New Hampshire’s Lynch: Help Coos County, Small Businesses

Gov. John Lynch yesterday in his New Hampshire state of the state address said that bipartisan cooperation was important to implement a comprehensive agenda that includes addressing the downturn in the national economy, unprecedented help for the state’s lagging Coos County economy, and a new effort to help small businesses afford health insurance.

“We face many challenges. But we are a strong state, with a solid foundation upon which to build,” Lynch, a Democrat, said.

Lynch noted that New Hampshire’s previous fiscal 2007 budget ended on June 30 with a $33 million surplus. Additionally, the state’s rainy-day fund has increased to a record $89 million, up from just $17 million when Lynch took office in 2005.

Still, Lynch said there was a projected revenue shortfall for New Hampshire for as much as $50 million by the end of fiscal 2008. Lynch said he has been meeting with major state agency heads to develop contingency plans to address the projected revenue shortfall. Aside from an emergency, Lynch said he would not support any bills that require additional spending this year.

Lynch unveiled two new initiatives during the address, including a Coos County tax credit to help the north country economy, which is lagging behind the rest of the state. The proposal would give businesses that create jobs in Coos County that pay at least twice the minimum wage a $1,000 credit against business taxes for each of the next five years. Most new businesses would pay no business taxes for their first five years, and existing businesses in Coos County would be eligible for new jobs they create.

The governor’s health insurance proposal, called New Hampshire HealthFirst, would require insurance companies to offer a wellness insurance plan to small businesses. Rhode Island passed similar legislation last year and has reported savings to small businesses of more than 15% when compared to similar coverage available in the market, Lynch said.

Lynch also called for the passage of legislation allowing New Hampshire to implement the Regional Greenhouse Gas Initiative to protect the environment, foster better energy efficiency, and create jobs. The initiative was developed in 2005 by New Hampshire and nine other Northeastern states to establish a regional cap-and-trade program to reduce harmful carbon emissions from power plants. New Hampshire will be the last of the 10 states to pass implementation legislation.

A University of New Hampshire study indicates that the state would benefit economically by joining RGGI, Lynch said. Over the next 10 years, New Hampshire citizens could see lower electric bills, increased economic growth, and 800 new jobs if RGGI auction proceeds are invested in energy efficiency.

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