By Grant Bosse

(CONCORD) The University System of New Hampshire will effectively loan the state $25 million in order to balance the state’s budget, under a set of recommendations from Governor John Lynch.

Under the budget package presented to the media and legislative leaders yesterday, Lynch would ask the University System to transfer $25 million to the state’s General Fund. In exchange, Lynch would add $25 million to the state’s Capital Budget next year, which would allow the USNH to borrow the money to pay for deferred maintenance at the state’s public colleges.

Powerpoint Summary of Lynch Budget Fix

The Legislature has already shifted the state’s Building Aid program, which provides state funds for local school construction projects, from the General Fund to the Capital Budget, increasing the amount that the state borrows by 50%. The current Capital Budget stands at $600 million annually.

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