revenues are insufficient to fund state budgeted expenditures as authorized by Chapter 262, N.H. Laws of 2007;

 WHEREAS, the Governor and Legislature are committed to taking such steps as are required to achieve a balanced budget by the end of the biennium;

 WHEREAS, the Governor has met with the presiding officers of the House and Senate and has thus determined that it is in the public interest to meet with the legislative fiscal committee, which has, in turn, responded to the Governor's initiative by consenting to certain actions to reduce executive branch expenditures;

 NOW, THEREFORE, I, JOHN H. LYNCH, Governor of the State of New Hampshire, by virtue of the power and authority vested in me by RSA 9:16-b and part II, article 41 of the New Hampshire Constitution, do hereby order the following:

a. The appropriations as authorized for the fiscal year ending June 30, 2009 for each department listed below are hereby reduced by the amount indicated.

  AGENCY     
PAU  NUMBER    DEPARTMENT AMOUNT
01-03 002 Executive Office 85,836 
01-03 002 Commission on Disabilities 11,664 
01-04 014 Administrative Services 2,816,469 
01-05 032 Secretary of State 32,000 
01-06 034 Cultural Resources 205,388 
01-07 084 Revenue Administration 395,372 
01-08 038 Treasury Department 7,043,744 
01-09 089 Board of Tax & Land Appeals 13,000 
01-11 028 Real Estate Commission 80,000 
01-11 031 Joint Board 2,765 
01-11 051 Accountancy Board 1,000 
01-11 064 Commission on the Status of Women 6,556 
01-11 064 Real Estate Appraiser Board 2,500 
02-02 012 Adjutant General 193,023 
02-03 018 Agriculture 130,238 
02-04 020 Justice (Attorney General) 468,056 
02-06 073 Public Employee Labor Relations Board 2,500 
02-06 064 Manufactured Housing Board 50 
02-08 086 Racing and Gaming 95,221 
02-06 064 Labor  10,000 
02-13 077 Liquor Commission 135,517 
02-15 023 Safety 69,336 
02-16 046 Corrections 705,575 
02-18 007 Judicial Council 315,522 
02-19 076 Human Rights Commission 500 
03-01 075 Fish and Game 5,000 
03-03 035 Resources & Economic Development 510,160 
03-04 044 Environmental Services 3,387,417 
03-04 064 Plumbers Board 500 
04-01 096 Transportation 54,256 
05-01 --- Health & Human Services 25,361,511 
05-02 043 Veterans Home 509,131 
05-03 066 Veterans Council 2,308 
05-05 074 Cosmetology and Barbers Board 4,300 
05-05 074 Nursing Registration 15,000 
05-05 074 Medicine Board 1,200 
05-05 074 Pharmacy Commission 6,000 
05-05 074 Dental Examiners 4,737 
05-05 074 Office of Allied Health Professionals 5,210 
05-05 074 Massage Therapy Ad. Board 1,000 
05-05 074 Chiropractic Board 1,129 
05-05 074 Funeral Directors & Embalmers 1,346 
05-05 074 Optometry Board 200 
05-05 074 Nursing Home Examiners 50 
05-05 074 Alcohol/Other Drug Abuse Prof. 100 
05-05 074 Ophthalmic Dispensers 904 
05-05 074 Dietitians Council 841 
05-05 074 Hearing Care Providers 50 
05-05 074 Naturopathic Examiners 453 
05-05 074 Acupuncture 437 
05-05 074 Electrolysis Board 222 
05-05 074 Midwifery Council 41 
05-05 074 Podiatry Board 50 
05-05 075 Board of Mental Health Practice 4,849 
06-01 057 Postsecondary Education Comm. 24,500 
06-03 002 State Planning & Energy Program 71,812 
06-03 056 Education 4,633,000 
06-04 061 Christa McAuliffe Planetarium 27,444 

b. In lieu of a reduction in appropriation, the University System has agreed to pay $4,516,101 prior to June 30, 2009.      $    4,516,101

c. In addition, the Community College System has agreed to pay $1,672,864 in monthly installments prior to June 30, 2009.
     $    1,672,864
TOTAL       $53,645,955


d. The reductions directed by this order shall remain in effect until June 30, 2009 or until terminated, provided, however, that individual exceptions to any of the above provisions may be requested by any department in writing to the Governor.  Any exceptions granted by the Governor shall be transmitted to the fiscal committee. 


