Democratic Governors seeking Federal Funds

Monday, January 5, 2009 | Tag Cloud

by WorthyNews Staff

us-bailoutWASHINGTON, D.C. (Worthy News) -- Five Democratic governors have presented a plan to Obama’s transition team and congressional leaders to pass a $1 trillion stimulus package to help states facing severe budget shortfalls. This year 41 states as well as the District of Columbia are facing deficits totaling $42 billion this year, according to the Center on Budget and Policy Priorities in a report seen by Worthy News Monday, January 5.

The plan presented by governors from New York, New Jersey, Massachusetts, Ohio, and Wisconsin calls for $350 billion in new road construction, $250 billion for education, $250 billion for social service programs and $150 billion in middle tax cuts.

U.S. President-elect Barack Obama urged Congressional leaders meanwhile to move quickly on the American Recovery and Reinvestment Plan intended to create 3 million new jobs in his weekly address given on Saturday.

Congress is reportedly considering a $675 billion to $775 billion stimulus package; however the governors suggested that the package must be significantly larger with a price tag of $1 trillion. Some Republicans are wary of more government intervention, with Congress already authorizing $700 billion for bailouts of financial institutions.

"Borrowing money and cutting checks to fund infrastructure is not the best way to juice the economy," Republican Gov. Mark Sanford of South Carolina told the Washington Times newspaper. "This notion that Washington, with a blink of a wand, can create 2.5 million jobs is strange in a market economy."

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