Next Federal Bailout May Go to States

[addam]

Next Federal Bailout May Go to States; Democratic Governors Seek $1 Trillion
Governors from Wisconsin, Massachusetts, New Jersey, New York and Ohio are seeking funds to deal with unprecedented state budget shortfalls in 41 states and Washington, D.C.
After bailing out Wall Street and the U.S. auto industry amid warnings of a deep recession, Uncle Sam now is being asked to chip in $1 trillion over two years for states facing severe budget shortfalls.

Five Democratic governors are pleading the states' case to Barack Obama, seeking a bailout package that would include $250 billion for education and $150 billion in middle class tax cuts.

And Obama seems willing to provide help once he takes office as president Jan. 20, though the scope is uncertain. Obama's aides and congressional leaders have been talking about a package roughly half the size of the two-year plan proposed Friday by the governors from Wisconsin, Massachusetts, New Jersey, New York and Ohio.

The governors said they had presented their plan to Obama's transition team as well as congressional leaders, arguing that higher level of federal aid is needed to deal with unprecedented state budget shortfalls in 41 states and Washington, D.C., that the Center on Budget and Policy Priorities pegged at $42 billion for the current fiscal year alone.

Wisconsin Gov. Jim Doyle said congressional leaders and the Obama team have been receptive to the governors' ideas.

"That's not to say they've told us this is what they'll do or they're with us all the way," Doyle said. He also said other governors were involved in creating the plan, which grew out of an early December meeting that Obama had with the nation's governors.

[deerpoacher02]

I don't think we should bail anyone out. Just my 2 cents worth

[dalajune]

More money for the SCHOOLS yes! No more money for the School Board Administrators and not the States. These peeps pockets keep getting fatter and our children are not making the grade.


Dalajune