Employing once more his tired old phrase that there are "no new taxes" in his proposed budget, John Lynch this week introduced a fiscal plan that looks more like a carnival mystic's prediction of the future. Increasing the cigarette tax once more, he says he is avoiding "new taxes", which is his way of semantically trying to fool people that there aren't any increases in the tax burden on citizens in NH. Bogus? Uh, yeah! If you had taxes of "X" on something, and then the taxes became "X+Y", "Y" would be considered what? Nothing? It's a tax, and it's new. Ahh, but you see since it's not a new CATEGORY of tax, it's not a new tax!

Anyone see that Emperor in his new clothes? He went by a few moments ago, and looked like he was shivering, despite his raiments...

Lynch also claimed, and the UL reporter in the piece below did not challenge the claim, that there are "cuts" in the budget, which is false. There are CUTS FROM THE PROPOSED budgets of the various departments. Those proposed budgets are ALWAYS higher than they end up, specifically because of the political game played to make the departments look like they need more, and are fighting for "us", and to allow the governor to look like he's being fiscally responsible in "cutting" the budget, when, in fact, there aren't any real cuts.

The only action with any semblance of even an APPEARANCE of a HINT of a WHIFF of fiscal responsibility is the choice to not fill positions that haven't been filled for years. This is not a net diminution (or as President Bush would "dimunition") of the overall size of government.

Here is the UL piece:
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In his budget address today Gov. John Lynch proposed changing the state’s education funding plan by giving school districts a 5 percent increase worth $25 million a year instead of the $54 million they expected.

The change is one facet of a $10.2 billion budget package that increases overall spending over the next two years by 9 percent, and spending of state general funds by 15 percent.

Lynch also adds an expected $17 million surplus for the budget that closes this June to the Rainy Day Fund, bringing its balance to $80 million. Lynch said the plan “uses taxpayers dollars wisely to meet state government’s most fundamental responsibilities.”

Lynch balances his budget with a combination of cuts, tax and fee increases, and more aggressive auditing of taxpayers. The tax on tobacco would go up 28 cents for each pack of cigarettes. The increase would bring the total per-pack tax to $1.08, lower than Maine at $2 a pack and Massachusetts, $1.51 a pack.

There’s also a $6 increase on the current $31 charge to register a motor vehicle. Lynch also proposes an auction of 50 moose hunting permits that he thinks will bring an average price of $5,000 each.

As part of his budget work Lynch trimmed $291 million off the nearly $560 million that state department heads asked for in fiscal 2008 and 2009. He said he eliminated 321 vacant positions that comes agencies have carried on their books for more than six months, and in some cases as long as six years.

The budget contains a long list of state needs and proposed solutions to problems that include aging highways and bridges, overcrowded prisons, the ever-present school funding problems, and retirement system woes.

One big change is in aid to schools. Current law, which courts have said is unconstitutional, requires the state to send school districts an additional $108 million over the next two years. Lynch cuts that in half by providing all school districts with an across-the-board 5 percent increase, or $50 million over the two years.

Towns would get the full increase in the first year of the biennium. For the change to take effect, the Legislature has to amend existing law.

The proposal comes one month before local school districts are to vote on their budgets for the coming school year. In some cases, such as Newport and Pittsfield, it spares them a cut in funding. In others, it means less money than they get in the current law, which the state Supreme Court has ruled is unconstitutional.

The budget predicts that the Education Trust Fund, dedicated to state school aid, will have a $100 million balance after two years.

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