States Can’t Count on Bailout, Obama Appointees Say

Discussion in 'Economics' started by ASusilovic, Jul 12, 2010.

  1. July 12 (Bloomberg) -- States can’t count on the federal government for more budget bailouts, the heads of President Barack Obama’s debt commission told governors.

    States expecting Congress to authorize more assistance are “going to be left with a very large hole to fill,” said Erskine Bowles, co-chairman of the National Commission on Fiscal Responsibility and Reform. States including New York and California have urged Congress to extend stimulus spending authorized to combat the recession, including extra Medicaid funding and money to pay public school teachers.

    “I don’t think we can count on the federal government again,” Bowles, White House chief of staff under former President Bill Clinton, said yesterday at the National Governors Association meeting in Boston. “They just do not have the financial resources.”

    Somebody smelling this ugly word "spending cuts" ?:cool: