Governors push $1 trillion stimulus package for states
By Matt Viser and Andrew Ryan, Globe Staff
A group of influential Democratic governors that includes Deval Patrick is pressing the federal government for a $1 trillion stimulus package for the states over the next two years that would contain $250 billion for education in an effort to avoid inflicting irreversible damage to schools during a fiscal crisis.
The proposal would also allocate $350 billion for an array of infrastructure projects, including road and bridge construction; extending the reach of Internet broadband; digitizing medical records; affordable housing; and energy efficiency initiatives.
"The idea is to put people to work and to put them to work in ways that build on a stronger, long-term economic platform for future growth," Patrick said today in a conference call in which five governors briefed reporters on the plan. "Any economic recovery bill in our view passed by Congress should be bold enough to have a psychological impact and well as an economic one."
Another $250 billion would be used to shore up the social safety net, increasing matching federal funds for Medicaid and providing money for food stamps, welfare, and other programs that are most needed during tough economic times. The final $150 billion would be used for middle-class tax cuts, Governor Jon Corzine of New Jersey said.
The governors have not come to a consensus on how the funding would be distributed, but Patrick said that for the $600 billion in education and infrastructure, “population is as simple and straightforward a way as any.”
Massachusetts makes up about 2 percent of the nations population, which would mean about $12.7 billion.
The funding would be spread over two years, but it is unclear what conditions the federal government would put on the spending and whether state officials could use the money to make up budget shortfalls.
The governors said they settled on the $1 trillion price tag after several conversations with senior members of President-elect Barack Obama's transition team and members of the incoming administration. During the call with reporters, the five governors took turns describing the dire financial climates in their states. New Jersey cut $2.7 billion from its budget. Ohio slashed $1.9 billion and can only afford to fund 75 percent of its current programs. Wisconsin has made $500 million in cuts this year. New York is facing a $15.4 billion budget deficit.
The federal money would act as a two-year bridge to allow states to continue essential services, the governors said, not an invitation to increase spending. The focus on education is warranted, the governors said, because schools cannot sustain steep budget cuts without adversely affecting students.
"It would be a terrible disaster for this country to see our education system move backward," said Governor Jim Doyle of Wisconsin.



Put the money into education and slash "free money" programs...affordable housing (unless it's for the disabled or elderly) and cut welfare.
End the cycle once and for all.
Unfortunately given our state's track record on politicians who actually work for the greater good of its citizens, I would be skeptical that the money would go where it should without someone's relative, neighbor or personal bank account getting the best of it.
This is absurd. Martin Feldstein (a CONSERVATIVE) economist was interviewed on CNBC today and admitted that the tax rebates last year were almost totally ineffectual because (as many of us expected) the money was saved rather than spent ("we spent $100 billion to get $15 billion [in increased demand]"). A tax cut, while perhaps allowing people to pay off their accumulated debts (a nice thing, but not a game changer), will not do anything to spur the economy because it will not increase aggregate demand.
Government stimulus dollars will be wasted unless they are spent on useful infrastructure improvements. Why are we not talking about building a REAL high-speed intercity train system? That would add thousands of jobs, stimulate demand and provide a lasting infrastructure improvement, which would pay dividends for decades by increasing productivity! Think of how much time and money are lost in (air and car) traffic traveling between D.C. and NYC and NYC and Boston everyday! We have the Eisenhower Interstate System - it's time for the Obama High Speed Rail Network!
How about not giving millions to build new schools that are way too over priced. Use that money and save some teachers jobs next fall.
Exactly how is all this money ever going to repaid? The fact is the states and the governors have FAILED. How about a little fiscal responsibility, instead of the massive overspending? It is time to get rid of the pension sytem and put each and every state/ federal worker on 401K's. Th expense of the retirement system and the double dipping that goes on contributes to this maddening
waste of money. I am in awe at how much money we are throwing at recent problems with absolutely no plan on how we will ever cover it. Every single legislator both state and federal levels should be fired. Absolute mind-numbing at how incompetent they are. Everyone act like blind-sheep.
Though I agree welfare and other free aid programs are sometimes abused, there is a need for them at times and I would want them there if I needed them.
How about bailing out AMERICANS!!! Send us the money and allow us to spend it on worthy businesses and allow the rest to fall at the wayside. ITS FOR THE PEOPLE!!! NOT GOVERNMENTS,CORPORATIONS ETC!!! When oh when will they understand that!
what a scary thought, this would go into another black hole like the bail out for the banks. The roads and infrastructure has been given money for how many years now and we are still filling the same pot holes each year. Plus what is the money from the toll booths used for.
yes, we need a lot of affordable housings to live. because we can not afford to pay the property tax any more if it keeps going up.
