Philadelphia — Philadelphia - The nation's governors met with President-elect Barack Obama yesterday to help craft an economic stimulus plan that would include money for ready-to-go transportation projects and programs for the poor stretched thin by increased demand.
Several dozen governors gathered here for the pre-inaugural summit as the country has officially fallen into recession, and as many state budgets have seen widening deficits brought on by sluggish tax receipts. The conversation also veered from funding for alternative energy and updating the country's power infrastructure to investing in a high-speed rail system and health care technology, participants said.
"This is not a matter of us descending on his doorstep and saying 'Please help us,' " said Maryland Gov. Martin O'Malley, a Democrat. "It was a matter of the president-elect and the vice president-elect pulling the governors together to say, 'Look, we need your help in order to stimulate America's economy and get us moving again.' "
The governors met for nearly two hours with Obama and Vice President-elect Joe Biden. Pennsylvania Gov. Ed Rendell, chairman of the National Governors Association, said the leaders did not discuss specific dollar figures at the meeting, which he characterized as "unprecedented," but several governors said about $150 billion in transportation projects could get started immediately.
Many of the governors agreed a stimulus package is needed to create jobs and shore up programs like Medicaid. But some expressed reservations about more federal borrowing, and questioned whether the initiative would provide the promised economic jolt. Governors are in line with automakers and banks also seeking federal handouts.
Alaska Gov. Sarah Palin, who forged a national reputation as the Republican vice presidential nominee, expressed doubt that "incurring more debt" would solve the economic crisis.
Congressional leaders have said they would work on a package Obama could sign when he takes office Jan. 20, and governors yesterday pledged to build support for the plan.
Rendell noted that many economists contend that the need for economic growth outweighs the risks of running up the federal deficit, and that without federal support states might be forced to cut services or raise taxes - which could stall economic recovery.
"We're confident that we're going to get help," Rendell said. "What the amount is and what the final plan looks like I don't think any of us have a clue."
