July 30, 2009
Seacoast Online
CONCORD — A judge has rejected the state’s claim on a $110 million surplus in a fund that underwrites malpractice insurance.
The state counted on $65 million of the money to help balance the budget in the fiscal year that just ended and hoped to use the other $45 million toward spending in the current two-year budget.
Superior Court Judge Kathleen McGuire froze the fund last month until its ownership was determined. On Wednesday, she said the fund’s board will decide if the surplus is returned to policyholders as dividends.
“The state did not financially contribute to the creation of (the fund) and has not contributed any funds since that time,” she said.
Gov. John Lynch said the state will appeal.