Democratic Governors Urge Passage Of Jobs Bill as Debts Loom
Jack Markell, Delawares Democratic governor, urged lawmakers to make money available to community banks for loans to small firms and to help fund unemployment insurance in a jobs bill being considered by the Senate. Markell made the remarks at a press conference yesterday in Washington together with governors Martin OMalley of Maryland, Christine Gregoire of Washington and Ted Strickland of Ohio.
The governors plea came as U.S. states confront a combined $193 billion in deficits this fiscal year, according to the Center on Budget and Policy Priorities in Washington. Measures to close budget gaps may add to the nations unemployment rate, which stood at 9.7 percent last month, and threaten economic recovery.
“There are good ideas circulating in Washington to accelerate job growth, save existing jobs and make sure we come out of this recession stronger than when it started,” Markell said. “These solutions are being held hostage by petty bickering and a Republican party in Washington whose leaders have rejected the privilege of governing in favor of saying no to everything.”
The governors were taking part in a National Governors Association meeting in Washington, where state leaders are meeting with President Barack Obama and business executives to discuss health care overhaul and the economy.
Rising Tensions
Tensions between the two parties have risen amid concern among Democrats that unemployment will translate into losses in Novembers election. The Senate is scheduled to debate a jobs bill this week, after Majority Leader Harry Reid Feb. 11 dropped scores of provisions from an $85 billion compromise plan, saying the proposal had been “watered down” with extraneous provisions.
Republicans accused Reid of throwing out weeks of effort to craft a bipartisan bill. His new proposal also dropped elements the Democratic governors asked for yesterday, including extensions of unemployment benefits and provisions preventing scheduled cuts in Medicare reimbursements to doctors.
“States budgets are being bled to death” by health-care costs, said Strickland, adding that increasing funds to cover medical costs is an area the two parties could find consensus.
Reid said his bill would cost $15 billion by focusing on four items: a tax break for hiring, an increase in highway spending, an extension of the Build America Bonds program and tax breaks for small businesses. Under the proposal, $2 billion would be spent to expand federal subsidies for bonds issued by state and local governments.
Reids plan would still have to be reconciled with House legislation approved in December that would cost more than $150 billion. The House plan would spend $53 billion to extend unemployment benefits, $24 billion to help states to pay their Medicaid bills, $48 billion for infrastructure and $26 billion to secure funding for public service jobs.
With assistance from James Rowley and Brian Faler in Washington, and John McCormick in Chicago. Editors: Ann Hughey, Mark Rohner