Academic journal article The Journal of Government Financial Management

Governors Propose Package to Strengthen State-Federal Safety Net

Academic journal article The Journal of Government Financial Management

Governors Propose Package to Strengthen State-Federal Safety Net

Article excerpt

Citing the important role states play in boosting the national economy and the need to strengthen the statefederal safety net for families affected by the terrorist attack, the National Governors Association (NGA) has initiated a series of proposals for inclusion in the legislative stimulus package being considered by the administration and Congress.

NGA says the extremely weak fiscal position of many states combined with the economic disruption stemming from the recent terrorist attack will limit states' ability to provide assistance to families in need. Many of the proposals are "federal budget neutral" and would require the federal governmentto reduce or defer regulatory requirements that are costly to states. Others would allowthe state to accelerate the spending of federal funds by providing states with additional flexibility. One example is reducing the state match requirement for highway spending.

"America's governors are united in their determination to help our nation respond and recover from the attacks of September 117 said Michigan Gov. John Engler, NGA chairman. "By working together-- Republicans and Democrats, federal, state and local governments-we can recharge our economy and emerge from this crisis as a stronger, more prosperous nation. …

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