CONCORD - As part of his continuing efforts to ensure a balanced budget and protect vital services, Gov. John Lynch will present additional budget reductions to the Joint Legislative Fiscal Committee on Tuesday..

“The slowdown in the national economy is impacting state revenues. Since February, we’ve been taking a number of steps to ensure that we balance the budget and protect vital services for our most vulnerable citizens for fiscal years 2008 and 2009,” Gov. Lynch said.

“As part of our ongoing efforts, I will present a series of additional budget reductions on Tuesday to the Fiscal Committee,” Gov. Lynch said. “Some of these reductions will be painful. I have consulted extensively with agency heads and legislators and tried first and foremost to protect existing services to our most vulnerable citizens.

“Unfortunately, that means we have had to make some hard decisions, including delaying parts of some worthy new initiatives,” Gov. Lynch said. “The Comprehensive Cancer Plan is one such new program. However, I have left additional seed money in the program, which I hope will be used to expand cancer screening programs.”

In February, as the national economy began to slow, Gov. Lynch began a series of steps - including budget reductions and freezes on hiring, purchasing and out-of-state travel to help ensure a balanced budget. As a result of those steps, the state erased an expected deficit for fiscal year 2008.

In addition to the budget reductions that he will present tomorrow, Gov. Lynch worked with the legislature to take a number of additional steps, including cutting legislative and judicial budgets; raising the tobacco tax; changing liquor commission discounts; assessing games of chance; requiring the Pease Development Authority to repay $10.5 million it owes the state; and allowing the bonding of school building aid should there be a deficit in Fiscal Year 2009.

Gov. Lynch will present two executive orders to the Fiscal Committee. One extends a freeze on state purchasing to cover all but essential equipment and commodities. Gov. Lynch’s executive order freezing hiring and out-of-state travel will also remain in effect.

The second Executive Order includes specific agency reductions of approximately $30 million.

Gov. Lynch and lawmakers have worked to build the Rainy Day Fund, the state’s savings account, from just $17 million in 2005 to a record $89 million today. The state also ended the previous biennium with a $33 million surplus.

“We have made smart decisions funding our spending priorities and we have been quick to act responsibly when faced with these current economic conditions. But the fact remains that New Hampshire is not immune to national economic downturn,” Gov. Lynch said. “The national economic situation continues to be volatile, and we must continue to carefully watch revenues closely. I am committed to ensuring we continue to act fiscally responsible, and I am hopeful the Fiscal Committee will approve this proposal to help ensure we end the biennium with a balanced budget.”