Given under my hand and seal at the Executive Chambers in Concord, this 21st day of November, in the year of our Lord, two thousand and eight.
     ___________________________
     Governor of New Hampshire

     # # #
State of New Hampshire
By His Excellency
John H. Lynch, Governor

Executive Order 2008-11

An order directing Executive Branch spending reductions

 WHEREAS, RSA 9:16-b provides that "[n]otwithstanding any other provision of law, the governor may, with prior approval of the fiscal committee, order reductions in any or all expenditure classes within any or all departments, as defined in RSA 9:1, if he determines at any time during the fiscal year that:  (a) Projected state revenues will be insufficient to maintain a balanced budget and that the likelihood of a serious deficit exists; or (b) The actual lapse for each fiscal year is not going to equal the level estimated in the forecast of funds, unappropriated surplus, as issued by the legislative budget assistant;"

 WHEREAS, the Governor has determined that the budgeted state revenues for Fiscal Year 2009 are insufficient to fund state budgeted expenditures as authorized by Chapter 262, N.H. Laws of 2007;

 WHEREAS, the Governor and Legislature are committed to taking such steps as are required to achieve a balanced budget by the end of the biennium;

 WHEREAS, the Governor has met with the presiding officers of the House and Senate and has thus determined that it is in the public interest to meet with the legislative fiscal committee, which has, in turn, responded to the Governor's initiative by consenting to certain additional actions to further reduce expenditures for purchases in the executive branch;

 NOW, THEREFORE, I, JOHN H. LYNCH, Governor of the State of New Hampshire, by virtue of the power and authority vested in me by RSA 9:16-b and part II, article 41 of the New Hampshire Constitution, do hereby order the following steps to apply to all departments as defined in RSA 9:1 in order to effect a reduction in expenditures:

1.  Overtime:  Overtime hours funded with general funds shall not be authorized, with the exception of overtime that is necessary for direct care, to ensure public safety, to respond to emergencies, to comply with provisions of collective bargaining agreements or pursuant to a written overtime policy approved by the agency head and deemed essential to carry out the core mission of the department.  

2.  State Vehicles:  All state vehicles shall be parked overnight at the primary business office of the state employee assigned to the vehicle, unless the agency head determines that storage of the vehicle at a personal residence or other location is necessary for the state employee to carry out his or her assigned duties.

3.  Mileage Reimbursement:  Departments shall require the use of car pools or pooled state vehicles when feasible for travel during the workday.  Mileage reimbursement requests shall not be authorized where a car pool or state vehicle was feasible but was not used. 

4.  Publications and Printing:  Reports should be published only electronically whenever possible.

5.  Consultants:  Departments shall only retain essential consulting services, and shall terminate existing consulting services, as feasible, unless determined to be essential to the department's operations.

6.  Books, Periodicals, Newspapers and Subscriptions:  Books, periodicals, newspapers and subscriptions shall be canceled, unless determined to be essential to the department's operations.

7.  Tuition Reimbursement:  No tuition reimbursement shall be authorized.

8.  Phones:  All departments shall implement a reduction in telephone landlines, by identifying lines that are not being used or are non-essential.  All departments shall implement a reduction in mobile cellular phone usage by terminating non-essential mobile cellular phones and by encouraging the pooling of mobile cellular phones amongst state employees.

