Facing a $500 million projected revenue shortfall over two years, New Hampshire Gov. John Lynch (D) proposed spending cuts in nearly every sector of state government.
The governor asked the Democratic-led legislature in his Feb. 12 budget address to “re-think everything state government does.”
Lynch called for the closing of eight district courts, a school for troubled youth, poorly performing state liquor stores and a state prison.
The governor also proposed layoffs for up to 300 state employees. He asked the legislature to maintain the hiring freeze imposed in 2008 and called for eliminating 400 vacant positions, a move which could free up $40 million dollars in the state budget over the next two years.
On a more optimistic note, the governor said higher education will see a slight increase in actual state spending in the next fiscal year. He said he expects community colleges and state universities “to work aggressively to mitigate tuition increases for students.”
Lynch said he would veto any increase in the income tax or the creation of a state sales tax. But he proposed an increase in auto registration fees and another hike in the cigarette tax. In 2008, Lynch signed legislation increasing the cigarette tax by 25 cents.
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