Budget cuts may not stave off shortfall - Nashua Telegraph

08.01.09

State/New England Published: Thursday, January 8, 2009 Budget cuts may not stave off shortfall By KEVIN LANDRIGAN Staff Writer
klandrigan@nashuatelegraph.com

CONCORD – The New Hampshire Legislature would still be $200 million short if it significantly cut state services and raised all existing state taxes 5 percent or indexed them to inflation, according to an independent think tank group's analysis.

Steve Norton, executive director of the Center for Public Policy Studies, noted that lawmakers increased state taxes to cope with recessions in 1980 and in 1991.

The Legislature avoided having to make deep spending cuts in 1991 when legislators and then-Gov. Judd Gregg exploited a legal loophole to dramatically increase federal grants under Medicaid.

"In the last recession, the real tough choices did not have to be made," Norton said. "This time, I believe they will have to be considered."

The only welcome news came when Norton said the state could

Source: Nashua Telegraph, NH

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