The steps directed by this Executive Order shall remain in effect until terminated, provided, however, that individual exceptions to any of the above provisions may be requested by any department in writing to the Governor.  Any exceptions granted by the Governor shall be transmitted to the fiscal committee. 

Given under my hand and seal at the Executive Chambers in Concord, this 21stday of November, in the year of our Lord, two thousand and eight.

     ___________________________
     Governor of New Hampshire

Flash from Fiscal

Governor Lynch has outlined his proposed cuts to the Fiscal Committee:
1) $53 million in targeted reductions to state agencies, such as a freeze on new projects under LCHIP, and cuts to the University Systam and Health and Human Services, as well as a reduction in the state's percentage of building aid. There are no layoffs and no programs are eliminated.
2) $3-$5 million in savings directives to state agencies, such as limiting overtime and mileage reimbursement, making sure state vehicles are in state lots overnight, and canceling subscriptions to periodicals where possible.

Governor Lynch is also seeking to draft legislation for more savings, which would include moving up to $5 million from the Highway Fund to the General Fund. He says that while he thinks Congress should provide assistance to states with severe budget shortfalls, he's doesn't think New Hampshire can count on it.

The Governor is now taking questions from the Fiscal Committee. I'll have more details on the Governor's remarks, and the two executive orders shortly.

FYI- Public Hearings on agency budget requests begin this afternoon at 1pm at the Legislative Office Building.

Welcome PolitickerNH Readers

Welcome to NH Watchdog. This is really just a Beta site at this point, as we're just getting starting with the investigative journalism project at the Josiah Bartlett Center for Public Policy.

Please pass along your thoughts and tips about state government, as we'll be keeping an eye on our elected officials, the state bureaucracy, and your money. Where PolitckerNH concentrates on politics, we'll concentrate on policy.

Tomorrow, I'll be covering the Fiscal Committee, as it takes up a set of proposed budget cuts from Governor John Lynch.

I hope you'll come back often. Enjoy.

Bartlett Center Launches Investigative Project

The Josiah Bartlett Center for Public Policy

FOR IMMEDIATE RELEASE

CONTACT: Charlie Arlinghaus 224-4450 or (cell) 491-1991

Bartlett Center Launches Investigative Project

Bosse joins Free Market think tank as investigative reporter

(CONCORD) The Josiah Bartlett Center for Public Policy has hired veteran reporter and policy staffer Grant Bosse to head a new investigative project for the free market think tank.

"The Bartlett Center has been a leader in the fight for a more transparent government and putting as much information as possible at the fingertips of policymakers. We’re very excited to have the opportunity to have Grant Bosse join our team. I think this will be the perfect fusion of Grant's award-winning experience as a radio journalist and the commitment to free market principles he has shown in both his policy work and his recent run for Congress. This will significantly enhance the Bartlett center's commitment to open government. I expect that politicians of all stripes will find the work we do and the information we uncover very helpful in their decision making, especially during the tough budget battles ahead," said Bartlett Center president Charles Arlinghaus.

As a journalist for WTSL and WGIR, Grant won dozens of awards for his work including the Edward R. Murrow award and awards for his coverage of the Claremont Education Lawsuits. He has also served as a policy aide in both the State House and in Congress for Sen. John Sununu. Earlier this year he ran for Congress as an articulate proponent of free market principles.

"I've always been dedicated to open government and free market principles, and I'm thrilled that the Bartlett Center has given me the chance to put those ideas into practice," added Bosse.

The Josiah Bartlett Center for Public Policy is a free market think tank based in Concord, New Hampshire. For more information go to www.jbartlett.org.

- ###-

Lynch proposing limited cuts to budget

Tom Fahey outlines Governor Lynch's proposed budget cuts in this morning's Union Leader:

Gov. John Lynch said he will propose up to $60 million in cuts to the state budget tomorrow, and spend the next seven months looking for ways to close the remaining budget gap estimated at $90 million.

