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Governors brace for inevitable cuts to states as debt debate rages on

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Governors brace for inevitable cuts to states as debt debate rages on

Post by Guest on Sat Jul 16, 2011 8:13 am

If the federal debt limit is not raised, several governors said as they gathered here on Friday for the semiannual meeting of the National Governors Association, the ensuing default will harm the economy, make it difficult for states to borrow money and delay some of the vital federal payments that states count on for everything from Medicaid to unemployment benefits.

Governors from around the country — including Christine O. Gregoire of Washington, a Democrat, and Scott Walker of Wisconsin, a Republican — said that employers in their states had been reluctant to hire new workers because of the uncertainty. And Gov. Lincoln Chafee of Rhode Island, an Independent, said that the threat of dwindling federal aid gave him pause last week before he signed a bill in which his state agreed to pay for heating assistance for the poor that the federal government was expected to cut.

“My argument — and I did sign it — was that this was the first of many,” he said. “I don’t know how much Rhode Island taxpayers can do that.”

http://www.msnbc.msn.com/id/43778254/ns/politics-the_new_york_times/

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Re: Governors brace for inevitable cuts to states as debt debate rages on

Post by Guest on Sat Jul 16, 2011 10:52 am

Unfortunately, Governor Chafee is right. The cuts in Federal money for the LIHEAP program will be the first of many and citizens of this state, who are also struggling, will pay the tab, rather than the big corporations or the rich, who don't pay anywhere near their "fair share" of taxes.

This whole economic downturn, and the debt ceiling crisis has been put on the shoulders of the American people to bear.

Why does the GOP think it is so wrong to ask the rich to take on some of these burdens?

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Re: Governors brace for inevitable cuts to states as debt debate rages on

Post by stillnutty on Sat Jul 16, 2011 11:24 am

This is what is currently happening in CT on the state level, imagine adding in Federal cuts.

http://www.ctmirror.org/story/13285/malloy-orders-one-largest-budget-cuts-connecticut-history

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Re: Governors brace for inevitable cuts to states as debt debate rages on

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