The Union Leader – Lynch announces $26 million budget surplus reported on Governor Lynch’s announcement of a surplus.
“CONCORD – The state built up a $26 million surplus during the budget year that ended June 30, Gov. John Lynch said Friday.
The surplus, produced by cost cutting measures Lynch ordered across state government last year, is in addition to a $9 million balance in the state’s Rainy Day Fund. Revenues so far in the current fiscal year are $10 million ahead of schedule.”
But NH Watchdog has the story of the smoke and mirrors used to announce this ‘surplus’ that does not exist when you consider that we still face an $800M deficit in two years.
NH “Surplus” relies on borrowing, transfers
By Grant Bosse
“Governor John Lynch yesterday announced that the state ended Fiscal Year 2010 with a $70 million surplus, but that figure includes both new debt and an $80 million transfer from the current fiscal year. The unaudited “surplus statement” comes from the Department of Revenue Administration. Lynch claims that the “surplus” came…
(CONCORD) Governor John Lynch yesterday announced that the state ended Fiscal Year 2010 with a $70 million surplus, but that figure includes both new debt and an $80 million transfer from the current fiscal year. The unaudited “surplus statement” comes from the Department of Revenue Administration. Lynch claims that the “surplus” came about from “our strong fiscal management”, but the real reason the state balance sheet appears balanced is because lawmakers approved a number of tactics to artificially inflate FY10′s bottom line at the expense of future years.”
and…
University System of New Hampshire Loan
“The budget fix proposed by Governor Lynch this spring, and approved by the Legislature in June, included a $25 million cash transfer from the University System of New Hampshire in lieu of the budget cuts that hit every other state agency. In exchange for the quick cash, the University System received $25 million in additional bond revenue from the Capital Budget. Neither this new debt, not the $45 million in Building Aid debt, is included as spending under the “surplus statement” issued yesterday. These two provisions alone would wipe out the “surplus” claimed by Governor Lynch.”