Federal Stimulus Helped States Plug Budgets: Govs

BILOXI, Miss. — A bipartisan group of governors said Saturday that the federal stimulus package helped states avoid deep budget cuts during the recession. But some at the National Governors Association convention said they're not pushing for another infusion of cash from Washington.

"I don't think there's an appetite for it," Democratic Gov. Joe Manchin of West Virginia said.

Republican Gov. Haley Barbour of Mississippi agreed there's no need for Congress to consider more aid to states any time soon. Most of the stimulus money disappears by December 2012, midway through the next budget year for many states.

"We're up on a very high peak that we're going to have to get down off of when the stimulus money runs out," Barbour said, noting that Mississippi has its largest-ever budget because of the federal funds.

Republican Gov. Jim Douglas of Vermont said state leaders would have liked fewer rules about how to spend the first batch of federal money, much of it directed to Medicaid and education.

"Governors always want more flexibility because priorities are different from state to state," Douglas said.

About half the nation's governors were attending the convention on the Mississippi Gulf Coast. Some stayed home to work on budgets, including the group's president, Pennsylvania Democrat Ed Rendell.

Manchin said lagging revenues prompted states to collectively cut budgets by $31.6 billion for the fiscal year recently concluded. That translated into a 2.2 percent decline in spending from the previous year.

Democratic Gov. Bill Richardson of New Mexico said he believes it will take two years for states to see the full impact of the federal spending.

"I'm worried about the deficit and I think we've got to be careful about another stimulus package right now because I think the first stimulus package is working," Richardson said. "I think we should let it run its course."

Comments

[KriTiKiT]

ok then what are these governors solutions to these problems

[totaldisbelief]

the two guys in the photo look really Mobbed up....a couple of goombahs

[madatnewsmedia]

They say that they don't want a second stimulus and they don't have to worry about that! The President has said that there will not be a second stimulus package.

[totaldisbelief]

I'm not very stimulated hearing that.

[mcmchugh99]

Note all these Southern states collecting their share of federal stimulus money, even while denouncing the federal government every day.

[RogerHWerner]

I don;t know the facts for every state but Louisiana for example collects $2.25 for every dollar it contributes to Washington. California by comparison gets $0.75 for very dollar sent east. This has been the case for almost two decades. Most of the southern states get more than their share annually so when western and northern states need help I would suggest their governors shut the hell up. They can refuse aid if they dare and explain it to their constituents. Some states genuinely need help and if Washington can pony it up to half of Wall Street and most of Detroit, they shouldn't have any problem doing it for states that need assistance.

[mcmchugh99]

Anyone who expects to balance budgets in a major depression with two wars going on is just not living in any kind of historical reality. It can't be done and that's all there is to it. Not even Herbert Hoover could balance the budget, and he certainly wanted to--and Hoover did not have any wars going on, either.

[Daniel Torluemke]

One of the great lies is that households all "balance their budgets." Almost American's have debt. What righties do not grasp is that if we had done nothing we would have gone into another great depression. We would have had more tent cities, and even more misery. The stimulus has worked, the problem is that the economy got even worse than expected.

[ywcachieve]

Bush and Cheney effed up this country.

[ObamAtomic]

Big Time!

[northstar11]

greenspan greased the wheels of financial stupidity

[johnmorgan]

This is the first time I've heard of politicians who DON'T want more money. What a bunch of idiots. Has the recession ended already? I notice the governor of California is not among them!

They don't want stimulus money for ideological reasons rather than practical reasons. They'd rather hurt their poor, rather than let the poor see that big government can help them.

[ObamAtomic]

Who are they?
They are not living by our standard,I guess no, but they are *stimulated*

[We-Are-The-Ones]

Forget what the governors say, ask the people in those states who may need more unemployment funds, more COBRA benefits, and more jobs.

[ObamAtomic]

"I don't think there's an appetite for it," Democratic Gov. Joe Manchin of West Virginia said.

Indeed from your cushion mansion all included its a beautiful world,you might
think about the unemployed in your state.

[neesy08]

Perry? Palin?? Snaford??? Did you hear his???
Boehner? McConell? Cnator?

[Burkelbile]

So it helps to be obese to be a gov?

[kenEBport]

Jeesh, talk about "pigs-in-a-poke"!

[IncredulousGeezer]

Absolutely!
It's called eating high on the hog, and who's higher? lol
Looks like the stimulus stimulated their appetites.

[MiHi]

And white.

Really, REALLY white.

In fact, if you can look like one of those H-Bomb worshipping mutants from "Beneath the Planet of the Apes" (and act like them too), you'll be in the Governor's mansion in no time.

[planetjeffy]

I always laugh at morbidly obese 'Publicans - since they preach restraint and self control...