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Jewish World Review Nov. 31, 2008 / 4 Kislev 5769 Addressing the States' Dire Straits By David Broder http://www.JewishWorldReview.com | When Barack Obama meets Tuesday in Philadelphia with governors of both parties, an additional dimension of the credit crisis and financial meltdown will come into focus. We have heard a lot about the collapse of housing prices, the threatened or actual bankruptcy of many banks, and the rise in unemployment. Individuals, families and firms of all sizes have been clobbered by these events. What the governors will point out to the president-elect is that most of their budgets are in such trouble that their states may not be able to meet their responsibilities to their residents. When Obama puts his economic rescue plan together later in December, he will have to build in significant aid to state and local governments, lest they add to the public woes by slashing their own spending to meet the constitutional requirements for balanced budgets in most states. Living in Chicago, Obama is already well aware of the problem. His willingness to call this meeting less than a month into the transition has been welcomed by governors of both parties. Veteran officials cannot recall a similarly early summit of governors and a newly elected president. When I spoke with Gov. Joe Manchin of West Virginia, the head of the Democratic Governors Association, the other day, he was effusive in his praise of Obama for reaching out to the governors of both parties. Manchin's state voted for Hillary Clinton in last spring's Democratic primary and for John McCain in November. But he insisted that Obama had gone more than halfway in involving governors during the campaign and now in the transition. Manchin said he had advised other governors to be prepared when they meet Obama to talk in specifics about the biggest challenges facing their states. "I don't want to see us going there with our hands out," he said. "I want us ready to roll up our sleeves and go to work with Washington." That is brave talk, but the reality is that state and local governments from one end of the country to the other are hurting badly. Tomorrow, the National Governors Association and the National Conference of State Legislatures are holding a bipartisan phone-in news conference to "outline the current fiscal situation and urge Congress and the next administration to provide a recovery package that will spur job growth, support infrastructure projects and ease the burden of Medicaid costs." The House passed such a measure recently, but it died under threat of a veto by President Bush. It is almost a certainty that Obama will support and sign such a bill. The help is urgently needed. In Philadelphia, Mayor Michael Nutter announced recently that he was closing 11 libraries, laying off 220 workers, eliminating 600 other unfilled positions, postponing a promised tax cut and slicing his own salary by 10 percent. In Obama's Chicago, Mayor Richard Daley, looking at a budget shortfall of almost half a billion dollars, has called for hundreds of layoffs. In Atlanta, the fire department is losing people. In Seattle, it's housing for the homeless that is taking a hit. New York — where Wall Street has hemorrhaged jobs — measures its shortfall in the billions and is whacking education, police and almost every other service. The forced cutbacks in state and local spending hit the most vulnerable of our citizens. And they damage the prospects for a strong and swift economic recovery. The federal government is following the Keynesian blueprint by rapidly increasing its spending — letting deficits explode past the trillion-dollar mark in hopes of stimulating the private economy. But if declining tax revenue and increasing Medicaid and welfare payments force state and local governments to cut back, that will work against the stimulus. Obama and the governors are in this together. It is good that they are meeting now and important that their dialogue continues when he takes office. Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here. To comment, please click here. Previously: 11/28/08: Good time for a brainy president 11/24/08: Rising Hope For Fixing Health Care 11/19/08: A Force for Good — but Not at State 11/17/08: GOP has work to do 11/13/08: Obama's good start 11/10/08: Governors Know Best 11/06/08: The Task Ahead 11/03/08: The Amazing Race: I thought 1960 was the best campaign I'd ever cover. But 2008 has that election beat 10/30/08: What We've Learned About McCain 10/27/08: A New England Brawl 10/23/08: Blue Sparks in Red Ohio 10/17/08: Obama's Assurance Policy 10/14/08: Live from the Pennsylvania frontlines 10/12/08: The proposals that could bind Obama 10/09/08: What do we really know about them? 10/06/08: The uplifting debate 10/02/08: Economics Exam in Michigan 09/28/08: McCain out-pointed Obama 09/26/08: Credibility Test for Congress 09/22/08: A debate's high stakes 09/22/08: Down days for McCain 09/15/08: The Next President's Due Bill 09/11/08: GOP celebration and Dem gloom are premature 09/08/08: Can we count on change? 09/03/08: Palin's Learning Curve 09/02/08: How Palin could help 09/02/08: What Happened to the Obama of 2004? 08/26/08: The Women Hit Their Mark 08/25/08: The Joe I know … and what it means for McCain 08/21/08: In N.H., a Deal to Close 08/18/08: Obama's Well-Oiled Machine 08/14/08: Pros and Conventions: Useful Ideas From the Stevensons and Friends 08/11/08: Rivals in Search of Trust 08/07/08: A Way Back to the High Road? 08/04/08: A Slate To Revive The Senate 07/31/08: When Congress Works 07/29/08: Management 101 for Senators 07/24/08: Obama's success abroad was pure luck 07/21/08: Obama's success abroad was pure luck 07/17/08: Governors offer real world wisdom. Obama and McCain would be wise to listen 07/14/08: Foes and allies strive to peg a shifty Obama 07/10/08: Fixing How We Go to War 07/07/08: Decider on the High Court 07/03/08: One Nation No More? Civics Needs a Boost, but Our Identity Endures 06/30/08: Dumbing Down the Presidency 06/26/08: Voting's Neglected Scandal 06/23/08: Why don't we know what makes Obama tick? 06/19/08: Foreign Policy's Best Hope 06/16/08: Perot, Back On the Charts 06/16/08: The Many Gifts of Tim Russert 06/12/08: Why Hillary played the womyn card 06/08/08: Eclipsed by the Adventures of Hillary 06/02/08: Obama in retreat 06/02/08: Reality vs. the Mythmakers 05/29/08: Hamilton Jordan's Message to Obama 05/27/08: Let the Veepstakes Begin 05/19/08: The mental exercise of placing Obama in the Oval Office requires more imagination than did moving Reagan from the silver screen to Pennsylvania Ave. 05/15/08: For Obama, a Lost Moment 05/12/08: The price of delay 05/08/08: Phoniness and inevitability 05/05/08: Winning by destruction: An insider reveals the Hillary game plan 05/01/08: Candidates' high-mindedness is rooted in religiosity; but Hillary and McCain don't have hater as inspiration © 2008, by WPWG

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