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Written by Administrator
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Wednesday, 14 January 2009 18:14 |
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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.
- 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.
- 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
- The actual increase in discretionary spending was 3 % Less than the rate of inflation.
- 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
- 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.
- Democrats, led by Gov Lynch have taken steps to bring spending in line with falling revenue projections.
- NH has one of the most frugal state governments, and continues so under Democratic leadership
- The economic downturn is not just hitting NH, it is hitting states with Republican and Democratic leadership alike.
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Last Updated on Friday, 16 January 2009 08:14 |