WASHINGTON, D.C. – With most every state government faced with declining revenues and escalating costs, Governor Jon S. Corzine today told the U.S. House Appropriations Committee that a new federal economic stimulus package is needed to keep states in the black, retain jobs, and boost the nation out of the current economic recession.

“Each state has departments and agencies to deliver critical services and assistance to the people far more quickly than the federal government. We already have the apparatus,” Governor Corzine said. “It will be devastating to the entire national economy and there will be a negative multiplier effect if we fail to maintain spending on essential services.”

Noting that New Jersey is facing about $4 billion in budget cuts over a two-year period, Governor Corzine said that nationwide, this could add up to hundreds of billions of dollars when multiplied across the 50 states. The result of those collective cuts, he said, will result in significant job losses, declining business revenues, and ultimately an overall drop in the national gross domestic product.

Governor Corzine proposed that Congress approve a federal stimulus package aimed at state governments, with the ideal range being at least 4 to 5 percent of GDP. Targeted programs for the funds could include school spending, public infrastructure projects, and the development of green collar jobs.

In addition, he said, states need help with Medicaid and unemployment expenses, especially in light of the increasing number of jobless in need of assistance. The federal government also needs to fully fund their share of mandated education costs and lend assistance to stem the tide of housing foreclosures, he said.

“The federal government and the states need to be partners,” Governor Corzine said. “We must help people now while laying the foundation for future growth”

(YWN Desk – NYC)