CONCORD – Gov. John Lynch doesn’t intend to spend his final year in office lying down.

Lynch, a Democrat, will step down after a record fourth-consecutive term in office, but threw down the gauntlet during his final State of the State address Tuesday, calling Republican-led moves to cut higher education “shortsighted” and a lowering of the cigarette tax “nonsensical.”

Reversing both of those changes were among the goals Lynch outlined for the next year.

Lynch also pledged to fight any efforts to loosen restrictions on gun laws and gave a spirited defense of organized labor. His vow to block threats to collective bargaining drew some of the loudest applause, but clearly did not meet the approval of GOP legislative leaders.

“Sadly, it has become too commonplace to attack public employees, and that needs to stop,” Lynch said.

Reactions to Lynch’s address were predictable, as Republican leaders in the Legislature said it was long on rhetoric and short on substance, while Democrats said it was the culmination of a masterful politician and policy leader. Lynch called for toned-down rhetoric that too often has prompted opponents to act on ‘’demonizing one another.’’

‘’There’s a harshness in the air, in the tone and nature of our communication, and particularly within this building, that’s not healthy for our people or our democracy,’’ Lynch said during his 70-minute address to the joint session of the state Legislature.

Over the past year, Lynch’s power in Concord has been challenged, as the GOP super majority has flexed its muscles with overrides to bills vetoed by Lynch that expand the rights of citizens to defend themselves with deadly force in public and allow for parents to opt their children out of curriculum they find objectionable.

But Lynch pushed back Tuesday, calling for amending the N.H. Constitution to direct more money to needy school districts and bringing the cigarette tax back to where it was before a reduction in last year’s budget.

“The cut in the tobacco tax was nonsensical,” Lynch said. “That money would have been better spent on our community college and university systems, for example. We should roll it back and use the revenue to invest in our economic future.”

Lynch said the 10-cent cut in the tax on cigarettes has cost the treasury $13 million that’s wiped out gains in recovering taxes from business.

The outgoing governor took on House Speaker William O’Brien, R-Mont Vernon, with a spirited push to create a state health care exchange to comply with the federal health care law.

“A well-designed health insurance exchange can make it easier for businesses to compare and obtain affordable health insurance,” Lynch said.

‘’And I certainly don’t think we want the federal government to design an exchange for us. That is why must move forward – now – with designing our own exchange right here in New Hampshire.’’

O’Brien is pushing rival legislation to ban the state from setting one up or cooperating in any way with the federal government in creating one.

He labeled as “shortsighted’’ the 45 percent cuts in state aid to higher education and said lawmakers need to heal wounds with acute-care hospitals over deep cuts in aid to them.

Lynch also called for doubling a popular business tax credit.

Lawmakers need to find enough money to widen Interstate 93 said Lynch who was critical of the Legislature’s decision to cut spending in the Highway Fund by $90 million over the next two years.

A polite but defiant Lynch vowed to veto a state income tax, casino gambling expansion and any lessening of gun laws that threaten public safety.

Lynch bounced back and forth between past achievements and his to-do laundry list, telling lawmakers the most good they can do is not to upset the track record of a state with low unemployment, low child poverty, low crime rates and the “Most Livable State” honor three years running.

“As the husband of a physician, I urge us to adopt the cardinal rule of medicine: First do no harm,” Lynch said. “We can build on our success, but overall, New Hampshire has a strategy that is working. Let’s not mess it up.”

Over his final year, Lynch vowed to complete government reorganization efforts with a reform bill that would eliminate 100 reports, cut paperwork and combine the administration of 34 licensing boards.

Lynch urged lawmakers to give back to state prosecutors authority to investigate claims of mortgage fraud after hearing complaints from Executive Councilor David Wheeler, R-Milford, as well as hearing about tragic stories featured in The Telegraph.

Lynch, 59, came to the Statehouse in 2003, promising a spirit of bipartisanship and an administration free of ethical controversy.

The fix-it business consultant became the first in 90 years to topple an incumbent governor seeking a second term.

The ever-cautious, moderate Democrat kept his agenda limited and achieved it, fulfilling the mandate that all 5-year-old children have a public kindergarten option and lowering the dropout rate by making students stay in school until age 18.

Lynch signed some of the toughest laws against child sex predators and resurrected a job training program that’s helped the unemployed find new skills during this difficult recession.

The eight-year tenure was not without its bumps in the road.

Lynch signed a new tax treatment on profits from owners of limited liability companies that became so unpopular he championed its repeal nine months later.

Lynch spearheaded corrections reform to let inmates out on supervised before their maximum terms ended. After the law came under withering attack during Lynch’s re-election run in 2010, the GOP-dominated Legislature watered down some of its key provisions.

Politically, Lynch has served without peer, twice gaining near or over 70 percent of the popular vote and going down as the top vote getter on the ballot in state history.

While another Lynch victory was by no means assured, he would have entered as the odds-on favorite for another two-year term this November. His departure throws the race wide open with prominent Democratic and Republican figures already hunting for votes.

Kevin Landrigan can reached at 321-7040 or klandrigan@nashuatelegraph.com; also check out Kevin Landrigan (@KLandrigan) on Twitter and don’t forget The Telegraph’s new, interactive live feed at www.nashuatelegraph.com/topics/livefeed.

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