John Edwards for President-Edwards Calls On Congress To Help States Manage State Budget Deficits - Including Up To $375 Million For Missouri's Looming Budget Crisis

Edwards Calls On Congress To Help States Manage State Budget Deficits - Including Up To $375 Million For Missouri's Looming Budget Crisis

Jan 29, 2008 2:26 PM

Bush plan omits critical state aid from so-called "stimulus" package

Jefferson City, Missouri – During an event in Jefferson City today, Senator John Edwards called on Congress to fix George Bush's flawed economic stimulus plan to include Edwards' proposal for federal financial assistance to states – including up to $375 million to help solve Missouri's looming budget deficit. Missouri is currently projecting a budget deficit in 2010 and beyond.

"States like Missouri need immediate help – or we could see devastating cuts to education, health care and other basic services, along with increases in property taxes," Edwards said. "Providing this assistance to states will not only protect our schools and our most vulnerable citizens, but represents an important and critical step to avoid a recession."

On December 22 – long before Congress, the President, or any other candidate – John Edwards warned about the prospect of a looming recession and proposed an economic stimulus plan that includes extended unemployment benefits, investments in the renewable energy industry to create jobs within 90 days, a Home Rescue Fund to help families avoid foreclosure, and immediate federal financial assistance to states.

Today, Edwards emphasized the need to increase the federal contribution to Medicaid and provide additional aid to states, helping them avoid cuts to education, health care and other basic services and avoid increases in property and other taxes that disproportionately impact working families and seniors on fixed incomes. Under Edwards' plan, Missouri would receive up to $375 million in direct aid to help avert those cuts and stimulate the state's economy.

With Congress considering the Bush stimulus plan this week, Edwards called on members of Congress to act quickly to provide this important relief to states.

Federal assistance to the states provides more "bang for the buck" than almost any other form of short-term economic stimulus. It provides five times more economic benefits than business tax breaks, according to a study by Mark Zandi of Economy.com. Nobel Prize-winning economists reached a similar conclusion in a recent New York Times op-ed essay emphasizing extending unemployment insurance benefits and direct aid to states and localities.