Press Conference RE: Fiscal Relief for the States

PRESS CONFERENCE RE: FISCAL RELIEF FOR THE STATES

SEN. MURRAY: Well, thank you, Senator Daschle, for your work on this. And I also want to thank Senator Rockefeller for his tremendous leadership in fighting for state fiscal relief, as well as Senator Jon Corzine.

It has been an honor working with all of these members on this critical issue and I look forward to working together on the floor this week to increase aid to our states. In my home state of Washington, people are really hurting. Washington State is now ranked second in the nation in unemployment. And last month the state's unemployment rate hit 7 percent. In fact, since the spring of 2001, we have lost tens of thousands of jobs in Washington State. In the past two years alone, in Washington State we have faced an earthquake, an energy crisis, the bursting of the high-tech bubble, the departure of Boeing and the loss of thousands of jobs. And now we face a state budget deficit of $2.6 billion.

That could translate into dramatic cuts in education, health care, transportation and social services. And these programs are more important than ever now, because times are so tough.

Unfortunately, we know across the nation many other states are doing no better. Today our states are experiencing the most severe economic crisis since World War II. Nationwide, states are facing deficits totalling $70 (billion) to $85 billion. Experts are warning us that 1.7 million people nationwide risk losing Medicaid coverage as states cut their budgets.

But unlike the federal government, states don't have the option of deficit spending. Instead, states are forced to cut existing programs or raise new revenues to balance their budgets.

To add to the state budget crisis, the federal government has created new mandates and new costs. The No Child Left Behind Act required states to implement new accountability measures, but the assistance that was promised at that time was never delivered.

On homeland security, state and local law enforcement have to work overtime every time the threat level is raised. And increased federal efforts at our nation's borders have flooded our courts with criminals. These added prosecutions and jail sentences are paid for now by our state and local government. I can tell you that Whatcom County in my state is feeling a tremendous impact from this.

Unfortunately, in response to the crisis in our states, the president proposed nothing—nothing—to help them. It's like the famous newspaper headline "Ford to City: Drop dead." And the House of Representatives followed the president's lead.

It took Democratic efforts in the Senate to add support that our states so desperately need. I'm proud of the work that the Democrats have done to add $20 billion to the tax legislation to help our states get through this difficult time. This is a major accomplishment, considering the president's plan included absolutely nothing.

But while $20 billion is a victory, in our current political environment, we all know that it is still not enough to help our states recover quickly. During the floor debate on this tax cut, I will offer an amendment to provide an additional $20 billion in state aid. My amendment will help states address their Medicaid shortfalls. This will help our states get through the crisis without eliminating health care. It will also help states deal with education, as many state universities and community colleges are facing double-digit tuition increases.

I'm committed to working on the floor and in conference to protect the Democratic increase for our states and to fight for assistance that is going to help our states recover from this economic downturn. I hope that my friends on the other side of the aisle and at the other end of Pennsylvania Avenue listen hard to the hardworking Americans outside the Beltway, and I hope that they will work with us to pass a real, responsible and effective stimulus plan to help our cash-strapped states and get this economy moving again.

Thank you very much.