Well, if New Hampshire truly does support fiscal responsibility and smaller government, I can't see how Bush would be popular there. Rather, it seems that New Hamsphire likes tax cuts, period.
It's like David Brooks has said, the modern Republican Party has basicly declared defeat on things like Social Security, Medicare, Welfare, Medicaid, the Dept of Education, etc. The GOP now stands for trying to bring some free marketism to these programs, but they don't disagree with these programs' right to exist. GOP voters here in NH and across the country don't expect Bush to shut down these programs and departments.
Of the $209B three-year discretionary increase under Bush, 76% of that increase ($159B) has been for defense and domestic security.
During that same period, spending for all remaining discretionary programs has grown from $331B to $381B. That's 15%, or 5% a year.
Yes, spending could have been cut even less than 5% per year, but Bush wanted to give prescription drug coverage to the elderly, subsidies to farmers, etc. (the compassionate part of his agenda, I guess). Voters can tell him in November if they disagree with spending on these programs.