Governors Look for Means to Cope With Budgets
By ROBERT PEAR
WASHINGTON — Democratic governors warned Saturday that federal budget cuts could crimp a fragile economic recovery, and governors of both major parties asked the Obama administration to give them more flexibility in running education and health care programs so that they could cope.
On the first day of the National Governors Association’s winter meeting here, several governors also said that they did not want any federal bankruptcy protection and that Congress should explicitly renounce the option. The mere discussion of it, they said, had increased their borrowing costs.
Democratic governors criticized the hard line against labor unions taken by Gov. Scott Walker of Wisconsin, a Republican. But they muted the criticism, saying they wanted to preserve the bipartisan traditions of the governors’ association.
The recession may officially have ended but, “we are still faced with unprecedented fiscal challenges,” said Gov. Christine Gregoire of Washington, a Democrat and the association’s chairwoman. States cut $75 billion from their budgets in the last two years, but collectively face a $175 billion gap between projected spending and revenues in the next two years, Ms. Gregoire said.
As part of the fiscal stimulus package signed by President Obama in early 2009, Congress provided extra money to the states for Medicaid and schools, but that will end in a few months, a loss that Ms. Gregoire said was “not unexpected.”
“We know there is no new money coming to the states,” Ms. Gregoire said, but further cuts in federal grant programs could “undermine the economic recovery in our states.”
Maine’s new governor, Paul R. LePage, a Republican, said: “What the federal government can do for us is not money, but flexibility. We can slow down layoffs in a lot of private and public sector jobs if the states are given more flexibility.”
Seconding that sentiment, Ms. Gregoire said states wanted “more flexibility in the classroom.”
Gov. Haley Barbour of Mississippi, a Republican, said: “If we could get Medicaid as a block grant with total flexibility to run the program as we see fit, I would be willing to take a cap on growth of 2 percent a year. Many governors feel that way.” There is no cap on federal and state Medicaid spending, and anyone who meets the eligibility requirements is entitled to coverage.
The federal aid helped states survive the worst of the recession, but left a difficult legacy in some states. “The stimulus money was used to start new programs, including social service programs, and we don’t have the money to continue them,” Mr. LePage said. The Commerce Department reported Friday that the economy grew at an annual rate of 2.8 percent in the final quarter of last year, and added that spending cuts by state and local governments had apparently held back growth.
Likewise, Ms. Gregoire said Saturday, hiring by private employers has been overwhelmed by layoffs at state and local government agencies, contributing to slow growth in overall employment.
Governors said their economies were still far from vibrant.
“We are recovering, not recovered,” said Gov. Deval Patrick of Massachusetts, a Democrat.
Gov. Dannel P. Malloy of Connecticut, also a Democrat, said, “Unemployment remains uncomfortably high in Connecticut at a number, 9 percent, that we are simply not used to.”
The governors’ association signed an agreement on Saturday with provincial officials from China in hopes of building a relationship that will increase trade and create jobs here.
The confrontation between Governor Walker and state employees in Wisconsin generated a lot of discussion at the meeting.
In a pointed contrast to Mr. Walker, Ms. Gregoire said that when she negotiated with public-employee unions, they had agreed to certain sacrifices on pay and health benefits, as well as changes in their pensions.
“I believe in collective bargaining rights,” she said.
Governor Barbour expressed support for Mr. Walker in his effort to curb collective-bargaining rights for public workers in Wisconsin.
“Mr. Walker is doing what he said very directly and repeatedly he was going to do,” Mr. Barbour said. “I support him in it. We don’t have collective bargaining in Mississippi. About half the states don’t. The idea that this is some constitutional right of the public employee unions is incorrect.”
On the first day of the National Governors Association’s winter meeting here, several governors also said that they did not want any federal bankruptcy protection and that Congress should explicitly renounce the option. The mere discussion of it, they said, had increased their borrowing costs.
Democratic governors criticized the hard line against labor unions taken by Gov. Scott Walker of Wisconsin, a Republican. But they muted the criticism, saying they wanted to preserve the bipartisan traditions of the governors’ association.
The recession may officially have ended but, “we are still faced with unprecedented fiscal challenges,” said Gov. Christine Gregoire of Washington, a Democrat and the association’s chairwoman. States cut $75 billion from their budgets in the last two years, but collectively face a $175 billion gap between projected spending and revenues in the next two years, Ms. Gregoire said.
As part of the fiscal stimulus package signed by President Obama in early 2009, Congress provided extra money to the states for Medicaid and schools, but that will end in a few months, a loss that Ms. Gregoire said was “not unexpected.”
“We know there is no new money coming to the states,” Ms. Gregoire said, but further cuts in federal grant programs could “undermine the economic recovery in our states.”
Maine’s new governor, Paul R. LePage, a Republican, said: “What the federal government can do for us is not money, but flexibility. We can slow down layoffs in a lot of private and public sector jobs if the states are given more flexibility.”
Seconding that sentiment, Ms. Gregoire said states wanted “more flexibility in the classroom.”
Gov. Haley Barbour of Mississippi, a Republican, said: “If we could get Medicaid as a block grant with total flexibility to run the program as we see fit, I would be willing to take a cap on growth of 2 percent a year. Many governors feel that way.” There is no cap on federal and state Medicaid spending, and anyone who meets the eligibility requirements is entitled to coverage.
The federal aid helped states survive the worst of the recession, but left a difficult legacy in some states. “The stimulus money was used to start new programs, including social service programs, and we don’t have the money to continue them,” Mr. LePage said. The Commerce Department reported Friday that the economy grew at an annual rate of 2.8 percent in the final quarter of last year, and added that spending cuts by state and local governments had apparently held back growth.
Likewise, Ms. Gregoire said Saturday, hiring by private employers has been overwhelmed by layoffs at state and local government agencies, contributing to slow growth in overall employment.
Governors said their economies were still far from vibrant.
“We are recovering, not recovered,” said Gov. Deval Patrick of Massachusetts, a Democrat.
Gov. Dannel P. Malloy of Connecticut, also a Democrat, said, “Unemployment remains uncomfortably high in Connecticut at a number, 9 percent, that we are simply not used to.”
The governors’ association signed an agreement on Saturday with provincial officials from China in hopes of building a relationship that will increase trade and create jobs here.
The confrontation between Governor Walker and state employees in Wisconsin generated a lot of discussion at the meeting.
In a pointed contrast to Mr. Walker, Ms. Gregoire said that when she negotiated with public-employee unions, they had agreed to certain sacrifices on pay and health benefits, as well as changes in their pensions.
“I believe in collective bargaining rights,” she said.
Governor Barbour expressed support for Mr. Walker in his effort to curb collective-bargaining rights for public workers in Wisconsin.
“Mr. Walker is doing what he said very directly and repeatedly he was going to do,” Mr. Barbour said. “I support him in it. We don’t have collective bargaining in Mississippi. About half the states don’t. The idea that this is some constitutional right of the public employee unions is incorrect.”