As a white collar, middle class sucker it looks like I better shut down my small business and get either a hard hat or a job with the government.
The Govs. of NY, NJ, OH, WI and Ma. That's like letting the foxes into the Chicken Coop. None of them have a clue. The Gov. of Wi lamenting the fact that our education system can't move backward. It already is backward. Doesn't he know that the education system is already producing a slew of funtional illiterates? Himself included.
we have spent enough money on education withoutgetting any better results. I am tired of linking eeverything with education. It is time to put education back at the local level and get the federal government out of it.
Wow this is complete insanity.
we pay taxes...so the idiot politicians can waste the money. We are so screwed ,what would happen if Americans just stopped paying Taxes?
Who is paying for this? Why not round up all the illegal aliens and deport them? We spend $500 billion a year providing benefits for them. Our Government has no idea what they are doing. The money they are borrowing from the Middle East is being used to just make the rich richer. The Government should have given that bailout money to the homeowners in the United States, not the banks. People don't have jobs, how can they borrow money. Had that bailout gone to the home owners, it would have saved peoples homes and made its way to the banks they way it should. Now another trillion in debt? Are we going to print this money and drive inflation even higher
What we really need is a peace program on every level of goverment.
Digitizing Medical Records??? Are they serious...we are paying up the rear for medical insurance and the big corporate hospitals cannot digitize hospital records on their own? By putting med records on computer they would slash costs drastically by reducing the amount of stationary they would need to purchase. Also they would be able to save money on mailing records by sending records via email. Hell we do not want to make it too easy on them do we? Take the money and use where people need it the most...like paying mortgages.
Why stop at $1,000,000,000,000? They're just zeros....Right? When is reality going to come to those elected officials who are supposedly acting on the behalf of all of us who live within our means?!
Why not let the people who live in those states pick up the tab. I don't live in any of those states and I don't care to support Governors in states that are unable to manage themselves responsibly.
Absurd waste of money, again! How can politicians look in the mirror! There is so much waste, so much duplication of services, and so much pork that it's amazing we aren't further in the hole!
How about some fiscal accountability?
Why is it that the entire economy worldwide is suffering and everyone is cutting back except for the government. Maybe it's time these bleepin' morons pay the consequences of not having any type of foresight into things. That being said, I think any action they take would be a waste. If the government needs more money, maybe they should do what the rest of the world is doing and start taking some salary cuts.
You wanted change, you got it - trillions of $$$ in payoffs and vote-buying bailouts/handouts, while those of us who work hard and play by the rules are milked to pay for it all, and none of it will do a thing to stimulate the economy - still believe in it?
How about bringing down the capital gains tax to spur investment.... Especially, let's slash the capital gains tax on in investments in green ventures and those working toward energy independence - let's make the rate ZERO! The country will be rolling in more than one green!
why not have an individual stimulus, give every working american a milion dollars, screw the banks, then the government can tax that, get a large portion back in return, the banks would see it in the form of bank accounts, add stipulations that you have to maintain your jobs until retirement age or face the penalties, just how much money would go right back into the economy then??? cars, houses, retail... it's endless.
Deval Patrick said: "Any economic recovery bill in our view passed by Congress should be bold enough to have a psychological impact and well as an economic one."
A psychological impact? That's what a trillion dollars buys?
And to think, a Revolution started right here with a two-cent tax on stamps and paper. Our founding fathers would not recognize the place.
We want Money to spend at home, Bring all the solders of the United States Home. Bring them from Europe, from Korea, where they are not wanted, from Japan, who can afford their own defense and from Iraq. 500 Billion dollars plus. Secure our borders, California spend Billions to house so many alians in prison from other countries, send them home immediately, States that give aid to undocumented alias, they get no federal aid. We want money, elect honest politicians.
Nonsense! Slash welfare except for the eldery and vetrans. While you're at it do away with government and subsidised housing for those under 55. Stop rewarding people for shooting out babies like they are rabbits!
Massachusetts has been giving away free stuff for way to long.
There are still some of us who have never seen hard times. Poverty means that people become homeless, get sick and die, and that includes children. Also, crime goes up as does divorce. Employment and support programs will soon be desperately needed to stave off the worst. Economists tell us that we need government investment to keep the economy going. But, the State asking the Feds to borrow money to pay for State programs is absurd. Yes it is always nice to get someone else to pay your bills but let's get real. If the States need the money they should raise the money, through taxes. It is time for Mass to institute a serious gas tax. There is absolutely no sense in dirt cheap gas when we can't afford to maintain roads and bridges.
