Did NH State Agencies Get the Memo?

Verbatim: The Memo in full

To: All Department and Agency Heads

From: Governor-Elect Maggie Hassan

Date: Wednesday, December 5, 2012

Re: Budget instructions for Fiscal Years 2014 and 2015

Thank you for the time and energy you put into developing your maintenance budgets and for your thoughtful budget presentations last week. Thank you as well for your leadership during this recession and your efforts to reduce state spending, while minimizing – to the extent possible – the impact on the people of New Hampshire.

While we are beginning to see signs of recovery and revenue growth; we face fiscal uncertainty – particularly around how decisions in Washington and the so-called fiscal cliff will impact New Hampshire’s state budget, economic growth and revenues.

There are also investments that we must make as a state in the coming two years in order to protect the health and safety of our citizens and to build an innovative economy that will ensure long-term growth.

Therefore, for Fiscal Year 2014, I am asking you to prepare budgets meeting a conservative target of 97 percent of your Fiscal Year 2013 adjusted authorized appropriation for all general,  liquor, lottery, turnpike, highway fund or fish and game funds. For Fiscal Year 2015, target 100 percent of your Fiscal Year 13 adjusted authorized budget for those same funds.

These budget targets will give us options and flexibility to assess and respond to unfolding economic and external events. Going forward these targets, and individual agency budgets, may be adjusted higher or lower depending on the economy and revenues, federal actions and  state priorities.

Do not include cuts that will violate maintenance of effort requirements or federal laws or regulations. If a state statute needs to be revised to realize a recommended reduction, please note the RSA and detail the required change.  The 3 percent reduction should not be applied equally across your agency, but rather achieved through administrative reductions where possible and a thoughtful assessment of the impact of your services on physical and economic well-being of the people we serve.

I recognize that many state agencies have faced significant cuts in recent years and reaching these targets will be challenging. In recent weeks, I have had the opportunity to meet with many of you and I’ve been impressed by your creative efforts and ideas for making government more efficient, reducing unnecessary and duplicative tasks, and improving service to our citizens. I ask you to continue those efforts through this process.

We need to continue innovating in how we provide state services to adapt to economic realities and to reflect changes in how our citizens live and work. I encourage you, as part of your submission, to identify any assistance your agency may need to become more efficient – including statutory or rule changes, reorganization or improved technology.

These 97%/100% budget submissions should be sent to my office by Friday, January 4th. Your agency’s target number and a template for entering these budgets will be provided to you separately from the Budget Office, Dept. of Administrative Services.

I understand this is a difficult and time-consuming challenge. I thank you in advance for the dedication and innovation you will bring to this process, and I look forward to working with you over the next two years to ensure a balanced and fiscally responsible state budget