11:04AM- Lynch closes with a call to work together. We'll post details on his budget proposal once the spreadsheets are available.
11:03AM- Super-Safety- Lynch would move all law enforcement functions under the Department of Safety, including Fish & Game, Liquor and Racing and Charitable Gaming. He would also merge Agriculture, Fish & Game, Parks and Culture Resources into a Department of Natural and Cultural Resources, and merge Resources and Economic Development with Employment Security.
11:00AM- Bumping- Lynch wants to eliminate "bumping" privileges, which allow senior state employees to take the job of a lower-level employee if their position is elimiated. This will be a major hurdle with the SEA.
10:58AM- Lynch wants to consolidate the dozens of regulatory and licensing boards under state government, rather than the largely volunteer boards they are now. Lynch wants to consolidate their staff and adminstrative expenses.
10:56AM- Vehicle Surcharge- Lynch's call for a $10 per vehicle surcharge on vehicle registration drew the first audible response of his address, a loud gasp from several spots in the Chamber.
10:55AM- Roads and Bridges- Lynch would transfer part of I-95 from the Highway System to the Turnpike System, which would allow the use of toll revenues to pay for that road. Lynch funds this transfer with a 50 cent increase in the Hampton toll.
There is also a 50 cent increase in the Bedford toll, and various other toll increases statewide.
10:52AM- Taxes- Lynch proposes a 35 cent increase in the tobacco tax, a .75% increase in meals and rooms, and a tax on gambling winnings over $600.
Lynch repeats his promise to veto either a sales or income tax.
He remains skeptical of expanded gambling.
10:51AM- Revenues- Lynch estimates that the 2009 deficit will be $275 million. He is counting on $50 million in federal Medicaid money, using $50 million from the medical malpractice insurance fund, and taking $38 million from the Rainy Day Fund.
Lynch would use another $60 million from the medical malpractice insurace fund to balance the 2010-2011 budget.
10:49AM- Liquor Stores- Lynch proposes closing under-performing stores, but building one or two new stores in growing markets. Lynch advocates leasing land next to Liquor Stores, including those at the Hooksett and Hampton Welcome Centers, and selling the Concord Warehouse. Lynch would also give the Liquor Commission greater authority to close and open stores and set prices.
10:47AM- Courts- $68 million for Fiscal Year 2010.
Lynch wants to close eight district courts, saving $2 million a year.
10:44AM- Corrections- Lynch proposes closing the Lakes Regions Facility, and includes Capital Budget money to design and site a new Women's Prison. Between 100 and 200 non-violent illegal immigrant inmates are scheduled to be deported. Lynch wants to enter an agreement with U.S. Immigration to speed these deportations, and reconfigure the Berlin Prison to house more inmates. Lynch is also proposing expaneded use of electronic monitoring, versus incarceration.
Lynch wants to coordinate with neighboring states to build a 2,000-3,000 Northern New England Correctional Facility.
10:38AM- HHS- $721 million, just below 2009 levels.
Lynch also proposes closing the Tobey School and eliminates the catastophic illness program.
10:37AM- Lynch calls for a slight increase in Community College and University System budgets. (The Executive Summary includes a large increase in Community College spending, and nearly level funding for the University System.)
10:36- Governor Lynch is giving a few examples of program cuts:
Geography Education at Keene State College
Administrative Services switching to a four day a week cleaning schedule
International Trade Office moving from Portsmouth to Concord.
Closing down regional DMV offices.
No new grants from Environmental Services.
10:33AM- Layoffs- Lynch's budget defunds 400 vacant positions, and calls for layoffs of 250 to 300 state employees.
10:32AM- Lynch is proposing a new state health plan, which he says would save $3.5 million over the next two years, some of which would be given to workers directly in a one-time payment.
10:31AM- Retirement System- Younger retirees will be paying $100 a month for Medicare, which retirees over 65 already pay. Retirees will also see benefits cut to mirror those of active state employees.
10:28AM- Ends revenue sharing of rooms and meals taxes and reduces state contribution to retirement costs from 35% to 30%. Lynch calls for sending Feneral Bailout money directly to towns instead.
10:27AM- $123 million for "adequency" to local schools.
10:25AM- Lynch is projecting ahead to 2012-2013, and assuming revenues rebound. He says if that happens, then his budget is "sustainable."
10:23AM- "This budget spends $2.97 billion in general funds over the biennium. That is $40 million- or one percent less- than estimated actual spending for fiscal years 2008-2009." This figure is after the 17.5% increase in General Fund spending, which has since been pared back slightly by the Governor and Fiscal Committee.
10:21AM- "This budget represents one road map for how we can address our state budget. It is not the only road we can follow."
10:10AM- Governor Lynch has given John DiStaso a sneak peek of his budget proposal, which you can read at the UnionLeader.com
The state appropriated $3.2 billion in the current two-year budget from general state tax sources. The total budget was $10.3 billion when spending from federal and other sources was included.
Lynch has already said whole programs will be eliminated in the next budget - making layoffs unavoidable. State House insiders predict several hundred people could lose their jobs out of the 11,500 who work for the state.
Lynch also has indicated that some state aid to cities and towns some could be reduced. The state distributed $550 million to communities over the current two-year budget, not counting school adequacy grants. Reductions in state aid could mean higher property taxes.
10:08AM- You can listen to the Address online here.
We're live from the State House, where Governor John Lynch will deliver his Budget Proposal to the Legislature. By law, this is the only time that New Hampshire's budget actually has to be balanced.
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