McEntee to Congress: Time to Step In

September 09, 2008

AFSCME President Gerald W. McEntee spoke at a press event today to highlight the urgent need for a second major economic recovery package and announce details of an aggressive campaign effort to push one through Congress. Americans United for Change hosted the press conference, which included U.S. House Democratic Caucus Chairman Rahm Emanuel and leading labor and progressive organizations. Below is McEntee's statement: Our states are in the midst of a fiscal crisis. For this past budget cycle, 29 states have had to deal with a combined deficit of close to $50 billion. As the economy slides downward, new budget gaps have opened up and shortfalls are expected to keep growing. States are making cuts in health care, education and other services. The policies of the last eight years have driven America into a recession and made it hard for working families to make ends meet. State and Local governments are getting crushed by budget shortfalls. Congress needs to act fast to protect services and jump-start the economy by passing short-term aide to states. Cuts in critical services are coming at a time when working families need those most. Just look at the unemployment rate. It jumped to 6.1 percent in August – the highest level in five years. We know that when the economy goes south, demand goes up. Because state and local governments are cutting services, raising taxes – or both – the economic crisis is worsening. The shortfalls driving the budget cuts are a consequence of the faltering national economy. But they also contribute to the problem. It is a downward spiral – and Congress needs to step in with a proven fix that is guaranteed to put America back on track towards financial stability. In 2003, Congress wisely provided states with a short-term increase in federal assistance for Medicaid. It prevented additional cuts in health care and was a major stimulus to the economy. It is time for Congress to act again. Congress must pass a short-term increase in federal support for state Medicaid programs to stave off additional cuts and help revive our economy.