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The 17% distortion PDF Print
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Wednesday, 14 January 2009 18:14

It is a Republican distortion - for the sake of a talking point - that the NH state budget has increased hugely due to out-of-control Democrats.

 

  1. The total state budget did NOT increase by 17% last year. The total state budget increased by a little under 11%.  The discrepancy in numbers is because the Democratic leadership instituted a 'truth-in-budgeting' process. Previously, numerous items of state expenses were treated separately and that made the "budget" appear smaller than it really was.
  2. Most of the increase was in statutory items that the state is obligated to pay for. For example:
    • increases to the state retirement system to make up for under-funding in past years;
    • school building aid
    • catastrophic aid
    • Medicaid payments
  3. The actual increase in discretionary spending was 3 % Less than the rate of inflation. 
  4. This includes programs with bipartisan and wide support:
    • ending the  Developmentally Disabled waiting list;
    • LCHIP;
    • increased enrollment in the Healthy Kids insurance program;
    • replacing lost federal funds for AIDS health care
    • bioterrorism preparedness
  5. When the budget was put together - more than a year ago - economists were NOT sounding any alarm. Revenue projections were reasonable at the time they were made. It was after the budget was completed when the warning signals went up. 
  6. Democrats, led by Gov Lynch have taken steps to bring spending in line with falling revenue projections.
  7. NH has one of the most  frugal state governments, and continues so under Democratic leadership
  8. The economic downturn is not just hitting NH, it is hitting states with Republican and Democratic leadership alike.
Last Updated on Friday, 16 January 2009 08:14
 
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