MADISON, Wis. - Five Democratic governors are asking the federal government for a $1 trillion bailout package, including $250 billion for education and $150 billion in middle class tax cuts.
The governors from Wisconsin, Massachusetts, New Jersey, New York and Ohio on Friday said they have presented their plan to President-elect Barack Obama's transition team as well as congressional leaders.
They said that level of federal aid is needed to deal with unprecedented state budget shortfalls in 41 states and Washington, D.C., that the Center on Budget and Policy Priorities pegged at $42 billion for the current fiscal year alone.
Wisconsin Gov. Jim Doyle said congressional leaders and the Obama team have been receptive to the governors' ideas.
“That's not to say they've told us this is what they'll do or they're with us all the way,” Doyle said. He also said other governors were involved in creating the plan, which grew out of an early December meeting that Obama had with the nation's governors.
Obama's aides and congressional leaders have been talking about a package roughly half the size of the two-year plan the five governors proposed Friday.
The $1 trillion would be equal to 6.7 percent of the gross domestic product, the U.S. economy's total output in a single year. A package of that size is likely to draw significant opposition from congressional Republicans and concern from moderate and conservative Democratic lawmakers who oppose large budget deficits.
In addition to the money for education and tax cuts, the governors said their plan includes $350 billion for road construction and other infrastructure projects and $250 billion for social service programs such as Medicaid.
The governors all said their states are facing unprecedented budget shortfalls that will require deep cuts to services and possibly irreparably harm their education systems.
“We aren't crying wolf,” Ohio Gov. Ted Strickland said. “These are real circumstances, unprecedented situations we are facing.”
Ohio's budget deficit could grow to $7.3 billion even after $1.9 billion was cut from its current budget, Strickland said.
New York Gov. David Paterson said his state faces a $15.4 billion deficit. Wisconsin's budget is expected to be $5.4 billion short by mid-2011.
New Jersey Gov. John Corzine said he had just left a meeting with state legislative leaders where he proposed $2.1 billion in cuts on top of $600 million that's already been cut from the budget.
Strickland said the federal stimulus is needed to help bridge the gap from the current recession to when there's a rebound. Even with the money, states will have to make deep cuts, he said.
“We are not, any of us, talking about federal money to expand spending, expand programs, to do new things,” Massachusetts Gov. Deval Patrick said.
A forecast from Global Insight shows that the economy hasn't hit bottom yet.
National economic growth is now expected to drop 1.8 percent this year, rather than increase 1 percent. The U.S. labor market is expected to lose 3.7 million jobs during the downturn, with unemployment reaching 8.7 percent in the first half of 2010, it said.
That forecast assumes there will be a $550 billion federal stimulus package, roughly half of what the governors requested.
They said that level of federal aid is needed to deal with unprecedented state budget shortfalls in 41 states and Washington, D.C., that the Center on Budget and Policy Priorities pegged at $42 billion for the current fiscal year alone.
Wisconsin Gov. Jim Doyle said congressional leaders and the Obama team have been receptive to the governors' ideas.
“That's not to say they've told us this is what they'll do or they're with us all the way,” Doyle said. He also said other governors were involved in creating the plan, which grew out of an early December meeting that Obama had with the nation's governors.
Obama's aides and congressional leaders have been talking about a package roughly half the size of the two-year plan the five governors proposed Friday.
The $1 trillion would be equal to 6.7 percent of the gross domestic product, the U.S. economy's total output in a single year. A package of that size is likely to draw significant opposition from congressional Republicans and concern from moderate and conservative Democratic lawmakers who oppose large budget deficits.
In addition to the money for education and tax cuts, the governors said their plan includes $350 billion for road construction and other infrastructure projects and $250 billion for social service programs such as Medicaid.
The governors all said their states are facing unprecedented budget shortfalls that will require deep cuts to services and possibly irreparably harm their education systems.
“We aren't crying wolf,” Ohio Gov. Ted Strickland said. “These are real circumstances, unprecedented situations we are facing.”
Ohio's budget deficit could grow to $7.3 billion even after $1.9 billion was cut from its current budget, Strickland said.
New York Gov. David Paterson said his state faces a $15.4 billion deficit. Wisconsin's budget is expected to be $5.4 billion short by mid-2011.
New Jersey Gov. John Corzine said he had just left a meeting with state legislative leaders where he proposed $2.1 billion in cuts on top of $600 million that's already been cut from the budget.
Strickland said the federal stimulus is needed to help bridge the gap from the current recession to when there's a rebound. Even with the money, states will have to make deep cuts, he said.
“We are not, any of us, talking about federal money to expand spending, expand programs, to do new things,” Massachusetts Gov. Deval Patrick said.
A forecast from Global Insight shows that the economy hasn't hit bottom yet.
National economic growth is now expected to drop 1.8 percent this year, rather than increase 1 percent. The U.S. labor market is expected to lose 3.7 million jobs during the downturn, with unemployment reaching 8.7 percent in the first half of 2010, it said.
That forecast assumes there will be a $550 billion federal stimulus package, roughly half of what the governors requested.
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movedin2006 wrote on Jan 3, 2009 8:11 AM:
Governor Patterson has now taxed nearly everything under the sun, creating a hardship on more than 65% of the states population. My family is suffering up there and there is no hope for my father to retire due to this money grubbing, taxation train jumping, piece of work, governor that is currently in office. He has now went to the one the place WE the people went to in the early years. Now, he does that same thing that was done years ago. ATTACK THE INDIANS! How disgraceful. Now he is single handedly taxing the residents of NY into bancruptcy.
Medicaid and Medicare wouldn't need 250 billion if Patterson would lobby for better training in the Long Term and Acute Care side of things. I am the VP of a Nurse Training Company and we have demonstrated to many states ways to save over 200 Million just by properly training facilities on prevention of patient falls, Restraint Reduction, and Bed Safety. Medicaid and Medicare no longer cover expenses due from these occurrances due to the fact that it isn't their responsibility to cover accidents caused by staff neglect or lack of training. When NY was approached with this program, it was shot down. The state of NY alone is responsible for more than 12% of these findings and Patterson has absolutely no intent to try to fix the problem. Patterson's only response is to TAX EVERYONE for EVERYTHING and try to make EVERYONE pay for these issues. It's simply UNFAIR. FIVE nursing homes just in Cayuga County alone fell well short of the CMS regulations and nobody wants to discuss it. It's sad.
I moved in 2006 and it was the best move I ever made. I look at how things are ran in NY, already the most taxed state in US, and he's just going to run up more TAXES. You as residents need to lobby a bit. Write letters to your local legistlation and get things moving in the right direction. YOU SHOULD NOT HAVE TO PAY FOR NY'S ISSUES.
In closing- if you haven't already written letters, or passed around petitions, or demanded any form of attention from local congress, then you have absolutely no reason to complain. "
spatrx wrote on Jan 3, 2009 7:40 AM: