States Ask for Help; One Governor Says No Thanks
Today the National Governors Association (NGA) and the National Conference of State Legislatures (NCSL) called on Congress and the next administration to assist states and localities through a new stimulus package. According to NGA:
Twenty states already have cut $7.6 billion from their fiscal year (FY) 2009 budgets, and 30 states have identified additional shortfalls totaling more than $30 billion. Twenty-five states also have identified shortfalls of $60 billion for FY 2010. However, these numbers tell only a portion of the story, with previous budget actions and the continuing downturn producing cumulative budget gaps of more than $140 billion for FY 2009 and FY 2010. Additionally, states feel the greatest impact on their budgets in the year after a recession ends, primarily because Medicaid growth occurs late in the recession and employment growth lags the recovery. Thus, the repercussions of this downturn will last for several years-and will be much worse without swift action.
While most state leaders are pleased with President-elect Obama’s plan to boost the economy by “creating and saving 2.5 million jobs, jobs rebuilding our infrastructure, our roads, bridges, modernizing our schools and creating the clean energy infrastructure of the 21st century,” one governor said no thanks.
South Carolina Governor Mark Stanford has vocally opposed all federal bailouts, including those that would provide funds for his state. In a November op/ed in the Wall Street Journal, Stanford wrote:
I find myself in a lonely position. While many states and local governments are lining up for a bailout from Congress, I went to Washington recently to oppose such bailouts. I may be the only governor to do so.
What Stanford fails to mention is that his home state of South Carolina has the highest unemployment rate - 8 percent - in the Southeast and the fourth highest in the nation.
When the nation’s governors meet with president-elect Obama tomorrow, let’s hope the new leader will follow the needs of South Carolina residents instead of the wishes of its governor.
February 18th, 2009 at 1:25 pm
Governor Stanford,
Given the percentages of the unemployment rate in South Carolina and the number of families who will, if not already, lose their homes through unemployment,how will you help these people stay in their homes. Building one retail mall will not cut it. Maybe you and your supporters are feeling the pressure of a failing economy but believe there are more people who would benefit from the stimulus package than from your pride and possible other hangups. That old southern mentality needs to be put on the shelf.The good ole boys way of thinking will get the people of S.C. nowhere, unless of course you have a few billion dollars lying around to bail out the people in S.C.