U.S. governors seek $1 trillion federal assistance

Discussion in 'Economics' started by ASusilovic, Jan 3, 2009.

  1. PHILADELPHIA (Reuters) - Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country's 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

    The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin -- all Democrats -- said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues.

    Gov. David Paterson of New York said 43 states now have budget deficits totaling some $100 billion as tax revenues plunge.

    "It's clear that the federal government needs to step in and jump-start the economy," said Gov. Deval Patrick of Massachusetts.

    The latest package calls for $350 billion to create jobs by building or repairing roads, bridges and other public works; $250 billion to maintain education; and another $250 billion in "counter-cyclical" spending such as extending unemployment benefits and food stamps, which are typically a responsibility of the states.


    First the banks, then the autoindustry, now the states...Cash printing machines must be working 24/7. :D :D :D
  2. clacy


    So now my tax money has to go towards paying for state sponsored handouts in these fucking democratic states.