Gov. Chris Sununu announced a restriction Tuesday on all new government hires and equipment purchases in an attempt to control state spending.
At his first press conference since being sworn in, Sununu said the state must “manage” its budget to deal with a projected $65 million shortfall from the Department of Health and Human Services. The Republican didn’t say how much money he expects the hold will save. Unlike a freeze, hiring won’t come to a complete stop.
A department could make a purchase or fill a position, he said, but first must seek approval from Sununu’s office. Child protection workers, who are needed to implement the agency’s long-delayed 24/7 coverage plan, could still be brought on, he said.
“Addressing the problems at (The Division for Children, Youth and Families) is a top priority for our administration,” he said. “That’s a great example of where we have to make sure we are putting the right funds in place.”
State revenues are running $40 million above expectations so far, and Sununu is “cautiously optimistic” the trend will continue until the fiscal year ends in June.
The DHHS budget hole is driven by several factors, including an increase in rates for companies that manage Medicaid and a plateau in Medicaid caseloads, instead of the anticipated decrease.
“The situation is not a dire situation,” Sununu said. “But it does require us to roll up our sleeves, to dig in and really manage ourselves.”
His office will begin meeting with DHHS, House and Senate leaders to assess the fiscal situation and come up with fixes. They won’t include tax hikes and his administration will “exhaust all our options before going back to the legislature and asking for a handout,” Sununu said.
DHHS is the largest state agency, overseeing public health, child protection, elderly services, welfare, food safety, Medicaid and juvenile justice, among other areas. DHHS accounts for nearly half of state spending.