Obama and congressional Democrats have promised that soon after Inauguration Day he will sign an economic stimulus bill that could exceed $500 billion. The governors intend to request about $176 billion of that — $136 billion for infrastructure projects and $40 billion to bolster Medicaid health programs that serve the poor and disabled.
As the economic downturn has swept from the housing market to financial institutions to the automobile industry, Obama has begun sketching out plans to address a recession that most experts project will be deep and long lasting. At the heart of his approach is a massive infusion of federal tax dollars.
Unlike the federal government, which can run a deficit, most states are required to balance their budgets. In tough financial times, Medicaid often faces a double squeeze, said Diane Rowland, executive director of the nonprofit, nonpartisan Kaiser Commission on Medicaid and the Uninsured. Just as the money is drying up, more people are in need of assistance.
It appears there is growing support for a sizable federal investment in infrastructure, which Rendell and Douglas said goes beyond the traditional road and bridge repairs to include public transit, water and sewer projects and even broadband Internet. The two governors said states have $136 billion worth of “ready-to-go” projects.
Handouts to the states would be great (well, if Citigroup and GM are gonna get ’em), especially here in California where our Governator has declared fiscal emergency.
I read that and from what I have heard there are 43 states that will need some assistance…mine is one of them also….