Lynch Incorrectly Claims Balanced Budget

By Grant Bosse on January 21, 2010

(CONCORD) In his annual State of the State address to the Legislature, New Hampshire Governor John Lynch stated that “In 2009, the worst year of the recession, we balanced the budget.” But Lynch’s former Budget Director says that the Granite State currently faces an operating deficit of nearly $80 million.

Administrative Services Commissioner Linda Hodgden and Comptroller Edgar Carter wrote to the Legislative Fiscal Committee on January 5, “In accordance with RSA 9:13-e, III, approve the transfer of $79,733,929 from the Revenue Stabilization Reserve Account to the General Fund Surplus for the fiscal year ended June 30, 2009 to eliminate the General Fund operating deficit.”

Governor John Lynch

On January 8th, the Fiscal Committee turned down that request, but will reconvene tomorrow. The deficit is partially attributable to the State’s loss in the Joint Underwriting Association Lawsuit, along with $65 million in revenues that were to be credited to FY09. However, the JUA case alone does not account for the entire shortfall. State budget officials have held open the FY09 books beyond their statutory deadline in anticipation of the Supreme Court’s decision on the state’s appeal of the JUA case. Without the transfer, which would nearly deplete the account commonly known as the Rainy Day Fund, New Hampshire would be forced to close the books with a deficit for FY09.

Rainy Day Fund

Posted under Featured, News.
Tags: Edgar Carter, John Lynch, JUA, Linda Hodgdon, NH Budget, Rainy Day Fund

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