Governor Hassan Statement on HHS Plan to Balance Department Budget

Press Release

Following the Department of Health and Human Services' presentation today to the Joint Legislative Fiscal Committee on its plan for balancing its budget, Governor Maggie Hassan issued the following statement:

"The Department of Health and Human Services' plan for balancing its budget is fiscally responsible and another important step in ensuring a balanced budget for Fiscal Year 2015," Governor Hassan said. "These are difficult, but necessary, actions to maintain a balanced budget. I thank these hard-working public servants for developing a plan to balance their budget while maintaining their commitment to providing services that are critical to the health and well-being of our people and communities."

In light of the projected shortfall in business taxes and interest-in-dividends tax revenues, additional legislatively approved appropriations, and increased Department of Health and Human Services caseloads caused by a change in federal Medicaid law, Governor Hassan has already taken a number of preemptive steps to ensure a balanced budget, including issuing an Executive Order reducing Executive Branch expenditures by $18 million and putting in place freezes on generally funded out-of-state travel, hiring and equipment.

In addition, she has recommended two pieces of legislation. The first is a one-time tax amnesty program that will allow taxpayers who fell behind on their tax obligations during the recession to catch up with reduced penalties and interest. The second would make additional general fund reductions to the legislative and judicial branches, as well as to Fish and Game, reduce the Health Care Reserve Fund, and address a shortfall in plea-by-mail revenue.

Together, these actions -- along with the plan by the Department of Health and Human Services -- will help ensure a balanced budget.

"Despite the challenges we have faced resulting from continued caseload growth and shortfalls in revenues from business taxes and the interest and dividend tax, we continue to take fiscally responsible, strategic action while also meeting our obligation to provide critical services to the people and businesses of New Hampshire," Governor Hassan said. "As we finish Fiscal Year 2015, I remain focused on maintaining those commitments and working with legislators from both parties and our state agencies to ensure a balanced budget."

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