Gov. John Lynch: Even with cuts, state must find new revenue

Governor John Lynch takes the pages of the Union Leader this morning to defend his search for more revenue through new taxes, arguing that the $11.6 billion budget under consideration is fiscally responsible:

In all, the state budget will be essentially flat, about a 1 percent increase in general and education spending from 2009 to 2010. While spending is nearly level, revenues are continuing to decline because of the recession. For 2010, we project that state revenues will be lower than they were in 2004 and 10 percent lower than they were in 2008. For state government to continue meeting its core responsibilities without passing additional costs on to local taxpayers, it is clear the state will need to raise additional revenue over the next two years.

The Governor's is based on more than a handful of budget gimmicks designed to allow much higher spending this year than last while maintaining the illusion of a stable General Fund.

Charlie Arlinghaus wrote about the scheme to increase highway spending without it counting against the General Fund.

Tom Eaton showed how the Liquor Commission is being moved off the books, and a number of other gimmicks. And of course, Governor Lynch all that free federal stimulus money that he's spending. In fact, with all the one-time money being used for permanent state programs, the state's budget hole will be larger two years from now than it is today.

All in all, the budget as it currently stands increases state spending by about 8%. It's hard to know exactly as both the Governor and the Legislature are keeping the shells moving faster than the eye can see.