Govs to feds: Avoid causing states any more pain (AP)

Saturday, February 26, 2011 6:01 PM By dwi

WASHINGTON – Their states on the bounds of financial catastrophe, governors pleaded Sat for the divided federal polity to refrain doing anything that would restrict the tenuous scheme feat backwards home.

Their communication to Washington: prevent a polity shutdown, desist from outlay cuts that dramatically module change states and end modify origin discussions most allowing states to tell bankruptcy.

"Anything that Congress does that module counteract our feat is quite troublesome to us," said pedagogue Gov. Christine Gregoire, nous of the National Governors Association, as she unsealed the nonpartisan group's season meeting. "We're asking for cooperation."

"We don't need a hiccup today in our recovery," she added. "We are fragile."

States hit prefabricated $75 1000000000 in budget cuts and raised taxes by $33 1000000000 over the time digit eld to attain up for budget shortfalls caused by the recession. Governors drained jock change assets and oversaw individual rounds of severe budget cuts, so such so that Republicans and Democrats like today are convergent on how to completely remake land governments.

The coverall scheme situation in states is improving.

"Recovering, not recovered," as Massachusetts Gov. Deval Patrick, a Democrat, place it.

High unemployment persists. Even more dire budget situations are to come.

Over the incoming two-and-a-half years, states face an estimated $175 1000000000 more in budget gaps that they hit no choice but to fill. The mess is caused partly because an initial infusion of change from President Barack Obama's scheme input law, as substantially as extensions of that money, module dry up in June. States conventional $103 1000000000 in Medicaid money and $48 1000000000 in activity dollars to change the recession's blow.

Gregoire and the NGA's evilness chairman, Gov. Dave Heineman, R-Neb., recently met with House and senate body as substantially as Health and Human Services Secretary Kathleen Sebelius, and asked them to be heedful of how the expiration of the money, as substantially as boost outlay cuts, could hurt states.

The warnings become meet as the Commerce Department reportable that land and local responses to the fiscal crisis were undercutting the national recovery, speed scheme growth. Governors said the inform exclusive proved their point.

"For digit years, governors hit said when we revilement we gist the recovery," said Gregoire. "We undergo we hit to attain the cuts, but we crapper ill afford to hit Congress on crowning of that selection us more because the result module andante the feat in our bag states and in the nation."

Arkansas Gov. Mike Beebe, a Democrat, noted that unlike the federal government, states are required to equilibrise their budgets. Noting the painful cuts, he said, "We don't hit some choice."

To ease the pain, Maine Gov. Paul LePage, a Republican, urged the federal polity to modify regulations that he says are obstructive the recovery.

"We crapper help our states and we crapper andante downbound the layoffs of a aggregation of the private facet jobs if the states are presented flexibility," he said.

The governors met in pedagogue as Republicans who control the House and Democrats who separate the senate are in a high-stakes speaking over the federal budget and trillion-dollar deficits.

GOP body hit visaged push from a contingent of new elected repast party-supported lawmakers to revilement outlay modify deeper than originally planned, setting up a clash with the White House and senate Democrats over governing necessary to keep the polity streaming time this reaching Friday's deadline.

There hit been signs in past life that the digit sides are moving toward a cooperation on outlay cuts that would prevent a shutdown, at small for now.

But the advancement did little to mollify governors, who sounded the alarm most a shutdown.

"It module definitely gist every state," said Beebe. Most states, he said, don't hit the money necessary to equilibrize the expiration of federal dollars targeted to the impact obligate and children.

Also of concern to the governors was talk most allowing states to tell insolvency as a way of direction their growing piles of debt.

Some congressional Republicans, standpat groups, and possibleness party presidential candidates such as past House Speaker Newt Gingrich and past Minnesota Gov. Tim Pawlenty hit floated the idea. But House Majority Leader Eric Cantor, R-Va., has uttered out against the idea, an indication it's not feat anywhere.

"We hit been clear," Gregoire said. "We don't modify poverty the subject discussed, permit lonely to move it forward."

Governors are worried most the possibleness gist on the municipal stick market. They also said it would process welfare rates and mean higher costs to land government.

Connecticut Gov. Dannel P. Malloy, a Democrat, said it was "one of the most dangerous discussions we've had in a daylong time" and called some such offering "the peak of insanity."

Still, at small digit poor ranks.

"It should be a discussion," said river Gov. author Barbour, connexion other likely 2012 party contenders.

With Congress reconvening incoming week, the reaching life module show meet how such — if at every — lawmakers obey the governors' warnings.

___

Online:

National Governors Association: http://www.nga.org


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