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5 governors unite, seek $1 trillion in federal aid

By Matt Viser and Andrew Ryan
Globe Staff / January 3, 2009
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Governor Deval Patrick and four other influential Democratic governors pleaded their case yesterday for up to $1 trillion in federal assistance over the next two years, to help alleviate budget cuts, create jobs, and avoid inflicting irreversible damage to schools during a fiscal crisis.

"The assistance would be mammoth for us," Governor David Patterson of New York, which is facing a $15.4 billion deficit, said during an afternoon conference call with reporters.

Hoping that President-elect Barack Obama will use a federal stimulus package to dampen the steady stream of negative budget-cutting headlines, the governors said they were asking for $350 billion for infrastructure projects, $250 billion for education, $150 billion for middle-class tax cuts, and $250 billion in funding for programs such as Medicaid, food stamps, and unemployment benefits.

The outline of a $1 trillion infusion of federal funds over two years, an outline they said had not been endorsed by the incoming Obama administration, is higher than levels previously dis cussed. It is unclear what the final price tag would be and what restrictions would be placed on the money.

"We have had several conversations with senior members of the transition team, and they are very receptive to the idea and sensitive to the importance of not losing ground in educational progress," Patrick said. "But this is not a done deal."

The governors have not come to a consensus on how the funding should be distributed, but Patrick said that for education and infrastructure, "population is as simple and straightforward a way as any."

Massachusetts makes up about 2 percent of the nation's population, which would mean it would receive $12.7 billion of the $600 billion proposed for education and infrastructure projects.

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. They argued that the focus on education is warranted because schools cannot sustain steep budget cuts without adversely affecting students.

"We aren't crying wolf," said Governor Ted Strickland of Ohio. "These are real circumstances, unprecedented situations we are facing."

There are 41 states, along with Washington, D.C., that are currently grappling with budget shortfalls for the current fiscal year, totaling about $42 billion, according to the Center on Budget and Policy Priorities.

Patrick said earlier this week that he was preparing for up to $1 billion in additional cuts, which come on top of a $1.4 billion budget shortfall in October that triggered trims in almost every state department.

Patrick has already been preparing for the federal stimulus, and two weeks ago unveiled $4.7 billion in state infrastructure projects that could be jump-started immediately.

Patrick contended that the work would create "hundreds of thousands" of jobs, although some have criticized that number as an exaggeration. Governor Jon Corzine of New Jersey said yesterday that the rule of thumb is about 40,000 jobs for every $1 billion spent.

Obama has said he wants to sign a federal stimulus package soon after taking office Jan. 20.

Patrick met last month with Rahm Emanuel, Obama's chief of staff, and several of the president-elect's economic advisers. He also met with US Representative David R. Obey, a Wisconsin Democrat and chairman of the House Appropriations Committee.

"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 yesterday. "Any economic recovery bill in our view passed by Congress should be bold enough to have a physiological impact and well as an economic one."

Matt Viser can be reached at maviser@globe.com.

Governor Deval Patrick was preparing for up to $1 billion in additional cuts.

STRUGGLING STATES

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