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President-elect Obama is to meet with the nation's governors next week to discuss the severe economic crisis facing the states.
Many economists think that aid to state and local governments should be tops on the agenda for any new stimulus spending, as they have less borrowing authority than the federal government during an economic downturn. That means that states are slashing budgets as the slowdown causes tax revenues fall.
Already the Governor has cut 25.4 million dollars from the Health and Human Services budget. From the news reports, it was unclear to me whether this number takes the federal matching monies into account. Whatever money the state cuts will also be cut in terms of federal grants coming in to the state.
I'm not sure whether Governor Lynch is attending, but assuming he is, what should he tell the President-elect? What should he request for our state?