CONCORD - Gov. John Lynch today applauded House and Senate negotiators for reaching agreement on a balanced and responsible two-year state operating budget.

"This is a balanced and responsible budget that makes smart investments in building a better future for New Hampshire's citizens," Gov. Lynch said.

"With this budget, we will make affordable health insurance available to thousands more children; put more state troopers on the roads to protect our citizens; make it possible for more of our young people to graduate from high school; dramatically cut the waiting list for services for people with developmental disabilities and provide critical services to our seniors; protect New Hampshire's open spaces and beautiful natural environment; and significantly increase our state's investment in higher education," Gov. Lynch said.

This is a fiscally responsible budget that is balanced with sound revenue estimates, based on modest economic growth and consistent with historic trends. It significantly cuts state agency budget requests; eliminates vacant positions; and redirects state resources wherever possible to direct services to New Hampshire citizens.

"I want to thank the House Finance Committee Chairman Marjorie Smith and Senate Finance Chairman Lou D'Allesandro and all the conferees for their hard work on this budget agreement. Despite major increases in the state's non-discretionary costs, they developed a responsible budget that both Democrats and Republicans can and should support. It is a budget that will allow us to make real progress for the people of New Hampshire."

The budget:

* Provides a $4 million increase in dropout prevention to help more young people graduate from high school, including doubling tutoring and one-on-one assistance for at-risk students; expanding adult high schools; expanding access to the career and technical education centers; and investing in apprenticeship programs.

* Allows an additional 10,000 children to enroll in New Hampshire's Healthy Kids Children's Health Insurance Program over the next three years.

* Provides a funding increase to reduce the expected waiting list for people with developmental disabilities over the biennium and completely eliminate it in three years.

* Increases state aid to schools.

* Helps keep higher education affordable and accessible to New Hampshire families by increasing funding for New Hampshire's community technical colleges by $11 million and increasing funding for the University System by $16 million.

* Expands access to affordable housing for New Hampshire families, by providing $400,000 for a pilot grant program to help communities develop workforce housing and creating a $400,000 revolving loan fund to help homeless families with security deposits and first month's rent.

* Increases funding for home- and community-based care for seniors.

* Provides funding to implement legislation aimed at reducing instances of lead poisoning in children. It will allow the state to increase its inspections for lead poisoning cases; reduce the threshold blood level limit for children with lead poisoning from 20 micrograms per deciliter to 10 micrograms per deciliter, the level recommended by the Centers of Disease Control; and allows the Department of Health and Human Services to do preventative inspections.

* Protects New Hampshire's natural and historical landmarks by funding the Land and Community Heritage Investment Program at $12 million over the biennium.

* Allows for the creation of a research and development tax credit to encourage innovative companies to create new jobs in New Hampshire.

* Funds seven state trooper positions, created by the legislature last year, and adds six new trooper positions over the biennium.

* Provides almost $10 million to pay for direct care staff, medications and serving an additional 50 people at the State Veterans Home.