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	<title>The Washington Independent &#187; state bailout</title>
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		<title>Governors Have Eyes Only for Obama II</title>
		<link>http://washingtonindependent.com/20480/states-face-perfect-storm-of-financial-trouble</link>
		<comments>http://washingtonindependent.com/20480/states-face-perfect-storm-of-financial-trouble#comments</comments>
		<pubDate>Mon, 01 Dec 2008 23:24:27 +0000</pubDate>
		<dc:creator>Mike Lillis</dc:creator>
				<category><![CDATA[Blog (deprecated)]]></category>
		<category><![CDATA[Congress]]></category>
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		<description><![CDATA[<p>Following up on Matt&#8217;s <a href="http://washingtonindependent.com/20488/governors-only-have-eyes-for-obama">nice post</a> about the states tapping Obama for help with enormous budget shortfalls&#8230;</p>
<p>Few are saying it out loud, but the issue has a ring of class distinction surrounding it. That is, the White House has been quick to secure hundreds of billions of dollars <a href="http://washingtonindependent.com/20480/states-face-perfect-storm-of-financial-trouble" class="read_more">More...</a></p>]]></description>
			<content:encoded><![CDATA[<p>Following up on Matt&#8217;s <a href="http://washingtonindependent.com/20488/governors-only-have-eyes-for-obama">nice post</a> about the states tapping Obama for help with enormous budget shortfalls&#8230;</p>
<p>Few are saying it out loud, but the issue has a ring of class distinction surrounding it. That is, the White House has been quick to secure hundreds of billions of dollars for white-collar workers on Wall Street, but so far it&#8217;s balked at much smaller sums for state infrastructure projects or Detroit&#8217;s automakers. The message is clear: Trickle down, in the eyes of the Bush administration, trumps trickle up.</p>
<p><span id="more-20480"></span></p>
<p>State leaders, however, are beginning to wonder when that trickle-down strategy will benefit them. Pennsylvania Gov. Ed Rendell, a Democrat, said Monday that the long string of Wall Street bailouts has done nothing to help the middle class.</p>
<p>&#8220;We&#8217;ve seen a lot of federal help go to a lot of different organizations in the past few months but not any of that help has produced one new job,&#8221; Rendell told reporters. &#8220;Not any of that help has produced one new order of business for an American company.&#8221;</p>
<p>Rendell said the governors plan to push Obama for federal help with job-creating infrastructure projects and state-funded health-care programs.<!--more--></p>
<p>States, faced with the burden of actually balancing their annual budgets, seem to have <a href="http://washingtonindependent.com/16366/%EF%BB%BFstates-suffering-brunt-of-downturn">a legitimate need</a> for both. Unemployment is up; home values are plummeting; retail sales are down; and the strain on social services is rising with every new jobless claim. In that environment, programs like food stamps and Medicaid, which cater to low-income folks, will be hit particularly hard.</p>
<p>&#8220;These are the safety net for our people across the nation, and the states are responsible,&#8221; said Joe Hackney, speaker of North Carolina&#8217;s state house.</p>
<p>In this fiscal year, states have already made cuts totaling $53 billion, Hackney said, with $90 billion in additional cuts projected to follow this year and the next. Faced with numbers like that, governors must feel like Jan. 20 can&#8217;t come quickly enough.</p>
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