Hassan budget view sobering

CONCORD – Gov.-elect Maggie Hassan issued an upbeat but sobering call for agency heads to lower their expectations as hearings on a new, two-year state budget commenced Monday. In their initial budget requests, state administrators asked for a 26 percent increase in total spending to a record $11.97 billion for the cycle that begins June 30. Spending from state tax and fee sources alone would go up 19 percent, to $3.3 billion, if those who run state departments get their way. Earlier this month, Hassan won election to replace retiring Gov. John Lynch vowing to undo deep cuts in state aid for higher education and acute care hospitals. This platform helped Hassan defeat Republican Ovide Lamontagne, flip the state House of Representatives and turn the Executive Council from 5-0 Republican to 4-1 Democratic. However, Hassan opened three days of budget hearings by noting all her pledges to restore cuts can’t be achieved in the first two years as the economy slowly continues to recover. “It is important for all of us to understand that we will not be able to reverse course all at once,” she said. Sounding much like the centrist Democrat she will replace in January, Hassan said she would soon send different spending targets to her future subordinates. “While we are beginning to see recovery and revenue growth, we will face continued difficult fiscal times in the coming two years,” she said. “We must be prepared to continue to make tough, fiscally responsible decisions to ensure that we can invest in our priorities, including protecting the health and safety of our citizens and building an innovative economy that will ensure long-term growth.” Hassan summed up by noting that filling everyone’s wishes is not possible. “The requests are for more than our economy and taxpayers can afford,” she said. Senate Finance Committee Chairman Chuck Morse, R-Salem, noted the Republican-led Legislature in 2011 passed a new law compelling agency heads to also prepare plans that assume 10 percent cuts in spending. Senate Republicans had wanted in 2012 to restore some cuts in aid to hospitals, but state revenues weren’t flush enough.