TBO.com - TBO is Tampa Bay Online

Nation's Governors Request Bailout

ADVERTISEMENT

The Washington Post

Published: November 17, 2008

NEW YORK - First came the banks looking for a federal rescue plan to stay afloat. Next it was the automakers seeking a bailout. And now state governments say they, too, need emergency federal assistance to remain solvent.

The National Governors Association has sent a letter to congressional leaders asking for immediate action to aid states.

The Center on Budget and Policy Priorities, a liberal-oriented Washington think tank, said about 41 states face budget shortfalls this fiscal year or next. Half of them took steps - cutting services and raising fees - to bring their budgets into balance for the fiscal year that began in July, only to see those budgets fall out of balance again as economic conditions further deteriorated.

Iris Lav, deputy director of the center, said shortfalls for the states could total $100 billion.

"How can a state cut that much? They can't," she said, joining the chorus calling for federal assistance. "The states have balanced-budget requirements - the federal government does not," meaning Washington can go into deficit and borrow more to funnel aid to the states.

"It's federalism. ... I wouldn't call it a bailout - it's government to government."

Share this:

Loading Comments...

Email Print

ADVERTISEMENT