CONCORD - Gov. John Lynch today presented the Joint Legislative Fiscal Committee with a financial strategy to address a projected $50 million revenue shortfall by the end of the current fiscal year.

“It is clear the national economic downturn is impacting our state revenues. In the first six months of this fiscal year, revenues came in almost exactly as we estimated. But since we passed the budget in June, the national mortgage crisis has grown, the price of oil has increased by 50 percent and the stock market continues to fluctuate,” Gov. Lynch said. “Fortunately, because of our work together in the past three years, we are better prepared than most states to address this challenge.”

The fiscal committee voted to approve two Executive Orders issued by Gov. Lynch. The first Executive Order includes a freeze on all general fund hiring - with the exception of direct care, custodial care and law enforcement positions - and a freeze on equipment purchases and out-of-state travel. The second Executive Order includes specific agency reductions totaling $46.3 million. In addition, instead of a reduction in appropriation, the University System of New Hampshire has agreed to pay $2 million to the general fund prior to the end of the fiscal year.

Together these Executive Orders will produce a savings of $50.2 million.

Gov. Lynch said there are additional steps he will recommend the legislature take to help ensure a balanced budget in fiscal year 2008. These include, a reduction in the judicial branch appropriation of approximately $1.79 million - a reduction to which the judicial branch has already agreed.

The Governor also recommended a reduction from the legislative branch of at least $1 million, which the Gov. Lynch has already discussed with the House Speaker and Senate President.

Gov. Lynch also requested that the $33 million carried forward from the last fiscal year be set aside to be used only for emergencies, or to help cover any further unanticipated shortfalls this fiscal year.

Gov. Lynch and legislative budget writers worked together to craft a responsible budget. It is a budget that makes smart investments, addresses long-neglected needs and builds a better future for New Hampshire’s citizens.

Gov. Lynch and lawmakers have worked to build the Rainy Day Fund, the state’s savings account, from just $17 million in 2005 to a record $89 million today. The state also ended the previous biennium with a $33 million surplus.

“While we made smart decisions funding our spending priorities, the fact remains that New Hampshire is not immune to national economic conditions,” Gov. Lynch said. “Like you, I continue to be concerned about the direction of the national economy and the impact it is having here in New Hampshire. Like you, I am committed to meeting our responsibility of ensuring New Hampshire ends this biennium with a balanced budget.”

Copies of the Executive Orders are listed on the Executive Order web page.