Democratic Gov. John Lynch yesterday looked back at past achievements and forward to the future as he won a third term in a landslide victory over Republican state Sen. Joe Kenney.

"The people of New Hampshire sent a very strong message tonight - they've seen the progress we've made over the last four years and the real results we've achieved," Lynch said.

Lynch, who beat Kenney 70-28 percent, gave his acceptance speech soon after the polls closed at 8 p.m., before a crowd of approximately 100 supporters and staffers at the Puritan Conference Center in Manchester. As Lynch's daughter Julia introduced him, someone shouted from the crowd, "We love him, too!"

Lynch, 55, of Hopkinton, listed his accomplishments over the last four years: expanding children's health insurance, providing tax credits to create jobs, providing job training, increasing the minimum wage, improving the graduation rate and mandating public kindergarten in all of the state's school districts.

He acknowledged that the country is in "a time of unprecedented economic turmoil" and pledged to provide heating assistance for families, crack down on foreclosure scams and bring better jobs to the state. The impact of the economy on the state budget, he said, will mean "not doing some things that we might want to do, and delaying others until we get through this economic downturn."

Lynch, an extraordinarily popular governor, has benefited from steady approval ratings of about 70 percent. Last night, Lynch all but matched his 48-point margin of victory over Republican opponent Jim Coburn in 2006.

State Republican Chairman Fergus Cullen said yesterday that he was "grateful" to Kenney for running. "He stepped up and had the courage to run when others in the party did not," Cullen said.

In 2006, the Republican Party was criticized for not supporting Coburn. Cullen said Kenney was included in the party's coordinated get-out-the-vote efforts and mailers. The party provided Kenney with free office space and support, and a paid staffer.

Kenney, a U.S. Marine from Wakefield, ran on a focused message, accusing Lynch of spending irresponsibly by approving a too-high budget and numerous fee increases. Kenney said he would cut state spending and preserve New Hampshire's "live free or die" philosophy.

Lynch talked mostly about his record - appointing qualified leaders for state departments, acting in a bipartisan fashion on a variety of issues and implementing budget cuts once the extent of the state's budgetary problems became clear.

Yesterday, several Concord voters - Democrats and Republicans - said they voted for Lynch because they thought he has done a good job.

"He's willing to look at difficult situations and not make knee-jerk decisions, not cut important services," said Robert Murray, 58, a Concord Democrat and psychiatrist.

John Marcel, 36, voted Republican in the Senate and presidential races. But the Penacook fire dispatcher voted for Lynch for governor. "He's bipartisan," Marcel said.

Although Lynch won handily, political observers say he could have a difficult third term because of the state budget. Revenues for fiscal year 2009 are expected to fall $250 million short of budget expectations. The expected gap between spending and revenue for the next budget could be as large as $400 million to $700 million, according to Charles Arlinghaus, president of the Josiah Bartlett Center for Public Policy.

Lynch has pledged to veto a sales or income tax, so his only choices to fill the gap will be to raise existing taxes or cut spending or both, Arlinghaus said.

"In the first four years, the difficult decisions were largely up to the Legislature," Arlinghaus said. "This year everyone will look to him for leadership. He's going to have to come up with a fairly detailed plan and muster people in both parties behind it." (next page »)