CONCORD - As part of the ongoing comprehensive effort to address the impact of a slowing economy, Gov. John Lynch today signed legislation aimed at helping to ensure the state maintains a balanced budget and protects essential services. The legislation (Special Session House Bill 1) was passed during a special session of the legislature called by the Governor and Council.

“Combined with the other actions we have taken, this new law will help our ongoing efforts to balance the budget and protect services to our most vulnerable citizens. As the slowing economy continues to impact state revenues, I will continue working with state agency heads and lawmakers to ensure we have a balanced budget and protect essential services for our people,” Gov. Lynch said.

The new law requires the Pease Development Authority to repay the approximately $10.5 million it owes the state. It also authorizes bonding of school building aid in 2008 up to $40 million of school building aid in fiscal year 2009 if needed to help ensure a balanced budget. The law also allows the New Hampshire Community Colleges to move forward with the sale of its Stratham campus and the renovation of its Pease campus.

Gov. Lynch, the House and the Senate have already taken a number of steps to address the budget. Gov. Lynch has instituted, and the Fiscal Committee has approved, freezes on hiring, purchasing and out-of-state travel, and budget cuts. The legislature has also pass a bill (Senate Bill 321), which reduces budgets for the judicial and legislative branches, and will allow for an increase in the tobacco tax if certain targets are not met.