CONCORD - Gov. John Lynch will issue an Executive Order expanding the freeze on state purchasing to cover all but essential equipment and commodities as part of his continuing efforts to address the impact the national economic downturn is having on state revenues.

“We are continuing to feel the impact of the national economic downturn here in New Hampshire,” Gov. Lynch said. “During this downturn, I am committed to ensuring that New Hampshire has a balanced budget and provides the essential services that our citizens need.”

Gov. Lynch has already presented $50 million in budget reductions for Fiscal Year 2008 and frozen state hiring, out-of-state travel and equipment purchases from class 30 in the budget. Gov. Lynch and the Legislature have also set aside $33 million carried forward from the last fiscal year to help cover unanticipated shortfalls this fiscal year. Gov. Lynch is also working with agency heads to make additional budget reductions in Fiscal Year 2009.

Today, Gov. Lynch announced that he is expanding his Executive Order to include almost all general fund equipment and commodities with the exceptions of food, drugs, medical supplies, fuel or items necessary under emergency conditions that are required for the continued operation of the department. Agencies will be able to apply for waivers through a process established by the Department of Administrative Services.

“New Hampshire is in better shape than many other states in the nation. Our economy is still stronger, our unemployment rate is lower and our budget shortfall is smaller.” Gov. Lynch said, pointing out that over the last three years New Hampshire has built its Rainy Day Fund up to a record $89 million. “Working together, we will weather this downturn.”

Gov. Lynch will present the Executive Order to the Fiscal Committee at its next meeting, and ask state agencies to begin complying with its terms immediately.

Executive Order 2008-5