States Can't Count on Federal Bailout, Obama Appointees Say

[Purveyor]

Source: 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.”

While the economy has been expanding, states have yet to recover from the longest recession since the Great Depression. The rout cut into tax collections and led them to raise taxes and slash spending on schools, social services and other expenses. States have projected total budget deficits of $127 billion through 2012, according to a report last month by the governors association and the National Association of State Budget Officers.

Call for Help

The governors of New York, Pennsylvania and Michigan on June 30 led states pressing Congress to extend higher financing for Medicaid, the health-care program for the poor whose use surged during the economic crisis.

Read more: http://www.bloomberg.com/news/2010-07-11/states-can-t-count-on-more-federal-bailout-money-bowles-tells-governors.html

[msongs]

1. bailouts r reserved for the military, war profiteers & corporate welfare. sorry, states & voters n

[midnight]

7. You took the words right out of my mouth. I would like to

add the bankers who are doing Gods work to the list.

[QC]

2. Yeah, who do these states think they are? Goldman Sachs? n/t

[PM Martin]

3. There is always money for wars and tax cuts for the rich

but never much for working class people.

[Joanne98]

4. He's throwing the unions under the bus!

[ProgressiveProfessor]

12. And a whole lot more (nt)

[DJ13]

5. Thats a very sneaky way to destroy the economy

Which, lets face it, would serve the interests of this commission in undercutting programs that help the elderly and the poor.

[laughingliberal]

6. Could it get any more obvious who they work for ? nt

[truedelphi]

8. I am wondering how many other progressives filled out the recent poll

Sent by the DLC to each "democratic" household in the USA in a manner similar to ours.

We gave this Administration an F on everything except some aspects of foreign policy.

We explained, in the section asking for our "donations" that this Administration's actions are more Republican than what went down during the Nixon era. And that our money would not be going to any DLC candidates, nor to Mr Obama, as he acts all DLC.

We also put in "under other comments" the fact that Obama has been a failure on the BP gusher in the Gulf.

[Iowa]

9. Yep. I agree.

[ProgressiveProfessor]

13. You were too kind

[Hardrada]

10. That fucking Bowles again. His work on the Catfood Commission

will be remembered by the People.

[fascisthunter]

11. Bowles and his ilk taking advantage of the "perfect storm"

they create the mess and then claim they have to do away with programs that keep this country together. We know for a FACT that this was an agenda from the start, started under Reagan.

Thanks to big mouths like Grover Norquist we heard the truth.

"I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub."

That my friends is treason.

[corpseratemedia]

14. so the new health care bill expands medicaid while states' funds for

medicaid are evaporating and the appointed death commission fuhrer says don't rely on the federal government to fund the states' needs.


hmmm

why do democratic governers have to fight their own party to get funding? It's such a phenomenal betrayal.

[Lost4words]

15. If the feds wont help states why do we need a very costly fedgov?

States arent Banks I guess.

[depakid]

16. Not only do the catfood commissioners want to gut social security- they want a new depression

This deal is turning out to be almost as bis a blunder as adopting Republican oil drilling policies, on the eve of the US's biggest environmental catastrophe- knowing there was still corruption at the MMS.

It's high past time that the administration put a muzzle on these ideologues-