NYT: Feds should help out Massachusetts, other states
State Treasurer Timothy P. Cahill's recent plea to the US Treasury and the Federal Reserve Bank of Boston drew the attention of the New York Times editorial board this week. The Globe reported that Cahill wants the feds to lend Massachusetts money during the financial crisis under the same extraordinary terms the government is giving banks and Wall Street firms during this financial crisis.
Here is the NYT editorial:
The States Need Help
Wall Street’s crisis is walloping state finances across the country. The most urgent problems are in states — like California — that rely on short-term financing to help pay their bills until tax revenues start coming in later on in the fiscal year. This is about the safest debt on the market. Still, over the past few weeks, states have been shut out of the credit markets like everybody else.
Last week, Gov. Arnold Schwarzenegger of California warned that his state could be forced to seek $7 billion in emergency federal loans if the lending markets don’t recover their senses quickly. The state treasurer of Massachusetts, Timothy Cahill, has asked the Federal Reserve Bank of Boston and the United States Treasury to consider lending to the state on the same emergency terms being offered to the financial sector.
The problems won’t end there. As the economy tips deeper into recession, state tax revenues are expected to plummet. Gov. David Paterson of New York has already proposed $2 billion in immediate spending cuts. Even states that are less dependent on Wall Street than New York will have to figure out how to raise new money or reduce services, just when the public needs more help. This will intensify the economic downturn.
A recent report from the Center on Budget and Policy Priorities, a think tank, noted that 29 states already have had to cut spending, use reserves or raise new revenues to balance their budgets for the current fiscal year, which started on July 1 in most states. And 15 states already are seeing new budgetary gaps appear.
Washington must step up. To start, the federal government must help states like California and Massachusetts get past their short-term liquidity squeezes. Congress also must prepare a new stimulus bill, with bolstered aid for food stamps and assistance to states and cities so they can continue to provide health care and finance construction and other projects that provide jobs.
In 2003, Washington gave states $20 billion in grants and increased Medicaid contributions to help them dig out of the 2001 recession. We hope this time it will act a lot faster.
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Why are food-stamps recieving a surge? If you can't provide for yourself why should we foot the bill? Doesn't make ANY sense that many on welfare/disability recieve more a month from the gov't than I make at my fulltime job. Cut it back to the equivalent of 40hrs/wk at ,minimum wage and lets see how many still suck on our collective teat. Cut back on fluff positions and $10k drapes for a clown who has done everything but make the cuts he promised during his campaign. People talk about corporate accountability, how about the same from our out of control gov't? When was the last time they managed to push through something more meaningful than "We're done working for x number of days..."? They couldn't get anything meaningful on immigration through, and they won't move fast enough to do anything about the economy until it hits them in the wallet. Time for a change, and it starts at the top. They are too worried about being re-elected and recieving fat donations from lobbyists and coincidently don't do anything meaningful. When was the last time this country did something "outside the box?" Time for the people to show their displeasure.
I fully agree ... go to the blight City of Lawrence; the poorest City in the Commonweath, drop by the local Food Market and check-out the the 80% illegals on welfare paying with WIC, and Food Stamps courtesy of MassCare. Upon leaving the store, witness our entitlement illegals jumping in their Lexus', Audi's, Benz's and Rovers. Priorities, priorities and more entitlements Mr. Duval and Cahill. Entitilements, Entitlements, and more Entitlements programs for the illegals. We need more short term financing and credit Timmy Cahill so the illegals can receive more credit for entitlements and make blighted Lawrence a more fashinable place to live!
Food stamps will be available to newly UNEMPLOYED which includes families with kids....makes sense to me.
The problem isn't the people abusing WIC coupons, the problem is the existence of the system. The Democrat politicians are using those people as tools to boost their power, and using them also as targets for angry fools who should hate Democrat politicians, but instead hate their decent neighbors. Time to get rid of WIC and the scumbag politicians who support it, not attack people who happen to be eligible for it.
It is easy to be a cynic, Lou Dobbs get paid by CNN/GE to do just as you guys are doing for free.
Everybody can see the problems surrounding us but what about a viable solution to your banal cynicisms.
I hope Lou Dobbs get fired or at least dropped from CNN. What an empty bag of wind. He belongs on FOX.
Everyone can go through rough times and these programs like WIC and Food Stamps can help as you get through them. It should not be for non citizens. You should have to be a citizen of the USA and have a valid work history!!! to receive these benefits
This blogger might want to review your comment before posting it.
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