President-elect Barack Obama had a clear message for the nation’s governors meeting in Philadelphia, according to Kentucky Gov. Steve Beshear.
It was that “help is on the way,” for the ailing economy, Beshear said in a conference call Tuesday from Philadelphia. He said Obama and Vice President-elect Joe Biden “fully appreciate where states are in this crisis and they know the federal government is going to have to partner with the states in order for all the people in this country to pull through and come out on the other side of this recession.”
Beshear had a chance to discuss specific problems in Kentucky with the new president in one-on-one conversations Monday night at an informal reception. He said they talked about Kentucky’s budget problems, the need for infrastructure and help with Medicaid and unemployment insurance, and he invited Obama to visit Kentucky.
“I particularly invited him to come around the time of the Lincoln Bicentennial,” Beshear said. “I said I thought that would be a wonderful time for him to come to Kentucky and he said that was a very interesting idea.”
Obama didn’t commit to such a visit, but Beshear said he will send him a formal invitation and provide information about events and schedules of the bicentennial celebration.
“He did indicate a desire to be in Kentucky and felt like that was an interesting prospect,” Beshear said.
But most of their conversation focused on the economy and the need for a federal stimulus package to “jumpstart the economy” and help states, most of which are suffering budget deficits. Unlike the federal government, most states are constitutionally required to balance their budgets. Officially, 41 states – including Kentucky – face shortfalls and others are anticipating shortfalls.
“He indicated they were going to put together and push very hard a stimulus package that would address a number of concerns,” Beshear said. “They did not give us the details of what would be in the package. He indicated that obviously there would be an infrastructure component.”
Beshear said there were no dollar amounts or timeline announced, but he said Obama talked of including traditional infrastructure needs such as roads and bridges but also funding for such things as converting medical records to electronic form, something Kentucky is in the process of attempting to do.
Beshear said governors spoke of their need for help with Medicaid and unemployment insurance, two concerns Beshear included in a formal letter to Obama. And he asked Obama to help the automobile industry which employs about 49,000 in Kentucky, either directly or through suppliers.
Beshear expects the new administration will ask states for infrastructure projects that can get under way within 90 or 120 days to quickly boost employment and pump money into the economy. He said he’s already asked his Secretary of Transportation Joe Prather and other state officials to compile such a list.
Beshear said Pennsylvania Gov. Ed Rendell said there is talk of Obama asking the current Congress to pass his plan so he can sign it on inauguration day.
But the package will be directed mostly toward long-term assistance for the economy, Beshear said, and won’t arrive in time to avoid painful budget cuts in Kentucky.
“I can assure you right now that regardless of the components of that package, we are going to have to proceed to put a balanced budget together and the first priority will be to further reduce spending,” Beshear said.
He said he has talked with Republican state Senate President David Williams and is in the process of setting up meetings to discuss his budget plan with him and other legislative leaders.
Ronnie Ellis writes for CNHI News Service and is based in Frankfort. Reach him at rellis@cnhi.com.
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