For Immediate Release
Wednesday, October 24, 2001
Statement by AFSCME President Gerald W. McEntee on Economic Stimulus Legislation Before Congress
Recognizing the growing fiscal crises of at least half of the states and the worsening employment situation of millions of American workers, the American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO, today calls on the President and Congress to enact an economic stimulus package that would help alleviate these severe problems.
To provide an effective jolt to the economy without damaging the nation's already precarious financial stability, a responsible stimulus package would be immediate, substantial, short-term in duration, and directed towards those Americans most likely to spend it on basic needs.
In contrast, the legislation passed by the House Ways and Means Committee October 12 does not meet any of these criteria and in fact represents a step backward. The bill mainly includes corporate and personal tax breaks for wealthy special interests and individuals and fails to stimulate short-term growth or address the problems of lost jobs and health insurance by the growing numbers of unemployed. Moreover, in its current form this legislation would further damage the fiscal health of the federal government, and especially state and local governments, some of whom were facing budget shortfalls even before September 11.
States and localities need a minimum of $25 billion in new federal assistance above and beyond federal help for unemployment insurance and dislocated worker aid in order to weather their current fiscal crises. States have pressing spending needs in Medicaid, grant-in-aid programs, and public health infrastructure which cannot be met without a major federal commitment.
Now more than ever, we need our elected officials to come together to find ways to keep the country strong, safe, and prosperous. We need a federal government focused on the greatest good for the greatest number, not narrow interests lobbying for their piece of the pie. This means an economic stimulus package targeted towards avoiding a recession, easing the budget crunch of state and local governments, and providing temporary assistance to victimized working families.
