President-elect Barack Obama's meeting with U.S. governors to discuss the details of an economic stimulus plan attracted significant attention in the media. ABC World News (12/2, story 4, 2:40, Gibson) reported governors "are asking for $175 billion in aid for infrastructure projects and money for Medicare. Absent money from Washington, the states and cities are cutting back big time." ABC (Muir) described how states and cities were cutting funding for public services adding, "Cuts are big and small across this country. And the real problem, say so many lawmakers, is that this is just the beginning. In Ohio alone tonight, they face a $640 million shortfall right now. A potential $7 billion deficit next year, Charlie."
NBC Nightly News (12/2, story 2, 2:25, Guthrie) reported, "Across the country, it is a bleak state of affairs, with mounting job losses and the housing meltdown, state income and property tax revenues are falling, while demand for state services is rising. A snapshot, California, hard hit by the mortgage crisis, faces a budget shortfall of $31.7 billion. New York, the epicenter of Wall Street's woes, $6.4 billion. Florida, with rising Medicaid costs, $5.1 billion. And Illinois, losing millions in sales tax revenues, has a shortfall of $1.8 billion. Some energy-rich states like Alaska and Texas fared better for a while but a drop in oil prices may change that. And because most states are required by law to balance their budgets, going into debt is not an option, leaving few alternatives, cut services, layoff workers or raise taxes."
Focusing on calls for additional infrastructure spending the CBS Evening News (12/2, story 3, 2:25, Reid) reported, "It's still seven weeks until Barack Obama gets sworn in as President, but he's already getting squeezed for billions in federal spending. No ordinary lobbyists, these are the nation's governors who, like the rest of the country, are facing desperate times." Obama: "Jobs are being cut, programs for the needy are at risk, libraries are being closed and historic sites are being closed." Reid: "Over the next two years, 43 states are expected to face budget deficits, likely forcing some to slash spending to the bone."
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