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Governors, Obama To Discuss Stimulus

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The Associated Press

Published: December 2, 2008

WASHINGTON - Facing severe cutbacks in state services as the recession deepens, the nation's governors pressed their case on Capitol Hill on Monday, asking for at least $40 billion to help pay for health care for the poor and disabled.

The governors are also pressing for as much as $136 billion worth of infrastructure projects such as road and bridge repairs as the Democratic-controlled Congress and President-elect Barack Obama prepare economic recovery legislation that Obama hopes to sign immediately upon taking office.

Obama will meet with the governors today at a National Governors Association meeting in Philadelphia.

In advance, Govs. Ed Rendell, D-Pa., and Jim Douglas, R-Vt., who head the governors group, met with House Speaker Nancy Pelosi on Monday to discuss the parameters of the evolving measure, which could total $500 billion, according to Senate Majority Leader Harry Reid, D-Nev.

For states, the recession has meant big reductions in tax revenue. Because virtually every state has to live under a balanced budget, governors have been forced to cut services, lay off workers and consider tax increases.

Such moves only make the economic situation more difficult, the governors say.

"Without federal help ... what we will have to do is just make continuing cuts and/or raise taxes, both of which would have a further deleterious effect on our states' economy. We simply need help," Rendell told reporters. "When the economy is bad, the social service net demands grow."

Rendell said there are upward of $136 billion in infrastructure projects that are "ready to go," chiefly road and bridge repair projects that can get started especially quickly. Water and sewer projects and school repairs are other needs.

Pelosi, D-Calif., said Democrats will work to have the economic stimulus measure ready for Obama's signature as soon as he takes office Jan. 20.

It's expected to blend funding for infrastructure projects and Medicaid aid to the states with tax cuts, a temporary increase in food stamp payments, as well as investments in renewable energy projects and other "green jobs" initiatives.

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