May 23, 2003
State Lawmakers Applaud Economic Recovery Compromise
State-federal partnership key to economic growth
WASHINGTON, D.C. - The nation's state lawmakers applauded the U.S. House and Senate conferees for the compromise reached on the federal economic stimulus package.
"The National Conference of State Legislatures has always said that any successful economic recovery plan must recognize the importance of states in economic recovery," said Oklahoma Senator and NCSL President Angela Monson. "This compromise does just that. The state assistance package included in the conferee's report will provide states with the resources to minimize the effects of state cost-cutting measures."
As states have had to close more than $200 billion worth of budget gaps since fiscal year 2001, many state legislatures have been forced to consider many cost-cutting measures that would have hampered economic recovery efforts. Most states have already considered laying off state personnel, postponing or canceling capital projects, imposing across-the-board cuts and raising higher education tuition and fees.
The agreement reached between the U.S. House Ways and Means Committee and U.S. Senate Finance Committee includes $20 billion in state aid. $10 billion of which is earmarked for Medicaid while the other $10 billion is to be used at the states' discretion. A recent NCSL survey showed states are facing a collective $53.5 billion budget gap for fiscal year 2004.
"Like the federal government, states are dedicated to getting the nation's economy back on track," said Monson. "We stand ready to work with Congress, the Administration and the private sector to do our share to achieve this goal."
NCSL led a coalition of state and local government groups that insisted that fiscal assistance was an integral part of economic recovery and be included in any tax reconciliation legislation.
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