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Tuesday, December 2, 2008

U.S. governors to press Obama for help


Washington (AP): U.S. State governors are meeting with President-elect Barack Obama on Tuesday to press their case for at least $40 billion to help pay for health care for the poor and disabled and even more for infrastructure projects like road and bridge repair.

They are likely to get a sympathetic ear. The meeting in Philadelphia comes as Obama and Democrats controlling Congress are fashioning economic recovery legislation that could cost $500 billion or so. The measure is virtually certain to contain help for states struggling with slumping revenues and difficult budget cuts as the recession deepens.

National Governors Association Chairman Ed Rendell, a Pennsylvania Democrat, said the governors are also pressing for perhaps $136 billion in infrastructure projects like road and bridge repairs in the legislation, which Democrats hope to have ready for Obama's signature as soon as he takes office.

"We're going to be talking about what the elements of an economic stimulus plan will be," said Massachusetts Governor Deval Patrick, a Democrat with close ties to Obama.

For States, the recession has meant big reductions in tax revenues, which has forced 43 of the 50 States into budget deficits.

Since virtually every State has to live under a balanced budget, Governors have been forced to cut services, lay off workers and consider tax increases.

Such moves only make the economic situation more difficult, the Governors say.

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