(The Center Square) — New Hampshire Gov. Kelly Ayotte is tightening the belt of state government ahead of what promises to be a grueling budget process, with state leaders expected to face difficult decisions amid projected revenue shortfalls and declining federal funding.
Ayotte, a Republican sworn into office two weeks ago, signed an executive order on Wednesday instituting a hiring freeze across state government and directing state agencies “to look for ways to do things better” as her administration prepares its first two-year spending plan.
The freeze, which has no expiration date, exempts law enforcement – including corrections officers and troopers — positions providing direct care at a state facility or child protective services and other “essential” jobs, according to the order.
“With the current budget environment, it’s clear we need to tighten our belts and live within our means,” Ayotte said in a statement. “Just like families do each day, we must match what goes out with what comes in. I look forward to continuing to work with our state’s leadership to make our government more efficient and provide further value for taxpayers.”
Under the order, state agencies will be required to submit a written request to Ayotte’s office requesting a waiver to exempt positions from the freeze. The waivers will be posted on the webpage for the governor’s office, according to the order.
Ayotte is expected to unveil her proposed state budget in February, which will be vetted by the GOP-controlled House of Representatives and Senate before a final spending bill returns to her desk for consideration.
During her inaugural address, Ayotte warned that the state needs to “recalibrate” its budget priorities after years of higher spending and warned of the potential for cuts as she prepares to craft her first budget.
“We are going to have to look to find better ways to do things with fewer dollars,” she said. “Just like that family making hard decisions, there’s things we can’t skimp on — protecting our most vulnerable and serving those most in need.”
New Hampshire isn’t alone in its budgetary woes. Other New England states, including Maine and Massachusetts, are facing difficult budget cycles ahead of the next fiscal year, with billions of federal money used to fuel their economies during the pandemic drying up, forcing them to consider cuts in services and programs.
“With job gains steady, unemployment low, and the national economy still growing, states do not face shortfalls because of a temporary downturn,” Josh Goodman, with the Pew Charitable Trusts, wrote in a recent report on state budget gaps. “Rather, in many states, forecasts show structural deficits, with ongoing revenue at risk of chronically falling short of ongoing spending after recent tax cuts and spending increases.”
