Less money for the budget
The governors of America, forced to balance their own budgets, and are asking for help from Washington. Both the Republicans and Democrats say that everyone is facing tough fiscal situations although the economy seems to start and recover. Some of the measures taken by the governors to ease the financial problems were cutting budgets, the restructuring of the government, laying off workers and starting to empty rainy day funds. The governors say that they believe that the states will not be able to get over the recession by their selves and they renewed the appeal to the Congress to approve the stalled jobs legislation, which will bring aids of billions of dollars.
If The House and Senate did not approve the extension of the federal stimulus program through June 2011 which helped the last year unemployment insurance with 35.5 billion dollars in unemployment benefits, health care with 16 billion dollars and public safety with 33 billion dollars.
State budgets have suffered for two years because money coming from sales, income and property taxes were fewer than anyone expected when people lost their jobs and stopped spending money. The federal government reports economic growth, but the National Association of State Budget Officers says that the fiscal conditions are still deteriorating. States are expected to deal with budget deficits of 296.6 billion dollars between the years 2009 and 2012, so the next years will be just as tough although increases in tax collections will be modest.
