State and Local Fiscal Relief News
Shifting Economy Keeps States Guessing
“The uncertainty about the projections means that state leaders don’t know how much money they will have to cut from budgets as they near the start of their legislative sessions in January. Usually by this time of year, governors know such fiscal information so they can prepare their budget proposals…What is clear is that the cuts will be deeper than many state officials had assumed earlier in the year.” (Stateline.org, December 4, 2008)
Democrats in House Plan a Package of Up to $500 Billion to Help States
“House Democrats said Monday that they would try to pass an economic recovery bill costing $400 billion to $500 billion next month as governors pressed Congress for money to build roads and bridges, provide health care to low-income people and develop alternative sources of energy. Speaker Nancy Pelosi said she hoped Congress would be able to deliver a bill to President-elect Barack Obama when he takes office, or a few days later.” (New York Times, December 2, 2008)
On Friday, November 14, 2008, Senate Majority Leader Harry Reid (D-NV) wrote to Republican Senator Mitch McConnell (R-KY) calling on him to reconsider supporting comprehensive legislation to help reinvigorate the economy, which Senate Republicans blocked in September. Read the letter.
Obama, in His New Role as President-Elect, Calls for Stimulus Package
“Mr. Obama called on Congress and the Bush administration to pass an economic stimulus package. If an agreement cannot be reached this month in the lame-duck Congressional session, he said, it will be his chief goal when he takes office on Jan. 20. He said it was an 'urgent priority' to extend unemployment insurance benefits for workers who could not find jobs in the bleak economy. He also said he would give aid to states, create new jobs and move forward with his tax-cut plans for middle-class families.” (The New York Times, November 10, 2008)
Mayors Ask Washington for Fiscal Help
"'The cruel irony is that at the time when citizens need their state governments the most, state governments are least equipped to help them because of plummeting revenues,' Paterson said. 'When states are hurting, our national economy suffers.' New Jersey Gov. Jon Corzine, a Democrat and former chairman of Goldman Sachs, called for a deficit-financed stimulus measure tagged at up to two percent of the size of the economy — or about $300 billion — with a heavy emphasis on infrastructure projects such as road construction, railway repairs and water and sewer projects." (Associated Press, October 29, 2008)
Congress Weighs Another Economic Recovery Package
"With the economic outlook getting darker by the day, it looks increasingly likely that Congress will provide the economy with a flashlight. A new stimulus package can't chase away the economy's gloom on its own. But after Fed Chairman Ben Bernanke endorsed the idea Monday, Congress has begun to seriously consider the outlines of a new economic boost." (The Christian Science Monitor, October 22, 2008)
House Backs Stimulus Bill, but It Stalls in Senate
“The House on Friday passed a bill intended to revive the economy with $61 billion of federal spending, but the Senate blocked consideration of a similar bill, and President Bush issued veto threats against both.” (New York Times, September 27, 2008)
States See Rising Enrollment In Medicaid As Economy Falters
With states confronting a weakening economy, enrollment in Medicaid began to rise last year with states expecting even larger increases for fiscal year 2009, according to a new 50-state survey released by the Kaiser Family Foundation’s Kaiser Commission on Medicaid and the Uninsured (KCMU). With the increased enrollment, Medicaid spending is also rising more rapidly than in the recent past, raising the potential for program cutbacks as states confront the combined impact of more enrollees and fewer available resources. (Read the full 109-page survey)
McEntee testifies before Congress
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