Gov. John Lynch (D-Hopkinton) says that New Hampshire is on track to have a balanced budget at the ending of this fiscal year.

Lynch said the state has taken "appropriate steps" to deal with the budget crisis.

"We froze hiring, equipment purchases and out-of-state travel, and reduced spending in the fiscal year 2008 budget by $50 million, while protecting essential services for citizens," Lynch said in a statement. "Although the books on fiscal year 2008 are not yet closed, I am confident we have taken appropriate steps to put New Hampshire on track for a balanced budget for this fiscal year and the biennium."

In early June, Lynch won approval to cut $30 million from next year's state budget. Republicans argue that the state will be facing a $200 million budget deficit next year.

Update: House Speaker Terie Norelli (D-Portsmouth) said the budget shortfall was "expected."

“We expected these to be affected,” Norelli said. “The housing market is way down. People are not eating out as much; people are putting money into their gas tanks, not buying lottery tickets or liquor.”

Previously on PolitickerNH.com:

-Governor, Speaker, Senate President Announce Plans for Special Session to Continue Their Efforts to Ensure a Balanced Budget