How about cutting services and staying within budget... wow, novel thought!
How about these governors approve a balanced budget that can work?
The are all way over budget because they didn't properly determine how much they can actually afford in one year.
States do their budgets every year, so how is New York $15 BILLION off the mark? It sounds to me that the people creating these budgets never actually looked at the cash flow that the state will have. That's just a HUGE miscalculation by the state of New York. It just shows that they are incompenten in that state, just like they are here.
Quit crying for a bailout. Pay your bills. Live within your means. Cutback on all the waste and corruption and liberal programs.
What a dumb idea...agree with many others...another black hole with no credible economic improvement. Look at the urban schools...they don't need more money; they need a revolution. NO responsible parent would send their children to these schools - and not because they are poorly funded. Not obama, not Deval Patrick, no credible parent. Do you think they would send their childrne to these4 schools if the teachers were paid more. Who is kidding who...so sad that these are the innovative ways to bring our economy back; pour money into broekn systems.
for all the idiotic spending the rebublican congress and administration have done over the past 8 years, that's chump change compared to the democrats plan. hell he's not in office yet and they're planning on spending well over a trillion dollars!? you idiots calling for higher taxes don't get it. i live in maryland and those dopes raised our taxes last year because of a 'structural deficit'. they also increased spending at the same time. now we're in a worse situation than last year. government is out of control. revolution baby.
There is only one way to stop this insanity. Vote and be active in politics. You can not trust that someone else is looking out for your interests. The interests of the American people are not being served by our government. We have become a complacent citizenry that allows craziness to occur in our names; we need to become an active citizenry once again. We must get out and push for the change, organize around the "Common Sense" of Paine and our forefathers, and demand the change that is required. Write to your state reps and state senator, write to the governor, write to your congressmen. Demand to know what they are doing to support your interests. They serve us.
Pissed off!, Yes the hospitals are just blowing money hand over foot on Pens! There are all sorts of problems with e-mailing records, you cannot use the internet to do it there are too many risks of hacking. By the way most hospitals records are on computers but the problem is there is no secure network to send form hospital to hosptial.
Politicians are getting bored of mere billions or 100's of billions, so this week's word is TRILLION! Why don't we just get the government to give every American $1 billion of this funny money. Then we can all be billionaires and our troubles will be over. Wheeee!
Joe Luke - Nice job! This country's debt is greater than the rest of the world combined. Where are we getting the money for this? Borrow and print or way to prosperity? Those in MA rode the Big Dig (see artificial, non-organic stimulation) to temporary prosperity. What happened when the project ended? MA went back to the welfare state that it is. Here's an idea: bring all of the troops home from over seas, build our bases up on our land, and let the troops spend their paychecks here. We might even stop being the world's enemy (along with Israel). Are all of you who are into this stimulus plan ready for runaway inflation? Get ready, because it is coming!
isn't it amazing how many right wing whack jobs post at the "liberal" Globe site? anyway, the money should go to the local governments for police on the streets, for job producing economic development, and yes, for education, but not through the "middleman" states, which are only looking for their "cut" for the bureaucracy.
I'm amazed that spending like drunken sailors (sorry US Navy personal) is the best the Harvard MBAs and JDs can come up with? Another article talks about a $184,000,000 high school. That is almost $0.2 billion dollars for a high school!! If we build 5000 schools like that, the entire $1 trillion dollars is gone. Something needs to be recalibrated here and it can't be done on the backs of those who have fixed rate mortgages that they can afford because they didn't overbuy and overextend themselves. There is absolutely no reason for projects like this. Whatever package is put together is must be cost effective and give us buildings that last for 100 years not the 40 years that the $0.2 billion high school is going to replace.
I miss living in a democratic-republic with an actual free market economy and reasonable taxes and regulation and citizens who learned to get along with each other and accept and supported local public schools who taught the basics and when higher ed was still affordable and utilities weren't overpriced. I also miss normal immigration and a balance between federal, state, and local government(s) where we didn't pay for corporate bailouts, union dues, or factory farms. We never made a proper attempt at curbing the middle class flight to the suburbs, or creating good public transportation systems, or allowing for the old gold standard to work itself out properly.
Now we have messed up everything so badly for so long, we have been forced (it started with our failures in the 30's and 40's when we brute-forced our economy too far over to the left anyway...) so far over into socialist-big-government economics that the single income family has become all-but obsolete. Now we can't get through our twenties without massive debt for cars,a house, and multiple degrees such that middle America has little hope for a normal retirement.
Time to re-re-invent the U.S. economy by re-discovering common sense and logic with compassion.
