Costa Urges Passage of
Federal Stimulus Bill

HARRISBURG, February 9, 2009 – State Senator Jay Costa (D-Allegheny) today urged Congress to pass the federal stimulus bill promptly, and termed it crucial that the package contain significant help for states.

“Balancing Pennsylvania’s budget this year and next year depends heavily on help from the federal government. Without it, we will need either drastic cuts to essential services, or a broad and massive tax increase,” said Costa, the Democratic Appropriations Committee chairman.

Governor Ed Rendell unveiled his proposed 2009-10 budget last week. While it looks ahead to the new fiscal year that begins on July 1, it also includes Rendell’s plan to deal with a potential $2.3 billion deficit this year. The governor is counting on $1 billion this year and $1.9 billion in 2009-10 to meet the state’s Medical Assistance obligations. He has budgeted another $493 million in stimulus money next year to offset necessary increases in prison costs, freeing up that sum to help balance the General Fund.

In addition, the proposed stimulus legislation, known as the American Recovery and Reinvestment Act, provides direct help for school districts, and for purposes such as infrastructure improvements.

“This stimulus package is about getting America’s economy moving again, but it is also about people, about alleviating their suffering. Most of the federal help we are anticipating involves health care, education, and things like road and bridge construction that will put the jobless back to work,” Costa said.

He expressed hope that when the House and Senate resolve differences between their two versions of the bill, they restore money targeted for the 50 states. The compromise reached over the weekend in the Senate cuts $40 billion in help for states, and money for school construction, that the House had incorporated in its package.

Besides the short-term assistance for Pennsylvania in these two fiscal years, swift enactment of a stimulus bill is necessary to rescue the national economy. The longer Congress waits, Costa said, the more the country runs the risk of a recession so deep that it will not respond well to governmental actions. He called on Congress to put stimulus legislation on President Obama’s desk within the next week.

“Across America, state and local governments are in deep financial crises not of their own making,” Costa said. “At least 45 states now face budget deficits. Aid to states, which will be spent almost immediately on human services and job creation, is one of the most effective ways that Congress can pump money into the national economy quickly.”

Comments

Popular posts from this blog

Woman Charged with Posting
Nude Picture on Facebook

Arrests in Operation Diamond Drop

Two Arrested on Drug Charges