Governor says state should limit borrowing costs
- Oops!Something went wrong.Please try again later.
Jun. 21—CONCORD — Facing rising interest rates and a potential recession, Gov. Chris Sununu said the state should spend some of its surplus cash to pay for construction projects over the next two years.
Sununu said that if reelected, he likely would recommend spending about $125 million on projects in the next two-year capital budget, which he would present to the Legislature next February.
"With that $125 million, should that all be bonded? I don't think so," Sununu said during the first of two days of public hearings on capital budget requests from state agencies.
"We will have surplus funds to use cash to minimize the money that we typically used to borrow."
Currently, the state is running a $400 million revenue surplus over forecast, and experts estimate that could grow to $450 million by July 1, 2023.
The state's costs to borrow, which would be passed on to taxpayers, could be "astronomical if we're not smart about it," Sununu said.
The big-ticket construction item that won't be in the next state budget is a new men's prison to replace the main prison in Concord built in 1878.
The governor said he supports setting aside some money in this plan to do a feasibility study of the right size and design for a new facility.
"We are going to need that new prison probably in the next five years," Sununu said.
"There could be a cooling of the markets in the next couple of years that would make it more affordable."
Prison population down
Corrections Commissioner Helen Hanks said the prison population has declined by 28% in the past 15 years.
Currently, 1,884 inmates are in the prisons for men and women in Concord and a minimum-security prison for men in Berlin.
The Concord men's prison has 1,380 inmates, and some of the facility is over capacity, Hanks said.
"We are actually in a good place at this point," Hanks said.
The construction cost estimate for a new prison is about $350 million, she said.
The study will examine whether in addition to replacing the prison in Concord, the state should expand Berlin, which has space on the property, Hanks said.
Hanks said the state should prepare to take this step before prisoner advocacy groups sue for a new prison.
"We are always better off doing this ourselves rather than having an interest group go to court and have it order us to do it," Hanks said.
Here are some other requests agency heads are asking Sununu to include in his proposed capital budget:
—Cannon Mountain tramway: The Department of Natural and Cultural Resources notes the tram is more than 40 years old and needs replacement. This would cost $15.7 million. The agency collects $1.8 million a year in ticket and other revenue from those who take rides up to the mountaintop.
—Hampton liquor stores: The State Liquor Commission wants to replace the two outlet stores on opposite sides of Interstate 95. Thanks to inflation and the cost for materials, the price tag for this project has grown from $14 million in 2018 to $22.5 million.
—Community colleges: A top priority of the system is $5.5 million to upgrade Little Hall at the New Hampshire Technical Institute and $2.5 million to renovate the Turner Building on the Laconia campus.
—Department of Safety: The agency wants to make $1.5 million of improvements to its Bell 407 helicopter that is used for a variety of services from air rescues to highway speed enforcement.
—Information technology: Commissioner Denis Goulet said the agency's top priority is $2.6 million to make system improvements to guard against cyber-attacks.
—Department of Energy: Commissioner Jared Chicoine said the state has to replace the software that supports grants given under the federal Low Income Home Heating Assistance and Weatherization Assistance Programs. The state's five anti-poverty or Community Action Programs dispense these grants to eligible families.
