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Obama huddles with governors

Posted by Foon Rhee, deputy national political editor December 2, 2008 10:26 AM

President-elect Barack Obama, who promised a new partnership between the federal government and the states, meets face-to-face today with the nation's governors, who are clamoring for a meaty piece of his economic stimulus plan.

Obama is pushing for a substantial package -- including infrastructure improvements and investments in alternative energy -- to create or save 2.5 million jobs in his first two years as president. And he wants it on his desk soon after he takes office Jan. 20.

For the governors, who are having to slash budgets as tax revenues plummet as the economy slows, help can't come soon enough. The leaders of the National Governors Association, who are hosting today's session in Philadelphia, told reporters that they want $136 billion or more in road and bridge repairs and other infrastructure projects, plus at least $40 billion to help pay for healthcare for the poor and disabled.

"We're going to be talking about what the elements of an economic stimulus plan will be," Governor Deval Patrick of Massachusetts, a personal friend and political ally of Obama's, told the Associated Press.

Obama reached out to the governors, saying that "it is in state and local governments that the most meaningful changes take place and the most difficult decisions must be made."

Then, he promised to act assertively and quickly to help lift the nation out of recession.

"To solve this crisis and to ease the burden on our states, we're going to need action -- and we're going to need action quickly. That means passing an economic recovery plan for both Wall Street and Main Street that jump-starts our economy... helps save or create two point five million jobs, puts tax cuts into the pockets of hard-pressed middle class families, and makes a down payment on the critical investments we need to build a strong economy for years to come," he said. "Change is not going to come from Washington alone. It will come from all of you.... That is the kind of strong partnership I intend to build as president of the United States.

"But the partnership we begin here cannot -- and will not -- end here," Obama added. "As president, I'm not simply asking the nation’s governors to help implement our economic recovery plan. I will ask you to help design and draft that plan.....

"I know these are difficult times... and we’re going to have to make hard choices in the months ahead about how to invest these tax dollars....Not all those choices will be popular. But I promise you this -- I will seek your counsel. I will listen to you, especially when we disagree.

"A special message I want to deliver to my Republican colleagues who are here. I offer you the same hand of friendship and cooperation that I offer our Democratic governors. There is a time for campaigning and there is a time for governing."

Vice president-elect Joe Biden told the governors that during the campaign, local and state officials would point out local landmarks and would say "This used to be" -- as in this used to be a steel mill or another major facility. "We’ll know we’ve turned the corner when we hear a lot less 'This used to be…' and a lot more 'this is going to be,' " Biden said.

Biden also gave a shout-out to Sarah Palin, the Alaska governor who was the Republican vice presidential nominee, saying that her attendance shows that when campaigns end, everyone works together. He joked that since the election, he has been virtually ignored unlike Palin, a media star. "Maybe walk outside with me later and say hello to me," he said to laughter from the crowd.

Palin told reporters afterwards that she feels the same way about the campaign being over and working in a bipartisan way, and said she appreciated Obama asking for governors' advice.

"Governors do know best on some of those issues," she said.

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Let's ignore Sarah Palin instead.

Posted by Podesta December 2, 08 11:10 AM
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Remember: "we are running out of french fries and burrito coverings. But I got a solution." -President Camacho (google it if you don't remember)

The point is, these economic problems are artificial. If there were truly no
more apples able to grow on earth then it would be a global crisis, a more
real crisis than this. There is no economic crisis in reality because here is the
solution guys, the money is man made. Stop printing money and giving it to your
buddies and there won't be any economic crisis. How many US dollars are there now? This is why everyone see cryptic quotes scrolling on the bottom of news screens. Just give us a pie chart of all the money printed and where it is at. Obama is clearly on the same side as the Fed not the peoples if again he doesn't stand up to this idiocracy. An 8 year old can fix this economic problem.

Posted by Jim Reynolds December 2, 08 11:19 AM
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I would like to see money used to build mass transit and encourage people to live in denser population centers. The car has inefficiencies: you have to spend lots of time to drive it, and lots of money to buy and maintain it. That works great for car manufacturers and oil companies.

We spend most of our money on houses and cars. Why should our #2 expense be something that wears out & has to be replaced every 5-10 years? We want to be spending that money on things that last and can create a future for us. If we lived closer together, we might re-discover our sense of community and have people & companionship in our lives.

Posted by Brook Wiers, MD December 2, 08 01:24 PM
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My suspicion is that there will be some positioning by Republican Governors against the stimulus package. That would be particularly true in the states that are stingy on social services and who do not have work comp that adequately reimburses physicians.

Republicans will not want to see a success in fiscal stimulus creating economic activity because the beneficiary of such a stimulus will not be high wage earners but the middle class.

What will take the real wisdom is to realize when there needs to be a cut back in the government spending to not create a situation where interest rates go to high. If Obama does this right he will only be successful by getting the cooperation of both the right and the left. He is going to have to do something that is unpopular with every one of us at some time during this economic stabilization and recovery process. His political skills makes me hopeful that he can do this successfully.

Posted by Ron M December 2, 08 03:48 PM
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