The Union Leader - For Kenney and Lynch, Governor's Race is about Spending

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The Union Leader - For Kenney and Lynch, Governor's Race is about Spending

Tom Fahey

The governor's race this year is a David and Goliath tale, with a twist.

Goliath would be Gov. John Lynch, short in stature, but huge in important measures like name recognition, popularity and finances.

Standing in his way is David, Sen. Joseph Kenney, a tall and fit U.S. Marine Corps reserve officer who is very short on staff, money and, to date, poll numbers.

Kenney, 48, of Wakefield, is trying to block Lynch, a 55-year-old Democrat from Hopkinton, from winning a third term as governor. Kenney says the state's character is changing under Lynch, becoming more like Massachusetts.

Lynch, who campaigned four years ago saying he'd run a bipartisan government, says he's succeeded on that front.

He points to the passage of programs aimed at helping the economy, such as tax credits for research and development costs (R&D), and new jobs in the North Country, job training grants and the first steps toward getting small business an affordable health insurance plan.

Laws on sex offenders, environmental and energy issues are also there. Aside from gains in the Legislature, Lynch has developed a record of quick responses to a string of natural disasters.

The job is tough, and about to get tougher as a recession builds, but Lynch said he is excited about another term.

"I really do love being governor, and I love being given the opportunity to make a difference in the lives of people in New Hampshire," he said. "That's what I enjoy and what I want to do for another couple of years."

As a lawmaker, Kenney has voted for expanded use of the death penalty and a boat speed limit, and against the smoking ban bill and expanded gambling.

He said he would try to repeal the civil unions bill and the Regional Greenhouse Gas Initiative, and revise the R&D tax credit to focus on fewer companies.

The credits now are spread too thinly to make a difference, he said.

In this campaign, Kenney has focused on budget issues. He argues that Lynch has driven the state to a dangerous financial point through overspending and a refusal to stand up to his party.

Kenney said the budget is at the heart of Lynch's failings.

"I started thinking about this right after the last election, in 2006," Kenney said. "But once the budget passed in 2007, with a 17.5 percent increase in spending "" $500 million more spending "" I said that's it, I'm definitely running."

At a press conference Friday, he and supporters said the state needs to bridge a $500 million gap if it is to have a balanced budget for the next two years.

Kenney proposes an across the board 10 percent cut in state budgets, and said he would order a 20 percent cut for the last five months of the fiscal year if he is elected.

"The governor has mishandled and mismanaged the budget, so now we've got to make some real tough decisions. Everything has to be on the table," Kenney said.

Lynch has ordered a series of cuts and is preparing to make more. He said across the board cuts would hurt the state and local communities.

"We have to be careful that we're not just cutting state money and then putting that burden on cities and town to fund related services," he said.

The state now sends about $550 million to communities, not counting school funding. Cuts in that aid will push up property taxes, he said.

Lynch said increases in the current budget are being blown out of proportion.

Outside of expenses that are considered locked-in costs, increases were within historical trends, he said.

A few hours after Kenney raised the budget issues for reporters, Lynch's budget experts told lawmakers the state could see a tax revenue shortfall of up to $250 million this year, about $100 million of which is covered in steps taken to date through executive orders.

Kenney said concern about spending drove his candidacy. He had plenty of company as a potential candidate early this year. Names on the GOP list included Manchester Mayor Frank Guinta, Portsmouth attorney John Lyons, investor Bruce Keough, even Republican National Committeeman Sean Mahoney. They all decided against running.

None cited Lynch's overwhelming poll numbers "" steadily in the 70 percent approval range "" as a reason for demurring.

"Our approach was to be the last man standing, and that's what I became," said Kenney, who did not face a primary opponent.

Kenney admitted in a recent debate he took on a big job, saying Lynch is "as popular as the Pope."

When he filed for office, Kenney signed a voluntary spending cap, which allowed him to accept large donations in the primary and general election, but limited his spending to $625,000 in each election.

But Kenney has struggled with finances. He said he finds it hard to ask anyone for a $500 donation when he knows it might be needed to pay a heating bill.

In a Sept. 25 poll, the University of New Hampshire Survey Center found that 75 percent of respondents didn't know enough about Kenney to vote for him.

In his latest campaign finance report, Kenney showed he had taken in $13,842 since early September, and spent only $1,437. Since he announced his bid, he has taken in about $115,000 in donations.

He has a staff of one, Rep. Casey Crane of Nashua, plus volunteers, and only last month opened a campaign office in donated space in Manchester.

"I wanted to run a real old-fashioned grassroots New Hampshire campaign. I want to take money out of politics, but instead I see more and more coming into politics," he said.

Lynch, by comparison, raised $1.2 million starting well in advance of the campaign season. He's added another $600,000 since the primary, spent $232,495 in the past six weeks, and still has $366,468 in his campaign coffers.

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