Govs banking on federal stimulus package
Governors across America are hoping Congress and President-elect Barack Obama put together a federal stimulus package that will help their states. Gov. David Paterson and a number of other governors will be on a conference call this afternoon to talk about their needs. New York has a $15.3 billion budget gap, and Paterson has proposed budget cuts in education and health care. Also on the call will be Massachusetts Gov. Deval Patrick, Ohio Gov. Ted Strickland, Wisconsin Gov. Jim Doyle and New Jersey Gov. Jon Corzine.
U.S. Sen. Charles Schumer said Monday that the federal government could provide New York with at least $5 billion in Medicaid payments. He said Obama’s transition team and congressional leaders were drafting a bailout plan that was expected to total $80 billion to $100 billion this year in Medicaid funding for states, in addition to money for infrastructure improvements and middle-class tax relief.
In a letter to Obama, Paterson recommended that the economic-stimulus package include $250 billion over at least two years for Medicaid, unemployment insurance, food stamps, welfare assistance and child care; $250 billion for education block grants to states; and $300 billion for infrastructure improvements.
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