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In Sunday Conference Call, Governors Discuss Issues for Meeting
Governor M. Jodi Rell said today that the national economic crisis, the challenges facing individual states and a second stimulus package that Congress will consider in January will all be part of the discussion when governors from across the country meet with President-elect Obama and Vice President-elect Biden in Philadelphia tomorrow.
“This is a great opportunity for governors to share the specific and unique challenges of our states, discuss what the states’ individual needs are, relay what our residents are experiencing and explain how the federal government can best fashion a stimulus package that will create jobs and get our local economies moving again,” Governor Rell said. “The state and federal governments must be partners in developing remedies that will lead to a speedy economic recovery.”
Governor Rell said one of the key messages from the governors will be that the hands of the states are tied by the requirement that they have balanced budgets – and federal action is necessary to ease the fiscal pain the states are suffering. Governor Rell has already written to President Bush, to Congressional leaders and to the Connecticut Congressional delegation urging a second stimulus package that focuses on investments in public infrastructure, Medicaid reimbursement funding and money for unemployment benefits.
In anticipation of a second stimulus, Governor Rell has already directed Connecticut state agencies to identify infrastructure projects that are “shovel ready” – including road, bridge, rail and public buildings and economic development and housing initiatives that have received all necessary permits and final designs.
“The best way out of the economic doldrums is by literally working our way out – by creating as many jobs as possible, as soon as possible,” Governor Rell said. “We can start work on these projects as soon as they receive funding. In Philadelphia I will also emphasize that the infrastructure dollars should be 100 percent federally funded rather than requiring states to come up with the traditional 20 percent match. States simply do not have the matching funds at this time.
“I have also urged that the federal medical assistance percentage be increased from 50 to 55 percent which would mean an additional $125 million in annual revenue to maintain our state health care programs,” the Governor said. “The number of people needing safety net programs like unemployment insurance and health care services will only increase during these difficult economic times.”
The Governor noted that programs ranging from prenatal care and children’s health coverage to community-based home care for elders, coverage for the employed disabled and long-term care for seniors are all supported by federal Medicaid reimbursements.
Governor Rell has taken a number of important actions to bolster Connecticut’s economy, including:
· Making available $100 million in direct loans to businesses and manufacturers as part of her five-point program to ensure the continued free flow of credit in the state’s economy
· A new student loan program to ensure access to higher education
· Working to close the state budget deficit without raising taxes
· Retraining for dislocated financial industry workers
· A moratorium on housing foreclosures
· A program to assist subprime borrowers facing mortgage resets
“States like Connecticut are not immune from the national downturn, but we can and must take responsible actions to address the problems created by the economy,” Governor Rell said. “The federal government can help us by providing more funding for unemployment insurance, by investing in infrastructure projects that will create jobs and by increasing Medicaid reimbursements to states, because social services costs are one of the biggest components of any state budget.
“Reducing the impacts on our families – by extending unemployment benefits, providing more funding for the food stamp program and investing in worker retraining – is critical during an economic slump,” the Governor said. “We need to help families where one – or both – of the breadwinners have suddenly lost their job or simply can no longer make ends meet due to rising costs.”
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