WASHINGTON, D.C. – With most every state government faced with declining revenues and escalating costs, Governor Jon S. Corzine on Thursday, Dec. 11 told the U.S. House Appropriations Committee that a new federal economic stimulus package is needed to keep states in the black, retain jobs, and boost the nation out of the current economic recession.
“Each state has departments and agencies to deliver critical services and assistance to the people far more quickly than the federal government. We already have the apparatus,” Governor Corzine said. “It will be devastating to the entire national economy and there will be a negative multiplier effect if we fail to maintain spending on essential services.”
Noting that New Jersey is facing about $4 billion in budget cuts over a two-year period, Governor Corzine said that nationwide, this could add up to hundreds of billions of dollars when multiplied across the 50 states. The result of those collective cuts, he said, will result in significant job losses, declining business revenues, and ultimately an overall drop in the national gross domestic product.
Governor Corzine proposed that Congress approve a federal stimulus package aimed at state governments, with the ideal range being at least 4 to 5 percent of GDP. Targeted programs for the funds could include school spending, public infrastructure projects, and the development of green collar jobs.
In addition, he said, states need help with Medicaid and unemployment expenses, especially in light of the increasing number of jobless in need of assistance. The federal government also needs to fully fund their share of mandated education costs and lend assistance to stem the tide of housing foreclosures, he said.
“The federal government and the states need to be partners,” Governor Corzine said. “We must help people now while laying the foundation for future growth”
Overview
Congressional Appropriations Committee Testimony
Governor Jon S. Corzine
December 11, 2008
Governor Corzine today testified before the U.S. House Appropriations Committee, requesting consideration for a federal stimulus package for states. Key components of his request include:
* States need the federal government to begin fully funding its obligations for programs like No Child Left Behind and special education funding. For special education, the federal government only pays 17 percent of total costs, when it’s supposed to be covering 40 percent. Since the inception of NCLB, the federal government has underfunded the program by $1.2 billion in New Jersey alone.
* Over the past five months, an additional 40,000 people have enrolled in New Jersey’s Medicaid program. States are facing the prospect of cutting the program at precisely the same time that people are losing their jobs. States need an increase in Federal Medicaid Assistance Percentage (FMAP), considering anticipated increases in the unemployment rate.
* A comprehensive federal program is needed to address the housing crisis at its core. A key component of that program should allocate funds to make state Housing Finance Authorities competitive in the marketplace.
* States are working to bridge the gaps in Temporary Assistance for Needy Families, food stamps, unemployment insurance and workforce development, and need maximum leeway in spending these funds on the programs for which they were designated.
* States and the federal government can put people back to work by committing a massive investment in public infrastructure, such as the proposed mass transit tunnel project under the Hudson River – a project that will create 6,000 construction jobs annually for ten years and 50,000 permanent jobs in the region.
Dennisville – As a parent of a Tech student it would be great if the school would update their staff directory. So many old staff still listed and no new teachers listed. What gives?