Lynch would not specify where $50 million to $60 million in cuts will be made, but said layoffs are not part of the plan he will offer the Legislative Fiscal Committee. He said the state will save an estimated $100 million by June through a series of five executive orders he issued since February. He froze hiring, limited out-of-state travel and purchases and cut consulting costs.

This is a start, but admittedly not nearly enough to fill the hole facing the next Legislature. I'll be covering the Fiscal Committee's meeting tomorrow morning at the State House.

Forget next election, worry about now

By CHARLES M. ARLINGHAUS

Too often after an election, people try to skip ahead to the next one, forgetting that elections actually serve a purpose other than making campaign workers and candidates feel good or bad until the next campaign. Too many people in political circles are talking about the next election, new candidates or who should run a political party. They should be focusing on the important time between now and the next election.

Some recounts aren't over yet, and most news organizations haven't decided whether John McCain or Barack Obama won Missouri. Yet we are treated to a regular dose of "what will the Republicans do in 2012?" Here at home, poor Sen. Judd Gregg has been asked since election night if he's starting his campaign for re-election in 2010. Gov. John Lynch is expected to tell us if he'll seek a fourth term before he's even begun serving his third.

Republicans are still licking their wounds after two resounding defeats. For some, the most important question is, who will run the party's campaign operation during the 2010 election? Others focus on which candidate might have a chance of winning something in the next election. Democrats, basking in the joy of a long run of election triumphs, look forward to picking challengers for those Republicans left standing.

But elections are not football games, which are isolated events with practices in between. Elections are about who will govern and how. The future isn't four years hence; the future is now.

Talking to the press at a Republican Governors Association meeting, Alaska Gov. Sarah Palin was asked about her run for another office instead of about her current job. Her answer is good advice for partisans of both parties. "The future is not the 2012 presidential race; it's next year and our next budgets." That's the right answer, not just for Gov. Palin but for Gov. Lynch or anyone else in elective office.

The people who won election in both parties are now expected to do something. Republicans in particular, because they lost so many things, will have internal fights about what they should call themselves, who gets to be leader of this or that and what went wrong. But at the end of the day, the labels and the personalities matter less than actually doing something.

On the same day Gov. Palin talked about doing something instead of worrying about the next election, U.S. Sen. Lamar Alexander was in Washington talking about the same thing. As a presidential candidate, Alexander was more devoted to finding core principles than perhaps anyone in recent history. Just as important as finding the right principle was putting that principle into action.

Sen. Alexander's advice is also applicable to both parties. "We can stand around and talk about our principles, but we have to put them into actions that most people agree with." Notice that Alexander isn't advising anyone to abandon his principles, modify them or walk away from them. On the contrary, he urges the opposite. He urges action based on principle.

In New Hampshire, we face a significant budget crisis, perhaps the greatest in recent history. Partisans on all sides will be tempted to look ahead to the next election. They need to avoid that temptation and follow Gov. Palin's advice to focus on the task at hand, the job they were elected to do.

In doing that job, they can focus on principle or abandon principle in search of some mythic consensus or middle ground. Lamar Alexander suggests action based on principle.

Voters elect people to represent them. We expect each to do the right thing, to adopt policies he or she believes will be effective and to accomplish something. Sometimes a policy choice might achieve consensus or something close to it. However, consensus is necessarily rare. If it weren't, it would be because there were no policy differences and elections wouldn't matter.

Margaret Thatcher decried consensus as "the process of abandoning all beliefs, principles, values and policies in search of something in which no one believes, but to which no one objects."

No party or politician should abandon his beliefs to present a mild front before the next election. Once elected, he or she should take action and fight on the problems of today.

Lest we forget, elections pick the men and women who make decisions that impact the economy, taxes and everyday life. Focusing too soon on the next round of voting trivializes the purpose for which we just voted.

Charles M. Arlinghaus is president of the Josiah Bartlett Center for Public Policy, a free-market think tank in Concord.