You get the government you deserve....
350 billion for roads and infrastructure??? Why are they going to raise the gas tax and tolls again???
STOP THE MADNESS! We must cut services and live within our means. It is imperative that we stop piling up more debt that can't be paid back, but will ultimately cause a severe financial/currency dislocation which will make our present situation seem mild by comparison.
WHY ONLY 1 TRILLION, WHY NOT 10 TRILLION...WHAT COMES AFTER TRILLION...QUADRILLION..WHY NOT A QUADRILLION, THAT SHOULD SOLVE EVERYTHING....
WHO IS THE MYSTERIOUS "BLOGGER" BIG BROTHER TYPE WHO FILTERS POSTS.....TYPICAL BOSTON HOMOGLOBE...
The "Nanny State" continues headlong into the abyss and no one seems to care.
This is insane. We are 2-3 billion below our budget. A Trillion will just go for friends of Deval, other Democratic Leaders (?) teachers, unions, the MBTA, the Turnpike and any other hack that does or will work for the state. This idiocy must stop. NO MORE BAILOUTS. My great grandchildren's kids will have to pay for all this. Printing more money will cause inflation to spiral out of control.
Huh???
How does school spending "stimulate the economy"???
Sounds like the slowest way to get the biggest payoff.
Also, sounds more like a "bailout" of the states than a stimulus plan!
This would be money far better spent for Mass than spending it in Iraq where all it seems to do is: make us poorer, less secure, and basically just pisses off every country in the middle east .
All these states are Dems. Just buying their future jobs. Leave us alone, we pay federal and state gas taxes, where do they go. Hospitals don't need Bail Outs, a lot of the already have their records digitalized. Leave us alone, no more over paying for union schools get open bidding.
That means I have to pay for things not in my state, again.
People are getting angrier and angrier everyday and you will see people protesting all the new taxes and inflation. Remember the government caused the great depression.
Indeed, what is so disappointing is nearly none of the "agenda" is about economic stimulus.
Frankly, old fashion Keynesian stimulus is probably no longer possible unless we truly had another great depression and the Congress had the backbone to stand up to environmentalists and lawyers.
European class high speed rail? I'm a supporter of it. Would take 40 years to to get the environmental impact studies completed, and finish all the lawsuits over whether every paragraph was legal or not, and in the mean time the NIMBYs would kill it since we'd need to procure new rights-of-way through some of the most developed parts of the country like Connecticut. We have Interstate highways still tied up since the early 1970s in useless red tape.
Being wise with our environment does not mean we need to provide a career to lawyers simply filing trivial lawsuit after trivial lawsuit.
Who is going to pay for it; the United States of America is BROKE!
I AGREE WITH #7) Sandy Beach! Bail Out the American People! Therefore, monies distributed to all working Americans WILL put the Economy back on track! Americans will spend all monies on their Homes/Mortages (which will bail out the Banking Crisis) Buy new or Used cars (bailing out the GM and Ford Crisis). Rehabing their Homes (stimulating the Dept. Stores....Furniture, Appliances, Clothing, ect.....) WHY????????? It is so foolish to bail out Corporations, While the Americans WILL NOT be able to afford their products.
Bail THEM out for WHAT?.......TO FAIL? TO DIVE RIGHT INTO BANKRUPTCY, anyway? WHO WILL BE ACCOUNTABLE FOR THIS? "THE AMERICANS"....STILL WITH NO MONEY TO STIMULATE OUR ECONOMY! I figured this out with the 1st 730 BIllion $ Bailout. Why can't our Government? I would like to Apply for Obamas Federal Accounting Position! Yeah...ME...."DAISY, THE BLUE COLLAR DELIVERY DRIVER"! I think I'll write A Book, Too!
why not ask the american people how must debt they are in and forgive the debt on credit cards loans etc. if the debts gone people will find jobs to pay morgages, cars and start moving this economy forward, after all we are going to pay for it in the long run through taxes. and other government spendings
Amen to the person who suggested slashing free money ......create jobs....even if its sweeping sidewalks and streets....make them work for their money....we have to work to give them money...its only fair....and as for the big company bailouts...hey I have debt too.....who can bail me out....my total debt is only $30,000 a far cry from a few billion....
Gee...why don't we just bail out everyone!!! Let's put all the money into one pot and all share...I think that's socialism...oh, I forget...it seems that there are always fat-cats at the top that live like kings in that system while the rest are forced to all share...I think I like it better the way we have it...now if we can only get rid of the corruption at the top in the current system that we have! Oh, I think we will have to wait for the Millenium.
