Site last updated: Sunday, November 15, 2026

Log In

Reset Password
Butler County's great daily newspaper

Obama seeks to assure nervous governors on economy

PHILADELPHIA — President-elect Barack Obama pledged quick work today on an economic recovery plan to include tax cuts and increased federal spending, and told the nation's governors he wants their advice in designing a package to help their hard hit states.

"We intend to put tax cuts into the pockets of hard-pressed middle class families in your states. And we intend ... to start making a down payment on the critical investments that are going to be necessary to sustain long-term economic growth as well as pull us out of the current slump," Obama said as he sat down with governors, nearly all of whom are struggling with budget deficits at home as a result of the recession.

Vice President-elect Joe Biden told the same group he hopes they will not criticize the incoming administration for raising the deficit as it tries to help them. "I know none of you would do that," he said jokingly. Many states have constitutions that prohibit deficit spending.

"Forty-one of the states that are represented here are likely to face budget shortfalls this year or next forcing you to choose between reining in spending and raising taxes," Obama said. "Jobs are being cut. Programs for the needy are at risk. Libraries are being closed. Historic sites are being closed."

The recession and the accompanying increase in joblessness translate into higher health care costs for the poor, greater use of food stamps and added strain on welfare programs, and the governors are seeking help in coping.

They have asked for at least $40 billion to help pay for health care for the poor and disabled and perhaps $136 billion more in infrastructure projects like road and bridge repairs in the legislation, which Democrats hope to have ready for Obama's signature as soon as he takes office on Jan. 20.

More in Digital Media Exclusive

Subscribe to our Daily Newsletter

* indicates required
TODAY'S PHOTOS