Why do I have to pay for your States failed welfare system , when I live in a State that only has a limited welfare role and wont allow someone to live on the system forever ? They say the money will be for the school's and so on but we all know it's for the social programs . You are the one's that vote for these people and there ideal's , so dont ask the rest of us in the country to pay for them ! I for one have had enough of these failed policies of paying for dead beats and those who think it's there right to collect welfare . If people think they are above washing pots and pans or digging a ditch , cleaning hotel rooms , well then they should be to proud to collect welfare !!!!
There are so many problems with or medicaid and medicare programs. Here is my story, I might not lose my house, but instead my life. My husband lost his job in June, I am 41 and on disability. I have 6 diseases one being kidney failure. I now am preparing for kidney transplant. I need all dental work done because of risk for infection. Our insurance covers about half and will run out if my husband does not get a job before March. His job was building new homes! I have about $1,500 out of pocket expense for dental and my prescriptions are rising. We are short $1,600 per month losing my husband's wages.With this said, a person on aid would have their dental and
prescriptions covered but not someone who needs a kidney transplant. Also,
my husband is the best match so far. But if he donates his kidney they will take
away his unemployment for up to 12 weeks. You have to be willing and ABLE
to work for unemployment benefits. I also have had people change their mind
in being tested, because they could not afford no income for 12 weeks. Now
with this being said, medicare pays for dialysis but will not pay for a donor's
wages. Kidney failure has doubled in the US, because diabetes is the number
one cause and that has doubled. Kidneys are the most needed organ. If the government would pay for donors wages even for 2 months, they would save millions on years of dialysis. People are losing their lives because of this!!! I feel that they have put a pricetag on my life!!!!!!!
wah wah wah, whine whine whine. I read this article, and all i can do is complain. bahh humbug, government overspends.
Quite whining and get back to work you losers
#27 is just the bare basics of what the once great USA must realize and act accordingly. Slash welfare except for the eldery, vetrans and those truly disabled. Why is it that the welfare and food stamp lines are miles long with trash gutter "Americans" - 5 kids at their heels, talking on cell phones and blackberry's, enough gold and bling to support my daughter and I for a couple months, Gucci, Prada and Coach accessories with couture clothing to boot, and all the while their companions impatiently idle their $150,000 BMW's and Lexus' . . . you get the picture. I grew up hearing "money doesn't grow on trees, whoever said life is fair?, if you don't like my rules, get your own house, instead of complaining, use your brain to figure out a better way, God helps those who help themselves" and so on and so on. My dad is a retired lawyer and I have been taught that life is what you make of it. Yes, we all experience setbacks but that's life. The problem is that our government and the public at large has forgotten the basics. Working hard and hard work never hurt anyone. We make it too easy for the lazy to drain tax dollars fbecause they live to beat the system and our system allows them to be selfish and lazy while the rest of us are struggling to be the responsible citizens we were meant to be. Cut the fat on social services that only foster the lazy fools who are uneducated (there are plenty of opportunities for HS kids who have no money to get a great education if they are taught that this how one gets ahead) and drag this country to the depths of ruin.
We are all are using 1st amendment rights to vent our displeasure with an inept government, from local to DC. Wait until they decide to eliminate our 2nd amendment rights to prevent our continued use of the 1st amendment. Besides posting here I trust everyone is doing the same with these idiots running our governments. They need more than an ear full.
As a Christian I find myself constantly considering the verses found in Luke 20 regarding "rendering unto Caesar what is Caesars" . Essentially, Jesus said "You recognize Caesar’s civil authority when you use his coins, therefore you are obliged to pay him the taxes he asks for." As Jesus holds the coin, it lay on the very hand that would soon be pierced by the government of Caesar, so Jesus understood very well what He was saying.
Because we take advantage of the benefits of government, we are obliged to submit to government, as long as it does not infringe on our service to God. Given today's horrific mismanagemnt of our dutifully paid taxes, let alone the enormous debt (best measured through solar system distances) that our government is asking our children to honor, one must begin to ponder if there are any 'benefits' to take advantage of.
More to the point...are we opening ourselves to crticism from God Almighty for our blind alligience to this corruption? At what point in this quiet obedience do we become accomplice to sin? At what point are we obligated through God's doctrine to question authority and revolt? Was the Boston Tea Party in defiance of God when they 'held back from Caesar'? I like to think not. Now, 200+ years later, we are very close if not past that same threshold. It's time to act in God's best interest through challenging those that would carelessly (or intentionally) abuse us. If we don't we will be judged as members of a society who allowed corruption to prosper.
To distill the thought...'Evil will proper when good men do nothing'.
This blogger might want to review your comment before posting it.
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